Bypassing Regular Wholesale/retail Channels in Favor of Direct Sales and Internet

question 61

Multiple Choice

Bypassing regular wholesale/retail channels in favor of direct sales and Internet retailing can have appeal if it

• A)reinforces the brand, enhances consumer satisfaction, and results in lower prices to end users.
• B)can result in better coordination of the firm's direct sales activity to wholesalers and distributors.
• C)can establish a retail frontal attack while efficiently managing its backward (defensive)sales orientation.
• D)combines the best of all sales channels and provides financial support to distribution allies.
• E)creates a channel conflict, thereby providing competitive improvisation.

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Definitions:

Periodic Systems

An inventory system where inventory counts and cost of goods sold calculations are conducted at specific intervals, such as monthly or yearly.

Inventory Shrinkage

The loss of products between acquisition and sale, often due to theft, damage, or errors in inventory management.

Perpetual Inventory System

A bookkeeping approach that documents inventory movements as they occur, ensuring the inventory balance is always current.

Net Price Method

The net price method accounts for purchases after subtracting discounts, essentially calculating the actual price paid for goods or services after all reductions.