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Question
Explain how the 'product-related factors' affect the choice of channels of distribution?
Solution
The choice of a channel of distribution depends on the type of product, i.e. perishable or non-perishable, industrial or consumer product, low value or high value and complex or simple.
For example, in case of perishable goods, short channels of distribution would be more suitable. Similarly, for consumer products, long channels are used, while for industrial products, short channels are used
| Product Type | Channels of Distribution |
| Industrial | Short as industrial products are technical and high priced, thus purchased by few buyers |
| Consumer | Long as consumer products are standardised, cheap and are purchased by many buyers on a regular basis |
| Perishable | Short |
| Non-perishable | Long |
| Low unit value | Long |
| High-value product | Short |
| Complex | Short; requires expert advice and guidance |
| Simple | Long; expert advice and guidance are not required |
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