This textbook is available Logo
Marketing 2018 19th Edition

Marketing 2018 (19th Edition)

Book Edition19th Edition
Author(s)Ferrell, Pride
PublisherCengage Learning
Chapter 15, End of Chapter , Discussion and Review Questions , Exercise 1
Page 487

What value is added to a product by retailers? What value is added by retailers for producers and ultimate consumers?

Here is a tip:

Retailers are intermediaries who purchase products from producers and resell them to ultimate consumers.


Retailers add significant value to a product for both producers and consumers. The value of a product refers to the satisfaction that an individual derives by transacting a product. In order to attain value to a product, the utility derived from it must exceed the sacrifice of dollars spent on its purchase/ sale.


Producers aim to increase the sales and awareness about a product. Retailers add significant value to a product for producers by:

  • Engage in the use of banners of the desired product. This helps in attracting potential customers. 
  • Provide special discounts to generate the sales.
  • Ensure that the products are organized properly. This makes it easier for the customer to fetch the right product in a hassle free manner. Thus, sales for the desired product increase.


Lastly, retailers add significant value to a product for consumers by:

  • Providing services.
  • Making consumers aware of a wide range of products or services.
  • Assisting in evaluating alternatives.
  • Demonstrating about product's features which can help consumers decide which product can satisfy their needs. 
  • Offering discounts, rewards, offers, etc. Customers usually feel satisfied when they spend less to purchase a high priced product.


Services, environment and knowledge offered to customers by retailers can enhance consumers' purchase experience and influence their attitudes and perceptions towards the product or a brand. 

Verified Answer

Retailers add value to a product by providing economical, psychological, and after sale services. These services include technical advice, delivery, credit, repair, discount, etc. 


Retailers enhance value for producers by providing a conducive environment to facilitate sale of  their products or services to ultimate consumers. 

Finally, retailers add significant value for consumers by offering services, helping them with product selection, showing them various alternatives to facilitate comparison of products, and product demonstration,etc. Such activities shape consumers' attitudes and perceptions towards the product.

How would you rate this answer and explanation?
Did you like this example?
Subscribe for full access
Page 487