Gujarat BoardEnglish MediumSTD 12 CommerceOCMMARKETING MANAGEMENT3 Marks
Question
Simpler the distribution channel, cheaper the product. Explain.
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Answer
There are several channels of distribution ranging from zero level distribution to three level distribution.
Simplest of all is the zero level channel whereas the three level is the most complex one.
In zero level distribution the producer sells his product directly to the customers. There are no mediators, agents, wholesalers or retailers involved. Naturally, the producer does not need to bear all the costs and commissions involved in maintaining these mediators. So, the producer can sell his product keeping minimum cost and sell it in the market.
Hence, it is said, simpler the distribution channel, cheaper the product.
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