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      Question

      Which distribution channel reduces operational cost but

      may reduce service personalization?
      A Branch banking Correct Answer Incorrect Answer
      B Relationship manager model Correct Answer Incorrect Answer
      C Digital-only banking Correct Answer Incorrect Answer
      D Direct selling agents Correct Answer Incorrect Answer
      E Personal selling Correct Answer Incorrect Answer

      Solution

      Digital-only channels lower cost but reduce personal interaction. Why Other Options Are Incorrect β€’ A, B, E: High personalization. β€’ D: Increases reach but not necessarily cost reduction. Banking Example: Neo-banks operating without physical branches.

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