Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise marketing

Question:
Assertion: The most simple and the shortest mode of distribution is direct distribution.

Reasoning: Direct distribution is also called Zero Level.
Options:
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Assertion (A) is true but Reasoning (R) is not correct.
Assertion (A) is not true but Reasoning (R) is correct.
Correct Answer:
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Explanation:
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