In a two-level distribution channel, which entity comes directly after the producer?

• A. Wholesaler
• B. Retailer
• C. Consumer
• D. Distributor

Answer: (A)

In a two-level distribution channel, the flow of goods goes from producer to an intermediary that buys in bulk and then to another intermediary before reaching the end customer. The entity that comes directly after the producer is the wholesaler. This wholesaler handles large quantities from the producer and resells to retailers, who then sell to consumers. So the sequence starts with the producer, then the wholesaler, then the retailer, and finally the consumer. The retailer and consumer come later in the chain, and while some contexts use distributor as a synonym for wholesaler, the standard two-level channel places the wholesaler immediately after the producer.