Indirect Channels Are Probably a Better Choice Than Direct Channels

question 275

Multiple Choice

Indirect channels are probably a better choice than direct channels when:

• A) the firm has limited financial resources.
• B) the product is a consumer product instead of a business product.
• C) target customers already have established buying patterns for where to search for the product.
• D) retailers are already conveniently located where consumers shop.
• E) All of these make indirect channels a better choice.

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Definitions:

Long-Run Equilibrium

A state in which all firms in a market or industry are making normal profits and there is no incentive for firms to either enter or exit the market.

Price

The monetized value required, forecasted, or offered in return for a service or good.

Marginal Cost

The increase in total cost that arises from an extra unit of production, focusing on the cost variation from an additional output.

Marginal Revenue Curve

A graphical representation that shows how additional sales revenue changes with each extra unit of output sold.