Which of the following is true of conventional distribution channels?
A) Channel members have complete control over each other.
B) Channel members seek to maximize their own profits.
C) Channel conflict is governed by formal mechanisms.
D) Channel members are assigned roles according to a clearly defined framework.
E) Channel members work exclusively for the good of the organization.

Question

Quizplus · Accepted Answer

Conventional distribution channels typically involve independent channel members (such as wholesalers, retailers, and distributors) who seek to maximize their own profits through the sale of goods or services. While some degree of collaboration may exist between channel members, they ultimately act in their own self-interest rather than working exclusively for the good of the organization. Channel members may also engage in conflicts with one another over issues such as pricing, distribution, and promotion. As such, there may be little control over one another or formal mechanisms for resolving disputes. While channel members may have assigned roles, these may be somewhat flexible or subject to negotiation, rather than being governed by a clearly defined framework.

Which of the Following Is True of Conventional Distribution Channels