Manufacturers of consumer products use transactional websites less frequently than other firms because
A) in some industries, this form of vertical integration is illegal.
B) there is a threat of channel conflict.
C) it is difficult to maintain inventory levels at online warehouses.
D) some stakeholders are opposed to websites that drain resources without providing any return on investment.
E) such websites require dynamic pricing, which is difficult to use if supply and demand change frequently.

Question

Quizplus · Accepted Answer

Manufacturers of consumer products often work with retailers and other middlemen to distribute their products. Creating a transactional website can potentially upset these channels and create channel conflict. Therefore, manufacturers may avoid using transactional websites to maintain the relationships with their existing distribution channels.

Manufacturers of Consumer Products Use Transactional Websites Less Frequently Than