As People in Developing Countries Often Prefer to Buy in Smaller

question 55

Multiple Choice

As people in developing countries often prefer to buy in smaller quantities, ________ is one of the most important functions of intermediaries in developing countries and helps perpetuate the long channels of distribution, which are a major obstacle to the expansion of retailing.

• A) product adaptation
• B) breaking bulk
• C) diversification
• D) transfer pricing
• E) dual adaptation

---

Definitions:

Rational Decisions

The process of making choices that result in the optimal level of benefit or utility for an individual.

Advertising

The activity or profession of producing advertisements for commercial products or services, aiming to influence consumer behavior.

Behavioral Economics

explores how psychological, cognitive, emotional, cultural, and social factors affect economic decisions, challenging traditional economic theories that assume rational behavior.

Recognition Heuristic

A cognitive shortcut that involves making a decision based on the recognition of familiar names or entities instead of considering detailed information.