278 Chapter 10 Product, Price, and Place Copyright Goodheart-Willcox Co., Inc. Even though there are additional costs involved, distribution services are important to a business. The investment a company makes in efficient physical distribution can add value to goods, services, and intellectual property, which can keep customers happy and returning. Many distribution factors, such as good customer services, accurate order processing, and safe handling of product, contribute to creating positive business reputations and company value. Customers are usually willing to pay for efficient delivery and expect to: • receive goods as promised and in perfect condition • receive services, such as carpet cleaning and appliance repair, at the date and time requested • be able to download digital or intellectual product immediately, when paid for, in a quick and efficient manner to any personal device they may own Types of Distribution Channels There are two distribution channels a product can take: direct or indirect. Figure 10-5 shows the two different types of distribution channels. A direct channel is when goods or services go directly from the manufacturer to the end user. For example, a child care business provides services directly to the parent or guardian of the child. Most service businesses use direct channels of distribution. Figure 10-5. Channels of distribution depend on the good or service that is delivered. Channels of Distribution Direct Channel To End User Indirect Channel To End User Producer End user Producer Retailer Internet Producer Producer Producer Agent End user End user End user End user Wholesaler Retailer Retailer Vinko93/Shutterstock.com Goodheart-Willcox Publisher