Which of the following statements is most likely FALSE?
A) Channel efficiency occurs if service output supply exceeds service output demand.
B) Cost gaps occur when one or more channel functions are performed at high costs.
C) Service gaps occur when service output demand exceeds service output supply.
D) Environmental bounds are constraints that stem from outside the channel
E) Managerial bounds are restrictions imposed from inside the channel.

Question

Quizplus · Accepted Answer

Channel efficiency typically occurs when the service output levels provided match the service output levels demanded by the end-users, not when supply exceeds demand. Excess supply over demand can lead to inefficiencies such as increased costs or wasted resources.

Which of the Following Statements Is Most Likely FALSE