If Volkswagen sells cars to a dealer, who, in turn, sells to you, whic

QUESTION

If Volkswagen sells cars to a dealer, who, in turn, sells to you, which of the following correctly describes the distribution strategy for this process?

A) No intermediaries were involved.
B) One intermediary was involved.
C) Three intermediaries were involved.
D) This was a direct channel.
E) There was no distribution strategy.

ANSWER

Answer: B
Explanation: B) In this example, there exists a producer to retailer to consumer chain. It is, therefore, an example of one intermediary (the retailer being the intermediary between the producer and the consumer).