In a retailer-led channel system, strategy decisions regarding:
A) ?Price are completely handled by producers.
B) ?target customers are handled by producers.
C) ?Promotion are handled by retailers.
D) ?Product are handled by retailers.
E) ?Place are not a concern for the retailers.
The Correct Answer and Explanation is :
The correct answer is C) Promotion are handled by retailers.
Explanation:
In a retailer-led channel system, retailers take the lead in decision-making, particularly in how products are marketed and promoted to customers. Let’s break down each option:
- A) Price are completely handled by producers.
This is incorrect in a retailer-led channel system. While producers may suggest a price or provide recommended retail prices, retailers often have the power to adjust prices based on factors like competition, market demand, or promotional strategies. Retailers may even offer discounts or set different prices in different locations. - B) Target customers are handled by producers.
This is also incorrect in a retailer-led channel system. In a retailer-led system, retailers are the ones who have direct contact with end consumers. They determine which customer segments to target based on their market knowledge and customer preferences, not producers. - C) Promotion are handled by retailers.
This is correct. Retailers play a significant role in promotion because they are closer to the end consumer. Retailers are responsible for advertising, in-store promotions, discounts, and other marketing efforts to drive sales. They use insights from customer behavior and trends to design promotions that will attract the right buyers. - D) Product are handled by retailers.
In a retailer-led channel, products are typically chosen and sourced by retailers, but the overall design, development, and manufacturing of products are handled by producers. Retailers select the products they want to sell based on market demand but do not typically develop the products themselves. - E) Place are not a concern for the retailers.
This is incorrect. Place, or distribution, is a key concern for retailers. They must manage the location of their stores (physical or online) to ensure products are available to customers at the right time and place. Retailers make decisions about store layouts, online presence, and delivery options to enhance customer experience.
In summary, a retailer-led channel system puts the retailer in control of promotion, marketing, and often price adjustments, as they have the most direct relationship with the consumer.