Question

Insta Car Motors manufactures three lines of cars: 1. high-end security cars for government agencies, 2. commercial cars for consumers and individuals 3. professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell InstaCar Motors lines at their outlets. For its professional racing cars, InstaCar Motors collaborates with Stadium Tires, an innovative and renowned tire manufacturer. InstaCar Motors provides the engine and body, while Stadium provides the tires and its expertise on the racing industry. Which term best describes InstaCar Motors channel arrangements?

Answer 1

Answer:

multichannel distribution system

Explanation:

A multichannel distribution strategy refers to a distribution strategy that uses more than one channel to reach its customers:

1. high-end security cars are sold though a B2B channel directly to government agencies.
2. consumer cars are sold through retailers to final consumers.
3. professional racing cars are sold through an alliance with Stadium Tires

Other distribution channels not used by Insta Car are directly from producer to final consumer through their own retailers or online sales, or using trading companies in foreign countries that act like wholesalers.