Which of the following is a difference between a retailer channel and a wholesaler channel?
a. A retailer channel is most common when the retailer is large and can buy in large quantities, while a wholesaler channel is commonly used for low-cost items that are frequently purchased.
b. A retailer channel must be organized and managed as a group, while a wholesaler channel must be managed individually.
c. A retailer channel helps differentiate a firm's final product from the competition, while a wholesaler channel does not.
d. A retailer channel enables a retailer to use another manufacturer's already-established product, while a wholesaler channel does not.
ANSWER: a
A retailer channel is most common when the retailer is large and can buy in large quantities, while a marketing channel is commonly used for low-cost items that are frequently purchased. Walmart, Sears, and car dealers are examples of retailers that often bypass a wholesaler. Cigarettes and magazines are examples of goods purchased through a wholesaler channel.
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