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When may a manufacturer prefer to sell goods directly to the consumer?

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Circumstances under which a manufacturer may prefer to sell goods directly to the consumer are;

  • When the market is concentrated at one area since the cost involved in accessing the market would be low.
  • When the size of the market is small so that it maintains its customer/to avoid losing customers.
  • When the goods are perishable so as to minimize on spoilage that leads to loss.
  • When the firm is financially strong to open its own retailer outlets.
  • Where the firm wishes to have direct contact with customers to enforce customers loyalty in order to get feedback.
  • When demonstration is required in the market so that they explain the operation of the commodity to the customers/consumers.
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