12 Questions
What is the main purpose of exclusive distribution?
To limit the number of intermediaries and maintain control
Which statement is true about selective distribution?
It involves using more than a few but less than all intermediaries.
What does intensive distribution aim to achieve?
Extensive market coverage with less control
In exclusive distribution, why is it important that resellers must not carry competing brands?
To maintain the exclusivity and brand image
What distinguishes selective distribution from exclusive distribution?
The number of intermediaries used
Which distribution strategy involves promising distributors selective distribution?
Selective Distribution
What is a characteristic of a strategy of intensive distribution?
Placing goods or services in as many outlets as possible
Why do manufacturers sometimes move from exclusive or selective distribution to more intensive distribution?
To increase their coverage and sales
What is a potential consequence of a fashion goods manufacturer transitioning to more intensive distribution?
Engagement in a price war among retailers
How does transitioning to mass merchandisers impact a fashion goods manufacturer like Liz Claiborne?
It decreases control over display arrangements and pricing
What happens when retailers with differing overheads sell Liz Claiborne apparel?
Retailers engage in competitive pricing strategies
How does intensive distribution impact a manufacturer's ability to command premium prices?
'It decreases the ability to command premium prices
Test your knowledge on different company distribution strategies including exclusive distribution in which a limited number of intermediaries handle the goods or services. Learn about maintaining control over service levels, outputs, and exclusive dealing with resellers.
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