Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?
A) It increases customer loyalty.
B) It provides the producer with greater control over operations.
C) It reduces the amount of direct customer interaction.
D) It lowers the producer's costs and prices.
E) It ensures greater information security.

Question

Quizplus · Accepted Answer

By shifting some functions to intermediaries, producers can lower their costs and prices since they do not have to bear the full burden of marketing and distribution expenses. This can make their products more competitive in the market, leading to increased sales and revenue.

Producers Often Shift Some Functions to Intermediaries