Multiple Choice
The Indian retail market is very fragmented with many small independent stores.The distribution structure in India typically involves two levels of distributors (large regional wholesalers and smaller city-wide wholesalers) .All of these lead to India having a long distribution channel.Acme Products is concerned about India's long distribution channel for its products.Which of the following is a drawback of longer distribution channels?
A) higher selling costs in a fragmented retail sector
B) inability to enter exclusive distribution channels
C) lower selling costs in a concentrated retail sector
D) lower product prices
E) greater aggregate markups
Correct Answer:
Verified
Correct Answer:
Verified
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