Factors affecting choice of Channel of Distributions

1. Producer capabilities
Can producer open his own retail outlets?
2. Producer philosophy
Exclusive distribution (distribution at certain shops)
Extensive distribution (distribution at every shop)
3. Type of customer
Own use: from retailer
Business use: from producer
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P.Suthaharan : Commerce – G.C.E (Ordinary Level) 7
4. Size of order
Small: from retailer
Large: from producer
5. Nature of product
Perishable: small channel
Long shelf life: long channel
6. Value of product
Expensive: small channel
Cheap: long channel
7. Size of market
Small: small channel
Large: long channel
8. Nature of market
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