What results when the retail sector is very concentrated?
A) It is more expensive for a firm to make contact with each individual retailer.
B) It makes sense for a firm to deal directly with retailers, cutting out wholesalers.
C) A relatively large sales force is required to deal with the retail sector.
D) The channels of distribution tend to be long.
E) The growth of wholesalers is promoted.

Question

Quizplus · Accepted Answer

When the retail sector is concentrated, there are fewer retailers with larger market shares, making it efficient for firms to deal directly with these retailers, bypassing wholesalers.

What Results When the Retail Sector Is Very Concentrated