The third consideration in choosing a channel is profitability, which is determined by the margins earned (revenue minus cost) for each channel member and for the channel as a whole.Based on this information, which of the following statements would be most accurate?
A) the more responsibilities a channel member takes in terms of distribution, advertising, and selling expenses, the greater the potential for manufacturer profitability.
B) the more responsibilities the manufacturer assumes relative to its channel members, the greater the potential for profitability.
C) the extent to which channel members share costs determines the margins received by each member and by the channel as a whole.
D) while channel members can increase profitability by taking on distribution and selling expenses, advertising expenses should always remain with the manufacturer if a firm is looking for the greatest profitability.
E) profitability is not related to the length or nature of the distribution chain.Pricing and profitability are determined by the manufacturer as the first step in the pricing process.
Correct Answer:
Verified
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