Commercial Applications
In which distribution channel is a producer relieved from the problem of distribution?
- Manufacturer - Wholesaler - Retailer
- Manufacturer - Agent - Retailer - Consumer
- Manufacturer - Consumer
- Manufacturer - Agent - Wholesaler - Retailer - Consumer
Answer
Manufacturer - Agent - Wholesaler - Retailer - Consumer
Reason — The Manufacturer - Agent - Wholesaler - Retailer - Consumer is the longest channel of distribution. It is used when the manufacturer wants to be fully relieved of the problem of distribution. The producer hands over the entire output to the selling agent who handles further distribution.
Related Questions
Which pricing strategy involves charging according to their competitors?
- Penetrating pricing
- Cost Plus pricing
- Skimming pricing
- Parity pricing
Assertion (A): Parity Pricing is the most logical strategy when it is very difficult to calculate the cost of the products.
Reason (R): When price leadership is well established, setting price according to the competitors is the safest policy.
- (A) is true and (R) is false.
- Both (A) and (R) are true and (R) is the correct explanation of (A).
- Both (A) and (R) are true but (R) is not the correct explanation of (A).
- Both (A) and (R) are false.
Direct selling, as a channel of distribution, has become popular due to the ……………
- availability of expert services of middlemen
- concentrated markets
- relief from the problem of distribution
- increasing cost of distribution
With reference to growth stage of Product life cycle, which statement is/are NOT correct?
(1) New models of products are introduced.
(2) Sales fall down sharply.
(3) Distribution is widened.
(4) Prices are at competitive levels.
- 1 and 3
- 2 and 3
- 3 and 4
- Only 2