Question

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

Answer 1

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.