Explanation should include defining channels of distribution as the path a product takes from producer to consumer. Channel members or components of a distribution channel include

Direct distribution takes place when the producer distributes directly to the consumer; indirect distribution involves one or more intermediaries. Hybrid distribution occurs when a manufacturer uses indirect, through one or more intermediaries, and also makes sales directly with the consumer.

The channel is determined by the type of product (e.g., physical vs. virtual product; service companies; vending).

Process/Skill Questions: