chap 10 - be a compliment or depend on another product For...

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Group 8 April 5, 2010 Chapter 10 questions 6. Under which conditions might a seemingly simple product deletion decision create possible adverse reaction on the part of channel members? If one channel member needs to eliminate a product, another member may still be carrying it, even if it is in small quantities. This will leave the channel member who is carrying the product with high costs and low volume channel for the product. To actually decipher if the product needs to be dropped, marketing research needs to be done along with analysis of revenues produced by each outlet. Another problem if one channel member drops a product while another one is carrying it is that the product may
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Unformatted text preview: be a compliment or depend on another product. For example, the existing product may have a difficult time existing without the product that is being eliminated so it may have to be dropped as well. This would cause reduced revenues for the channel members. A solution to this would be to talk to customers and find out what products are complements or depend on each other so the channel members know what they can drop to reduce costs and what products must stay together in order to make it easier for customers in the long run....
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This note was uploaded on 04/10/2010 for the course FIN 600 taught by Professor Hansen during the Spring '10 term at Ramapo.

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