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Question

Difficulty: EasyChannels of Distribution

A local baker produces fresh bread daily with a very short shelf life and wants to sell directly to local neighborhood residents. Which channel of distribution is most suitable for this baker?

  1. Producer → ConsumerAnswer
  2. B
    Producer → Wholesaler → Retailer → Consumer
  3. C
    Producer → Agent → Wholesaler → Retailer → Consumer
  4. D
    Producer → Retailer → Wholesaler → Consumer

Answer

The direct channel (Producer → Consumer) is the most suitable distribution channel for highly perishable items like fresh bread.
Direct selling from the producer straight to the consumer ensures that fresh bread reaches buyers quickly without delays caused by warehousing or holding by middlemen.

Step-by-Step Solution

1
Analyze product characteristics
Bread is a highly perishable good with a short shelf life that requires fast delivery.
Product nature dictates the speed and length of the required distribution network.
2
Evaluate channel lengths
The direct channel (zero-stage channel) eliminates all intermediaries, ensuring rapid transfer from maker to buyer.
Fewer intermediaries reduce transit time and prevent product spoilage.

Key Concept

Direct Channel of Distribution for Perishable Goods
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Topics

Channels of Distribution

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