As people in developing countries often prefer to buy in smaller quantities, ________ is one of the most important functions of intermediaries in developing countries and helps perpetuate the long channels of distribution, which are a major obstacle to the expansion of retailing.
A) product adaptation
B) breaking bulk
C) diversification
D) transfer pricing
E) dual adaptation

Question

Quizplus · Accepted Answer

Breaking bulk refers to the process of intermediaries purchasing large quantities from manufacturers and then breaking them down into smaller quantities for sale to consumers. This is important in developing countries where consumers prefer to buy in smaller quantities. As a result, intermediaries play a crucial role in the distribution channel and this perpetuates the long channels of distribution, which can be a major obstacle to retail expansion.

As People in Developing Countries Often Prefer to Buy in Smaller