In which of the undermentioned channels of physical distribution, role of an agent is required?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Three level channel
Option (1) Three level channel — Correct. Channels are named by the number of middlemen between the manufacturer and the consumer. The chain here runs manufacturer → agent → wholesaler → retailer → consumer. A manufacturer uses an agent when he has only a few products but a wide market to cover. He appoints one agent in each big area, and the agent deals with the wholesalers. The agent appears only when the chain is this long.
Option (2) Two level channel — Incorrect. Here the chain is manufacturer → wholesaler → retailer → consumer. It is the usual pattern for goods such as soap and groceries, and it has no agent in it.
Option (3) One level channel — Incorrect. Here the chain is manufacturer → retailer → consumer. It is used where large retailers sell the goods.
Option (4) Zero level channel — Incorrect. Here the manufacturer sells straight to the consumer, through his own shops, by mail order or over the internet. There is no middleman at all.
Note: This topic is not there in the current NCERT book (2026-27) — the levels of the distribution channel were dropped from the Marketing chapter when it was rationalised. It was there in the pre-rationalised NCERT, and hence this question has been picked from the pre-rationalised NCERT. NCERT (Pre-rationalised Edition):
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