Channel design determines how products reach customers.

Channel design determines how products reach customers.

• A. How products are manufactured
• B. How products reach customers
• C. How prices are set
• D. How promotions are run

Answer: (B)

Channel design is about choosing the path products take to reach customers. It focuses on how goods move from the producer to the end user—whether directly, through wholesalers and retailers, or via online platforms—so that customers can access and receive the product efficiently. This shapes where customers can buy, how quickly they get it, and the costs involved, by deciding the number and type of intermediaries, the channel structure (direct vs. indirect), and the logistics needed. It’s distinct from manufacturing decisions (how the product is produced), pricing decisions (what the product costs), or promotions (how customers are informed and persuaded).

Channel design is about choosing the path products take to reach customers. It focuses on how goods move from the producer to the end user—whether directly, through wholesalers and retailers, or via online platforms—so that customers can access and receive the product efficiently. This shapes where customers can buy, how quickly they get it, and the costs involved, by deciding the number and type of intermediaries, the channel structure (direct vs. indirect), and the logistics needed. It’s distinct from manufacturing decisions (how the product is produced), pricing decisions (what the product costs), or promotions (how customers are informed and persuaded).