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- Where customers are few, the manufacturer would use intermediaries.
- Geographic concentration of market /Nature of the market.
- Where the market is centralized in a few geographical areas, direct distribution is okay. However , seller would use intermediaries in less concentrated markets.
- Order size – It is economically feasible to sell directly to customers who can buy their goods in large quantities. The producers would use intermediaries to sell customers who buy in small quantities.
Unit value of the product – products of high unit value can be distributed directly to the customers due higher risks they are likely to be exposed to if longer channels of distribution were used.
Perishability of the product – Products that are subject to physical or fashion, perishable must be sold through short, fast channels hence such goods mostly go directly to the customers.
Technical nature of the product – Goods of highly technical nature are normally sold directly to the customers as the seller ought to provide considerable pre-sales and after sales service.
Financial resources – A producer who is financially strong can afford to distribute to consumers.
steve williams answered the question on January 1, 2018 at 06:40
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