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

Quizplus · Accepted Answer

Lee is referring to the concept of transactional efficiency. Channel intermediaries, such as wholesalers, help to streamline the distribution process by purchasing large quantities of goods from manufacturers and then selling smaller quantities to retailers. This reduces the number of transactions needed to get products into the hands of consumers, ultimately lowering costs and increasing value for all parties involved. Therefore, Lee's statement supports the idea that channel intermediaries create value in the marketing process.

Students,Nick and Lee,were Studying for an Upcoming Exam in Their