Management Information System (MIS) Practice Exam

What does reintermediation refer to?

1. The design of business models that reduce challenges in direct customer relationships.

2. The process of eliminating middlemen entirely.

3. Providing immediate communication between clients and firms.

4. Tailoring products to meet customer needs on a large scale.

The correct answer is: The design of business models that reduce challenges in direct customer relationships.

Reintermediation refers to the process of introducing new intermediaries or middlemen in distribution channels, particularly in the context of changes brought about by technological advancements, e-commerce, and shifts in consumer behavior. In this sense, the correct choice highlights the design of business models that strategically include intermediaries to enhance and streamline relationships with customers. This is particularly relevant today as businesses seek to manage direct interactions more effectively while also optimizing their operations, improving customer experience, and leveraging technology. By incorporating intermediaries, companies can navigate challenges associated with customer relationship management, potentially offering valuable services, support, or information that directly benefits both parties. In contrast, the other options reflect different concepts unrelated to reintermediation. Eliminating middlemen entirely, for instance, suggests disintermediation rather than reintermediation. Immediate communication between firms and clients addresses aspects of customer service but does not encompass the concept of bringing intermediaries back into the process. Tailoring products, although relevant in discussions of marketing and customer engagement, also does not directly connect to the reintroduction of intermediaries into the business model.