Rather Than Compete with Large Greeting Card Companies for Shelf

question 27

Multiple Choice

Rather than compete with large greeting card companies for shelf space in supermarkets,several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment,and in carwashes where customers are waiting and appreciate having something amusing to read.This would be an example of which type of marketing channel strategy?

• A)a strategic channel alliance
• B)multichannel distribution
• C)parallel distribution
• D)dual distribution
• E)direct distribution

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Definitions:

Sensitivity Analysis

The study of how the variation in the output of a model can be apportioned, qualitatively or quantitatively, to different sources of variation in the input of a model.

Fixed Costs

Expenses that do not change with the level of production or output over the short term, such as rent or salaries.

Variable Cost

Expenses that change in proportion to the amount of production or output levels.

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.