Disintermediation Refers to Channel Conflict That Arises When

question 180

Multiple Choice

Disintermediation refers to channel conflict that arises when

• A) a channel member severs relationships with other channel members to work for or with a competing manufacturer.
• B) channel conflicts are resolved by a third party.
• C) a channel member bypasses another member and sells or buys products directly.
• D) channel conflicts are resolved through a binding arbitration from a panel of representatives from all channel members involved.
• E) the entire distribution chain is eliminated, when a company sets up its own wholesaler and retailer network.

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Definitions:

Determinants of Market Demand

Factors that influence the total quantity of a good or service that consumers in a market are willing and able to purchase at various prices.

Change in Supply

An alteration in the quantity of a product that producers are willing and able to sell in the market, due to factors like changes in cost of production or technological improvements.

Quantity Supplied

The quantity supplied refers to the amount of a good or service that producers are willing to sell at a given price over a specified period.

Rationing Function

The process by which a scarce resource is distributed among competing users.