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Difficulty: EasyChannels of Distribution

A dairy farmer produces fresh, highly perishable raw milk daily for nearby household buyers. Which of the following distribution channels is most appropriate to minimize spoilage and ensure rapid delivery?

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

Answer

Producer → Consumer
Perishable goods require a direct or short channel of distribution to prevent spoilage and reach consumers in optimal condition.

Step-by-Step Solution

1
Identify the nature of the product
The product is fresh raw milk, which is highly perishable and time-sensitive.
Product characteristics dictate the appropriate channel length.
2
Select the optimal channel structure
The direct channel (Producer → Consumer) bypasses all middlemen.
Direct selling ensures the fastest delivery time and minimizes handling, preserving product freshness.

Key Concept

Product suitability in selection of channels of distribution
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Topics

Channels of Distribution

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