One benefit of a longer distribution channel is that it cuts selling c

QUESTION

One benefit of a longer distribution channel is that it cuts selling costs when the degree of fragmentation of the retail sector is less.

Indicate whether the statement is true or false.

ANSWER

FALSE
One benefit of a longer distribution channel is that it cuts selling costs when the retail sector is very fragmented. Thus, it makes sense for an international business to use longer distribution channels in countries where the retail sector is fragmented and shorter distribution channels in countries where the retail sector is concentrated.