Which of the following statements is TRUE about marketing intermediaries?
A) Although intermediaries can be eliminated, the functions they provide cannot.
B) Eliminating a marketing intermediary will always decrease distribution costs.
C) Marketing intermediaries sell their products to end customers.
D) Most marketing channels have at least two marketing intermediaries involved in the distribution of goods.

Question

Quizplus · Accepted Answer

Marketing intermediaries play important roles in distribution, such as providing market research, promotion, and transportation services. While intermediaries can be eliminated, the functions they provide cannot be completely removed from the distribution process. Eliminating intermediaries may sometimes result in higher distribution costs because the firm may have to perform all of the intermediary functions on its own. Choice B is not always true; eliminating intermediaries may increase distribution costs. Choice C is false; marketing intermediaries do not sell products to end customers, but instead facilitate the distribution of products from the manufacturer to the end customer. Choice D is not always true; some marketing channels may have only one intermediary or more than two intermediaries involved in the distribution of goods.

Which of the Following Statements Is TRUE About Marketing Intermediaries