GreatWords Is a Book Retailer

question 96

Multiple Choice

GreatWords is a book retailer.Due to the increasing demand for audiobooks,the firm decides to sell audiobooks in its stores.GreatWords signs a deal with Carpem,a leading producer of educational audiobooks.According to the deal,GreatWords will sell only Carpem's audio titles in its stores,while Carpem will not sell its books through other retailer stores.GreatWords profits from Carpem's popularity while Carpem,in return,enjoys better sales.This is most likely an example of a(n) ________ marketing system.

• A) direct
• B) administered vertical
• C) corporate vertical
• D) contractual vertical
• E) horizontal

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Definitions:

Consumptions

The act of using goods and services to satisfy wants and needs, including everything from essentials like food and clothing to luxury items.

Base Year

A reference year used in economic indices and statistical analyses to facilitate the comparison of data over time.

Utility Function

A mathematical representation of how different bundles of goods or services are ranked according to their utility or satisfaction to a consumer.

Paasche Price Index

A measure of price level changes over time that uses the current period's quantities as weights.