Chapter 38 Place

Question 1

Distribution Channels

Answer 1

The route taken by a product from the producer to the consumer.

Question 2

Who are WholeSalers?

Answer 2

people or businesses that buy goods from manufacturers to sell them in smaller quantities to retailers

Question 3

Retailers

Answer 3

Businesses that buy goods from manufacturers and wholesalers and sell them in smaller quantities to consumers

Question 4

E-Tailing

Answer 4

use of commerce systems to sell goods and services

Question 5

Benefits to consumers of online distribution

Answer 5

It is cheap due to lower costs
Consumers can shop 24/7
A huge amount of choice
People can shop from anywhere as long as they have access to the internet

Question 6

Benefits of businesses of online distribution

Answer 6

E-tailers may not have to meet the costs of operating stores.
Low startup costs
Payments can be made and received online
Businesses can serve their customers 24/7
Have more choices when locating their operations.

Question 7

Disadvantages of Online Distribution

Answer 7

Businesses will face increasing competition since its a cheaper method.
Lack of human contact
Technical Problems online
Security Risk
Fake traders may be difficult to to identify online

Question 8

Methods of Direct Selling

Answer 8

The Internet - products are sold online
Door-to-door selling- Salespeople knock on doors, inviting customers to buy products

Question 9

Agent or Broker

Answer 9

An intermediary that brings together buyers and sellers

Question 10

What is an intermediary

Answer 10

A person or organisation that helps to arrange agreements or business deals between other people and organisations