Which of the following is true of choosing a distribution strategy?
A) The optimal distribution strategy is determined by the relative costs and benefits of each alternative, which vary from country to country.
B) A choice of distribution strategy does not determine which channel the firm will use to reach potential consumers.
C) The channel length, the final selling price, and the firm's profit margin are completely independent of each other.
D) The longer a distribution channel, the lower the aggregate markup.
E) The longer a distribution channel, the lower the price that consumers are charged for the final product.

Question

Quizplus · Accepted Answer

The optimal distribution strategy is determined by analyzing the costs and benefits of each alternative, taking into account the specific characteristics of the target market, such as the level of competition, the infrastructure, and the cultural and legal context. It is not a one-size-fits-all solution, and therefore it requires a thorough analysis of the trade-offs involved in each option.

Which of the Following Is True of Choosing a Distribution