How do customer characteristics influence channel design?
What will be an ideal response?
Customer characteristics constitute a major factor that affects the process of shaping international channels to fit overall company objectives. The number, geographic distribution, income, shopping habits, and reactions of customers to different selling methods all vary from country to country and, therefore, require different channel approaches. Regardless of the stage of market development, the need for multiple channel intermediaries increases as the number of customers increases. The converse is also true: the need for channel intermediaries decreases as the number of customers decreases. For mass-market products bought by millions of customers, retail distribution outlets or mail-order distribution is effective. In a country with a large number of low-volume retailers, it is usually cheaper to reach them via wholesalers. Direct selling that bypasses wholesale intermediaries may be the most cost-effective means of serving large-volume retailers.
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The mental characteristics of people and the way they relate to their environment and social group are called ecology
Indicate whether the statement is true or false
Sally, a social worker from the United States, has been stationed in Konesia for a year
She notices several things about the Konesian society; the people who report to her, for example, do so with an excessive amount of submissiveness, and her superior seems to expect the same of her. Which of the following statements about Konesia would be consistent with Hofstede's framework? A) Konesians work best in an informal environment. B) Konesia has a large power distance culture. C) Konesian society is primarily individualistic. D) Konesians derive power from their entrepreneurial drive.