The most common indirect channel moves product from producer to retailer to consumer. This type of channel is most likely to exist in all of the following scenarios, except when:

Question

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When the cost of maintaining inventory is low, it may not be necessary to use a wholesaler to handle the product. In this case, the producer may communicate directly with the retailer to move the product to the end consumer. The other options (A, B, and D) suggest scenarios in which a wholesaler would be necessary or helpful in the distribution process.

The Most Common Indirect Channel Moves Product from Producer to Retailer