Selective Distribution

question 213

Multiple Choice

Selective distribution:

• A) is likely to reduce high administrative expenses caused by a large proportion of small orders.
• B) may be suitable for all categories of products.
• C) is becoming more popular.
• D) is a good idea if some of the available intermediaries are not financially solid.
• E) All of these alternatives are correct.

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Definitions:

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Substitution Effect

The change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs.

Equilibrium

A state where supply and demand balance each other, and as a result, prices become stable.