Essential Marketing Concept Oxbridge Eliminating Company Middlemen Discussion

I’m stuck on a Marketing question and need an explanation.

Oxbridge Sond-Werks is a producer of speakers designed for use by music-loving consumers. Oxbridge produces a variety of speakers designed for different listening environments (in the home, in the car, by the pool, in an exercise room). In general, the sound quality of the speakers offered is considered to be very good, and prices reflect this. Interestingly, Oxbridge seems to imply in its advertisements that its prices are on the lower side because it deals directly with consumers:

“We eliminated the expensive middle-men. By selling factory-direct to the public we eliminate huge distribution expenses.”

Thus Oxbridge seems to be claiming that by not using retailers (cutting out the middlemen) it is able to offer a lower price to shoppers. Do you agree that Oxbridge’s prices are lower because it has eliminated the middleman? If so, begin your answer with Agree and explain exactly how that is the case. If you do not agree, then begin your answer with Disagree, and explain precisely why Oxbridge’s prices are not likely to be lower because they have eliminated the middleman.

Answer Length requirements: 150-300 words. No less than 150 and no more than 300 words.

Rubric Grading: Little or no improvement possible; all major issues appropriately considered in analysis and presented clearly.
– “The assignments are designed to be challenging in order to develop your ability to think and decide as a marketing manager would, and thus the grading reflects this focus. The challenges facing managers are not simple, so to prepare you for the workforce the assignments have the complexity of the real world. Your learning experience would be diminished if the assignments were simple.”