Which of the Following Is True of Choosing a Distribution

question 5

Multiple Choice

Which of the following is true of choosing a distribution strategy?

• A) The optimal distribution strategy is determined by the relative costs and benefits of each alternative, which vary from country to country.
• B) A choice of distribution strategy does not determine which channel the firm will use to reach potential consumers.
• C) The channel length, the final selling price, and the firm's profit margin are completely independent of each other.
• D) The longer a distribution channel, the lower the aggregate markup.
• E) The longer a distribution channel, the lower the price that consumers are charged for the final product.

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Definitions:

Income Received

The total earnings obtained by an individual or entity, including wages, salaries, profits, rents, and other forms of financial gains.

Lowest Quintile

describes the bottom 20% segment of a population sorted by income or wealth, usually referenced in economic studies of inequality.

Income Received

The amount of money or monetary value received by an individual or entity in exchange for goods provided, services rendered or as a return on investments.

Middle Three Quintiles

The segments of the population that fall into the second, third, and fourth quintiles when dividing the total population into five equal groups based on income or wealth.