Generally, the Larger and More Sophisticated the Channel Member, the Less

question 32

Multiple Choice

Generally, the larger and more sophisticated the channel member, the less likely that it will

• A) use supply chain intermediaries.
• B) rely on marketing research.
• C) use multichannel marketing.
• D) use intensive distribution.
• E) be concerned about competitive actions.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Cost

A cost that changes in proportion to the level of production or business activity.

Contribution Margin Ratio

The percentage of each sale that contributes to covering fixed costs after variable costs have been paid.

Fixed Costs

Costs that do not vary with production level, such as rent, insurance, and salaries of administrative staff.