| A | B |
|---|
| channel of distribution | path or route a product takes from producer to consumer |
| Producer | channel of distribution begins here |
| Ultimate consumer | channel distribution ends her |
| industrial user | business that buys goods to make other goods or use in business |
| Intermediary | channel member who operates between producer and consumer |
| Retailers | Elder Bierman, Sears, McDonalds |
| Wholesaler | buys in large quantities from producer and sells to retailer |
| Agent | Assist with sale but do not take title |
| Why producers use intermediaries | can reach more people than on its own |
| Per-unit cost | This is lowered when intermediaries buy in large quantities |
| Assortment of goods | A better one of these exists because producers are better able to match their production needs because of intermediaries |
| Transporting and storing | allows for products to be in the right place at the right time |
| Direct channel | producer to consumer |
| large retail chain | would most likely buy directly from producer |
| Indirect channel of distribution | Used to reach large retailers when the producer doesn't want to sell themselves |
| Producer to Industrial User | Most common channel for large industrial goods |
| Travel planning | Distributed by a producer to agent to consumer |
