Groceries and More sells a wide range of foods and household supplies within a suburb of a large city. The store frequently advertises that its prices are much lower than the prices charged by larger supermarket chains in the area. This low-price approach means that Groceries and More is a classic example of a merchant wholesaler.

Question

Quizplus · Accepted Answer

The distinction between wholesalers and retailers is not based on whether prices are high or low, but rather on the types of customers these marketing intermediaries serve. A retailer sells to final consumers. A wholesaler sells to organizations and individuals who are not final users of the product. Since Groceries and More is selling to households (who are final users), it would be classified as a retailer.

Groceries and More Sells a Wide Range of Foods and Household