Final answer:
The distribution channel mix decision revolves around choosing which types of retailers and other supply chain members should distribute a company's product. It is tailored based on a combination of factors, including cost, consumer behavior, and market strategy, not directly affected by price ceilings or floors.
Step-by-step explanation:
The term distribution channel mix decision refers to the strategies a company employs regarding what different types of retailers should sell your product. It is a key component of a company's marketing and logistics strategies and involves deciding which supply chain members to partner with to effectively reach the target market. For instance, a business might choose to distribute products through online platforms, brick-and-mortar retail stores, or both, depending on its product, market, and customer preferences.
Considering the supply chain, businesses must also deliberate how much to offer for sale at various prices based on the costs of production and what is financially best for the seller. Meanwhile, consumers consider their personal needs and decide how much they are willing to pay to acquire the goods and services available in the market. Importantly, external mechanisms like price ceilings and price floors can influence the market but do not directly shift demand or supply, instead resulting in a surplus or a shortage if set above or below the equilibrium price.