The conventional distribution channels consist of one or more independent producers, wholesalers, and retailers.
What are conventional distribution channels?
- A distribution channel is a chain of businesses or intermediaries through which a good or service is purchased by the final buyer.
- Wholesalers, retailers, distributors, and the Internet are examples of distribution channels.
- The manufacturer sells directly to the consumer through a direct distribution channel.
- Direct selling, selling through intermediaries, dual distribution, and reverse logistics channels are the four types of distribution channels.
- Each of these channels is made up of institutions whose sole purpose is to manage product transactions and physical exchanges.
- One or more independent producers, wholesalers, and retailers make up a conventional distribution channel.
- Each is a separate business seeking to maximize its own profits, possibly at the expense of the overall system.
Therefore, the conventional distribution channels consist of one or more independent producers, wholesalers, and retailers.
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