Distribution Channel Decisions Frequently Require Long-Term Commitments Between Firms

question 25

Multiple Choice

Distribution channel decisions frequently require long-term commitments between firms. A primary reason is that ________.

• A) advertising is not easy to change
• B) old products are difficult to discard and new products are difficult to introduce
• C) when they set up distribution through franchisees, independent dealers, or large retailers, they cannot readily replace these channels with company-owned stores or Internet sites if conditions change
• D) changing the manufacturing requirements is expensive and takes significant time
• E) management does not want to be constantly changing the method of selling and distributing its products

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Definitions:

Standard Deviation

A measure indicating the dispersion or variability of a set of data points from their mean, used in statistics to quantify the amount of variation.

Probability

The measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

NORM.DIST

A function in software packages, such as Excel, used to calculate the normal distribution of a set of data.

Point Estimate

A single value estimate that serves as the best guess or most likely value for a population parameter based on sample data.