Cassidy Boeheim,the international sales manager for Knoll Home Products found that Brazil has a long distribution channel.Upon investigation,she found that this was caused by a large number of wholesalers who entered the market to serve retailers.Which kind of retail systems tend to promote the growth of wholesalers to serve retailers,which lengthens distribution channels?

Question

Quizplus · Accepted Answer

Fragmented retail systems tend to promote the growth of wholesalers as there are a large number of small retailers operating independently, which makes it difficult for manufacturers to serve them directly. Wholesalers act as intermediaries between manufacturers and retailers, thus lengthening the distribution channels.

Cassidy Boeheim,the International Sales Manager for Knoll Home Products Found