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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?

To maintain the exclusivity and brand image Signup and view all the answers

What distinguishes selective distribution from exclusive distribution?

The number of intermediaries used Signup and view all the answers

Which distribution strategy involves promising distributors selective distribution?

Selective Distribution Signup and view all the answers

What is a characteristic of a strategy of intensive distribution?

Placing goods or services in as many outlets as possible Signup and view all the answers

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

To increase their coverage and sales Signup and view all the answers

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

Engagement in a price war among retailers Signup and view all the answers

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

It decreases control over display arrangements and pricing Signup and view all the answers

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

Retailers engage in competitive pricing strategies Signup and view all the answers

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

'It decreases the ability to command premium prices Signup and view all the answers