"ABC Ltd. sells products through company-approved retailers." Identify the type of channel of distribution in this case.
"ABC Ltd. sells products through company-approved retailers." Identify the type of channel of distribution in this case.
Solution
Option 1 -> Zero level channel means direct selling from manufacturer to consumer with no intermediaries, which is not the case here.
Option 2 -> One level channel involves one intermediary (retailer) between manufacturer and consumer, which matches this scenario where ABC Ltd. sells through retailers.
Option 3 -> Two level channel involves two intermediaries (wholesaler and retailer), but here only retailers are mentioned as intermediaries.
Option 4 -> Three level channel involves three intermediaries (agent, wholesaler, and retailer), which is not applicable in this case.
Hence, Option 2: One level Channel -> In this distribution structure, ABC Ltd. (manufacturer) sells products through company-approved retailers (one intermediary) who then sell to final consumers. This creates a single level of intermediary between the manufacturer and end customer. -> correct
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