7. Disintermediation is A. the unraveling of traditional distribution structures

Question

7. Disintermediation is A. the unraveling of traditional distribution structures. B. a way to avoid higher taxes through transfer pricing. C. separating markets, sometimes based on segmentation. D. allowing orders to be placed via the Internet but delivered traditionally.

8. When a company has established a successful domestic marketing mix A. the temptation is to duplicate this mix when going abroad. B. frequently the hurdles to going international are daunting. C. they are simply waiting for the competitive forces to kick in. D. the temptation to export excess domestic inventory is tempting.

Explanation / Answer

Answer 7.

Answer 7. Disintermediation is

A. the unraveling of traditional distribution structures.

Disintermediation refers to the act of reducing intermediaries in the supply structure so as to reduce the cost of the product for the final customer. It reduces the gap between the producer and the final customer.

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