Without wholesalers and other intermediaries,
A) most products would be much less expensive because fewer companies would be handling the product.
B) products would be cheaper because the functions of intermediaries would be eliminated.
C) products would likely be more expensive due to the use of less efficient channel members.
D) products would never be able to make it to the ultimate consumer at any price without passing through intermediaries.
E) many products would be more expensive because retailers would expect more profit.

Question

Quizplus · Accepted Answer

Without the role of intermediaries, the process of distribution and reaching the end consumer would become less efficient, leading to higher costs for producers and ultimately, higher prices for consumers. This is because intermediaries serve important functions such as transportation, storage, and market research, which are necessary for the smooth functioning of the distribution channel. Without them, producers would have to handle these functions themselves, leading to higher costs and inefficiencies. Therefore, the claim that products would be cheaper without intermediaries is not accurate.

Without Wholesalers and Other Intermediaries