Which of the Following Statements Concerning How Market Factors Affect

question 54

Multiple Choice

Which of the following statements concerning how market factors affect channel decisions is true?

• A) Industrial customers tend to buy in larger quantities and require more customer service
• B) Geographically concentrated target markets should be served with an indirect sales force
• C) Widely dispersed markets require fewer intermediaries
• D) New firms in extremely competitive markets will be more successful if they use indirect channels
• E) A very large market requires fewer intermediaries

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Demand Curve

A chart that illustrates how the quantity of a product demanded by customers correlates with its price.

Normal Good

A product whose demand increases when people's incomes increase, and falls when incomes decrease, all else being equal.