Question

Name the different channels of distribution.

Hint:

Distribution channels may be \textbf{direct} (producer to consumer) or \textbf{indirect} (involving middlemen like wholesalers, retailers, and agents).

Answer 1

Step 1: Meaning.
Channels of distribution are the paths or routes through which goods and services move from producers to consumers.
Step 2: Different channels of distribution.

Direct channel (Zero-level): Producer → Consumer.
Indirect channel (One-level): Producer → Retailer → Consumer.
Indirect channel (Two-level): Producer → Wholesaler → Retailer → Consumer.
Indirect channel (Three-level): Producer → Agent → Wholesaler → Retailer → Consumer.

Step 3: Importance.

Ensures availability of products to customers at the right time and place.
Helps in large-scale distribution and sales.
Reduces burden on producers by involving middlemen.