Paterson Inc.is a business that purchases computers,printers,modems,fax machines,software,and telecommunications equipment from several manufacturers and markets them as complete (bundled)customized systems to small businesses to meet their specific needs.What type of channel intermediary is Paterson Inc.?
A)wholesaler
B)value-added reseller
C)original equipment manufacturer
D)sales agent
E)distributor

Question

Quizplus · Accepted Answer

Paterson Inc. adds value to the products it purchases from manufacturers by bundling them into customized systems for small businesses. This makes them a value-added reseller. A wholesaler simply purchases and resells products without adding any additional value or customization. Original equipment manufacturers are the ones who manufacture the products, not the ones who purchase and resell them. Sales agents typically do not purchase and resell products themselves, but rather facilitate sales between a manufacturer and a buyer. Distributors also typically purchase and resell products, but they do not necessarily add value or customization like Paterson Inc. does.