When Planning Channels of Distribution, a Marketing Manager Should Know

question 50

Multiple Choice

When planning channels of distribution, a marketing manager should know that

• A) vertically integrated systems are seldom used-because of the difficulty of maintaining control.
• B) a contractual system offers both flexibility and stability for its members.
• C) the disadvantage of a corporate channel system is reduced control over distribution activities.
• D) the disadvantage of an administered system is that it is a very formal arrangement.
• E) None of these alternatives is correct.

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Definitions:

Payoff Matrix

A table that shows the potential outcomes or payoffs in a decision-making situation, typically used in game theory to analyze the strategies of different players.

Dominant Strategy

In game theory, a strategy that yields the best outcome for a player, regardless of what the other players do.

Nash Equilibrium

An idea in game theory that suggests no participant can gain an advantage by altering their approach if all other participants maintain their strategies.

Payoff Matrix

A tabular representation of the payoffs or outcomes in a strategic game for each set of strategies chosen by the players.