Which of the following is true of changes in the organization of distribution channels?
A) Developing new channels seldom causes conflict with a company's established channels.
B) To remain competitive, product and service producers must use fewer marketing channels.
C) The growth of the Internet threatens many brick-and-mortar companies with disintermediation.
D) Companies have fewer channel options today than they did in the past due to economic problems.
E) Advances in technology have decreased the number of channels available to entrepreneurial firms.

Question

Quizplus · Accepted Answer

The growth of the Internet and e-commerce has led to disintermediation, which threatens brick-and-mortar companies that rely on traditional distribution channels. This has changed the organization of distribution channels and made it necessary for companies to adapt to new ways of reaching customers. Option A is incorrect because developing new channels can lead to conflict with established channels. Option B is incorrect because using more channels can actually be necessary for remaining competitive. Option D is incorrect because companies have more channel options today due to advances in technology. Option E is also incorrect because technology has actually increased the number of channels available to entrepreneurial firms.

Which of the Following Is True of Changes in the Organization