The following statements relate to the functions of the marketing channel members. Indicate the statements being correct or incorrect.

Statement (I): Channel members do not gather information about potential and current customers, competitors and other actors and forces in the marketing environment.

Statement (II): Channel members acquire the funds to finance inventories at different levels in the marketing channel.

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The correct answer is Statement (I) is incorrect while Statement (II) is correct.

Key Points

•  Channel members are people who participate in the supply of goods or services to consumers.
• The two distinct types of channels are business-to-business (B2B) and business-to-consumer (B2C).
• Business to business (B2B) channels are used to transact business-to-business (B2B) sales of goods or services.
• Business to Consumer (B2C) describes the process of selling goods and services directly between a company and the customers who will ultimately use those goods or services.

Important Points Statement (I): Channel members do not gather information about potential and current customers, competitors and other actors and forces in the marketing environment.

• The basic motive of channel members is to offer products or services to the customers, to gather information about the potential and current customers, competitors and all the other forces working in the marketing environment.
• So, this statement goes wrong.

Statement (II): Channel members acquire the funds to finance inventories at different levels in the marketing channel.

• Channel members perform various functions such as, risk-taking, financing, physical distribution of goods, inventory management, promotions, information, acquiring finance, purchasing and selling inventories using channels of distribution.
• So, this statement is absolutely correct.

Hence, the correct answer is Statement (I) is incorrect while Statement (II) is correct.