Which of the following is true of a conventional distribution channel?

Which of the following is true of a conventional distribution channel?

a. It has each channel member acting as a separate business unit trying to maximize its own profits.

b. It consists of producers selling their products directly to customers without the use of intermediaries.

c. It has one channel member owning the other channel members.

d. It is a distribution channel where a producer is the owner of all the other channel members.

e. It has all members of the channel working together as a single organization.

Answer:

The answer is a. It has each channel member acting as a separate business unit trying to maximize its own profits.

Conventional distribution channels are characterized by the presence of multiple independent businesses that work together to bring products to consumers. Each channel member, such as manufacturers, wholesalers, and retailers, is a separate business unit with its own goals and objectives. This means that each channel member may be more focused on maximizing its own profits than on the overall success of the channel as a whole.

The other options are incorrect:

b. It consists of producers selling their products directly to customers without the use of intermediaries. This is a direct distribution channel.

c. It has one channel member owning the other channel members. This is a vertical distribution channel.

d. It is a distribution channel where a producer is the owner of all the other channel members. This is a corporate vertical distribution channel.

e. It has all members of the channel working together as a single organization. This is a unified distribution channel.

Conventional distribution channels are still the most common type of distribution channel today. They are often used for products that are widely consumed and have a high turnover rate.