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.

---

Definitions:

Profitable Level

Refers to the point at which a business or operation generates revenue exceeding its costs, leading to financial gain.

Output

is the total amount of goods and services produced by an economy, firm, or production process.

Market Price

The actual selling price of a good or service in the marketplace, influenced by supply and demand.

Long Run

A period in which all factors of production and costs can be fully adjusted, including entry and exit of firms.