One Consideration in Choosing a Marketing Channel Is Profitability,which Is

question 195

Multiple Choice

One consideration in choosing a marketing channel is profitability,which is determined by the margins earned for each channel member and for the channel as a whole.Based on this information,which of the following statements would be most accurate?

• A)The more responsibilities a channel member takes in terms of distribution,advertising,and selling expenses,the greater the potential for manufacturer profitability.
• B)The more responsibilities the manufacturer assumes relative to its channel members,the greater the potential for profitability.
• C)The extent to which channel members share costs determines the margins received by each member and by the channel as a whole.
• D)While channel members can increase profitability by taking on distribution and selling expenses,advertising expenses should always remain with the manufacturer if a firm is looking for the greatest profitability.
• E)Profitability is not related to the length or nature of the distribution chain but determined by the manufacturer.

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