When the Marketer Emphasizes Reductions in Staff, Overhead, and Capital

question 56

Multiple Choice

When the marketer emphasizes reductions in staff, overhead, and capital as potential benefits to the purchaser, this relates to the service characteristic of:

• A)variability.
• B)perishability.
• C)simultaneous production and consumption.
• D)intangibility.
• E)lack of ownership.

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Definitions:

Franchising

A business practice in which a company allows another operator to trade under its brand in return for a fee or license.

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Contractual Arrangement

An agreement between entities to do or not do specific things, legally binding and enforceable.

Forward Integration

A business strategy where a company gains ownership or increased control over its distributors or retailers.