If all members of a distribution channel act as a unified system, the channel is labelled as ....a.Conventionalb.Hybridc.Verticald.Multi-channele.Horizontal
Question
If all members of a distribution channel act as a unified system, the channel is labelled as ....
a. Conventional
b. Hybrid
c. Vertical
d. Multi-channel
e. Horizontal
Solution
The question is asking about the classification of distribution channels based on the degree of coordination among channel members. Here’s a breakdown of the options provided:
- Conventional Channel: This type operates independently; each member functions independently without a common goal or coordination.
- Hybrid Channel: A hybrid channel combines multiple distribution methods, but it doesn’t necessarily imply unity among members.
- Vertical Channel: This type is characterized by a unified system where members coordinate efforts to achieve a common goal. This includes manufacturers, wholesalers, and retailers working cohesively.
- Multi-channel: This refers to using multiple channels to reach customers, which doesn’t automatically indicate unity among channel members.
- Horizontal Channel: This involves cooperation among peers at the same level of the channel, but again, this doesn’t imply the unified system typical of vertical channels.
Given these definitions, the correct answer to the question is:
Final Answer
c. Vertical - In a vertical distribution channel, all members operate as a unified system, collaborating towards common objectives.
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