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How can locating a factory or service center close to customers help a firm?
AIt removes the need to advertise the product at all
BIt allows better service to be offered at a lower cost
CIt guarantees that no competitor can enter the market
DIt ends the need to plan production for that region
Answer & Solution
Correct answer: B. It allows better service to be offered at a lower cost
1. Some firms do not need to be near customers and simply weigh the cost of distributing to them.
2. Others gain a marketing advantage from proximity.
3. When a factory or service center is close to customers, the firm can often offer better service at a lower cost.
4. Nearness also makes it easier for customers to buy, but it does not remove competition or the need to advertise.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Marketing Factors_
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