Ravi Singh is working his way through college as an independent distributor of the Rapier Knife Co. The Rapier product line includes kitchen knives, hunting knives, and other special-purpose cutlery. Ravi makes sales presentations to potential customers in their homes. If a customer wants to make a purchase, Ravi buys the knives from Rapier and sells them to the customer at a markup. For example, Rapier's most popular knife is a chef's knife that Ravi buys for $25 and resells to the consumer for $50. Ravi:
A) Is part of a direct-to-customer channel.
B) Is engaged in direct marketing.
C) Is engaged in direct selling, but is part of an indirect channel.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

Ravi is engaged in direct selling because he makes sales presentations to potential customers in their homes and sells the knives directly to them. However, he is part of an indirect channel because he buys the knives from the manufacturer, Rapier, before reselling them to the customer. Therefore, the best choice is C, "Is engaged in direct selling, but is part of an indirect channel."

Ravi Singh Is Working His Way Through College as an Independent