Question 23
Distributive TradeWhich of the following reasons could induce a manufacturer to bypass the wholesaler in the distribution chain?
- A.To provide the quantity needed by retailers
- B.To collect useful information on his product
- C.To provide warehousing facilities
- D.To violate government regulation on distribution
Show the answer and explanation
Answer: B (To collect useful information on his product)
Explanation
Selling directly brings the manufacturer close to retailers and consumers, so he gets first-hand information about how his product is received.