Target Exam

CUET

Subject

Business Studies

Chapter

Marketing

Question:

Ravi has started his online business of selling Garments because of low cost of production.

Identify the distributions channel used by Ravi.

Options:

Zero level

One level

Two  level

Three level

Correct Answer:

Zero level

Explanation:

The correct answer is option 1- Zero level.

Zero level is the distribution channel used by Ravi.

In Ravi's case, since he has started an online business of selling garments directly to customers, without involving intermediaries like wholesalers or retailers, the distribution channel used is Zero level distribution channel.


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., McDonald, Bata); it is referred to as direct channel. Similarly, mail order selling, internet selling and selling through own sales force, (e.g., Eureka Forbes) are example of direct selling or zero level channel.