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What factors may a trader consider when determining the appropriate channel for distributing goods?

Describe factors that a trader may consider when determining the appropriate channel for distributing goods.

Answers

Maurice
(i) The size of market where consumers are few a shorter channel may be appropriate.

(ii) Nature of competition,stiff competition requires direct link with consumers.

(iii) The nature of the goods for example, perishable goods may require a shorter channel of distribution.

(iv) Needs to keep control of the goods, if the producer wants to keep track from the beginning to the end he will distribute directly.

(v) Ability of the firm to access most of his customers/ location of the market for scattered customers a longer channel may be used.

(vi) Cost of the channel- Use one which the distributor can afford.

(vii) Government policy where the government requires a particular channel to be used the producer will have no choice.
maurice.mutuku answered the question on July 19, 2017 at 12:14

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