Company Distribution Strategies Quiz

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Questions and Answers

What is the main purpose of exclusive distribution?

  • To allow resellers to carry competing brands
  • To reduce the selling efforts of resellers
  • To have a wide distribution network
  • To limit the number of intermediaries and maintain control (correct)

Which statement is true about selective distribution?

  • It requires less control compared to intensive distribution.
  • It involves using more than a few but less than all intermediaries. (correct)
  • It involves using all possible intermediaries.
  • It helps in gaining market coverage at high costs.

What does intensive distribution aim to achieve?

  • Low selling efforts from intermediaries
  • Extensive market coverage with less control (correct)
  • Limited market coverage with high control
  • High cost distribution strategy

In exclusive distribution, why is it important that resellers must not carry competing brands?

<p>To maintain the exclusivity and brand image (C)</p> Signup and view all the answers

What distinguishes selective distribution from exclusive distribution?

<p>The number of intermediaries used (A)</p> Signup and view all the answers

Which distribution strategy involves promising distributors selective distribution?

<p>Selective Distribution (B)</p> Signup and view all the answers

What is a characteristic of a strategy of intensive distribution?

<p>Placing goods or services in as many outlets as possible (D)</p> Signup and view all the answers

Why do manufacturers sometimes move from exclusive or selective distribution to more intensive distribution?

<p>To increase their coverage and sales (A)</p> Signup and view all the answers

What is a potential consequence of a fashion goods manufacturer transitioning to more intensive distribution?

<p>Engagement in a price war among retailers (D)</p> Signup and view all the answers

How does transitioning to mass merchandisers impact a fashion goods manufacturer like Liz Claiborne?

<p>It decreases control over display arrangements and pricing (A)</p> Signup and view all the answers

What happens when retailers with differing overheads sell Liz Claiborne apparel?

<p>Retailers engage in competitive pricing strategies (A)</p> Signup and view all the answers

How does intensive distribution impact a manufacturer's ability to command premium prices?

<p>'It decreases the ability to command premium prices (B)</p> Signup and view all the answers

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