The value chains of company distribution channel partners are relevant because:
A) their costs and margins are part of the price the ultimate consumer pays.
B) the activities they perform affect sales volumes and customer satisfaction.
C) they have a competitive interest in promoting higher sales volumes and customer satisfaction.
D) they perform primary and support activities that are related to the entire value chain system.
E) All of these apply.

Question

Quizplus · Accepted Answer

All of these factors apply. The costs and margins of distribution channel partners are ultimately reflected in the price paid by the end consumer, so they have a direct impact on profitability. Additionally, the activities performed by partners can impact sales and customer satisfaction, which also affect the success of the overall value chain. Finally, because partners may have competing interests, it is important to incentivize them to work towards higher sales volumes and customer satisfaction to ensure the success of the entire chain.

The Value Chains of Company Distribution Channel Partners Are Relevant