Commercial Applications
"A distribution channel serves as a link between producers and consumers." Give a reason either for or against.
Answer
For the statement — A distribution channel indeed serves as a link between producers and consumers. Reason:
A distribution channel creates utilities of time, place and possession by bridging the gap between the point of production and the point of consumption. It represents three types of flows — products flow downwards from producer to consumers, cash flows upwards from consumers to producer, and marketing information flows in both directions. Therefore, it serves as the connecting link between the producer and consumers.
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