When a Large Wholesaler or Retailer Uses a Buying Committee

question 154

Multiple Choice

When a large wholesaler or retailer uses a buying committee,

• A) the buyer still makes the final purchase decision.
• B) the sales rep may not be able to make a sales presentation to the committee.
• C) the impact of persuasive salespeople is increased.
• D) the intermediary is more likely to take a chance on a really new product that hasn't yet proved itself.
• E) none of these alternatives is correct.

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Definitions:

Perfectly Inelastic

A market condition where the quantity demanded or supplied does not change in response to price changes; the demand or supply curve is perfectly vertical.

Relatively Elastic

Describes a situation where a small change in price leads to a significant change in quantity demanded or supplied.

Marginal Revenue

The additional income received from selling one more unit of a good or service, vital for decision-making in firms.

Total Revenue

The overall amount of money received by a firm from selling its goods or services, calculated by multiplying the price by the quantity sold.