Chapter 11.3, Problem 1R

To determine

To state: Importance of the following terms.

Answer to Problem 1R

Channels of distribution is important as it creates a link between manufacturers and ultimate consumers.

Explanation of Solution

Channels of distribution refers to the route through which the products are supplied from manufactures to ultimate consumers. As we all know, production happens at a single place whereas the consumption happens all over the country and even abroad, so channels of distribution is important as it creates a link between the two.

Wholesalers, again, are an important link to the consumers. They buy products from the manufacturers in large quantities and sell them to different retailers in small quantities.

Retailers create the link between manufacturers and consumers. They are the final point from where the goods are sold to the ultimate consumers.

E-commerce refers to the transactions of the business that occur over the internet through a website. It offers door- to- door services to the consumers and therefore, quite favorable these days.

Economics Concept Introduction

Introduction: Decisions regarding distribution i.e. movement of goods from where they are produced to the consumers is an important function of marketing.