Purchasing products and services online often cuts out the middleman, who has traditionally sold the product and/or service. This process is called _____.
A) straight-to-consumer services
B) replacement of brick-and-mortar stores
C) disintermediation
D) dysfunctionalization

Question

Quizplus · Accepted Answer

Disintermediation refers to the elimination of intermediaries, such as middlemen or brokers, in a supply chain. When consumers purchase products and services online, they often bypass traditional intermediaries and buy directly from the producers or providers, resulting in disintermediation. Option A, straight-to-consumer services, is not a commonly used term and does not specifically refer to the elimination of middlemen. Option B, replacement of brick-and-mortar stores, may be a consequence of disintermediation, but it does not capture the essence of the process. Option D, dysfunctionalization, is not a recognized term in this context.

Purchasing Products and Services Online Often Cuts Out the Middleman