AP®︎ Business with Personal Finance: Topic 2.6 Flashcards

Where and how customers access, purchase, and receive a product

The route, including all required individuals and businesses, through which a finished product reaches the final customer; the final stage of the supply chain

A channel whose final customer is an individual or household buying for personal use

A channel whose customer is an organization buying for operations, resale, or use as an input

A channel connecting the producer directly to the customer without a sales intermediary; it provides greater control but may be costly to establish, limited in reach, and demanding of sales and distribution expertise

A channel containing one or more intermediaries between the producer and customer; partners can provide expertise, reduce costs, and expand access, but the producer gives up some control and revenue and may have difficulty obtaining channel access

An intermediary that obtains products from producers and supplies them to other businesses, often holding inventory, transporting goods, and providing network access

A B2B intermediary that supplies business customers and may provide specialized knowledge, inventory, sales assistance, support, and delivery

An intermediary that sells products to final consumers through stores, websites, or other consumer-facing outlets

A distribution route mandated by law, usually requiring regulated products to pass through licensed or authorized sellers

Identify customer needs and legal options; assess delivery, reach, sales, costs, profitability, experience, control, capabilities, and partner access; then select and justify the channel or combination