Question
Which of the following statements most effectively characterizes the risk taking function performed by middlemen? A. After a middleman buys a manufacturer's products, the risk
Which of the following statements most effectively characterizes the "risk taking" function performed by middlemen?
A. After a middleman buys a manufacturer's products, the risk of selling the product is assumed by that channel member and is no longer the primary responsibility of the manufacturing firm (that is, the channel member assumes the risk of owning the inventory that might become obsolete, spoiled, or simply isn't popular with the ultimate consumer).
B. Marketing middlemen sometimes use their profits to invest in the stock market, which can be a risky investment.
C. Marketing channel members assist other channel members in determining how risky a new product introduction might be.
D. Marketing channel members take risks when they enter a market they know very little about.
E. Using marketing channel members usually adds risk to a manufacturer's marketing decisions (in other words, it is more risky to use other marketing channel members than to directly market its products to the ultimate consumer).
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