Commerce WASSCE (PC), 2021

Question 3

 

  1. What is a channel of distribution?
  2. Malam Audu is a poultry farmer who sells chicken and eggs. List and explain six factors he would consider in choosing the channel of distribution for his products.

 

Observation

 

The candidate who attempted the question did well in part (a) of the question. However, they could not apply their knowledge of channel of distribution in answering part (b) of the question.

The expected responses to the question include:

(a)  A channel of distribution is the path or route that products follow from production point to the final consumer.     

                                                                         
(b)  Factors that Mr. Audu Would Consider in Choosing His Channel of  Distribution
(i)    Nature of the Product: Some of his products are fragile and as a result, he would require a suitable channel of distribution.
(ii)    Size of the Order: The quantity of order as a consignment would determine his choice of distribution.
( iii)  Customer’s Preferences: The channel of distribution preferred by customers he serves would determine the channel to be used  by Mr. Audu.
(iv)   Competition: He would consider the channel being used by competitors to reach his customers.
(v)    Cost: The cost of the channel to be used would also be considered because it would add to the cost of distributing his products.
(vi)   Location of the Market: The proximity of the market would determine the type of channel he would use to reach his customers.
(vii)  Storage/Warehousing: The available storage facilities would determine the type of channel he would use.                                                            
(viii)   Weather and Climate: The condition of the weather and climate in his area of operations would determine his choice of channel.