Which of the following statements is true regarding the value-added chain of distribution channels?

Question

Quizplus · Accepted Answer

The statement "Distribution channels establish a connection between the firm and the customers" is true. The value-added chain of distribution channels refers to the various intermediaries that help move the product from the manufacturer to the end user, adding value at each stage of the process. The ultimate goal is to establish a connection between the firm and the customers, which is achieved through distribution channels. The statement that the value-added chain begins with the customer (A) is not entirely accurate, as it can begin with the manufacturer or supplier. The government (C) is not typically considered a component of the value-added chain, though it may play a role in regulating certain aspects of distribution. Statement (D) is also incorrect, as distribution channels connect the firm to suppliers, not the other way around.

Which of the Following Statements Is True Regarding the Value-Added