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Channels provide five service outputs

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In designing a marketing channel system, the marketer must understand the service output levels desired by target customers. Channels provide five service outputs. List and briefly describe each of these outputs. List an example for each level.

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Solution Summary

Lot size refers to the ideal number of units that can be produced and the most efficient cost, given variables of increased production costs such as storage, (warehousing, shelf display etc.) transportation, insurance and other costs associate with the channel system. The economies of scale come into play here and the volume of production could set at a point below market desire if the cost to the customer will be increase to a point ....

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Lot size refers to the ideal number of units that can be produced and the most efficient cost, given variables of increased production costs such as storage, (warehousing, shelf display etc.) transportation, insurance and other costs associate with the channel system. The economies of scale come into play here and the volume of production could set at a point below market desire if the cost to the customer will be increase to a point where it will affect the competitiveness of the product in the marketplace.

Waiting and delivery time refer to the minimum ...

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