It makes economic sense for the firm to sell to the wholesalers and the wholesalers to deal with the retailers. Which of the following is a characteristic of fragmented retail systems?
Direct selling allows these firms to educate potential consumers about the features of their product. industrial products Which of the following allows a firm to educate potential consumers about the features of a product? Direct selling Which of the following is a drawback of push strategies?
A firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense. Which of the following is true of price elasticity of demand? Price elasticity tends to be greater in countries with low income levels.
Moving down the experience curve, the firm will be making substantial profits and have a cost advantage over its less-aggressive competitors. Which of the following pricing strategies can run afoul of antidumping regulations? Experience curve pricing
What occurs when the retail sector is very concentrated? It makes sense for a firm to deal directly with retailers, cutting out wholesalers. it makes sense for a firm to deal directly with retailers, cutting out wholesalers.
In a concentrated system, a few retailers supply most of the market. A fragmented system is one in which there are many retailers, no one of which has a major share of the market. In Germany, for example, four retail chains control 65 percent of the market for food products.
Which of the following is a drawback of longer distribution channels? There is generally a critical link among channel length, the final selling price, and the firm's profit margin because each intermediary in a channel adds its own markup to the products.
A concentration strategy is when a business focuses on a specific group of clients, a specific product, or a specific geographic market. As the name implies, the primary purpose is to allow the business to concentrate (rather than diversify) their efforts.
Explanation. The furniture retail market is the least concentrated because only 8% of total sales were by the four largest firms. The discount department store market is the most concentrated because 95% of all sales were by the four largest firms.
Distribution channels affect the prices of goods and their positioning in their respective markets. Distributions, ideally, should be set up in a way that limits the number of stops for the product or service before it reaches the end consumer. A distribution channel must be efficient and effective.
Concentrated retail systems tend to promote the growth of wholesalers to serve retailers, which lengthens channels.
Overview: advantages and disadvantages of multichannel marketingAdvantagesDisadvantages✔ More flexibility for the company✘ Complex logistics, higher control effort✔ Improves customer satisfaction and customer loyalty✘ Risk that the individual channels are not perceived as part of the same company3 more rows•May 6, 2022
The rise of global media phenomenon seems to support Levitt's argument.
Consumers in most developed countries do not sacrifice preferred attributes for lower prices.
This is an efficiency ratio, which indicates the average liquidity of the inventory or whether a business has over or under stocked inventory. This ratio is also known as "inventory turnover" and is often calculated using "cost of sales" rather than "total revenue." This ratio is not very relevant for financial, construction and real estate industries.
Because it reflects the ability to finance current operations, working capital is a measure of the margin of protection for current creditors. When you relate the level of sales resulting from operations to the underlying working capital, you can measure how efficiently working capital is being used.
This ratio is a rough indication of a firm’s ability to service its current obligations. Generally, the higher the current ratio, the greater the "cushion" between current obligations and a firm’s ability to pay them. While a stronger ratio shows that the numbers for current assets exceed those for current liabilities, the composition and quality of current assets are critical factors in the analysis of an individual firm’s liquidity.