Since each intermediary in a channel adds its own markup to the products,there is generally a critical link between channel length and the firm's profit margin.

Question

Quizplus · Accepted Answer

Each intermediary in a channel adds its own markup, which increases the final price of the product. As a result, the longer the channel, the higher the price the end consumer pays, and the lower the profit margin for the firm. Therefore, there is a critical link between channel length and the firm's profit margin, making the statement true.

Since Each Intermediary in a Channel Adds Its Own Markup