Definition Of


Disintermediation is a big term with a clear message and important consequences– the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.  Disintermediation occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.

Disintermediation is a reduction in the flow of funds into the banking system that causes the amount of financial intermediation to decline.

Share it:

More from this Section

  • Adoption process
    The mental process through which an individual passes from first learning about an innovation to final adoption
  • Outside and inside sales force
    Outside sales force or field sales force refers to the salespeople who travel call on customers in the field. Inside sales force refer to the salespeople...
  • Supermarket
    Supermarket is the most frequently shopped type of retail store that a relatively large, low-cost, low-margin, high-volume, self-service operation designed to serve...
  • Click-only companies
    Click-only companies– the so-called dot-coms, which operate online only and have no brick-and-mortar market presence.
  • Socio-Economic Classification (SEC)
    Socio-Economic Classification (SEC) refers to a term that is used by Indian marketers which uses a combination of the education and occupation of the ...
  • Social classes
    Social classes mean homogeneous and enduring divisions in a society, which are hierarchically ordered and with members who share similar values, interests, and behavior.
  • Installation
    Installation refers to the work done to make a product operational in its planned location. Ease of installation is a true selling point for buyers of complex ...