Which term describes the channel that includes wholesalers or retailers as intermediaries?

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

Answer: (B)

Understanding how products reach buyers involves looking at the channel structure. The channel that uses intermediaries like wholesalers or retailers is called an indirect channel. These intermediaries help move goods from producers to a wide set of customers, often performing functions such as breaking bulk (selling smaller lots), providing storage and assortment, and offering local market access and sales expertise. This is different from a direct channel, where the producer sells directly to the consumer with no middlemen. A dual distribution setup uses both direct and indirect paths to reach customers, giving flexibility. A reverse channel focuses on handling returns and recycling. Therefore, the term describing a channel that includes wholesalers or retailers as intermediaries is an indirect channel.