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Question
classify each distribution characteristic as a characteristic of a direct, indirect, or hybrid distribution channel
businesses have complete control over distribution and pricing
wholesalers sell a manufacturer’s product
customers buy products from a business’ warehouse
retailers sell a manufacturer’s product
a product is sold from a company website and delivered by a different company
Brief Explanations
- Direct channels involve no intermediaries, so the business controls distribution/pricing and sells directly to customers from its warehouse.
- Indirect channels use intermediaries like wholesalers and retailers to sell the manufacturer's products.
- Hybrid channels combine direct (company website sale) and indirect (third-party delivery) elements.
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Direct:
- Businesses have complete control over distribution and pricing
- Customers buy products from a business' warehouse
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