When customers prefer a wide assortment of products, it makes sense to select a longer channel structure.

Question

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A longer channel structure, with more intermediaries between the producer and the customer, allows for a wider range of products to be offered. Each intermediary in the channel can specialize in a particular type or subset of products, increasing the overall variety available to the customer. Conversely, a shorter channel structure with fewer intermediaries may be more efficient but may limit the range and diversity of products offered.

When Customers Prefer a Wide Assortment of Products, It Makes