Vertical contracts that aim to decrease retailer prices typically benefit the
Group of answer choices
A Consumer and the manufacturer,
B but hurt the retailer Manufacturer and retailer,
C but hurt the consumer Retailer and consumer,
D but hurt the manufacturer Manufacturer, retailer, and consumer
The correct answer and explanation is:
It seems like you’re referring to a relationship between a consumer, retailer, and manufacturer. The correct answer to this question could likely be something related to how these parties interact in a supply chain, pricing, or distribution model.
The correct answer is likely “Manufacturer, retailer, and consumer.”
Explanation:
In a typical supply chain, the three key players are the manufacturer, the retailer, and the consumer.
- Manufacturer: The manufacturer is the originator of the product. They produce goods based on demand, quality standards, and specifications. Manufacturers sell to wholesalers or directly to retailers. The manufacturer sets the base price but has little control over how much the final price is marked up by the retailer.
- Retailer: Retailers act as intermediaries between manufacturers and consumers. They purchase goods from manufacturers or wholesalers in bulk and sell them to consumers at a marked-up price. Retailers can be physical stores or online platforms. Retailers add value by making the product available to consumers in convenient locations, and they might offer customer service, warranties, or delivery services.
- Consumer: Consumers are the end users of the product. They purchase goods from retailers. Consumer preferences, buying power, and behavior influence the demand for products. Consumers may also have an impact on the pricing model if there are shifts in demand for certain products. For example, during high demand, prices may increase due to retailer and manufacturer strategies.
Each player in the chain has its role, and the interaction between them can affect the overall price of products and services. While the manufacturer produces the goods, the retailer’s pricing and the consumer’s willingness to purchase can ultimately determine whether a product succeeds in the market.