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 Form 3 Business Studies: Chain of distribution online lessons

Circumstances under which manufacturer may prefer to sell goods directly to the customers.

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Answer Text:
Circumstances under which manufacturer may prefer to sell goods directly to the customers.
(i) When goods are perishable.
(ii) Where the firm is financially strong to open up retail outlets.
(iii) When there is competition and need for lower price.
(iv) When the market is concentrated in one place.
(v) Where there is insufficient infrastructure.
(vi) When goods are requested on order or made for a specific customer.
(vii) When goods are expensive to be sold through channels.


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