Madison Manufacturing Makes Small Appliances and Faces Tough Competition from Overseas

question 42

Multiple Choice

Madison Manufacturing makes small appliances and faces tough competition from overseas firms that make similar products less expensively.Madison managers have decided to offer more services to customers,such as maintenance agreements and warranty contracts.Madison now deals directly with end-users instead of relying on intermediate channel partners.What is the most likely result of Madison's shift to services?

• A) horizontal integration
• B) channel free-riding
• C) upstream integration
• D) service acquisition
• E) disintermediation

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Definitions:

Conservation

Within the realm of cognitive development, the realization that specific attributes of objects are constant, even when their shape or look alters.

Accommodation

The process of adapting cognitive schemas to incorporate new information.

Egocentrism

A developmental phase where an individual is unable to distinguish between their own perspective and that of others, often observed in children.

Insecure Attachment

A type of attachment characterized by anxiety or avoidance in relationships, often stemming from inconsistent caregiving in early life.