Mark Believes He Has Found a Sure-Fire Way to Save

question 109

Multiple Choice

Mark believes he has found a sure-fire way to save money.He advises his friends,"Buy directly from the manufacturer.Any time intermediaries get involved,you'll pay a higher price.After all,every intermediary involved in the marketing process must charge enough to earn a profit".Mark's advice:

• A)is entirely correct.Intermediaries must charge a high enough price for the activities they perform to earn a profit,so using intermediaries must result in a higher price.
• B)is impractical,because in most markets the distribution process is so complex that it is impossible to determine who the actual producer really is.
• C)is not valid in many cases.Intermediaries do add costs to products,but they also create values by performing marketing functions efficiently.In many cases the values they create more than offset the costs.
• D)is never true.Markets that make use of intermediaries can always provide goods at lower cost than those that rely on direct distribution.

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Definitions:

Double-Blind Procedure

A double-blind procedure is a research or experimental method in which both the participants and the researchers are unaware of which participants are receiving the treatment and which are receiving a placebo.

Confounded

In research, refers to an error or problem that obscures the effects of the variables being studied because they are mixed with or influenced by other variables.

Interaction

The reciprocal action or influence that entities have on each other, highlighting the dynamic and often complex exchanges.

Credibility

The quality of being trusted and believed in, or the degree to which a source or piece of information is considered accurate and reliable.