Question

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

Answer 1

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 retailer cooperative.

Step-by-step explanation:

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 retailer cooperative. Retailer cooperatives are nonprofit, voluntary associations formed by independent retailers to pool their resources and increase their buying power. By collaborating, they can negotiate better prices with suppliers and compete more effectively with larger retail chain stores.

For example, Sam's Club and Costco are consumer cooperatives that purchase items in bulk and pass on the savings to their members. These cooperatives are owned and operated by a group of individuals for their mutual benefit. Similarly, producer co-ops like Dairy Farmers of America and Land O'Lakes work together to get the best possible prices for their products.