B: Channels of Distribution

Front

What is the concept of distribution?

Back

Changes in factors affecting demand, such as consumer preferences, income, or the number of consumers, can shift the entire demand curve. An increase in demand generally leads to a higher equilibrium price and a higher equilibrium quantity.

Front

What are examples of direct distribution? Options: department stores, specialty stores, supermarkets, wholesalers, retailers, distributors, bulk distributors, cash and carry wholesalers, online sales, manufacturer-owned retail stores, door-to-door sales

Back

online sales, manufacturer-owned retail stores, door-to-door sales

Front

What are examples of the retailer channel of distribution?

Back

department stores, specialty stores, supermarkets

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What are examples of the wholesaler channel of distribution?

Back

bulk distributors, cash and carry wholesalers

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What is dual distribution?

Back

manufacturers selling through their website and also through retailers

Front

What is reverse distribution + one example?

Back

involves the return of products from consumers back to the producers; recycling programs

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What is selective distribution + one example?

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involves using a limited number of outlets to sell a product. This approach is often used for products with specific requirements or premium positioning. + luxury goods

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What is intensive distribution + one example?

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A distribution strategy that aims to make a product available through as many outlets as possible, commonly used for convenience products, such as snack foods.

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When is it most appropriate to use manufacturer-owned retail stores as a channel of distribution?

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When the manufacturer wants full control over the retail experience, including branding, pricing, and customer service

Front

When is it appropriate to use door-to-door sales as a channel of distribution? Options: for businesses looking to reduce distribution costs by eliminating intermediaries, when targeting specific demographics or geographic areas with tailored sales pitches, for niche or specialized products that require direct communication with consumers, for reaching a wide consumer base and providing convenient access to products

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when targeting specific demographics or geographic areas with tailored sales pitches