Which of the Following Is True of Improving Cost Efficiency

question 24

Multiple Choice

Which of the following is true of improving cost efficiency of the marketing process?

• A)If a business does not make products available at customers' preferred points of purchase,it lowers the cost of the transaction.
• B)For undifferentiated products,customers' transaction costs are high even when availability is unrestricted.
• C)The more undifferentiated a product is,the greater its perceived value.
• D)Customer value can be increased by lowering the cost of reaching customers.
• E)The general assumption is that the more intermediaries a channel system has,the lower the total cost of purchase.

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Definitions:

Debt Outstanding

The total amount of debt that a company or government has yet to repay.

Capital Budgeting

The process of evaluating and selecting long-term investments that are consistent with the firm's goal of wealth maximization.

Fixed Assets

Long-term assets used in the operation of a business, not expected to be converted into cash within a year, such as buildings and machinery.

Dividend Policies

Strategies and guidelines that a company uses to decide the size and pattern of cash distributions to its shareholders over time.