Question

For over 10 years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart and set up its own Web site to sell its books. This change in channel organization is called ________.

Answer 1

Answer: Disintermediation

Explanation:

Disintermediation is the withdrawal of funds from an intermediary financial institutions e.g savings and loan associations or banks in order to invest them directly. It is the reduction in using intermediaries between the producers and consumers.

From the question, Erudite stopped using an intermediary and started selling its books online. The main advantage of disintermediation is that the consumer saves money.