Which of the Following Statements About the Choice of Distribution

question 6

Multiple Choice

Which of the following statements about the choice of distribution strategy is true?

• A) The longer a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product.
• B) If price is an important competitive weapon and if the firm does not want to see its profit margins squeezed, other things being equal, the firm would prefer to use a longer channel.
• C) The shorter a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product.
• D) An international business must use shorter channels in countries where the retail sector is fragmented and longer channels in countries where the retail sector is concentrated.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.