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Which of the five different channel arrangements do you feel is the most complex, and why?
Which of the five different channel arrangements do you feel is the most complex, and why?
Expert Solution
Basically, the five types of Channel Arrangements are as follow: -
- Direct Selling:
- Selling Through Intermediaries
- Dual Distribution
- Reverse Channels
- Selling through agents
So, the most complex channel of arrangements is "Direct Selling". As the name suggests, Direct Selling is selling or marketing the products directly to the consumers away from the retailers. Direct selling is about individual sales or door to door selling.
Example- Peddling is an oldest form of this type.
Reasons why Direct Selling is complex are as follows:-
- Time Consuming: - It is time consuming as it takes a lot of time to make decisions and there is no flexibility.
- Cost Ineffective:- It is Cost Ineffective as it has high cost in terms of resources and finance.
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