Which term refers to a distribution arrangement using two layers of intermediaries, such as wholesalers and retailers?

Which term refers to a distribution arrangement using two layers of intermediaries, such as wholesalers and retailers?

• A. A two-level distribution channel
• B. Place (or distribution)
• C. Intermediation
• D. Mail order

Answer: (A)

Distribution channels describe how products move from producers to customers, and the number of intermediaries determines the channel level. When there are two layers of middlemen between the producer and the consumer, this is a two-level distribution channel. In practice, the producer sells to a wholesaler, the wholesaler sells to a retailer, and the retailer sells to the consumer. The two levels refer specifically to the number of intermediary steps, not the type of intermediaries or the method of selling. This description fits exactly because it names two layers of intermediaries (wholesaler and retailer). The other options are broader or point to different ideas: Place (or distribution) covers the overall activity of moving goods to market; Intermediation is the general act of using middlemen without specifying how many; mail order is a specific non-store channel that doesn’t inherently define the number of intermediary layers.

Distribution channels describe how products move from producers to customers, and the number of intermediaries determines the channel level. When there are two layers of middlemen between the producer and the consumer, this is a two-level distribution channel. In practice, the producer sells to a wholesaler, the wholesaler sells to a retailer, and the retailer sells to the consumer. The two levels refer specifically to the number of intermediary steps, not the type of intermediaries or the method of selling. This description fits exactly because it names two layers of intermediaries (wholesaler and retailer). The other options are broader or point to different ideas: Place (or distribution) covers the overall activity of moving goods to market; Intermediation is the general act of using middlemen without specifying how many; mail order is a specific non-store channel that doesn’t inherently define the number of intermediary layers.