To Reduce Conflicts in Channels, a Firm Should

question 216

Multiple Choice

To reduce conflicts in channels, a firm should:

• A) Offer different products through each channel.
• B) Provide some compensation to members of the older channel.
• C) Treat channel partners fairly even when one partner is more powerful.
• D) Focus on segments not currently served by existing channels.
• E) All of the above.

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Definitions:

Consumer Surplus

The discrepancy between what consumers are prepared to spend on a good or service and what they end up paying.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits to society from trading goods and services.

Tariffs

Taxes imposed by a government on imported goods and services to control trade volumes, protect domestic industries, or generate revenue.

Quotas

Limits set by governments on the quantity of a good that can be imported or exported within a certain time period to regulate trade.