Distribution channel decisions frequently require long-term commitments between firms. A primary reason is that ________.
A) advertising is not easy to change
B) old products are difficult to discard and new products are difficult to introduce
C) when they set up distribution through franchisees, independent dealers, or large retailers, they cannot readily replace these channels with company-owned stores or Internet sites if conditions change
D) changing the manufacturing requirements is expensive and takes significant time
E) management does not want to be constantly changing the method of selling and distributing its products

Question

Quizplus · Accepted Answer

When a firm sets up distribution through franchisees, independent dealers, or large retailers, it requires a long-term commitment. It is because these channels cannot be easily replaced with company-owned stores or Internet sites if the situation changes. Generally, franchisees, independent dealers, or large retailers require long-term commitments to maintain their trust in the brand.

Distribution Channel Decisions Frequently Require Long-Term Commitments Between Firms