Observation

Most candidates attempted this question and performed well. However some candidates used transportation to explain transportation. Others could not narrow their answer to pipeline as required by the question.
The expected responses to the question include:

(a)      Transportation by pipeline is a means of moving liquid and gases from one place to another.                                                                

          (b)     Benefits of transport by air:

1. Air transport is the fastest means of transportation.
2. The danger of damage to delicate, fragile and perishable goods is reduced to the barest minimum.

1. It requires less handling of goods, thereby reducing incidence of pilfering.
2. The rate of accidents is minimal.
3. It is a more comfortable means of transportation, hence suitable for long journeys.
4. The cost of insuring goods conveyed by air is reduced because of the shorter time the insurance company is at risk.
5. It costs nothing to provide/maintain air routes.
6. Markets are extended as distant markets are easily reached.                              

(c)      Factors to consider in choosing an effective channel of distribution:

1. Size of the order: the size of the order will be considered in choosing a channel of distribution.
2. Unit value of a product: expensive goods require direct distribution to customers.