What value is added to a product by retailers? What value is added by retailers for producers and ultimate consumers?
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:
Lastly, retailers add significant value to a product for consumers by:
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.
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.