Question

The sales manager for Smith Exports is deciding on the firm's distribution strategy in several markets. He wants to know which factor is likely to shorten channel length in a particular country. Which of the following factors helps a firm shorten channel length

a. Fragmentation of a retail system

b. small sales force

c. entry of large discount superstores

d. smaller sales orders generated from sales calls

e. frim's insistence of dealing with wholesalers instead of manufacturers

Answer 1

The correct answer is letter "C": entry of large discount superstores.

Step-by-step explanation:

A channel length is composed of the number of middlemen in the distribution channel of a product. The more intermediaries between buyers and sellers the larger the channel length. Under that scenario, if there are more discount superstores in a market such as Walmart or Costco manufacturers can directly offer their goods to them so consumers can find them available in their stores. The channel length would be small, then.