The more intermediaries there are in a distribution channel,the less costly the channel becomes.

Question

Quizplus · Accepted Answer

The statement is false. The more intermediaries there are in a distribution channel, the higher the costs become as each intermediary adds their own markups and fees to the final price. This is known as the "channel cost effect." A shorter channel with fewer intermediaries can result in a lower total cost to the end consumer.

The More Intermediaries There Are in a Distribution Channel,the Less