Question

When service producers bypass intermediaries and market directly to final buyers, or when new channel intermediaries replace traditional ones, ________ occurs.

Multichannelization
Extensive distribution
Cross-merchandising
Disintermediation
Inclusive distribution

Answer 1

Disintermediation

Step-by-step explanation:

When service producers bypass intermediaries and market directly to final buyers, or when new channel intermediaries replace traditional ones, Disintermediation occurs. Disintermediation can reduce costs and increase efficiency and helpful in regarding maximization of profit of the business organization but it is often associated with an increased burden on the company using this strategy and it may cause loss also to the business.