Q.A channel of distribution with no middleman at all, where the manufacturer sells directly to the consumer, is known as a:
(A) One-level channel
(B) Zero-level channel
(C) Two-level channel
(D) Three-level channel
This question tests whether the channel-naming convention (by number of middleman levels) is understood, not just memorised.
Option (A), one-level channel, is wrong because a one-level channel has exactly one middleman (a retailer) between the manufacturer and the consumer — that is not "no middleman at all".
Option (B), zero-level channel, is correct: this is the standard name for the direct channel, in which the manufacturer sells and delivers straight to the consumer with no independent middleman anywhere in the route (for example, door-to-door selling or a manufacturer's own retail outlet).
Option (C), two-level channel, is wrong because it has two middlemen — a wholesaler and a retailer — clearly not "no middleman".
Option (D), three-level channel, is wrong for the same reason, having three middlemen: an agent, a wholesaler, and a retailer.
Eliminating (A), (C), and (D) leaves only one channel with zero middlemen.
(B) Zero-level channel
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.