Which of the following statements is true of marketing channels?
A)A direct marketing channel removes a business from the end-user customer.
B)A direct marketing channel offers higher margins than an indirect channel,but the company must bear the cost of marketing expenses.
C)Customers who make small purchases are usually profitably served with a direct channel system.
D)An indirect marketing channel is often expensive,so it limits the number of customers a business can profitably reach.
E)Original equipment manufacturers (OEMs)are part of a direct marketing channel system.

Question

Quizplus · Accepted Answer

A direct marketing channel involves selling directly to the end-user customer, which means higher margins but also higher marketing expenses that the business must bear. An indirect marketing channel involves using intermediaries such as wholesalers or retailers, which can limit the number of customers a business can reach but can also reduce expenses such as marketing costs. Small purchases can be profitably served with a direct channel as well, but this is not the defining characteristic of a direct marketing channel. OEMs can be part of either a direct or an indirect marketing channel system, so statement E is not necessarily true.

Which of the Following Statements Is True of Marketing Channels