What channel should a firm use to reach its maximum of potential consumers?
The optimal strategy is determined by the relative costs and benefits of each alternative, which varies from country to country, depending on the 4 factors mentioned earlier.
Longer channel → greater aggregate markup (percentage of total cost) → higher price which consumers will be charged for the final product.
The benefits may outweigh this drawback since the benefit for longer channels is that they cut selling costs when the retail sector is very fragmented and the ability to enter an exclusive channel is low.