Which of the Following Statements Concerning How Market Factors Affect

question 54

Multiple Choice

Which of the following statements concerning how market factors affect channel decisions is true?

• A) Industrial customers tend to buy in larger quantities and require more customer service
• B) Geographically concentrated target markets should be served with an indirect sales force
• C) Widely dispersed markets require fewer intermediaries
• D) New firms in extremely competitive markets will be more successful if they use indirect channels
• E) A very large market requires fewer intermediaries

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Definitions:

Outsourcing Decision

The process by which a company decides whether to purchase a good or service from an external provider instead of producing it internally, often influenced by factors like cost, expertise, and capacity.

Spreadsheet

A digital worksheet used for organizing, analyzing, and storing data in a tabular form.

Profit Generated

The total earnings resulting from business activities after subtracting all expenses and costs.

Production Data

Refers to information generated during the manufacturing or production process of a company, detailing aspects like quantity manufactured, defects, and production time.