Georgia DECA Advertising Practice Test

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What type of distribution channel is Kendra's small business using when selling her student-developed apps?

Wholesaler to Retailer to Consumer
Producer to Retailer to Consumer
Producer to Consumer
Retailer to Consumer

The correct answer is: Producer to Retailer to Consumer

Kendra's small business is utilizing a distribution channel that connects the producer directly to the retailer before reaching the consumer. This approach is common in situations where a business, particularly a small or niche operation like Kendra's, wants to have its products sold through established retail channels that can handle consumer sales more effectively. In this case, Kendra, as the producer, develops the apps and then sells them to retailers who can market them to the end consumers. This arrangement allows her to leverage the retailer's capabilities and market presence, which can be particularly valuable when entering a competitive marketplace. Retailers typically have established customer bases and marketing practices that can enhance the visibility and accessibility of her apps to students and other potential users. This distribution method is beneficial as it can help streamline the sales process, improve market penetration, and allow Kendra to focus on app development while the retailer manages consumer interactions and sales transactions.