A Disadvantage of Direct-To-Customer Channels Is That

question 10

Multiple Choice

A disadvantage of direct-to-customer channels is that

• A) most organizational buyers are used to relying on intermediaries to serve as their purchasing advisors.
• B) they require producers to shift many marketing functions to others.
• C) this approach makes it hard to achieve coordination among the required marketing activities.
• D) they make it more difficult to get information about changing needs of the market.
• E) None of these is a disadvantage of direct-to-customer channels.

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Definitions:

Inventory Carrying Cost

The total expenses associated with holding and storing unsold goods, including warehousing, insurance, depreciation, and opportunity costs.

Annual Requirement

The total quantity or amount of a particular resource or input that is needed by an organization or project over the course of a year.

Ordering Costs

Expenses incurred in placing and processing orders for goods or services, including costs associated with ordering, receiving, and inspecting items.

Service Level

A measure of the quality of service provided by a vendor or organization, often outlined in service-level agreements specifying performance and availability standards.