Distribution Channel Decisions Frequently Require Long-Term Commitments Between Firms

question 25

Multiple Choice

Distribution channel decisions frequently require long-term commitments between firms. A primary reason is that ________.

• A) advertising is not easy to change
• B) old products are difficult to discard and new products are difficult to introduce
• C) when they set up distribution through franchisees, independent dealers, or large retailers, they cannot readily replace these channels with company-owned stores or Internet sites if conditions change
• D) changing the manufacturing requirements is expensive and takes significant time
• E) management does not want to be constantly changing the method of selling and distributing its products

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Definitions:

Experience Level

The degree or extent of knowledge and skill that an individual has acquired through work, education, or participation in an activity.

Design Thinking

A problem-solving approach that involves empathy, creativity, and rationale to meet user needs and solve complex problems.

Divergent Thinking

A thought process that allows us to expand our view of the world to generate as many ideas as possible without being trapped by traditional problem-solving methods or predetermined constraints.

Practical Ideas

Concepts or solutions that can be implemented effectively and have potential for real-world application.