If a powerful manufacturer,an industry leader with exceptionally strong brand loyalty from final customers,offers channel members margins they perceive to be inadequate,the channel members are likely to do all of the following except:
A) Immediately drop the product from their product line.
B) Promote their own private-label brands.
C) Seek out other suppliers.
D) Establish a private label brand.
E) Tolerate the situation, but only in the short run.

Question

Quizplus · Accepted Answer

Dropping the product from their product line is an extreme action and is less likely to be done by channel members. They may seek alternatives or negotiate for better margins, but dropping the product altogether is not a common reaction.

If a Powerful Manufacturer,an Industry Leader with Exceptionally Strong Brand