Question: Why does double marginalization lead to lower sales?Group of answer choicesBecause customers are more interested in buying directly from the manufacturer, especially if it is
Why does double marginalization lead to lower sales?Group of answer choicesBecause customers are more interested in buying directly from the manufacturer, especially if it is a US-based manufacturerThe margin added by the retailer is usually lower than the margin by the manufacturer, so the profits are lowerDouble marginalization indicates that the buyers are marginalized, which by definition means fewer buyersWhen all parties in the supply chain add a margin, the final price is higher, so fewer people are willing to buy the product/service
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