shops (2, 22, 28). Among all urban food retailers, however, these smaller scale merchants tend to have higher costs of operation and more difficulty coordinating with urban and rural wholesale suppliers for the provision of the mix of foods demanded by their customers. Unfortunately, this group of small urban retailers have not received adequate research and develop- ment program assistance, while the urban marketing reforms undertaken have tended to benefit larger scale retailers and wholesalers who serve middle and high income consumers (1, 29, 30, 31). Therefore, there is a special need for research to determine how small scale food retailing in both rural and urban areas can be improved through managerial and technologi- cal innovations which reflect each countries' labor and capital endowments and which contribute to more effective vertical market channel coordina- tion linking small scale merchants and farmers. In terms of overall evaluation of marketing channels, What evidence can be cited to indicate poor market performance with respect to a) costs of providing exist- ing services, b) effectiveness of vertical coordination mechanisms in communicating consumer demands to marketing firms and ultimately to farmers, c) adequancy of variety, quality and condition of products reaching consumers, d) effectiveness of product distribution over space and over time, e) progressiveness of public and private enter- prises in adopting new marketing practices, and f) equitability of the system in distributing benefits of marketing improvements?