Text book Supply Chain Management A Logistics Perspective 10

Solution

Ans.The simplest marketing channel consists of just two parties a producer and a consumer. Earlier companies were few and buyers were more due to which only two parties were involved in the marketing channel . Later, as and when business started expanding intermediaries started playing important role in reaching the products to the consumers.Factors that make it possible for consumers to weild so much influence in the market place are:

Many sellers: In current scenario, there are many sellers in the market, due to which consumers got a uphold in selecting their companies from whom they can buy the product. With the increase in competition, companies has to take the help of intermediaries to try to reach to the customer at their door step in delivering goods and services. This will help the company to retain their customer.

Change in taste and preferences: Consumers are no more loyal to one brand. There are wide range of products available inthe market. Customers prefer products that are more appealing in looks and would like to try new brands.

Many options available: In current scenario, Consumers have many option from which they can select their products without visiting the market place. Internet has made products reach their doorsteps with one click. This makes them demanding.

Word of mouth publicity: Today if a customer is not satisfied with a particular product he or she can share her dissatisfaction through social media. This will reduce the sale of that particular product in the market. Customer word of mouth publicity plays very important role in influencing the market place.

Convenience:Customers are more focussed in buying those product which can be delivered to them according to their convenience. This is one reason why online market is highly influenced by customers.

In traditional methods, Consumers disatisfaction would never reach to other customers who are buying the product as there was no internet. Since there was no internet, market place has to be visited for any purchase. the problem with traditional method is that it is time consuming.They were not exposed to new products, easy delivery system etc... With introduction to internet the whole purchasing style of a customer changed drastically.