1.3.4 Distribution

Question 1

What are the 4 main intermediaries through which goods/services can move through?

Answer 1

/Producer
/Wholesaler
/Retailer
/Consumer

Question 2

What is an agent?

Answer 2

An agent can help get the product of service from one to another, somewhat like a middleman to help take the work off your shoulders.

Question 3

What is the four stage distribution channel?

Answer 3

A traditional channel consists of four stages: producer, wholesaler, retailer, and consumer. This channel is commonly used for products such as groceries, clothing, and electronics.

Question 4

What is the three stage distribution channel?

Answer 4

The three stage distribution channel eliminates the wholesaler stage, with the producer selling directly to the retailer. This channel is often used for products with high demand or where the cost of distribution is high.

Question 5

What is the two stage distribution channel?

Answer 5

The two stage distribution channel eliminates both the wholesaler and retailer stages, with the manufacturer selling directly to the end consumer. This channel is commonly used for products that are sold online or through direct sales channels.

Question 6

Explain how the growth of e-commerce can effect distribution?

Answer 6

Online distribution has become increasingly popular due to the convenience and accessibility it offers to consumers. For example dropshipping.

Question 7

Explain how the shift from product-based businesses to service-based businesses?

Answer 7

Consumers increasingly value experiences over material possessions and this shift has impacted distribution, as the delivery of services is often quite different from the delivery of physical products.