Major Household Appliances - Lesson in Distribution
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The author reports on the marketing costs associated with the middlemen's margins and the friction which these channels bring to the middlemen's operating margins. Difficulties which have arisen regarding attempts to obtain secure operationally useful margin data are discussed. Friction which can be caused through the use of middlemen is studied in the article by discussing the household appliance industry. An approach to measuring middlemen's margins is discussed in the article. Limitations which exist in the author's study are mentioned.