Which of the following is the most important determinant of channel length quizlet?

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What is the most important determinant of channel length?
What indicates the length of a channel?
Which of the following is a condition that must exist for channels to be effective quizlet?
Which of the following is one of the important factors in determining the elasticity of demand for a product in a given country?

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Which of the following statements about the choice of distribution strategy is true?

A.
The longer a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product.

B.
If price is an important competitive weapon and if the firm does not want to see its profit margins squeezed, other things being equal, the firm would prefer to use a longer channel.

C.
The shorter a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product.

D.
An international business must use shorter channels in countries where the retail sector is fragmented and longer channels in countries where the retail sector is concentrated.

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Product type and Consumer Sophistication:

- Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a pull strategy. Mass communication has cost advantages for such firms; thus, they rarely use direct selling. Exceptions can be found in poorer nations with low literacy levels, where direct selling may be the only way to reach consumers .

- Firms that sell industrial products or other complex products favor a push strategy. Direct selling allows the firm to educate potential consumers about the features of the product. This may not be necessary in advanced nations where a complex product has been in use for some time, where the product's attributes are well understood, where consumers are sophisticated, and where high-quality channels exist that can provide point-of-sale assistance. However, customer education may be important when consumers have less sophistication toward the product, which can be the case in developing nations or in advanced nations when a new complex product is being introduced, or where high-quality channels are absent or scarce.

q
Channel length:

- Using direct selling to push a product through many layers of a distribution channel can be expensive. In such circumstances, a firm may try to pull its product through the channels by using mass advertising to create consumer demand; once demand is created, intermediaries will feel obliged to carry the product.

Media availability:

- A pull strategy relies on access to advertising media. Around the world, especially the relatively developed world that includes some 80 countries, a large number of media are available, including print media (newspapers and magazines), broadcasting media (television and radio), and various forms using the Internet (e.g., social media). These media options have facilitated extremely focused advertising
- However, in some developing nations, the situation is more restrictive because mass media of all types are typically more limited. Consequently, a firm's ability to use a pull strategy is limited in some countries by media availability.

What is the most important determinant of channel length?

Channel Length The choice of a short or long channel is primarily a strategic decision for the producing firm. However, some countries have longer distribution channels than others. The most important determinant of channel length is the degree to which the retail system is fragmented.

What indicates the length of a channel?

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.

Which of the following is a condition that must exist for channels to be effective quizlet?

They must have at least five members. To be effective, channels must be properly managed, channel members must share common goals, and channel members must share tasks appropriately. Channels can be effective no matter how many members they have.

Which of the following is one of the important factors in determining the elasticity of demand for a product in a given country?

Key Takeaways Many factors determine the demand elasticity for a product, including price levels, the type of product or service, income levels, and the availability of any potential substitutes. High-priced products often are highly elastic because, if prices fall, consumers are likely to buy at a lower price.