QUESTION IMAGE
Question
classify each distribution characteristic as a characteristic of a direct, indirect, or hybrid distribution channel
wholesalers sell a manufacturers product
retailers sell a manufacturers product
a product is sold from a company website and delivered by a different company
businesses have complete control over distribution and pricing
customers buy products from a business warehouse
direct
indirect
hybrid
Brief Explanations
- Direct distribution channel: In a direct distribution channel, products move directly from the manufacturer to the end - customer without intermediaries. When "Customers buy products from a business' warehouse", there is no middle - man involved. Also, when "Businesses have complete control over distribution and pricing", it implies a direct channel as intermediaries would usually have some influence on these aspects.
- Indirect distribution channel: An indirect distribution channel involves intermediaries. When "Wholesalers sell a manufacturer's product" and "Retailers sell a manufacturer's product", wholesalers and retailers are intermediaries in the distribution process.
- Hybrid distribution channel: A hybrid distribution channel combines elements of direct and indirect channels. When "A product is sold from a company website (direct element) and delivered by a different company (indirect element)", it is a hybrid channel.
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Explore more problems and detailed explanations
- Direct: Customers buy products from a business' warehouse; Businesses have complete control over distribution and pricing
- Indirect: Wholesalers sell a manufacturer's product; Retailers sell a manufacturer's product
- Hybrid: A product is sold from a company website and delivered by a different company