Vending machines have existed as a mechanical channel for distributing a variety of products for many decades. Traditionally the typical products found in vending machines were soft drinks, candy, cigarettes, and snack foods. But in recent years the variety of products sold through vending machine channels has broadened dramatically. Consumers can now buy digital cameras, DVDs, iPods, baby diapers, and in Germany, even solid gold bars for which the price charged changes every two minutes with the ups and downs of the price of gold. From a channel design standpoint, what do you see as the key variables to consider in determining whether vending machines could be a feasible channel choice for any given product of your choice?
Answer to relevant QuestionsQuaker Oats Co. made the most disastrous decision in the company’s history when it acquired the Snapple Beverage Corp. After several years of horrible financial results, Quaker sold its Snapple division at a loss in excess ...Are selection decisions always the result of changes in channel structure? Explain. What are some of the specific incentives that the manufacturer can use to secure channel members? The category of market variables was cited in Chapter 6 and the present chapter as one of fundamental importance to channel design. Explain why this is so. The number of consumers subscribing to cable television services in the U.S. had declined significantly by the end of the first decade of the twenty-first century. In the third quarter of 2010 alone, almost 120,000 consumers ...
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