Test your knowledge of distribution channel levels best practices. Each question reflects the latest 2025 channel research.
A zero‑level channel delivers products directly from producer to ______.
agent
consumer
wholesaler
retailer
No intermediaries means higher control and margin retention. Direct‑to‑consumer e‑commerce typifies this structure.
In a one‑level channel for FMCG goods, the intermediary is typically the ______.
broker
industrial distributor
manufacturer’s rep
retailer
Retailers hold inventory and present assortments to shoppers. They bridge the distance between producers and end users.
Adding both wholesaler and retailer creates a ______‑level channel.
four
two
one
zero
Wholesalers break bulk and provide storage, while retailers handle final sales. Each level adds reach but trims margins.
Vertical conflict is MOST likely when a producer opens its own e‑shop and ______ prices.
increases list
matches market
freezes
undercuts dealer
Dealers may feel bypassed if direct channels offer lower pricing, sparking channel tension and policy renegotiation.
Channel depth choices are influenced by product perishability; highly perishable goods favour ______ channels.
indirect only
longer
shorter
reverse
Fewer hand‑offs cut transit time and spoilage. Growers often ship direct to local grocers or farmers’ markets.
Cash‑and‑carry wholesalers mainly serve small retailers who prefer ______ purchases.
installment
self‑service
consignment
drop‑ship
Operators provide warehouse‑style shopping where buyers pay cash and carry goods out, saving delivery costs.
Hybrid channels that combine direct online sales with third‑party marketplaces risk ______ when prices diverge.
coop advertising
cannibalisation
synergy
exclusive dealing
Sales may shift rather than grow if buyers chase the cheapest listed channel. Uniform pricing strategies mitigate this.
Reverse channels focus on moving products from consumer back to ______.
regional billboard
seed supplier
retail floor
producer/recycler
E‑waste legislation drives take‑back programs that channel used devices to certified recyclers.
Channel power often resides with the member controlling ______ visibility.
factory scheduling
foreign exchange
HR policy
end‑customer
Access to shopper data and shelf space lets retailers negotiate better terms. Producers invest in brand pull to counterbalance.
Logistics providers that both store and transport goods are known as ______‑party logistics firms.
third
fifth
second
first
3PLs integrate warehousing and freight, allowing firms to outsource physical distribution without building assets.
Starter
You’re just starting to map modern channels—keep learning.
Solid
Good grasp—refine the tactical nuances for even better performance.
Expert!
Channel mastery achieved—you’re ready to innovate the mix.
