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Channels provide five service outputs

Channels provide five service outputs which are considerations in determining service output demands. This solution provides the deffinitions for each output and an example. Lot size, waiting time and spatial considerations are some of the areas discussed.

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Channels provide five service outputs

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 time it takes to only perform the ...

Solution Summary

Marketing channels are addressed through the description and exemplification of five service outputs.