ch 13

Question 1

define distribution

Answer 1

is the delivery of goods from the producer to the customer

Question 2

distribution channel

Answer 2

the route taken by a producer and the consumer
how the product gets to the customer
ex wholesaler or retailer

Question 3

intermediaries

Answer 3

a link between a producer and the customer ex wholesalers or relaters

Question 4

direct

Answer 4

selling directly to customers no middleman

Question 5

What are some examples of direct selling

Answer 5

The internet(website)
Direct mailing - a lot of financial services do(post)
Door-to-door selling e.g. energy suppliers(going to houses and offering and trying to convince)
Mail order catalogs e.g. Next
Direct response adverts - adverts in newspapers people respond to e.g. plumber
Shopping parties e.g. jewelry (going to parties and trying to convince to buy products)
Telephone shopping - legal service e.g. PPI

Question 6

dis of direct

Answer 6

some methods you cant physically see or touch the product until purchase

Question 7

retailers

Answer 7

buy from whole or manufacture and sell in units/small quantities straight to customers
they can add value (info)they buy in large amounts from whole of producer and sell in small this is called breaking bulk

Question 8

agent

Answer 8

an intermediary that brings together buyers and sellers

Question 9

factors

Answer 9

1)the nature of the product
services are sold directly
Every day cant be sold direct
luxury are usually direct (exclusively)
complicated products are usually agent
2)cost
3)control
4)the market(mass or niche)

Question 10

How does social trends change distribution change?

Answer 10

1-growth of online shopping
2-larger shopping centers
3-

Question 11

e-commerce

Answer 11

is the buying and selling of goods online
using electronic systems to sell goods and services

Question 12

What is the benefit to consumers of online distribution?

Answer 12

its cheaper as online retailed have lower costs
Can shop 24/7
Generally a large choice
You can shop anywhere

Question 13

What is the benefits to businesses of online distribution?

Answer 13

e-tailers have less costs than operating stores(overheads)
lower start up cost (both fixed and variable)
Lower costs when processing transaction
Less paper needed, for invoices/receipts
B2C can offer goods to a wider market(wider customer base)
You can serve customers 24/7(higher sales)
You have more choices where to locate your business

Question 14

dis of online distribution

Answer 14

1)high competition
2)lack of human contact( cant see or touch the product)(no communication or connection with customers)
3)could be technical issues(bad internet or website crashes)
4)could be security risks e.g. hacking or virus
5)customer can’t physically see products before
6)Exclusion of so customers without access to internet or credit card
7)People aren’t always available for the delivery so not always convenient