A Direct Channel Exists When

question 47

Multiple Choice

A direct channel exists when

• A) producers and end users deal with each other on a one-on-one basis.
• B) the producer and consumer perform numerous channel functions.
• C) a firm reaches different buyers by employing two or more different types of channels for the same basic product.
• D) an intermediary sells to other intermediaries, usually to retailers in consumer markets.
• E) an agent or broker brings ultimate consumers to manufacturers.

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Definitions:

Price

The price one must pay to acquire a good or service.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.

Hamburger

A ground meat patty, often beef, served between two slices of bread or a bun, commonly accompanied by condiments and toppings.

Hot Dog

A cooked sausage, traditionally grilled or steamed, usually served in a sliced bun as a sandwich.