The system with an intermediary channel member is more efficient than all firms going direct to consumers.

Question

Quizplus · Accepted Answer

An intermediary channel member, such as a wholesaler or retailer, can help to reduce the costs of distribution by consolidating orders, providing storage and transportation, and offering other services. This can make it more efficient for firms to reach consumers than if they were to go direct to consumers themselves.

The System with an Intermediary Channel Member Is More Efficient