Which of the following is true of an indirect channel system?
A)The business retains ownership of the products until delivered to customers.
B)The cost of indirect customer sales contact is high and increasing.
C)An indirect marketing channel system includes telemarketing and digital marketing.
D)An indirect marketing channel system is particularly important for specialized and technological products.
E)An indirect marketing channel system involves an intermediary that takes over ownership and sales.

Question

Quizplus · Accepted Answer

In an indirect channel system, an intermediary takes over ownership and sales, making option E the correct choice. Option A is incorrect, as ownership typically transfers to the intermediary. Option B is also incorrect, as the cost of indirect sales contact is generally lower than the cost of direct sales contact. Option C is partially correct, as telemarketing and digital marketing are examples of indirect marketing channels, but it is not a complete description of an indirect channel system. Option D is incorrect, as both direct and indirect channel systems can be effective for specialized and technological products.

Which of the Following Is True of an Indirect Channel