A customer cost hierarchy may include distribution-channel costs.

Question

Quizplus · Accepted Answer

Distribution-channel costs can be an important component of the cost structure for serving customers, so they may be included in a customer cost hierarchy along with other costs such as product costs, marketing costs, and service costs. By analyzing these costs and understanding how they vary across different customer segments and sales channels, companies can make more informed decisions about how to allocate resources and optimize their profitability.

A Customer Cost Hierarchy May Include Distribution-Channel Costs