Two students, Nick and Lee, were studying for an upcoming exam in their introduction to marketing course.While studying the chapter on marketing channels and wholesalers, Nick made the following statement: "if it weren't for wholesalers and other intermediaries in the channel of distribution, the products we buy would cost a lot less!" after contemplating Nick's statement, Lee said, "wait a minute.We learned in class that channel intermediaries actually make marketing more efficient by minimizing the number of transactions necessary to sell products." Lee's statement refers to

Question

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Lee's statement refers to the value created by channel intermediaries. By minimizing the number of transactions necessary to sell products, intermediaries lower the time and cost required to bring products to market. They also provide other value-added services, such as warehousing, transportation, financing, and risk bearing, that help make marketing more efficient and effective. While intermediaries do add some cost to the final price of products, they also add value that benefits both consumers and producers.

Two Students, Nick and Lee, Were Studying for an Upcoming