Question : Case Study:
ABC Apparel uses a combination of wholesalers, retailers, and online platforms to distribute its clothing products. Which type of channel of distribution is ABC Apparel using?
Option 1: Direct Distribution
Option 2: Indirect Distribution
Option 3: Dual Distribution
Option 4: Reverse Distribution
Correct Answer: Indirect Distribution
Solution : The correct answer is (b) Indirect Distribution.
Indirect distribution involves utilizing intermediaries, such as wholesalers, retailers, or agents, to sell products to consumers. In this case, ABC Apparel is utilizing wholesalers, retailers, and online platforms (which often involve intermediaries in the form of e-commerce platforms) to distribute their clothing products. The involvement of intermediaries in the distribution process makes it an example of indirect distribution.