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Channel of Distribution. GCP

Distribution channels refer to the paths through which goods and services flow from vendors to consumers, and payments flow in the opposite direction from consumers to vendors. They involve businesses or intermediaries that help sell or deliver products. Generally, the more intermediaries in the distribution channel, the higher the price may be for consumers. A direct or short channel from manufacturer to consumer can mean lower costs since there are fewer middlemen. The document provides an example of Otoguard Parking Hub which directly provides its services to customers through a short distribution channel.

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38 views1 page

Channel of Distribution. GCP

Distribution channels refer to the paths through which goods and services flow from vendors to consumers, and payments flow in the opposite direction from consumers to vendors. They involve businesses or intermediaries that help sell or deliver products. Generally, the more intermediaries in the distribution channel, the higher the price may be for consumers. A direct or short channel from manufacturer to consumer can mean lower costs since there are fewer middlemen. The document provides an example of Otoguard Parking Hub which directly provides its services to customers through a short distribution channel.

Uploaded by

Gia Porqueriño
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CHANNEL OF DISTRIBUTION

Distribution channels are the avenues or chain of businesses or intermediaries through

which they are used to sell or deliver products or services. They’re the paths through

which goods and services flow in one direction (from vendor to the consumer), and

the payments generated by them that flow in the opposite direction (from consumer to the

vendor).

Generally, if there are more intermediaries involved in the distribution channel, the price for

a good may increase. Conversely, a direct or short channel may mean lower costs for consumers

because they are buying directly from the manufacturer.

CUSTOMERS

Figure #. Distribution Channel of the Business

Otoguard Parking Hub directly renders its service to the customers.

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