1.

Explain how the 'Product Related Factors' affect the choice of the Channels of Distribution?

Answer»

Product related factors affect the choice of channels of distribution:

(i) Industrial products being more technical, and made to order requires short channels in comparison to the consumer products being standardized and non-technical.

(ii) Perishable products like fruits, vegetables, etc. require short channels while non-perisable products like groceries, fabrics, etc. require longer channels to reach wide spread consumers.

(iii) If the unit value of a product is low as in case of most convenience products, long channels are preferred while, in case of high value products, shorter channels may be used.



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