A Marketing Manager Should Never Increase the Total Cost of Distribution-Even

question 15

True/False

A marketing manager should never increase the total cost of distribution-even if this would result in a better customer service level for his target market.

---

Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with high elasticity indicating a strong response and low elasticity indicating a weak response.

Free Range Eggs

Eggs that come from chickens that have been given the freedom to roam outdoors, rather than being confined in small cages.

Cartons

Containers usually made of paperboard or cardboard used for storing and transporting goods.

Income Elasticity

The degree to which consumer demand for a product shifts following alterations in their financial earnings.