20. When motivating channel members, the primary motivating device tends to be:
ID: 384278 • Letter: 2
Question
20. When motivating channel members, the primary motivating device tends to be: a. dealer advisory councils. b. trust. c. compensation. d. strong relationships. e. training. Chapter 12 21. From an organizational buyer's perspective, the cost of an industrial good: is equal to the seller's price. is equal to the seller's price plus order processing costs. includes not only the seller's price, but also transportation, installation, order handling, and inventory carrying costs. includes the seller's price adjusted for quantity discounts that may be received in the future a. b. c. d. 22. The business marketer will find that total revenue will_ if the price is decreased and demand is price inelastic. a. rise a little b. rise sharply c. remain the same d. FallExplanation / Answer
20. C (Channel members will be motivated to promote new product if they believe that their revenue or margin would improve. This is the primary reason. The reasons can be improved efficiency of business,etc)
21. A (the other fringe costs like order processing, transportation etc are already bundled within selling price and are not quoted separately. Also, Selling price for large quantity will be different and it cannot be generalised if at a later stage, the quantity is reduced. )
22. D (When demand is elastic, the price and total revenue move in opposite direction. If demand is inelastic, price and total revenue move in same direction. So, if price is decreased, then total revenue falls )
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