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.’:

Options

• Three-Level Channel

• Two-Level Channel

• One-Level Channel

• Zero-Level Channel

Answer 1

Zero-Level Channel

Explanation:

It is shown that Payal Ltd. employs salespeople who visit people’s homes to offer high-end water purifiers straight to them. In this case, there are no intermediaries, such as wholesalers or retailers, in the sales process. The company is instead in charge of sales and marketing. When a maker sells a product directly to a customer, there are no middlemen involved. This is called the Zero-Level Channel, which is also known as Direct Selling. This method is often used for expensive or one-of-a-kind items, where talking to customers directly is the best way to explain the product’s benefits.