Which of the following is true of direct distribution?
A) It requires a significant investment in facilities.
B) It reduces a producer's need for working capital.
C) Direct distribution always serves customer needs better and at a lower cost.
D) Most firms selling consumer products rely on direct distribution.
E) It is easy to change customer buying patterns from indirect distribution to direct distribution.

Question

Quizplus · Accepted Answer

Direct distribution requires a significant investment in facilities because the producer must establish its own distribution channel to bring products directly to the consumers without relying on intermediaries. This includes creating warehouses, transportation systems, and hiring staff to manage the process.

Which of the Following Is True of Direct Distribution