Suggest the consideration related to product that an entrepreneur should take care while selecting a channel of distribution.

Unit value of the product

The correct answer is option (2) - Unit value of the product.

Considerations related to product:

When a manufacturer selects some channel of distribution he/she should take care of such factors which are related to the quality and nature of the product. They are as follows:

1. Unit value of the product :When the product is very costly it is best to use a small distribution channel. For example, industrial machinery or gold ornaments are very costly products that is why for their distribution small distribution channel is used. On the other hand, for less costly products long distribution channel is used.

2. Standardised or customised product : Standardised products are those for which cost is pre-determined and there is no scope for alteration. For example: utensils of MILTON. To sell this long distribution channel is used. On the other hand, customised products are those which are made according to the discretion of the consumer and also there is a scope for alteration, for example; furniture. For such products face-to-face interaction between the manufacturer and the consumer is essential. So for these direct sales is a good option.

3. Perishability : A manufacturer should choose minimum or no middlemen as channel of distribution for such an item or product which is of highly perishable nature. On the contrary, a long distribution channel can be selected for durable goods.

4. Technical nature : If a product is of technical nature, then it is better to supply it directly to the consumer. This will help the user to know the necessary technicalities of the product

Types of Buyers and Buying quantity are Considerations related to market.

Goodwill is consideration related to manufacturer/company.