Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do all of the following except:

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Exclusive distribution involves limiting the number of retailers who can sell a product, which means those retailers are likely to carry a larger inventory and provide better service for the product. They may also pay more attention to the brand since they have a closer relationship with the producer. However, exclusive distribution does not necessarily mean that retailers will sell the product at a substantially discounted price. In fact, the limited availability may actually drive up demand and price.

Producers Who Use an Exclusive Distribution Strategy for Their Products