In terms of channel length, the more fragmented the retail system, the

QUESTION

In terms of channel length, the more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer.

Indicate whether the statement is true or false.

ANSWER

FALSE
The more fragmented the retail system, the more expensive it is for a firm to make contact with each individual retailer. Accordingly, it makes economic sense for the firm to sell to the wholesalers and the wholesalers to deal with the retailers.