Question

When suppliers and carriers employ indirect distribution, this means they use:

1) Intermediaries to distribute their products
2) Direct channels to distribute their products
3) Online platforms to distribute their products
4) None of the above

Answer 1

Suppliers and carriers use intermediaries to distribute their products when they employ indirect distribution. This results in additional channels between the manufacturer and the consumer. Falling costs, such as for gasoline, can positively impact a company's supply and profitability.

Step-by-step explanation:

When suppliers and carriers employ indirect distribution, this means they use intermediaries to distribute their products. The correct answer is option 1) Intermediaries to distribute their products. Indirect distribution involves multiple layers of distribution, including wholesalers, retailers, and other entities that help move the product from the manufacturer to the consumer.

For example, a messenger company that delivers packages around a city may have to deal with significant costs such as gasoline expenses. When the price of gasoline falls, the company can deliver services more affordably, leading to potential expansion of supply and customer reach due to increased profits from lower operational costs.