A group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts is referred to as a ________.
A) factory outlet mall
B) retailer cooperative
C) corporate chain
D) warehouse club
E) voluntary chain

Question

Quizplus · Accepted Answer

A retailer cooperative is a group of independent retailers who come together to form a jointly owned wholesale operation and carry out joint merchandising and promotional activities. This allows them to achieve economies of scale and compete more effectively with larger chains while maintaining their independence. The other options either do not involve independent retailers joining forces (factory outlet mall, corporate chain) or have a different business model (warehouse club). A voluntary chain is also a group of independent retailers, but they do not necessarily have a jointly owned central wholesale operation.

A Group of Independent Retailers That Bands Together to Set