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Doctors Medicines MCQs Q&A

  1. The larger the market size, the longer the channel.
  2. If the average lot size is large, it is better to have a longer channel.
  3. If the product and the market require a high level of service, it is advisable to keep a shorter channel.
  4. If customers shop for an assortment of products, it demands for a water channel of distribution.
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1 Answers

Option 2 : If the average lot size is large, it is better to have a longer channel.

The incorrect option is "If the average lot size is large, it is better to have a longer channel."

 Distribution Channel:

  • A distribution channel is a network of businesses or intermediaries through which a good or service is purchased by the final buyer.
  • Wholesalers, retailers, distributors, and the Internet are all examples of distribution channels.
  • When the manufacturer sells directly to the consumer it is called a direct distribution channel.

 Factors determining distribution channel:

  1. Size of the market: The larger the market size, the longer the channel. Conversely, the smaller the market the smaller the channel. Hence, option 1 is correct.
  2. Order lot size: If the order lot size is small, it is better to have a longer channel and vice-versa. Hence, option 2 is incorrect
  3. Service Requirements: If the product and market require a high level of service, and it is a major factor in buying decisions, it is better to keep a shorter channel. Hence, option 3 is correct.
  4. Product variety: If a wide assortment of same type of product is available in the market, then it is advisable to select a wider channel. Hence, option 4 is correct.
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Related Questions

In making decisions about important questions, it is desirable to be able to distinguish between strong and weak arguments. Strong arguments are those, which are both important and directly related to the question. Weak arguments are those, which are of minor importance and also may not be directly related to the question or may be related to a trivial aspect of the question. The questions below are followed by two arguments each numbered I and II. You have to decide which of the two arguments is the strong argument and which is the weak argument. Statement: Should water be privatised in India Arguments: I. Yes. Private sectors are more efficient than public sector which would lead to improved water distribution. II. No. Privatisation will make distribution of water profit centric which would increase the cost of water. Not everyone would be able to afford water at high prices.?
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