Question : Which channel of distribution is highlighted in the given statement?
Statement: In this channel and agent in each major areas appointed and manufacturer uses services for the initial distribution of goods.
Option 1: Direct channel
Option 2: Indirect channel
Option 3: One level channel
Option 4: Three level channel
Correct Answer:
Three level channel
Solution : This channel consists of Three intermediaries through whom manufacturer sells goods to consumers. In this channel an agent in each major area is appointed and manufacturer uses his services for the initial distribution of goods. This channel is used when the manufacturer produces a limit product line and wants to cover a wide market.
Hence, option D is correct.