A constraint on the channel decision is when _______.
A)the company has too many intermediaries, leading to intra- channel conflict
B)the company has too few intermediaries, leading to low exposure in the marketplace
C)the producer lacks adequate resources to perform the functions of the channel
D)the producer lacks experience of managing the channel

Question

Quizplus · Accepted Answer

When the producer lacks adequate resources to perform the functions of the channel, it becomes a constraint on the channel decision. This could happen when the producer is unable to invest in the necessary infrastructure to support the channel, or when they lack the expertise to manage the intermediaries effectively. This can limit the number and type of intermediaries that can be included in the channel, and may require the producer to consider alternative distribution strategies. A lack of experience in managing the channel (option D) could also be a constraint, but it is not the best answer in this case as it is not specified whether the lack of experience is due to a lack of resources, or other reasons.

A Constraint on the Channel Decision Is When _______