The Main Difference Between a Final Consumer and an Intermediate

question 47

Multiple Choice

The main difference between a final consumer and an intermediate consumer is that

• A) The final consumer usually pays cash for the purchase, whereas the intermediate customer uses a credit arrangement.
• B) An intermediate consumer will utilize the purchase in order to sell its product/service to final consumers, whereas a final consumer uses the product herself.
• C) Final consumers purchase more (in dollar value) than do intermediate consumers.
• D) Intermediate consumers are usually more flexible in their product requirements and scheduling than final consumers.
• E) Final consumers have more bargaining power than intermediate consumers.

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Definitions:

Price Discount

A reduction from the usual cost of an item or service, used as a strategy to increase customer purchases or reduce inventory.

Anticipation Inventory

Stocks held in anticipation of customer demand, allowing companies to meet consumer needs without delay.

Larger Quantities

Refers to the acquisition or production of goods or services in high volumes, typically achieving economies of scale.

Market Approach

A method used to value a business or asset based on the price at which similar companies or assets have been sold.