Author Question: Which of the following heuristics about the relationship between a manufacturer's characteristics ... (Read 41 times)

danielfitts88 · **on:** Jun 29, 2018

Which of the following heuristics about the relationship between a manufacturer's characteristics and channel design is false?
a. The larger the firm the less flexibility it has because of its internal bureaucracy and the complexity of its product line.
b. The greater the capital available to a manufacturer, the less its dependence on intermediaries for the performance of distribution tasks.
c. Management expertise in distribution increases across time.
d. Manufacturers should sell directly to users if a product is technically complex.
e. More intermediaries are needed in a large market.

Question 2

Why would a licensor offer a license to a firm while insisting that it not use the brand name of the licensor?

javimendoza7 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

When quality cannot be guaranteed, either because the licensee does not allow the licensor sufficient control and scrutiny, or because the licensee cannot guarantee quality, it is preferable for the products produced under license not to carry the licensor's brand name. In this way, the licensor minimizes the risk of damaging its brand equity.