The two main company characteristics that affect the choice of distribution channels are – financial strength of the company and the degree of control it wants to hold on the channel members. State true or false.
The two main company characteristics that affect the choice of distribution channels are – financial strength of the company and the degree of control it wants to hold on the channel members. State true or false.
The correct option is A True
True. The two main company characteristics that affect the choice of distribution channels are – financial strength of the company and the degree of control it wants to hold on the channel members. If a company is financially strong, it can opt for direct selling by investing a lot of funds in employing its own sales force or even opening its own retail outlets. Degree of control, shorter channels provide companies with greater control over the middlemen. When the number of intermediaries increases, the degree of control reduces.
True
True. The two main company characteristics that affect the choice of distribution channels are – financial strength of the company and the degree of control it wants to hold on the channel members. If a company is financially strong, it can opt for direct selling by investing a lot of funds in employing its own sales force or even opening its own retail outlets. Degree of control, shorter channels provide companies with greater control over the middlemen. When the number of intermediaries increases, the degree of control reduces.
