The Level of Difficulty a Manufacturer Has in Getting Retailers

question 41

Multiple Choice

The level of difficulty a manufacturer has in getting retailers to purchase its products is determined by:

• A)the level of sophistication of the product.
• B)customer expectations.
• C)the relative power of the manufacturer and retailer.
• D)distribution intensity.
• E)channel member characteristics.

---

Definitions:

Income Effect

The variation in income for a person or an economy and its impact on the demand for a specific good or service.

Perfect Substitutes

Goods that can serve the same purpose perfectly, where consumers are indifferent between them and will select based on price.

Giffen Good

A product that paradoxically sees an increase in demand as its price increases, violating the basic law of demand due to the income effect overshadowing the substitution effect.

Inferior Good

A type of good whose demand decreases as the income of consumers increases, opposite of a normal good.