Economics · Marketing Management
Which of the following statements is FALSE regarding physical distribution systems in marketing?
- 1The total cost approach envisages balancing inter-related distribution costs to minimize total system cost.
- 2Efficient customer service is a primary objective of a physical distribution system.
- 3In the total cost approach, the cost of each distribution element is optimized in isolation without considering others.✓
- 4The physical distribution system creates time and place utilities in products.
Correct answer
In the total cost approach, the cost of each distribution element is optimized in isolation without considering others.
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