Idea #252
The Effect of Pruning Sales Channels
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The Effect of Pruning Sales Channels
KEY CONCEPT
A firm that eliminates a search or purchase channel, such as a catalogue, will lose customers who prefer that channel. The decision to eliminate a channel can still be profitable in the long run, as long as the savings from the elimination is greater than the lost revenues. Managers can help the math by taking proactive steps to reduce the level of lost revenues.
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Idea conceived
January 1, 2014Idea posted
Nov 2013
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