Because each intermediary in a channel adds its own markup to the products,there is generally a critical link between channel length,the final selling price,and the firm's profit margin.

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

Because Each Intermediary in a Channel Adds Its Own Markup