A product warranty that instructs the owner to return the product to the dealer for repair or service in the event of failure during the warranty period creates a dual distribution channel for that product.

Question

Quizplus · Accepted Answer

A product warranty instructing the owner to return the product to the dealer for repair or service does not create a dual distribution channel; it specifies the after-sales service process. A dual distribution channel refers to a situation where a company uses more than one method to sell its products, such as selling directly to consumers and also through retailers.

A Product Warranty That Instructs the Owner to Return the Product