Arrange the following parties involved in the Three Level Channel of distribution in the correct sequence:
(A) Customer
(B) Retailer
(C) Wholesaler
(D) Agent
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (D), (C), (B), (A)
(D) Agent — first. In a three level channel the manufacturer first uses its own selling agents or brokers. They connect the manufacturer with wholesalers in each major area.
(C) Wholesaler — second. Wholesalers buy in large quantities through the agents and sell in smaller lots to retailers.
(B) Retailer — third. Retailers buy from the wholesalers and sell to the final buyer.
(A) Customer — last. The goods finally reach the consumer. Three middlemen stand between the manufacturer and the customer, which is why this is called a three level channel. A manufacturer uses it when it has a limited product line and must cover a wide market.
Note: The levels of channels of distribution are not there in the latest NCERT textbook (2026-27). They were 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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