Which of the following is a drawback of longer distribution channels?
A)higher selling costs in a fragmented retail sector
B)inability to enter exclusive distribution channels
C)lower selling costs in a concentrated retail sector
D)higher prices charged to consumers
E)greater aggregate markups due to a lack of intermediaries

Question

Quizplus · Accepted Answer

Longer distribution channels tend to result in higher prices being charged to consumers, as each intermediary adds their own markup to the price. This can be a drawback, as it makes the final product more expensive for customers.

Which of the Following Is a Drawback of Longer Distribution