Question

While Maytag appliances have the leading brand name, its sales are third in the industry. One of the things the company has done to spur sales is to create a website where potential customers can find the answers to the questions most asked during the appliance purchase process. While Maytag considered using __________ (allowing customers to purchase at the site), it decided against it and simply provides the name and address of the nearest Maytag dealers.

Select one:

a. transactional function
b. horizontal integration
c. horizontal innovation
d. cross-docking
e. disintermediation

Answer 1

Maytag considered, but ultimately decided against, eCommerce-based disintermediation for selling its appliances directly online, opting instead to direct customers to local dealers.

Step-by-step explanation:

While Maytag considered using e-commerce strategies (allowing customers to purchase at the site), it decided against it and instead provides the name and address of the nearest Maytag dealers. The term that best fits the missing component in the sentence is disintermediation, which refers to the removal of intermediaries in a supply chain: 'cutting out the middleman'. Rather than selling directly online, Maytag chose to maintain its traditional distribution channels.The correct answer is disintermediation.

Disintermediation refers to the process of eliminating intermediaries or middlemen in a supply chain or distribution channel. In the case of Maytag, they decided against allowing customers to purchase appliances directly from their website, and instead provide the name and address of the nearest Maytag dealers. By doing this, Maytag avoids the need for an online transactional function and maintains its relationships with authorized dealers.