A manufacturer of car batteries, who has been selling through an automotive parts wholesaler to garages and service stations, decides to sell directly to retailers. Which of the following will necessarily occur?

A manufacturer of car batteries, who has been selling through an automotive parts wholesaler to garages and service stations, decides to sell directly to retailers. Which of the following will necessarily occur?



a. Elimination of the wholesaler's profit will result in a lower price to the ultimate customer

b. Elimination of the wholesaler's marketing functions will increase efficiency

c. The total cost of distribution will be reduced because of the elimination of the wholesaler

d. The marketing functions performed by the wholesaler will be eliminated

e. The wholesaler's marketing functions will be shifted to or shared by the manufacturer and the retailer



Answer: e. The wholesaler's marketing functions will be shifted to or shared by the manufacturer and the retailer


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