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Madison Manufacturing Makes Small Appliances and Faces Tough Competition from Overseas

Question 42

Multiple Choice

Madison Manufacturing makes small appliances and faces tough competition from overseas firms that make similar products less expensively.Madison managers have decided to offer more services to customers,such as maintenance agreements and warranty contracts.Madison now deals directly with end-users instead of relying on intermediate channel partners.What is the most likely result of Madison's shift to services?


A) horizontal integration
B) channel free-riding
C) upstream integration
D) service acquisition
E) disintermediation

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