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Short Answer Questions · Q10

Q.State any three factors that influence a manufacturer's choice of a distribution channel.

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A manufacturer's choice of distribution channel is shaped by several practical factors, of which three are:

  1. Nature of the product: perishable goods (needing to reach the consumer quickly) and technical or made-to-order goods (needing direct explanation or servicing) generally favour short, direct channels, while standardised, durable, low-value goods bought frequently by many consumers suit longer channels.
  2. Size and geographical spread of the market: a small, concentrated market can reasonably be served through a direct or short channel, while a large market spread across many towns or regions usually needs a longer channel with wholesalers, and sometimes agents, to achieve adequate reach. …

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