What is the most likely reason that a firm's channel strategy is affected when the firm no longer offers a physical product?
A) Intermediaries perform fewer traditional channel functions.
B) Upstream channel members alter production capabilities.
C) Additional service offerings require new intermediaries.
D) Effective supply chains rely on geographic proximity.
E) Service transition strategies rely on upstream channels.

Question

Quizplus · Accepted Answer

When a firm no longer offers a physical product, intermediaries are likely to perform fewer traditional channel functions. For instance, intermediaries may not need to store, transport, or physically handle the product, since it is no longer a tangible good. As a result, the firm's channel strategy may need to be adjusted to reflect this new reality.

What Is the Most Likely Reason That a Firm's Channel