Which of the Following Statements Is True of the Influence

question 34

Multiple Choice

Which of the following statements is true of the influence of customer characteristics on a company's channel strategy?

• A) The need for multiple channel intermediaries decreases as the number of customers increases.
• B) The need for multiple channel intermediaries is high during the early stages of market development.
• C) The need for multiple channel intermediaries increases toward the last stages of market development.
• D) The technique of direct selling is one of the most cost-effective means of serving large-volume retailers.

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Definitions:

Occupations

Refers to various jobs or professions that individuals engage in to earn income and contribute to the economy.

Elasticity Coefficient

A numerical measure of the responsiveness of the quantity demanded or supplied of a good or service to a change in one of its determinants, such as price.

Elastic

Describes a situation in economics where the demand for a product or service significantly changes in response to a price change.

Substitution Effect

The change in consumption resulting from a change in the relative prices of goods, leading consumers to substitute one good for another.