Incumbent firms may enjoy increased bargaining power because the Internet
A) focuses marketing efforts on end users.
B) has reduced the number of wholesalers and distributors.
C) increases channel conflict.
D) diminishes the power of many distribution channel intermediaries.

Question

Quizplus · Accepted Answer

In some industries, buyer channel intermediaries are dominated by powerful players that control who gains access to the latest goods or the best merchandise. The Internet and wireless communications, however, make it much easier and less expensive for businesses to reach customers directly. Thus, the Internet may increase the power of incumbent firms relative to that of traditional buyer channels.

Incumbent Firms May Enjoy Increased Bargaining Power Because the Internet