Question

Distinguish between departmental stores and multiple shops on the basis of :

(a) Location (b) Credit facilities

(c) Services offered (d) Class of customers

(e) Pricing

Answer 1

$\begin{array}{cccc}\text{S.No}& \text{Basis of Difference}& \text{Traditional business}& \text{E-business}\\ \text{1.}& \text{Location}& \text{Centrally located, at a large}& \text{They are located at different places.}\\ & & \text{places for approaching a}& \text{Central location is not necessary for a}\\ & & \text{large number of customers.}& \text{multiple shop.}\\ \text{2.}& \text{Credit facilities}& \text{Departmental stores provide credit}& \text{All sales in multiple shops are made}\\ & & \text{facilities to some of their regular}& \text{strictly on cash basis}\\ & & \text{customers}& \\ \text{3.}& \text{Class of customers}& \text{The departmental stores cater to the}& \text{They cater to different types of customers}\\ & & \text{needs of relatively high income group}& \text{customers including lower income groups}\\ & & \text{who care more for services rather than}& \text{who are interested in buying quality goods}\\ & & \text{price.}& \text{at reasonable prices.}\\ \text{4.}& \text{Pricing}& \text{Departmental stores do not have uniform}& \text{Multiple chain shops sell goods at fixed prices}\\ & & \text{pricing policies for all departments. They}& \text{and maintains uniform pricing policies for all}\\ & & \text{occassionally offer discounts to clear their}& \text{the shops.}\\ & & \text{stocks.}& \\ \text{5.}& \text{Services offered}& \text{Departmental stores lay great emphasis}& \text{The multiple shops provide very little services}\\ & & \text{on providing maximum service to their}& \text{confined to guarantee and repairs if sold out}\\ & & \text{customers. Like rest rooms, kids play}& \text{goods turn out to be defective.}\\ & & \text{zone etc.}& \end{array}$