A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is

Question

Quizplus · Accepted Answer

Economic influence is the ability of a firm to affect the financial outcomes of other members in the channel. This could be through controlling key resources or having a large market share, which gives them bargaining power over other members. Seeing as the other options do not relate to a firm's ability to influence other members' behavior, they are incorrect.

A Firm Becomes a Channel Captain Because It Is the Channel