Nicholas is the channel manager for a scientific equipment manufacturer, Biocomp

Question

Nicholas is the channel manager for a scientific equipment manufacturer, Biocompare. He communicates various shipment sizes and dates with the transportation company that moves equipment to and from the Biocompare's warehouse. For example the Neuroscience lab has placed an order of 100 Rodent treadmills, and next month a large shipment of rodent treadmills will be ready for warehousing. The communication of dates, orders, timing, expectations, and coordination of schedules is passed up and down the channel through individuals. This is an example of which type of flow in distribution channel?
a. negotiation flow
b. product flow
c. information flow

Explanation / Answer

Answer: (c) Information flow

Explanation: In a marketing channel, there are different types of flows but from the perspective of a channel manager, the primary types of flows are product flow, information flow, negotiation flow, ownership flow and promotion flow. In Information flow, only relevant information between the channel members such as manufacturer, transportation company, warehouse and consumers is communicated.

In the given scenario, Nicholas who is the channel manager for the scientific equipment manufacturer, Biocompare, communicates various shipment sizes and dates with the transportation company that moves equipment to and from the Biocompare’s warehouse. In addition, dates, orders, timing, expectations, coordination of schedules is also passed up and down the channel through individuals. This is an example of Information flow in distribution channel.

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