Question

When middlemen acts as a link between producer and seller, a chain formed is called. Answer in a word/phrase/term.

Answer 1

The chain that is formed when middlemen acts as a link between producer and seller is called the indirect channel of distribution.

In indirect channel of distribution, a product passes through additional steps as it moves from the manufacturing business via distributors to wholesalers and then retail stores.

Indirect channels of distribution are again divided into three categories.

They are-  

• One level channel

• Two level channels and

• Three level channels