a) The BIG DEAL cannot ignore the market pulse and proceed with advance payment terms as they might have excellent credentials in consumer products but they are just entering into the packaged fruit juices market. There might already be several players in this field who would offer credit system to their distributor. Hence they should temporarily not go ahead with advance payment terms. Once they earn a name forthemselves they can go ahead with that.

b) BIG DEAL need not run a credit risk by offering 7 days credit as they are well established name and need not entice their distributors with credit facility. The credit policy was a market expectation but they have other options like cash discount to entice the distributors.