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Channel of distribution (factors that affect the choice of choosing the…
Channel of distribution
levels
one-level channel
selling to retailers, then retailers sell direct to customers, e.g. Walmart, Home Depot, Best Buy, Tesco.
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Zero-level channel
uses no intermediaries so the manufacturer sells directly to the customer, e.g. farmers
that sell their agricultural produce straight to consumers.
The internet has created an alternative channel for producers to sell direct to the consumer, e.g. Amazon,
Taobao and iTunes.
three-level channel
uses an agent (perhaps to sell the product overseas) who sells the goods to wholesales
on behalf of the producer.
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