The Major Characteristic Used to Differentiate Between Types of Intermediaries

question 2

Multiple Choice

The major characteristic used to differentiate between types of intermediaries is whether they do one of the following.Which one?

• A) raise profit margins for independent middlemen
• B) install exchange barriers such as location,time,and quantity
• C) decrease economies of scale
• D) take title to the products they sell

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Definitions:

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typically including product, price, place, and promotion.

Variable Costs

Expenses that vary directly with the level of production or output, such as materials and labor.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and equipment maintenance costs.

Market Skimming

A pricing strategy where a firm charges the highest initial price that customers will pay and then lowers it over time as the demand of the first set of customers is satisfied.