The channel alternative is NOT to be assessed on the basis of

This question was previously asked in
UGC Paper 2: Commerce 26th June 2019
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  1. economic criteria
  2. control criteria
  3. adaptive criteria
  4. accumulation criteria

Answer (Detailed Solution Below)

Option 4 : accumulation criteria
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UGC NET Paper 1: Held on 21st August 2024 Shift 1
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The channel alternative is NOT to be assessed on the basis of accumulation criteria.

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Explanation:

  1. A firm must identify the types of channel members available to carry out its channel work in terms of types of intermediaries, number of intermediaries, and responsibility of each.
  2. After identifying the channels, the company must evaluate them against economic, control, and adaptive criteria.

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  1. Using economic criteria, a company compares the likely sales, costs, and profitability of each alternative.
  2. Control issues mean giving some control of the marketing of a product to the intermediary. The company must retain as much control as possible.
  3. Channels often involve long-term commitment; hence companies must consider the ability of a channel to adapt to environmental changes.
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