Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the
Tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements?

Question

Quizplus · Accepted Answer

Faber Motors uses a multichannel distribution system as it employs different channels for different product lines: direct sales to government, dealers for consumer cars, and collaboration with Radium Tires for racing cars.

Faber Motors Manufactures Three Lines of Cars: High-End Security Cars