Two students, Nick and Lee, were studying for an upcoming exam in their Introduction to Marketing course. While studying the chapter on Marketing Channels and Wholesalers, Nick made the following statement, "If it weren't for wholesalers and other intermediaries in the channel of distribution, the products we buy would cost a lot less!" After contemplating Nick's statement, Lee said, "Wait a minute. We learned in class that channel intermediaries actually make marketing more efficient by
Minimizing the number of transactions necessary to sell products." Lee's statement refers to:

Question

Quizplus · Accepted Answer

Lee's statement is referring to the value created by channel intermediaries. Channel intermediaries help to make marketing more efficient by minimizing the number of transactions necessary to sell products. This, in turn, can result in lower costs and prices for consumers. While there may be some price inflation by channel intermediaries, the overall value they provide through efficiency and convenience typically outweighs any added costs. Therefore, the correct answer is C.

Two Students, Nick and Lee, Were Studying for an Upcoming