Companies That Make It Easy for Customers to Switch Channels

question 57

Multiple Choice

Companies that make it easy for customers to switch channels reap the benefits of

• A) decreased channel conflict.
• B) expanded channel range.
• C) customer satisfaction.
• D) a lower E/C ratio.
• E) a lower E/R ratio.

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Definitions:

Optimal Consumption Rule

A principle in economics that determines the best combination of goods and services that maximizes the utility of a consumer given their budget constraints.

Marginal Utility

The additional satisfaction or benefit gained from consuming one more unit of a good or service.

Consumption Bundle

A combination of goods and services that a consumer chooses to consume at a given time.

Budget Constraint

The limit on the consumption patterns of an individual or household based on their income and the prices of goods and services.