Which type of distribution typically involves lower costs and increased efficiency?

Direct distribution typically involves lower costs and increased efficiency because it eliminates intermediaries between the producer and the consumer. In a direct distribution model, companies sell their products or services directly to customers without relying on third parties, such as wholesalers or retailers. This approach reduces overhead costs associated with intermediaries and allows for a more streamlined process in terms of logistics and operations.

Furthermore, direct distribution can enhance communication between the company and its customers, leading to better understanding of customer needs and more effective feedback loops. This direct interaction can also foster stronger relationships and customer loyalty, which ultimately can contribute to increased sales and efficiency.

In contrast, indirect distribution introduces additional layers that can incur costs and lead to inefficiencies due to the added complexities of managing relationships with multiple channels. Mixed and dual distribution can combine elements of both direct and indirect approaches, which might complicate operations and potentially increase costs as well. Thus, the clear advantages of direct distribution lie in its simplicity, cost-effectiveness, and superior efficiency.