Practicing Success
Identify the channel of distribution from following in case the producer sell the products himself to customers. |
One Level Zero Level Three Level Two Level |
Zero Level |
The correct answer is option (2) : Zero Level (2) Zero Level.
(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. |