A Commonly Used Indirect Channel Moves Product from Producer to Retailer

question 120

Multiple Choice

A commonly used indirect channel moves product from producer to retailer to consumer. Automobile manufacturers use this channel because

• A) inventory is unpredictable.
• B) the cost of inventory makes it too expensive to use a wholesaler.
• C) there is little if any seasonal demand.
• D) the risk lies solely with the manufacturer.
• E) the retail outlets are regionally located.

---

Definitions:

Facilitates Trade

Actions or policies designed to make trade between countries or parties easier, typically through reducing barriers such as tariffs and quotas.

Barter

The direct exchange of one product for another without using money.

Medium Of Exchange

Anything that is widely accepted as a means for the payment of goods and services and repayment of debts.

Opportunity Cost

Represents the value of the best alternative that must be given up in order to pursue a certain action or decision.