Longer Channels of Distribution Are More Appropriate for Keeping Prices

question 18

True/False

Longer channels of distribution are more appropriate for keeping prices under control than shorter channels of distribution.

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Definitions:

Price Cutting

A competitive strategy whereby a company lowers its product prices to attract customers and increase market share.

Sales Volume

The total number of units of a product sold within a specific time period.

Component Parts

The elements or individual items that, when combined, form a complete product or system.

Finished Product

A product that has completed the manufacturing process and is available for sale or distribution to the final consumer.