Although Some Intermediaries May Resent This Approach, a Manufacturer May

question 55

Multiple Choice

Although some intermediaries may resent this approach, a manufacturer may have to use "multichannel distribution" because:

• A) present channel members are doing a poor job.
• B) the firm desires to reach different target markets.
• C) big retail chains want to deal directly.
• D) antitrust regulations prohibit relying on just one channel system.
• E) both A and C above.

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Definitions:

Hybrid Wage System

A compensation strategy that combines elements of both hourly wages and salary, potentially including performance bonuses or commissions.

Administrative Employees

Employees who are responsible for office functions and tasks; they typically engage in non-manual work related to the general business operations of an organization.

Merit Increases

Salary raises awarded to employees based on their performance and contribution to the organization.

Lump-Sum Basis

A method of payment or compensation with a fixed total amount to be paid in one single sum, rather than through installments or percentages.