Why would a manufacturer of health and beauty products share promotional expenditures with its intermediaries as well as provide them with the computer software needed for an inventory system?
A) To shorten its channel of distribution
B) To avoid having to perform risk-taking activities
C) To avoid having to perform any sorting activity
D) To maintain a degree of control over its intermediaries

Question

Why would a manufacturer of health and beauty products share promotional expenditures with its intermediaries as well as provide them with the computer software needed for an inventory system? 
A) To shorten its channel of distribution
B) To avoid having to perform risk-taking activities
C) To avoid having to perform any sorting activity
D) To maintain a degree of control over its intermediaries

Quizplus · Accepted Answer

When using more indirect channels, the manufacturer surrenders some control over the marketing of the firm's product. However, a degree of control is maintained through some other indirect means, such as sharing promotional expenditures, providing sales training or other operational aids, such as accounting systems, inventory systems or marketing.

Why Would a Manufacturer of Health and Beauty Products Share