Question

Ralph Lauren has numerous ways to distribute its famous shirts to customers. Ralph Lauren has its own Polo stores throughout the U.S. and a Ralph Lauren website where customers can design and purchase their own shirts. In addition, Ralph Lauren sells its shirts through various retail stores such as Bloomingdales and Nordstrom. What type of channel is being used to sell Polo shirts through Nordstrom? A. A direct channel is where the producer and the ultimate consumer deal directly with each other. When selling shirts through Nordstrom’s Ralph Lauren is using an intermediary, and therefore is using an indirect channel. B. An indirect channel involves the use of an intermediary between the producer and the ultimate consumer. When selling shirts through Nordstrom’s Ralph Lauren is using an intermediary, and therefore is using an indirect channel. C. A vertically-integrated channel is one whereby a single channel member owns two or more different aspects of the distribution channel. Ralph Lauren selling shirts through its owns stores would be an example of a vertically integrated channel. D. This refers to a certain degree of channel coverage, not the channel type. E. This refers to a certain degree of channel coverage, not the channel type

Answer 1

The correct answer is Choice B.

The distribution of shirts in using an indirect channel. Each business between the producer and the final consumer is considered an intermediary, and each intermediary receives the item at one price point and raises it to the next price point.

Answer 2

The answer is option B) The type of channel is being used to sell Polo shirts through Nordstrom is An indirect channel involves the use of an intermediary between the producer and the ultimate consumer. When selling shirts through Nordstrom’s Ralph Lauren is using an intermediary, and therefore is using an indirect channel.

Step-by-step explanation:

A marketing channel where intermediaries such as wholesalers and retailers are utilized to make a product available to the customer is called an indirect channel.

Distribution channels provide time, place, and ownership utility. They make the product available where the producers do not have reach making it more cost effective for consumers in their regions whilst making profit the business intermediary.

In this case, Ralph Lauren is the producer and Nordstrom is the retailer acting as an intermediary between the producers of t shirts and the final consumers.