1)Is the Internet a distribution channel?
The internet is a distribution channel since it is able to facilitate the exchange of goods and services between the buyer and seller. The internet also makes products available for consumption, which is important in a distribution channel .
2. What are the functions of channel intermediaries?
The functions are: Effectiveness - it’s the ability of a channel to perform its functions which creates value for the customer. Efficiency – the cost of distribution can be reduce if retailers can perform its require functions more efficiently than other manufactures can that would be in the direct channel.
3. What is disintermediation and what are its implications for channel intermediaries and customers?
Disintermediation – a strategy that eliminates channel intermediary - Internet-driving force for disintermediation: the Internet enables firms to interact at a much lower cost and higher speed.
4. What are the distribution levers and how do they affect relationships between intermediaries and buyers and sellers?
Some of the levers: Virtual shopping malls – it has some small sense of the regular shopping malls of the physical world, it has become vary important for those unknown brands which can make customers aware of it easier online, it is also easier for customers to comparison shop. Direct – firms are able to do directly into the customer with the internet or by direct mail. Internet exchange – this element is like the virtual shopping malls. Traditional retailer - business whose revenue comes from their sales.