Question

In a direct channel marketing system, ________.

A) the manufacturer retains title of all products until they are delivered to the customer
B) wholesalers and retailers take ownership of the products for sale
C) the opportunities for sales communication and customer interaction are nonexistent
D) customers who make infrequent, small purchases can be profitably served
E) the cost of customer sales contact is lower than that in indirect marketing systems

Answer 1

In a direct channel marketing system, wholesalers and retailers take ownership of the products for sale. There are opportunities for sales communication and customer interaction, and the cost of customer sales contact is lower than that in indirect marketing systems.

Step-by-step explanation:

In a direct channel marketing system, wholesalers and retailers take ownership of the products for sale. This means that the products are passed on to the intermediaries (wholesalers and retailers) who then sell them to the end customer. The manufacturer does not retain title of all products until they are delivered to the customer.

A direct channel marketing system involves a shorter supply chain and direct interaction between the manufacturer, intermediaries, and customers. This creates opportunities for sales communication and customer interaction, allowing for better control over the customer experience.

Additionally, in a direct channel marketing system, the cost of customer sales contact is generally lower than that in indirect marketing systems because there are fewer intermediaries involved, resulting in reduced distribution costs.