Which of the following is a drawback of longer distribution channels?
A)Higher selling costs in a fragmented retail sector
B)The inability to enter exclusive distribution channels
C)Lower selling costs in a concentrated retail sector
D)Higher prices charged to consumers
E)Greater aggregate markups due to a lack of intermediaries

Question

Quizplus · Accepted Answer

Because each intermediary in a channel adds its own markup to the products, there is generally a critical link among channel length, the final selling price, and the firm's profit margin. The longer a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product.

Which of the Following Is a Drawback of Longer Distribution