A distribution channel moves goods from producers to customers. Suppose a channel has four producers, each serving the same four customers, and no middlemen. If a distributor is introduced, the number of contacts among producers, customers, and the distributor) in the channel will:
A. Be unaffected.
B. Decrease from 8 to 4.
C. Increase from 8 to 16.
D. Decrease from 16 to 8.
Answer:D
A distribution channel moves goods from producers to customers. Suppose a channel has four producers, each serving the same four customers, and no middlemen. If a distributor is introduced, the number of contacts among producers, customers, and the distributor) in the channel will:
A. Be unaffected. B. Decrease from 8 to 4. C. Increase from 8 to 16. D. Decrease from 16 to 8.