Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise marketing

Question:

Arrange the following in a sequence for channel distribution.

A. Wholesaler

B. Retailer

C. Customers

D. Producer

Choose the correct answer from the options given below:

Options:

B, C, A, D

C, D, A, B

D, A, B, C

A, C, D, B

Correct Answer:

D, A, B, C

Explanation:

The correct answer is option (3) - D, A, B, C

Producer-wholesaler-retailer-customer (Two levels): This is the most common and traditional channel of distribution. Under it, two middlemen i.e. wholesalers and retailers are involved. Here, the producer sells his product to wholesalers, who in turn sell it to retailers. And, retailers finally sell the product to the ultimate consumers. This channel is suitable for the producers who have limited finance, narrow product line and need expert services and promotional support of wholesalers. This is mostly used for the products with widely scattered market.