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paper 2
2)making market decisions
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Cards (8)
distribution
how
ownership
changes
as a product goes from
producer
to
consumer
retailer
a shop
selling
from a
building
in a
shopping
centre or
high
street
E-tailer
:
an electronic retailer -who purchases
electronics
through
M-commerce
or
E-commerce
methods of distribution
:
Retailers
:
Physical stores where customers can buy goods.
Allows customers to see, touch, and try products.
Common in
shopping centers
and main streets.
E-tailers (e-commerce)
Online stores like
ASOS
or
Amazon
.
Accessible
24/7
, allowing customers to shop anytime.
Often cheaper than physical stores due to lower
overhead costs
.
Distribution Channels
Methods to move a
product
from the
producer
to the consumer.
Traditional: producer → wholesaler →
retailer
→
customer
.
Direct: producer sells directly to the consumer, often through the
internet
.
Modern: producer →
superstore
→ customer.
Advantages-(
Retailers
):
Customers can physically experience products before buying (touch, smell, wear, etc.).
Easy to compare rival products.
Ability to choose
specific
items (e.g., lean meat or ripe fruit).
Instant access to purchased goods—no delivery wait.
Disadvantages-(
Retailers
):
Shopping
can be time-consuming, especially when comparing multiple options.
Overwhelming choice can lead to excessive time spent shopping.
Customers must carry everything themselves, which is difficult for those without a car.
To convince
retailers
to sell their product,
producers
will need to:
Show that the product offers something
unique
.
Demonstrate support through promotional activities.
Ensure an
acceptable
profit for the retailer.