When the total cost of performing all channel functions is too high,a(n)________ most likely occurs.
A) speculative sale
B) cost gap
C) postponement sale
D) service gap
E) environmental bound

Question

Quizplus · Accepted Answer

A cost gap occurs when the cost of performing all channel functions is too high, resulting in a gap between what consumers are willing to pay and what the seller can afford to charge. The seller may then need to reevaluate their channel functions in order to reduce costs and bridge the gap. Speculative sales, postponement sales, service gaps, and environmental bounds do not directly relate to high channel function costs.

When the Total Cost of Performing All Channel Functions Is