Question

Explain how the 'product-related factors' affect the choice of channels of distribution?

Answer 1

The choice of a channel of distribution depends on the type of product, i.e. perishable or non-perishable, industrial or consumer product, low value or high value and complex or simple.
For example, in case of perishable goods, short channels of distribution would be more suitable. Similarly, for consumer products, long channels are used, while for industrial products, short channels are used

Product Type	Channels of Distribution
Industrial	Short as industrial products are technical and high priced, thus purchased by few buyers
Consumer	Long as consumer products are standardised, cheap and are purchased by many buyers on a regular basis
Perishable	Short
Non-perishable	Long
Low unit value	Long
High-value product	Short
Complex	Short; requires expert advice and guidance
Simple	Long; expert advice and guidance are not required