Business Essentials (12th Edition) (What's New in Intro to Business)
Business Essentials (12th Edition) (What's New in Intro to Business)
12th Edition
ISBN: 9780134728391
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
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Chapter 13, Problem 13.1QR
Summary Introduction

To describe: With an example the types of distribution channels that may be used to get products from manufacturers to the end users.

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Explanation of Solution

Types of distribution channels that may be used to get products from manufacturers to the end users with examples for each:

The types of distribution channels that are used to get products from manufacturers to end users are,

  • Channel 0: Direct selling of products to the end customers without retailers. Examples: Company D sells its products to the end customers without any intermediaries.
  • Channel 1: Selling to end customers using a retailer. Example: Many companies like Company W and Company T establishes its retail showroom to sell its product to the end customer without using intermediaries.
  • Channel 2: Selling of products using both retailer and wholesaler. Example: Company C which is a wholesaler buy products from manufacturers in bulk quantity and then sells to the customers.
  • Channel 3: Using agents or brokers before the wholesaler or retailer. Here more than one intermediaries come into work where the agent negotiates between the producer and seller. Examples: Companies which produces perishable goods where the products have to reach the end user before its rot uses agents as intermediaries.

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