The Means to Enhance Differentiation Through Activities at the Forward

question 19

Multiple Choice

The means to enhance differentiation through activities at the forward end of the value chain system do NOT include

• A) engaging in cooperative advertising and promotions.
• B) creating exclusive arrangements with downstream sellers or other mechanisms that increase their incentives for enhanced-delivery customer value.
• C) creating and enforcing standards for downstream activities.
• D) assisting in training channel partners in business practices.
• E) enhancing cost-reducing activities with defensive functionality designed to create incentives.

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Definitions:

Market Price

The actual selling price of goods or services available in the marketplace at any given time.

Marginal Revenue

Marginal revenue is the additional income earned from selling one more unit of a good or service.

Marginal Cost

The change in total cost that arises when the quantity produced changes by one unit; essentially the cost of producing one additional unit of a good or service.

Price-Taker Firm

A firm that has no control over the market price and must accept the prevailing market price for its product.