Retailer power in a distribution channel can be increased through _____.
A)decentralized purchasing
B)the purchase of goods from multiple vendors
C)franchising
D)the development of large chains

Question

Quizplus · Accepted Answer

The development of large chains allows for increased economies of scale, greater bargaining power with suppliers, and stronger brand recognition, which all contribute to increased retailer power in a distribution channel. Decentralized purchasing and purchasing from multiple vendors can actually decrease retailer power by spreading out purchases and reducing bargaining power with individual suppliers. Franchising can increase the number of retail locations but does not necessarily increase retailer power in the distribution channel.

Retailer Power in a Distribution Channel Can Be Increased Through