A direct-to-customer channel
A) includes a retailer but not a wholesaler.
B) usually helps the producer to be more aware of changes in final customer attitudes.
C) eliminates some of the marketing functions.
D) is typical to reach final consumer markets.
E) is most suitable when a large number of transactions are required in the channel or when orders are smaller.

Question

Quizplus · Accepted Answer

A direct-to-customer channel allows producers to interact directly with final customers, which can help them to better understand and respond to changes in customer attitudes and preferences. This channel may still include a retailer or wholesaler, but the key characteristic is the direct connection with the end consumer. Option A is incorrect because a retailer may still be involved in a direct-to-customer channel. Option C is incorrect because direct-to-customer channels often require additional marketing functions such as advertising, promotion, and customer support. Option D is incorrect because direct-to-customer channels may also be used for business-to-business markets. Option E is incorrect because direct-to-customer channels may be suitable for both large and small transactions.

A Direct-To-Customer Channel