Which of the Following Statements About Physical Distribution Is False

question 123

Multiple Choice

Which of the following statements about physical distribution is False?

• A) Marketers should always try to maximize the customer service level provided regardless of cost.
• B) Physical distribution activities are invisible to most consumers-unless something goes wrong.
• C) There are trade-offs between costs, the customer service level desired, and sales.
• D) Information technology can help marketers improve service and cut costs.
• E) In countries with inefficient distribution systems, consumers can face shortages of products they need.

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget at specific prices.

Demand Schedule

A table that shows the quantity of a good that consumers are willing and able to purchase at various prices.

Total Utility

The overall satisfaction or value a consumer derives from consuming a certain amount or quantity of goods and services.

Marginal Benefit

The maximum price a consumer will be willing to pay for an additional unit of a product. It is the dollar value of the consumer’s marginal utility from the additional unit, and therefore it falls as consumption increases.