What criteria should a firm consider before choosing a channel alternative?
What will be an ideal response?
If a company has identified several channel alternatives and wants to select the one that will best satisfy its long-run objectives, each alternative should be evaluated against certain economic, control, and adaptability criteria. Using economic criteria, a company compares the likely sales, costs, and profitability of different channel alternatives. The company must also consider control issues. Using intermediaries usually means giving them some control over the marketing of the product, and some intermediaries take more control than others. Other things being equal, the company prefers to keep as much control as possible. Finally, the company must apply adaptability criteria. Channels often involve long-term commitments, yet the company wants to keep the channel flexible so that it can adapt to environmental changes. Thus, to be considered, a channel involving long-term commitments should be greatly superior on economic and control grounds.
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One-time costs include operating and maintenance costs
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. The task of summarizing the flow of physical units is one of the four steps involved in the preparation of the production cost report. 2. The number of equivalent units for direct materials and conversion costs must always be equal. 3. The weighted-average method determines the cost of equivalent units of production by accounting for beginning inventory costs separately from current period costs. 4. The equivalent units of production for transferred in units are always 100%. 5. Cost amounts that are transferred out of one department become the transferred in cost for the next department.
The contribution margin ratio is:
A) the same as the variable cost ratio B) the same as profit C) the portion of equity contributed by the stockholders D) the same as the profit-volume ratio
If a wife inherits a mink coat from her grandmother before her marriage, that mink coat will be considered:
A) a marital asset. B) a separate asset. C) an item of divisible property. D) an item that can be included in community property.