Discuss the role of intermediaries in the distribution of consumer non durable products.
Answers
SOLUTION :
The role of intermediaries in the distribution of consumer non durable products are :
(a) Sorting :
The middleman obtain supplies of goods from various producers or wholesaler which are in different sizes, quality and nature. The middle men classify them into different quality and size.
(b) Accumulation :
The middleman collects varieties of product from various sources and make them available at Central part of the distribution.
(c) Allocation :
The intermediaries break the large lots of goods into smaller lots so that these can easily be sold in the market.
(d) Product promotion :
Sometimes the middleman also involved themselves in demonstration, special displays , contests etc. which are normally done and borne by the manufacturers.
(e) Negotiation :
Channels of distribution negotiate not only with the manufacturer's but also with the customers too on the price, quantity, quality, guarantee, warrantee matters and help in transfer of ownership of product.
(f) Risk taking :
Channels of distribution store of goods in their custody and make them available when the demand arises. Thus they assume the risk of storage, price fluctuations, spoilage, fall in demand etc.
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Answer:
Intermediaries play an important role in the distribution of consumer non-durables. They facilitate the transfer of goods from the place of production to the place where they are consumed. ... He then sorts these goods into homogeneous groups based on their characteristics such as size, quality, etc.