Manufacturers often use intermediaries to distribute their products because intermediaries:

• A. help reduce distribution costs and improve market reach
• B. restrict manufacturers from accessing new markets
• C. eliminate the need for advertising and promotion
• D. always increase the price of products for consumers

Answer: (A)

Verified step by step guidance

1. Understand the role of intermediaries in the distribution process. Intermediaries act as middlemen between manufacturers and consumers, facilitating the movement of goods.
2. Recognize that intermediaries can help reduce distribution costs by leveraging their existing networks, expertise, and economies of scale, which can be more efficient than manufacturers distributing products directly.
3. Consider how intermediaries improve market reach by accessing a wider range of customers and geographic areas that manufacturers might find difficult or costly to serve on their own.
4. Evaluate the incorrect options: intermediaries do not typically restrict market access; rather, they expand it. They also do not eliminate the need for advertising and promotion, as these activities are still necessary to inform and attract customers.
5. Note that while intermediaries add a layer in the supply chain, they do not always increase the final price for consumers; their efficiencies can sometimes lower overall costs.