In channel design, which question helps determine governance of chosen channels?

In channel design, which question helps determine governance of chosen channels?

• A. How many products will be offered?
• B. What is the target market size?
• C. Who will be in charge of the selected channels?
• D. What is the product's warranty period?

Answer: (C)

Governance in channel design is about who has the authority and responsibility to run the chosen channels—who leads, who sets rules, who negotiates terms, and who handles performance monitoring and conflict resolution. The best question to determine governance is identifying who will be in charge of the selected channels because that directly defines the decision rights, accountability, and control mechanisms that will guide how the channel operates over time. Without clarity on who governs, the channel can face misaligned incentives, inconsistent execution, and disputes. The other questions focus on different aspects: how many products will be offered relates to product breadth and assortment strategy; what the target market size concerns market potential and segmentation; and what the product’s warranty period deals with after-sales service.

Governance in channel design is about who has the authority and responsibility to run the chosen channels—who leads, who sets rules, who negotiates terms, and who handles performance monitoring and conflict resolution. The best question to determine governance is identifying who will be in charge of the selected channels because that directly defines the decision rights, accountability, and control mechanisms that will guide how the channel operates over time. Without clarity on who governs, the channel can face misaligned incentives, inconsistent execution, and disputes.

The other questions focus on different aspects: how many products will be offered relates to product breadth and assortment strategy; what the target market size concerns market potential and segmentation; and what the product’s warranty period deals with after-sales service.