Question

Explain any four factors affecting channels of distribution with relation to the nature and quality of the product being distributed.

Answer 1

Factors affecting channels of distribution with relation to the nature and quality of the product are as follows:

1. Nature of Product:
   1. Perishability: In order to reach consumers quickly before going bad, perishable goods such as fresh fruits, vegetables, and dairy products need a quicker distribution route. To preserve freshness, direct distribution or fewer middlemen are recommended.
   2. Durability: Because they aren't affected by time, durable products, including furniture and appliances, may afford to have longer distribution routes. These products can be distributed and stored for longer periods of time by wholesalers and retailers without suffering appreciable quality degradation.
2. Complexity of the Product:
   1. Technical Products: Items that are complicated or need after-sales support, such machinery or electronics, frequently call for expert middlemen who can give customers the guidance and data they need. These products are better suited for direct sales or specialty merchants.
   2. Standardized Products: A lengthier distribution "channel" with several middlemen might be efficient and economical for standardized products that don't need a lot of explanation or help, such basic household goods.
3. Unit Value of the Product:
   1. High-Value Products: Pricey goods such as jewels. Shorter and more direct distribution routes are frequently used by luxury automobiles and high-end goods to maintain exclusivity and guarantee security. These goods may be offered directly by the producer or through "exclusive showrooms."
   2. Low-Value Products: Low-priced goods like snacks or low-cost home goods. can be made widely readily accessible by using longer distribution channels with several middlemen.
4. Product Lifecycle:
   1. Introduction Stage: Businesses may employ a more restricted distribution channel for new products in order to closely monitor and manage their introduction and first reception. During this phase, direct sales or exclusive retailers might offer important input.
   2. Maturity Stage: When demand levels out and the product becomes more widely accepted. To increase reach and sales volume, businesses may broaden their distribution networks to include wholesalers, bigger retail chains, and internet platforms.