"ABC Ltd. sells products through company-approved retailers." Identify the type of channel of distribution in this case.
Answer & explanation
Correct answer: option 2
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.