Commoditiesare interchangeable, and every kind is the same regardless of their source. This means that crude oil from one producer is the same crude oil from another producer. The goods can be combined without affecting the quality of the commodity. Differentiated products, on the other hand, ar...
The number of steps it takes will make the distribution channel direct or indirect.Let’s visualize a distribution chain to understand the difference between direct and indirect strategy:Where in a direct distribution strategy a producer can access the consumer, in an indirect distribution strategy, ...
Commodities are similar to regular goods, as they're products that individuals or companies trade. These differ, as commodities often offer the same value regardless of the producer. For example, oil manufacturers produce oil, but the qualities and features of each are similar. This means that ...
One way of doing so is buying high-status luxury goods, as these signal status and exclusivity. For example, wearing expensive brands could be a sign of someone compensating for their lack of power. So how to recognize exclusivity scarcity? Referring back to the graph above, the Producer (Ap...
In this scenario, the factory produces component parts in anticipation of assembly orders. This allows the manufacturer to be ready to fulfill customer orders quickly, but if orders don’t materialize, the producer may be left with a stock of unwanted parts. ...
Which type of market (perfectly competitive, monopoly, oligopoly, or monopolistic competitive) provides consumers with the greatest consumer surplus? Which provides suppliers with the greatest amount of producer surplus? Explain. Describe the major features of monopolis...
A marketing intermediary is the link in the supply chain that links the producer or other intermediaries to the end consumer. The intermediary can be an agent, distributor, wholesaler or a retailer. These parties are used in the selling, promotion or the availability of the goods/services t...
Inventory is valued in one of three ways, including the first-in, first-out method; the last-in, first-out method; and the weighted average method. Inventory management allows businesses to minimize inventory costs as they create or receive goods on an as-needed basis. ...
we can classify goods into several categories: single-use consumer goods, single-use producer goods, durable-use consumer goods and durable-use producer’s goods. This distinction is useful because durable products present more complicated problems of demand analysis than perishable products. Non-durabl...
Wholesale intermediaries provide essential services like packaging, grading, warehousing, and transportation of goods. Above all, they bear the greatest risk associated with handling goods from the producer. One can think of intermediaries as an entity that breaks down bulky goods from producers into ...