Final answer:
Businesses must consider customer needs, expectations, and competitive activity when developing a distribution channel's location strategy to ensure effectiveness and competitiveness.
Step-by-step explanation:
In order to develop a location strategy for a distribution channel, firms must consider All of the above: a. customer needs, b. customer expectations, c. competitive activity. It is essential for businesses to understand the requirements and expectations of their customers to ensure that the distribution channels are effective and competitive. A successful location strategy takes into account how to best meet customer demands while being aware of the competitive landscape, minimizing costs, and maximizing service efficiency.