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4.01

Channels of Distribution

TermDefinition
Agents Intermediaries that assist in the sale and/or promotion of goods and services but do not take title to them.
Channels of Distribution Paths, or routes, that goods or services take from the producer to the ultimate customer or industrial user.
Consumer Goods Tangible items produced for personal use.
Direct Channel of Distribution A channel of distribution in which goods and services move directly from the producer to the customer or industrial user.
Industrial Distributor A channel member that buys industrial goods and sells them to industrial users.
Industrial User A business that buys materials, services, or goods that will be used to make other goods or used in the operation of the company.
Goods Tangible objects that can be manufactured or produced for resale.
Indirect Channel of Distribution A channel of distribution in which goods and services move from the producer to intermediaries and then to consumers or industrial users.
Industrial Goods Tangible items that will be consumed by industrial users.
Intermediaries Channel members operating between the producer and the consumer or industrial user to help in the movement of goods and services
Middlemen See intermediaries.
Producers The people who make or provide goods and services.
Product A good or service that a company sells to customers.
Retailer A business that buys consumer goods or services and sells them to the ultimate customer.
Services Intangible activities that are performed by other people for money; productive acts that satisfy economic wants.
Ultimate Customers People who personally use a good or service to satisfy their own needs or wants.
Wholesalers Intermediaries that help move goods between producers and retailers by buying goods from producers and selling them to retailers.
Created by: Alyson L.
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