BUSN 1100 Chapter Notes - Chapter 14: Pricing Strategies, Predatory Pricing, Oligopoly

• School: Northeastern University
• Department: Business Administration
• Course: BUSN 1100
• Professor: Crittenden William

Document Summary

A distribution channel can include wholesalers, retailers and the internet. Channels are either direct or indirect through which a good or service passes until it reaches the end. Direct channels allow consumers to buy good from the manufacturer. Indirect channels exists when the consumer buys the good from someone other than the manufacturer. Some retailers sell products in only one or two product categories, while others sell an assortment of product. (level 0) consumer direct selling directly to consumers. (level 1) retail channel producer sells to a retail store who sells to the consumers. (level 2) 2-step distribution-channel producers sell to wholesalers to retailers. Agent-wholesaler-retailer independent sales professional who bring buyers and sellers together. Agents earn a commission on the sale of product to wholesalers. *the longer the distribution channel, the less profit a manufacturer makes from the sale. Provide data on consumer demand such as demand for products and insights into competitor activities.