Why Would Manufacturers Use a Direct Channel of Distribution

question 82

Multiple Choice

Why would manufacturers use a direct channel of distribution?

• A)To eliminate all channel functions
• B)Because of consumer familiarity with known retailers
• C)To have more control over product distribution
• D)To reduce the fixed costs associated with production
• E)To more efficiently distribute services

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Definitions:

Enhanced Customer Convenience

Improving the ease and efficiency of a service or product for customers, often through technology or process improvements.

Limited Service

Refers to a business model where only a partial range of services is offered to customers as opposed to full-service alternatives.

Service Retailer

A business that sells intangible products or services directly to consumers.

Low Prices

The strategy of setting the cost of a product or service lower than the competition, often to attract more customers or gain a market share.