Many Companies,such as IBM,have Turned to Multiple Sales Channels to Sell

question 7

Multiple Choice

Many companies,such as IBM,have turned to multiple sales channels to sell their products and services.Companies that use multiple sales channels find that this choice has which of the following effects?

• A)Using multiple channels causes confusion,both for the customer and the sales force.
• B)Using multiple channels causes harmony,as all the channels use the same salespeople.
• C)Using multiple channels causes synergy,although it takes planning to make sure the channels compliment each other instead of competing.
• D)Using multiple channels causes hostility,because the different channels bring commissions down for salespeople.
• E)Using multiple channels causes efficiency,as all the channels are managed by the same person.

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Definitions:

Market

A system or an area where buyers and sellers interact to trade goods, services, or financial instruments.

Positive Externality

A benefit gained by a third party not directly involved in a transaction or activity, where the social or economic gain is not reflected in the market price.

Social Planner

A theoretical decision-maker in economics who aims to achieve optimal outcomes for society by considering the allocation of resources and distribution of goods and services.

Subsidy

A payment made by the government to a firm, industry, or individual, usually to encourage the production of a certain good or service or to reduce its price for consumers.