Question

‘Payal Ltd.’ is the manufacturer of high-end costly water purifiers. Their water purifiers are unique and different from the purifiers available in the market. For its marketing, they appointed salespersons who will go door-to-door and explain the unique features of their product. From the following, identify the channel of distribution adopted by ‘Payal Ltd.’:

• A. Three-Level Channel
• B. Two-Level Channel
• C. One-Level Channel
• D. Zero-Level Channel

Hint:

No middlemen = Zero-Level Channel. Think: Manufacturer → Consumer directly.

Answer 1

The Correct Option is D

In the given case, Payal Ltd. directly appoints salespersons to reach customers without involving any intermediaries like wholesalers or retailers. This means the product moves directly from the manufacturer to the consumer. This type of distribution system is known as a Zero-Level Channel (also called direct selling).
Zero-Level Channel: Manufacturer → Consumer (no middlemen)
One-Level Channel: Manufacturer → Retailer → Consumer
Two-Level Channel: Manufacturer → Wholesaler → Retailer → Consumer
Three-Level Channel: Manufacturer → Agent → Wholesaler → Retailer → Consumer As there is no intermediary involved and the company sells directly to customers, the correct answer is (D) Zero-Level Channel.