Correct option is D
In marketing channel functions, the completion of transactions goes beyond just reaching agreements or sharing information — it involves taking responsibility for delivering goods and services and managing the risks involved. This is where the function of assuming risks becomes essential.
Risks may include:
Loss or damage of goods in transit
Fluctuations in demand
Uncertainties in payments
Inventory spoilage or obsolescence
Channel members like wholesalers, retailers, and logistic partners often bear these risks to ensure that transactions are fully executed — not just agreed upon. Hence, assuming the risks is a key function in fulfilling completed transactions, especially in physical product distribution.
Information Booster:
This function is categorized under post-transaction activities in the marketing channel.
It ensures transaction reliability by covering potential losses or failures.
It includes credit risks, storage risks, and delivery delays.
Risk-bearing improves channel efficiency and trust between parties.
Many firms use insurance or contracts to manage such risks.
It is crucial in both domestic and international marketing channels.
Proper risk management enhances channel resilience and customer satisfaction.
Additional Knowledge:
(a) Gathering and distributing information about consumers:
This is a pre-transaction function focused on market intelligence — understanding customer needs, preferences, and behavior. It supports decision-making but does not help in fulfilling completed transactions.
(b) Reaching an agreement on price and other terms:
This is a negotiation function, essential for initiating a transaction, not completing it. It happens before the actual transfer of ownership or fulfillment.
(c) Communicating with prospective buyers:
This is a promotional function that aids in generating interest and initiating demand, but it does not fulfill or complete a transaction.
English
10 Questions
20 Marks
12 Mins
