You'd Like to Own Your Own Business, and You Love

question 137

Multiple Choice

You'd like to own your own business, and you love to work with your hands, preferably outdoors. That's why a lawn and garden maintenance business is the perfect match for your abilities and interests, and you're ready to start! Which type of distribution channel will work best for launching your new service business, and why?

• A) Due to the concentrated geographic location of your potential customers, you will only need one intermediary in your distribution channel who can facilitate the exchange process.
• B) You'd like to establish and maintain personal relationships with your clients, so you should set up a short distribution channel without intermediaries.
• C) Because of the challenges involved in identifying customers who actually need your lawn care services, you will need to engage the services of several sales and marketing intermediaries who can assist you.
• D) Because you are marketing your services in the B2B environment, a short distribution channel works best for your new business.

---

Definitions:

Purchasing Patterns

The habits or trends that emerge among consumers regarding how they buy goods or services over time.

Nominal Gross Domestic Product (GDP)

The total market value of all final goods and services produced within a country in a given period, measured in current prices without adjusting for inflation.

Inflation

A general increase in prices and fall in the purchasing value of money over time.

Gross Domestic Product (GDP)

The aggregate value of all products and services generated inside a nation's boundaries over a particular time frame, serving as a comprehensive indicator of economic performance.