Disintermediation occurs when
A) a merchant becomes a nonmerchant.
B) governments stop buying services online.
C) electronic exchanges fail to make a match.
D) IT systems fail.
E) a manufacturer sells directly to the end user.

Question

Quizplus · Accepted Answer

Disintermediation occurs when intermediaries in a supply chain are eliminated, and the manufacturer sells directly to the end-user. It is a result of the advent of e-commerce, which provides direct access to customers, bypassing intermediaries such as retailers or wholesalers. This eliminates the need for intermediaries, creating a more efficient supply chain and reducing the cost of distribution.

Disintermediation Occurs When