Channels of distribution - SS1 Commerce Past Questions and Answers - page 2
What do wholesalers typically do in the distribution process?
Sell products directly to consumers
Purchase goods from manufacturers in bulk
Act as sales representatives for manufacturers
Which type of distribution channel involves independent entrepreneurs selling products under an established brand?
Franchising
Agents
Distributors
What is the role of agents in the distribution process?
Purchase products in bulk from manufacturers
Act as intermediaries between manufacturers and retailers
Own and operate their own retail stores
Which distribution channel allows manufacturers to have complete control over the customer experience?
Wholesalers
Retailers
Direct distribution
What is the difference between direct and indirect distribution channels?
Direct distribution involves the manufacturer selling products directly to the end consumer, while indirect distribution involves the use of intermediaries such as wholesalers, retailers, distributors, or agents.
How do distributors contribute to the distribution process?
Distributors purchase products from manufacturers and sell them to retailers or other businesses. They have established networks and expertise in distribution, helping manufacturers reach a broader market and ensuring efficient product delivery.