What is the final consumer?

The final consumer is the last point of the distribution channel, a term used to describe different paths that the product or service will follow before it gets to its final consumer. Sometimes the distribution channel is very short to the final consumer, while at other times it can be a more complicated and pulled matter. The definition of a final consumer includes both human beings and other inanimate entities such as societies. The final consumer is distinguished from other types of intermediaries between the goods manufacturer and the consumer by buying good for its own consumption.

The short distribution route from the manufacturer or product manufacturer to the final consumer means that this process is very short and straight. An example of such a short route can be seen in the case of a person who goes to the restaurant to eat. If a person orders Filet Mignon, then the restaurant is a producer, while individual is the final consumer. On the other hand, if the grocery storeIt is some finished fillet Mignon from the restaurant to sell its customers, then the grocery store is an intermediary between manufacturers and final consumers.

Sometimes the distribution route is much longer than the two scenarios described above. For example, farmers could sell trucks to a wholesaler who will sell the corn the distributor. The distributor can supply maize to other sellers, including retailers. All these people are merely intermediaries between the farmer and the final consumers who have corn corn from grocery stores and other points of final sales. The longer the distribution channel is, the more likely it is that the final price of the product will be higher due to the fact that intermediaries along the distribution channel add their own profit to the item is passed along the distribution route.

Example of this can be shown using the case of a farmer that is PCorn. Assuming that the farmer goes to the farmer's market to sell his corn instead of selling it to a wholesaler, the farmer will significantly reduce the path of distribution to the final consumer. Such a step will also be a cheaper price for the final consumer, because the intermediaries were effectively cut out of the picture.

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