Savings That Come from Combining the Marketing and Distribution of Different

question 31

Multiple Choice

Savings that come from combining the marketing and distribution of different types of related products are called:

• A)horizontal integration.
• B)vertical integration.
• C)economies of scale.
• D)economies of scope.

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Definitions:

Internal Stimulus

Psychological or emotional factors within an individual that trigger a desire or need, prompting them to make a purchase or decision.

Low-involvement Purchase

Buying decisions made by consumers with minimal research and consideration as the product is often inexpensive and perceived as low risk.

Forethought

The act of thinking and planning activities or events in advance, demonstrating anticipation and careful consideration.

Low-involvement Products

Goods or services that require minimal thought and effort from consumers before purchase due to their low cost or risk, such as everyday household items.