ory Bookmark C Secure https//unt. 3481/quizzes/20880/take Two students, Jeff Spi

Question

ory Bookmark C Secure https//unt. 3481/quizzes/20880/take Two students, Jeff Spicoli and "The Dude," were studying for the third exam in their marketing course. While studying the supply chain chapter, "Dude" made the following statement: "If it weren't for wholesalers and other supply chain intermediaries, the products we buy would cost a lot less!" After contemplating the Dude's words, Jeff Spicoli replied, "Wait a minute. We learned in class that supply chain intermediaries actually provide different types of utilities for consumers." The Dude's statement refers to: The highly specialized value that can be created by intermediaries channel intermediary development price inflation by channel intermediaries channel intermediary promotional efforts The Dude was righteous, as always; thus Spicoli was bogus esc 80 F4 92

Explanation / Answer

Option C. Dude's statement refers to the price inflation by the channel intermediaries. This is because when a product is sold to many intermediaries by the producer to wholesaler and then to retailer, each person adds their profit margin and this leads to rise in the price of the product. This is called as price inflation by channel intermediaries.

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