Assertion: The most simple and the shortest mode of distribution is direct distribution.
Reasoning: Direct distribution is also called Zero Level.
Reasoning: Direct distribution is also called Zero Level.
Answer & explanation
Correct answer: option 2
Direct Channel (Zero Level): The most simple and the shortest mode of distribution is direct distribution, where in the goods are made directly available by the manufacturers to customers, without involving any intermediary. This is also called zero level channel. A straight and direct relationship is established between the manufacturer and the customer. For example, when a manufacturer sells his goods through his own retail outlets (e.g., Mc Donald, Bata); it is referred to as direct channel