Which of the following is a possible channel member reaction to a manufacturer-initiated price cut?
A) They will expect price cuts to reduce sales volume.
B) They may resent the reduction in their margins that may result from the price cut.
C) They will discontinue carrying the product.
D) They may have to cut the prices of other products they carry.
E) They may be concerned about complaints from customers.

Question

Quizplus · Accepted Answer

Channel members may resent the reduction in their margins because a manufacturer-initiated price cut can decrease the profit they earn per unit sold.

Which of the Following Is a Possible Channel Member Reaction