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

Payal Ltd. employs a direct sales model, engaging salespersons to connect with customers without utilizing intermediaries such as wholesalers or retailers. This facilitates a direct product flow from the manufacturer to the end consumer. This distribution structure is classified as a Zero-Level Channel, also referred to as direct selling.
Zero-Level Channel: Manufacturer → Consumer (direct)
One-Level Channel: Manufacturer → Retailer → Consumer
Two-Level Channel: Manufacturer → Wholesaler → Retailer → Consumer
Three-Level Channel: Manufacturer → Agent → Wholesaler → Retailer → ConsumerGiven the absence of intermediaries and direct sales to customers, the appropriate classification is (D) Zero-Level Channel.