Final answer:
Contribution is one of the six Cs of distribution channel strategy, dealing with the financial returns that channel members expect from their investments and is vital for maintaining a motivation-driven and effective distribution network.
Step-by-step explanation:
In the context of distribution channel strategy, Contribution is one of the six Cs. It refers to the financial return a channel member expects to receive as a result of investments made in terms of capital, resources, and energy. The term is closely linked with the profitability and incentive structure within a distribution channel. Contribution plays a crucial role in ensuring all channel members are motivated to operate efficiently and effectively, thereby maintaining the strength and integrity of the distribution channel as a whole.
Contrary to the sections labeled 5: Capacity and Volume, which pertain to measurements and physical dimensions and are likely related to mathematics or physical sciences, the term Contribution in a business context deals with economic and financial aspects within distribution strategies. Specifically, it looks at the value each member adds to the overall distribution process and how this value translates into financial gains or returns.