BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

INTERNATIONAL MARKETING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The removal of channel members is called ____, better know as “cutting out the middleman”.
A
Logistics distribution
B
Anti-intermediation
C
Disintermediation
D
Intermediation
Explanation: 

Detailed explanation-1: -Disintermediation in Distribution Channels In a disintermediated system, the consumer directly deals with the producer, thus removing the intermediaries or middlemen from the supply chain. There may be more than one level of intermediaries in a supply chain.

Detailed explanation-2: -Disintermediation is the process of removing the middleman or intermediary from future transactions. Instead of going through traditional channels such as a distributor or wholesaler, companies serve consumers directly.

Detailed explanation-3: -Disintermediation means cutting out the middlemen from the distribution channel to sell directly to the customers. For example, if brokers are eliminated as an intermediary so that a firm can deal and offer its shares directly to its potential buyers, it would be a case of disintermediation.

Detailed explanation-4: -Examples. Notable examples of disintermediation include Dell and Apple, which sell many of their systems direct-to-consumer-thus bypassing traditional retail chains, having succeeded in creating brands well recognized by customers, profitable and with continuous growth.

There is 1 question to complete.