What Is the Most Important Determinant of Channel Length

question 79

Multiple Choice

What is the most important determinant of channel length?

• A) degree to which the retail system is fragmented
• B) increase in car ownership and two-income households
• C) level of consolidation in the global retail industry
• D) amount of difference between product or technical standards
• E) level of economic development of a country

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Definitions:

Income Elasticity

A measure of how much the demand for a good changes in response to a change in consumers' income.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, in contrast to a normal good.

One-Of-A-Kind

An item or phenomenon that is unique and has no identical counterpart.

Perfectly Inelastic

A market condition where the quantity demanded or supplied does not change regardless of price fluctuations.