Distribution - JSS2 Business studies Past Questions and Answers - page 2
What is distribution, and why is it important in business?
Distribution refers to the process of getting a product from its point of production to the end consumer. It is important in business because it ensures that products are available to customers when and where they need them, ultimately driving sales and revenue.
Describe the role of wholesalers in the distribution channel.
Wholesalers purchase goods from manufacturers in bulk and sell them to retailers in smaller quantities. They provide services such as warehousing, transportation, and bulk buying, making it easier for retailers to access a variety of products.
How do retailers contribute to the distribution process?
Retailers sell goods directly to consumers, operating at the final stage of the distribution channel. They provide a variety of products, convenient locations, and personalized services to meet the needs of consumers.
What are some functions performed by producers/manufacturers in the distribution channel?
Producers/manufacturers are responsible for creating and producing goods, ensuring they meet specified standards, and packaging them appropriately for distribution.
When does production end, and what happens afterward?
Production ends when the manufacturer ceases to produce a particular product. After production ends, existing stocks may still be available in the market until depleted, after which the product may become obsolete or replaced by newer alternatives.
How do consumers influence the distribution channel?
Consumers play a crucial role in the distribution channel by purchasing goods from retailers for personal use. Their buying behavior and preferences drive demand, which ultimately influences production and distribution decisions made by manufacturers, wholesalers, and retailers.