Question

A shoe manufacturer sells high-end designer shoes to wholesalers who, in turn, sell a variety of shoes and other leather accessories to various retail outlets. Which of the following channels of distribution is the shoe manufacturer using?
a. Matrix chennal
b. Indrict chennal
c. peer-to-peer chennal
d. Maker to user chennal

Answer 1

Answer: B. Indirect channel

Explanation: The channel of distribution is defined as a network of organizations that connect the producer/manufacturer of goods and services with the end-users or consumers of those goods or services. By employing the services of wholesalers and retailers, the shoe manufacturer is using the indirect channel of distribution, specifically the two-level channel (Manufacturer to Wholesaler to Retailer to Customer). Also known as selling to intermediaries, it involves wholesalers buying the bulk of goods from the manufacturers, then selling to retailers (after breaking them down into small packages) who eventually sell it to the end customers.