True Statements about Marketing Channel
Which is true about the given marketing channel?
Producer → Commission agents/Brokers → Wholesalers → Retailers → Consumers
- Brokers & commission agents are known as agent middlemen
- Wholesalers & retailers are known as merchant middlemen
- Agents come into play when item is perishable
- All the above — Correct Answer
Explanation:
Correct Answer: All the above
All three statements about the marketing channel are correct:
Explanation of Middlemen
- Agent middlemen (Brokers & Commission agents): They do not take title (ownership) of the goods. They facilitate buying and selling for a commission or fee. They are especially important for perishable items like milk, eggs, meat — where speed of transaction is critical.
- Merchant middlemen (Wholesalers & Retailers): They take title (ownership) of goods — they buy and sell on their own account and bear the risk of ownership.
Marketing Channel Levels
- Direct channel: Producer → Consumer (no middlemen). Rare in perishables.
- Indirect channel: Producer → Agent middlemen → Merchant middlemen → Consumer. Common in perishable commodities.
Memory Tip
Agent = no ownership (just acts/facilitates). Merchant = takes ownership (buys and sells). Broker/Commission Agent = Agent. Wholesaler/Retailer = Merchant.
📚 About this Topic — Animal Refresher
This multiple choice question is from Animal Refresher, Veterinary Extension Education. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from Animal Refresher to strengthen your preparation.
