Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Marketing

Question:
Hyundai sells its cars through retailers appointed by the company. Which type of distribution channel is being used by the company?
Options:
Zero Level
One Level
Two Level
Three Level
Correct Answer:
One Level
Explanation:
Manufacturer-Retailer Consumer (One Level Channel): In this form of arrangement one intermediary i.e., retailers is used between the manufacturers and the customers. Here, goods pass from the manufacture to the retailers who, in turn, sell them to the final users. For example, Maruti Udyog sells its cars and vans through company approved retailers. This type of distribution network enables the manufacturers to cover wide area of market while retaining control over the Channels.