Indirect channels are probably a better choice than direct channels when:
A) the firm has limited financial resources.
B) the product is a consumer product instead of a business product.
C) target customers already have established buying patterns for where to search for the product.
D) retailers are already conveniently located where consumers shop.
E) All of these make indirect channels a better choice.

Question

Quizplus · Accepted Answer

All of the given options make indirect channels a better choice. Limited financial resources can make it difficult for a firm to establish and maintain direct channels. For consumer products, indirect channels provide wider reach and distribution. Established buying patterns for a product means that customers are already comfortable with certain retailers or channels, making it easier to use these channels for distribution. If retailers are already conveniently located where consumers shop, then it makes sense to use these existing channels instead of creating new ones. Therefore, all of these factors together make indirect channels a better choice.

Indirect Channels Are Probably a Better Choice Than Direct Channels