Question

Mail order houses are confronted with the problems like _______.

• A. damage of goods in transit
• B. excessive operating cost
• C. credit policies
• D. all of the above

Answer 1

Answer: (D)

all of the above

1. Lack of personal contact

In mail order business, the producer/seller and customers cannot have direct personal contact with each other. The customers cannot get as much satisfaction as desired from the goods. As a result, they may be attracted to other retailing institutions to buy necessary goods.

2. unnecessary delay

Unnecessary delay is a major disadvantage of mail order business. As in this method of purchase order takes a comparatively long time to reach the producers' hand and also to give delivery of goods to buyers by mail, mail order business is a delay-making business.

3. Lack of selection of goods

in mail order business, the customers cannot inspect goods; they cannot get the selection facility and buy preferred goods.