disintermediation

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disintermediation

The elimination of the distributor and/or retailer (the middleman) when making a purchase. The term is used to refer to purchasing directly from a manufacturer's website, the benefits of which are convenience, fast turnaround time and sometimes lower prices. Obviously, retail stores are very much against disintermediation. See re-intermediation.
References in periodicals archive ?
This is not to argue that anyone could have foreseen the reintermediation of the music market even before its disintermediation took place.
The advent of the Internet, the rise of cybermediaries, and the reintermediation of supply chains, all leave in question the future of traditional intermediaries.
The e-marketing strategic themes of personalization and customization, community, reintermediation, disintermediation, consumer tracking, enhanced customer service, and mixing bricks and clicks can be affectively applied to the challenges of providing e-learning services (Granitz & Greene, 2003).
We also see the occasional instance of reintermediation in which middlemen are put back into the supply chain to better serve small accounts or customers with special needs.
With the Internet, firms may attempt to establish a more focused customer orientation as well as alter the industry value-chain through disintermediation or reintermediation.
In both instances, compressed loan spreads occurred during policy tightenings, and hence reintermediation occurred whereby arbitraging commercial borrowers shifted from pricier commercial paper and other sources to cheaper bank loans, often borrowing under prearranged lines of credit.
29] Nissen has pointed out that reintermediation is not limited to intermediaries that have been previously pushed out of a market.
Reintermediation occurs when new intermediaries enter electronically facilitated channels.
By taking distributors to the Web, reintermediation companies improve their product depth, sales productivity and servicing, the report said.
E-commerce is built on both disintermediation and reintermediation.
There is at the same time pervasive disintermediation of conventional functions and practices within the property markets, and the reintermediation of new functions.
commercial banks in 1998: Growth in bank assets was boosted by the financial reintermediation process that characterized much of the second half of last year, with holdings of both loans and securities posting sizable gains.