A major function of the retailer is to

Step 1: Analyze the question The question asks for a major function of the retailer. The retailer is the last link in the chain of distribution, sitting between the wholesaler and the final consumer.

Step 2: Explain the concept The chain of distribution usually runs like this:

Producer → Wholesaler → Retailer → Consumer

• Wholesalers buy goods in very large quantities from producers. They store them and sell in large lots to retailers.
• Retailers buy from wholesalers in fairly large quantities and sell to final consumers in small quantities that individuals can afford and use.

The main functions of a retailer include:

1. Breaking bulk, which means dividing large lots into small units for consumers
2. Providing a convenient place where consumers can buy goods
3. Giving consumers information and advice about products
4. Granting credit to consumers (not to wholesalers)
5. Stocking a variety of goods so consumers can choose
6. Providing feedback to wholesalers and producers about consumer tastes

Step 3: Check each option

• A. Grant credit to the wholesaler: Wrong. The direction is reversed. Wholesalers grant credit to retailers, not the other way round.
• B. Break bulk and sell products in small units: Correct. This is the defining function of the retailer, since consumers need small quantities.
• C. Reduce cost of distribution: Not a core retailer function. Adding a retailer actually adds a link to the chain. Eliminating middlemen is what reduces cost.
• D. Generate demand for products through advertisement: This is mainly done by producers and manufacturers, though retailers may do some local promotion. It is not the major function.

Step 4: Answer The correct option is B. break bulk and sell products in small units.

Exam tip: Remember "Wholesaler = bulk buyer, Retailer = bulk breaker." Whenever you see "break bulk" in a question about retailers, it is almost always the answer. Also watch for options that reverse the direction of a relationship, like option A.