BUSINESS ADMINISTRATION
INTERNATIONAL MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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wrong because the length of the distribution channel represents the number of intermediaries participating in the distribution channel
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This is true because channel length represents the number of intermediaries that provide similar distribution functions at different stages of the channel.
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false because channel depth represents the number of distribution intermediaries that provide similar distribution functions at different stages of the channel.
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This is true because channel width represents the number of intermediaries that provide equivalent distribution functions at different stages of the channel.
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Detailed explanation-1: -Detailed Solution. The incorrect option is “If the average lot size is large, it is better to have a longer channel."
Detailed explanation-2: -Channel length refers to the number of intermediaries in a particular distribution channel between the producer & consumer. A distribution channel can be long or short. Short Channel-Involves few intermediaries working in succession to provide the consumer with goods.
Detailed explanation-3: -Various other factors such as size of the market, geographical concentration of buyers, quantity demanded, etc. also affect the choice between the channels. For instance, if potential buyers are concentrated in a small geographical area then, shorter channels are used.
Detailed explanation-4: -A distribution channel represents a chain of businesses or intermediaries through which the final buyer purchases a good or service. Distribution channels include wholesalers, retailers, distributors, and the Internet. In a direct distribution channel, the manufacturer sells directly to the consumer.