One consideration in choosing a marketing channel is profitability, which is determined by the margins earned for each channel member and for the channel as a whole. Based on this information, which of these statements would be most accurate?
A) The more responsibilities a channel member takes in terms of distribution, advertising, and selling expenses, the greater the potential for manufacturer profitability.
B) The more responsibilities the manufacturer assumes relative to its channel members, the greater the potential for profitability.
C) The extent to which channel members share costs determines the margins received by each member and by the channel as a whole.
D) While channel members can increase profitability by taking on distribution and selling expenses, advertising expenses should always remain with the manufacturer if a firm is looking for the greatest profitability.
E) Profitability is not related to the length or nature of the distribution chain but determined by the manufacturer.
Correct Answer:
Verified
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