Marketing Intermediaries

question 221

Multiple Choice

Marketing intermediaries

• A) are unlikely to survive in a competitive global economy.
• B) have survived because they can often perform marketing functions faster and at lower cost than producers.
• C) create value, but this value is seldom great enough to justify the added cost they charge for their services.
• D) tend to increase the number of exchange relationships producers and consumers must deal with in order to buy and sell goods.

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Definitions:

Perfect Substitutes

Goods or services that can be used in place of one another with no loss of utility by the consumer.

Perfect Complements

Goods that are always used together in fixed proportions, such that the utility derived from consuming one good increases the utility of consuming the other.

Orange Juice

A liquid extract of the orange tree fruit, consumed as a beverage for its taste and nutritional benefits, particularly its high vitamin C content.

Apple Juice

A fruit drink made by pressing apples and extracting the fluid, commonly consumed as a beverage.