0 votes
3.4k views
in Business Studies Form 3 by
Explain five factors that influence choice of distribution channel

1 Answer

0 votes
by
  1. Nature of goods –where goods are easily perishable, short channels are applied
  2. Nature of market – consumers spread over a large area may need a larger channel
  3. Resources and size of the firm – the size of the firm determine the size of its market hence the channel to be used
  4. Role of intermediaries- Middle men perform different roles and will therefore determine the channel used.
  5. Government policy- various regulations may influence selection of the channel of distribution eg the government may demand sale of goods directly to consumers
  6. Competitors – a firm will select a channel that will compete favorably with the competitor
  7. Marketing risks – where manufacturer wants to avoid cost of distribution, they may use middlemen.
Welcome to EasyElimu Questions and Answers, where you can ask questions and receive answers from other members of the community.

6.3k questions

9.6k answers

6 comments

590 users

...