Marketers Claim That Intermediaries Add Value to the Channel of Distribution

question 299

True/False

Marketers claim that intermediaries add value to the channel of distribution that outweighs the cost.

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Definitions:

Economies of Scale

The financial advantages gained by enterprises from their operational size, where the per-unit cost decreases as the operation size increases.

Unit Cost

The cost incurred to produce, manufacture, or acquire one unit of a product or service.

Economic Profits

Profits that exceed both the explicit and implicit costs of a business, including a normal return on investment.

Differentiate Products

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.