How can marketing channels achieve economies of scale?

Question

Quizplus · Accepted Answer

Economies of scale in marketing channels can be achieved through specialization and division of labor where each member of the channel focuses on their strengths and core competencies. This enables them to increase their efficiency, reduce costs and ultimately offer better prices to customers. Overcoming spatial discrepancies (A) or discrepancies of quantity (D) may lead to greater efficiency, but these do not necessarily result in economies of scale. Contact expertise (B) refers to the knowledge and experience of channel members, and while valuable, it does not directly contribute to economies of scale.

How Can Marketing Channels Achieve Economies of Scale