The selection of channel members:
A) Always involves basic changes in channel structure.
B) Is of most importance to vertically integrated manufacturers.
C) Is sometimes necessary even though the basic channel structure remains the same.
D) Is one of the first phases of channel design.
E) Is the same as choosing channel structure.

Question

Quizplus · Accepted Answer

Selecting channel members may be necessary even if the basic channel structure remains the same. This decision involves choosing the appropriate intermediaries who will perform critical channel functions such as distribution, promotion, customer service, and financing. The selection of channel members does not always require basic changes in channel structure, and it is not the same as choosing channel structure. It is also not only relevant to vertically integrated manufacturers but to all firms that use channels to distribute their products or services. Finally, selecting channel members is not one of the first phases of channel design but typically occurs once the firm has determined its target market and channel strategy.

The Selection of Channel Members