When a channel member bypasses another member and sells directly to consumers, disintermediation occurs.

Question

Quizplus · Accepted Answer

Disintermediation refers to the process in which a channel member bypasses another member and sells directly to the end consumer. This can occur when a manufacturer sells its products directly to customers, bypassing its distributors, wholesalers, or retailers. Disintermediation can have a significant impact on the channel, as the intermediary that is bypassed loses sales and revenue, and may even be cut out of the channel altogether.

When a Channel Member Bypasses Another Member and Sells Directly