Final answer:
Retailers provide value by offering money-back guarantees and building a good reputation, important for encouraging purchases and gaining trust from customers who cannot physically examine products before buying.
Step-by-step explanation:
Retailers provide value to both manufacturers and customers by offering various policies and services that encourage purchase and customer loyalty. One such policy is a money-back guarantee, which serves as a promise of quality and reassures customers, especially important in environments where the physical examination of products isn't possible, such as online shopping or mail-order catalogs.
The rationale for these guarantees is to foster customer retention and to encourage them to recommend the retailer to others, building a good reputation. This reputation is critical because it allows established retailers to charge premium prices compared to temporary or less-reputable vendors. Repeat customers and recommendations are highly valuable in retail and signify trust in the quality of products and the retailer's commitment to customer satisfaction.