When a manufacturer sells directly to consumers
- When goods require sufficient after-sales services
- When goods are very expensive e.g. motor cars.
- When goods are branded and widely advertised
- When goods are highly fashionable with high profit margin
- When goods are highly fragile e.g. glass materials
- When goods are highly perishable e.g. fruits and vegetables .
- When the manufacturer wants to exercise some control during the distribution process.
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