Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise marketing

Question:

Arrange in sequence the following three level Channel of distribution.

A. Wholesaler
B. Agent
C. Retailer
D. Producer
E. Consumer

Choose the correct answer from the options given below:

Options:

D, B, C, E, A

D, B, A, C, E

D, B, A, E, C

D, B, E, C, A

Correct Answer:

D, B, A, C, E

Explanation:

The correct answer is option (2) - D, B, A, C, E

Producer-agent-wholesaler-retailer-customer (Three levels): This is the longest channel of distribution in which three middlemen are involved. This is used when the producer wants to be fully relieved of the problem of distribution and thus hands over his/her entire output to the selling agents. The agents distribute the product among a few wholesalers. Each wholesaler distributes the product among a number of retailers who finally sell it to the ultimate consumers. This channel is suitable for wider distribution of various industrial products.