"ABC Ltd. sells products through company-approved retailers." Identify the type of channel of distribution in this case. |
Zero level Channel One level Channel Two level Channel Three level Channel |
One level Channel |
The correct answer is option 2- One level Channel. In a one level channel, the manufacturer (ABC Ltd.) sells products to retailers, who then sell them to customers. Since ABC Ltd. uses company-approved retailers, there is one intermediary (the retailer) between the company and the customer — hence, it is a one level distribution channel. |