Question : Which of the following statement is correct?
Statement 1: A manufacturer should choose minimum channel of distribution for such an item or product which is a highly perishable nature.
Statement 2: If a product is of a technical nature then it is better to supply directly to the consumer.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer: Both are true
Solution : Perishability and technical nature are the product related factors affecting choice of channel of distribution. A manufacturer should use minimum or no middleman as channel of distribution for such an item or product which is highly perishable in nature. If a product is of a 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.
Hence, option A is correct.