Companies often want to sell their products through as many distribution channels as possible,thus gaining the largest possible market share.Which of the following can lead to resellers competing only on the basis of price?

Question

Quizplus · Accepted Answer

Intrabrand competition occurs when resellers are selling the same brand of products. The use of multiple distribution channels increases the number of resellers selling the same brand, leading to more competition. This can result in resellers competing on the basis of price, as they try to offer the lowest price to attract customers. Interbrand competition refers to the competition between different brands, which is not relevant to this question. The use of indirect or direct channels, as well as the integration of VARs, does not necessarily lead to price competition.

Companies Often Want to Sell Their Products Through as Many