Direct vs. Indirect Distribution Channel Flashcard

Front

What is a direct distribution channel?

Back

A channel where products are sold directly to consumers.

Front

Which of the following is a characteristic of indirect distribution? Options: It is always more cost-effective than direct distribution., The manufacturer sells directly to the consumer., The manufacturer has complete control over the distribution process.

Back

Intermediaries are involved in the distribution process.

Front

What is one advantage of direct distribution?

Back

Greater control over customer experience.

Front

Which company is known to use both direct and indirect distribution channels?

Back

Amazon

Front

What is a potential disadvantage of indirect distribution?

Back

Potentially slower delivery times.

Front

Which of the following companies uses direct distribution? Walmart, L.L. Bean, Charles Schwab

Back

All of the above

Front

What is a key difference between direct and indirect distribution?

Back

Direct distribution allows for more control over the brand.

Front

Which factor is NOT typically considered when choosing a distribution channel? Cost of distribution, Speed of delivery, Control over customer relationships

Back

Color of the product

Front

What is a benefit of using an indirect distribution channel?

Back

Reduced initial costs and responsibilities.

Front

Which of the following is true about distribution channels? They do not affect product pricing. They only involve physical stores. They can be either direct or indirect. They are not important for customer satisfaction.

Back

They can be either direct or indirect.