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:

Stock Externalities

Environmental consequences of economic actions that affect the value of stocks and investments, not originally accounted for in the stock market.

Incremental Results

Outcomes or changes that are achieved step by step or gradually.

Externalities

Financial outcomes that impact third parties who are not directly involved, which can manifest as either advantageous or detrimental.

Economic Efficiency

Maximization of aggregate consumer and producer surplus.