When a company decides to distribute its products directly to the ultimate consumer, which type of distribution channel is it using?

• A. Dual channel
• B. Indirect channel
• C. Direct channel
• D. Reverse channel

Answer: (C)

Verified step by step guidance

1. Understand the concept of distribution channels: these are the paths or routes through which goods and services travel from the producer to the final consumer.
2. Identify the types of distribution channels: a Direct channel means the producer sells directly to the consumer without intermediaries; an Indirect channel involves intermediaries like wholesalers or retailers; a Dual channel uses both direct and indirect methods simultaneously; a Reverse channel refers to the flow of goods from the consumer back to the producer (e.g., returns).
3. Analyze the problem statement: the company distributes products directly to the ultimate consumer, which means there are no intermediaries involved in the process.
4. Match the scenario to the correct channel type: since the company sells directly to consumers, this corresponds to the Direct channel.
5. Conclude that the correct answer is the Direct channel because it fits the definition of selling products straight from producer to consumer without any middlemen.