Question

Retailers provide important functions that increase the value of the products and services they sell to consumers. Which of the following is NOT a value-creating activity performed by a retailer?

1) Product promotion
2) Customer service
3) Inventory management
4) Manufacturing

Answer 1

Manufacturing is not a value-creating activity performed by a retailer.

Step-by-step explanation:

The value-creating activities performed by a retailer include product promotion, customer service, and inventory management. However, manufacturing is not a value-creating activity performed by a retailer.

Retailers do not engage in the production or manufacturing of the products they sell. Instead, they purchase products from manufacturers or wholesalers and then sell them to consumers.

For example, a clothing store may purchase clothing items from various manufacturers or wholesalers and then sell them to customers. The store may engage in product promotion to attract customers, provide customer service to assist shoppers, and manage its inventory to ensure it has a sufficient supply of products.