Question

Which of the following statements is true about retail patterns?

A) Small dominant retailers can be sold to directly, but there is no adequate way to reach large retailers who handle a great volume of sales.
B) The extremes in size in retailing are drastically different from those that are observed in wholesaling.
C) Selling directly to the consumer is often the approach of choice in markets with sufficient or developed distribution systems.
D) Retailing shows greater diversity in its structure than does wholesaling.
E) Direct sales through catalogs have not proved to be a very successful way to enter foreign markets.

Answer 1

The true statement about retail patterns is that retailing shows greater diversity in its structure than wholesaling, given the various types of retail establishments and the competitive landscape characterized by a mixture of many competing firms with different products and market strategies.

Option 'd' is the correct.

Step-by-step explanation:

The question regarding which statement is true about retail patterns draws attention to various aspects of the retail industry, which is highly diverse and has gone through significant evolution and changes over time.

Most notably, retailing presents a variety of structures and competitive markets that differ in size, approach, and reach.

Referring to option D, retailing shows greater diversity in its structure than does wholesaling. This is a true statement given the complexities and differences that exist within the retail sector.

In retail, there are vast differences in how stores operate, their size, and their target markets. From small family-run shops to major department stores and online giants like Amazon, each type of retailer has a different approach to reaching consumers. The competitive landscape in retail is also quite varied.

For example, monopolistic competition illustrated by the Mall of America's variety of women's clothing stores, shows that while there are many competitors, they all offer slightly different products and shopping experiences.

Therefore, the right answer to the question 'Which of the following statements is true about retail patterns?' is D) Retailing shows greater diversity in its structure than does wholesaling.