Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Marketing

Question:

Identify the channel of distribution from following in case the producer sell the products himself to customers.

Options:

One Level

Zero Level

Three Level

Two Level

Correct Answer:

Zero Level

Explanation:

The correct answer is option (2) : Zero Level

(2) Zero Level.

  •  Zero level of distribution is a direct marketing channel where the producer sells products directly to consumers without the involvement of intermediaries. In this distribution channel, the producer takes charge of the entire distribution process, from production to reaching the end consumers. This approach allows the marketing and sales process.

(1) One Level : One level of distribution also known as a single-level channel, involves the  movement of products from the producer to the consumer through a single intermediary or middleman. This intermediary could be a retailer or a wholesaler who facilitates the transfer of goods from the producer to the end consumer; In this scenario, the producer does not directly sell the products to the end consumers.

(3) Three Level: Three levels of distribution refer to a distribution channel involving three intermediaries between the producer and the consumer. These intermediaries could include agents, wholesalers, retailers, and other middlemen who play a role in the distribution process. The products pass through multiple stages before reaching the final consumer.

(4) Two Level: Two levels of distribution involve the movement of products from the producer to the consumer through two intermediaries. This could involve the use of wholesalers and retailers or agents and retailers, depending on the specific distribution network. The products pass through two stages before reaching the end consumer.