Choosing an Indirect Channel Probably Will Be Better Than a Direct

question 77

Multiple Choice

Choosing an indirect channel probably will be better than a direct channel if a producer wants to:

• A) provide special technical service.
• B) make it easier to do marketing research.
• C) be more sensitive to coming changes in customer needs and attitudes.
• D) obtain a very aggressive selling effort.
• E) adjust large discrepancies of quantity and assortment.

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Definitions:

Volume Discounts

Price reductions offered to buyers purchasing in large quantities, used as an incentive to increase sales volume.

Transportation Costs

Expenses associated with the movement of goods or individuals from one location to another, including factors like fuel, labor, and maintenance.

Returns to Scale

The rate at which output increases as inputs are increased proportionally in the production process.

Scale of Production

The level at which a production process is operating, ranging from small to large scale based on output volume and capacity.