For over 10 years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own Web site to sell its books. This change in channel organization is called ________.
A) disintermediation
B) intensive distribution
C) brokering
D) franchising
E) selective distribution

Question

Quizplus · Accepted Answer

Disintermediation refers to the elimination of intermediaries in the distribution channel, which is what Erudite has done by setting up its own Web site to sell its books instead of using an online retailer like studysmart.com. Option B (intensive distribution) and option E (selective distribution) refer to distribution strategies, but do not relate to a change in channel organization. Option C (brokering) involves a third party that connects buyers and sellers, which is not the case here. Option D (franchising) involves a contractual agreement between two companies, which is also not relevant to this scenario.

For Over 10 Years, Erudite, a Publishing and Educational Company