What occurs when a business sells directly to customer online and cuts out the "middle man" (not including transaction conducted on comparison shopping sites)?Group of answer choicesCybermediationReintermediationDisintermediationIntermediaries
Question
What occurs when a business sells directly to customer online and cuts out the "middle man" (not including transaction conducted on comparison shopping sites)?Group of answer choicesCybermediationReintermediationDisintermediationIntermediaries
Solution
The occurrence when a business sells directly to a customer online and cuts out the "middle man" (not including transactions conducted on comparison shopping sites) is known as Disintermediation. This term refers to the removal of intermediaries in a supply chain, or "cutting out the middlemen". Instead of going through traditional distribution channels, which had some type of intermediate (such as a distributor, wholesaler, broker, or agent), companies may now deal with customers directly, for example via the Internet.
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