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Question

Which one of the following is not the mode of Direct Distribution System?

A
Trading mediators
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B
Vending machines
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C
Own sales depot
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D
Franchise shops
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Solution

The correct option is A Trading mediators
Direct Distribution system is a mode of distribution where the manufacturer directly sells its product to the consumer without the involvement of middlemen and intermediaries. Trading mediators can be referred as wholesaler, retailer, distributors and agents. With the presence of trade mediators in the distribution channel, there is no direct contact between the company and the customer.

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