How will a wholesaler who is too slow to innovate affect the distribution channel? a

Marketing Dec 24, 2020

How will a wholesaler who is too slow to innovate affect the distribution channel?

a. Cost of implementing the latest technology will be saved and will result in overall cost savings,

b. The wholesaler will be pushed aside by aggressive retailers integrating backward,

c. The functions carried out by the wholesalers will be eliminated,

d. It will simplify the distribution channel.

Expert Solution

The correct answer is b. The wholesaler will be pushed aside by aggressive retailers integrating backward

Explanation: A wholesaler, who is slow in innovation and does not take any initiative, will be led behind by active and innovative wholesaler. Active wholesalers will bring new and innovative changes in the distribution process. Slow or inactive wholesaler will not be able to compete with them and this is how not only one but all distribution channels will be affected.

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