Management Information System (MIS) Practice Exam

Which of the following is an example of disintermediation?

1. Land Rover markets four-wheel drives in high altitude regions.

2. Dunkin' Donuts expanded its menu with hearty snacks.

3. Gatorade plans to market its drinks to urban working women.

4. OakTeak started selling directly to customers after dips in sales.

The correct answer is: OakTeak started selling directly to customers after dips in sales.

Disintermediation refers to the removal of intermediaries in a supply chain, allowing producers to sell directly to consumers. In this context, the correct example is a company that has chosen to eliminate middlemen, such as wholesalers or retailers, and sell its products straight to the end customers. When OakTeak decides to sell directly to customers after experiencing dips in sales, it demonstrates disintermediation by bypassing intermediaries. This approach can often lead to better profit margins, as the company retains more of the sale price by eliminating the cut that previously went to middlemen. The other examples do not illustrate disintermediation. Land Rover marketing four-wheel drives in high altitude regions shows a targeted marketing strategy rather than the elimination of intermediaries. Dunkin' Donuts expanding its menu represents product diversification, and Gatorade targeting urban working women illustrates a demographic marketing strategy, neither of which involves removing intermediaries in the distribution process. Therefore, the action taken by OakTeak is a clear and direct example of disintermediation.