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 that consumers are charged
E) Greater aggregate markups due to a lack of intermediaries

Question

Quizplus · Accepted Answer

Longer distribution channels typically involve more intermediaries, such as wholesalers and retailers, who add their own markups to the product's price. This results in higher prices that consumers are charged, which can be a drawback.

Which of the Following Is a Drawback of Longer Distribution