CLEP Marketing

Category - Distribution

A distribution channel that sells its products directly to consumers is referred to as a(n) _______.
  1. Broker channel
  2. Agent channel
  3. Retailer channel
  4. Direct channel
  5. Wholesaler channel
Explanation
Answer: D - A distribution channel that sells its products directly to consumers is referred to as a direct channel. A direct channel uses direct marketing activities, such as telemarketing or mail order catalogues, to advertise to consumers. The lack of intermediaries has several advantages, including reduced costs, faster communication, and easier movement of products from seller to buyer.
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