Direct distribution is also known as a zero level channel.

Direct distribution is also known as a zero level channel.

• A. False
• B. Not applicable
• C. True
• D. It depends

Answer: (C)

Direct distribution means the producer sells straight to the end customer without any intermediaries. In channel terminology, a channel with no middlemen is called a zero-level channel, because there are zero levels of middlemen between the producer and the consumer. Therefore, direct distribution is the same as a zero-level channel. This setup is common when a company sells through its own stores or website, or directly via sales reps to business customers. When an intermediary exists—like a retailer or wholesaler—the channel gains levels (one level with a retailer, two levels with wholesaler plus retailer, etc.).

Direct distribution means the producer sells straight to the end customer without any intermediaries. In channel terminology, a channel with no middlemen is called a zero-level channel, because there are zero levels of middlemen between the producer and the consumer. Therefore, direct distribution is the same as a zero-level channel. This setup is common when a company sells through its own stores or website, or directly via sales reps to business customers. When an intermediary exists—like a retailer or wholesaler—the channel gains levels (one level with a retailer, two levels with wholesaler plus retailer, etc.).