The amount of profit a channel member expects depends on
A) the amount of discounts for large orders provided by the producers.
B) the number of channel support activities provided by the producers.
C) what the intermediary could earn if it were handling a competing product instead.
D) the type of distribution channels involved.
E) the amount of effort required to carry the product.

Question

Quizplus · Accepted Answer

The amount of profit an intermediary expects depends largely on the potential earnings they would receive if they were carrying a competing product instead. They will thus consider the costs of carrying the product and potential revenue while making a decision. The other options may also play a role in their profitability, but they are not the primary factors.

The Amount of Profit a Channel Member Expects Depends on