Describe the Concept of Channel Richness, Specify the Richest Channel

question 120

Essay

Describe the concept of channel richness, specify the richest channel, and explain why it is so rich.

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Definitions:

Variable Costs

Expenses that change in proportion to the level of production or sales activity.

Contribution Margin

The difference between the sales revenue of a product and the variable costs associated with its production and sales.

Unit Contribution Margin

The amount that the sale of one unit contributes towards covering fixed costs, calculated as the sales price per unit minus variable costs per unit.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.