Selective distribution:
A) is likely to reduce high administrative expenses caused by a large proportion of small orders.
B) may be suitable for all categories of products.
C) is becoming more popular.
D) is a good idea if some of the available intermediaries are not financially solid.
E) All of the above are true.

Question

Quizplus · Accepted Answer

Selective distribution is a strategy in which a manufacturer sells its products through a limited number of intermediaries. This can help to reduce high administrative expenses caused by a large proportion of small orders, as the manufacturer can focus on working with a smaller number of larger intermediaries. Selective distribution can also be suitable for all categories of products, as it allows the manufacturer to target specific markets and to control the distribution of its products. Selective distribution is becoming more popular, as manufacturers are increasingly looking for ways to reduce costs and to improve efficiency. Finally, selective distribution can be a good idea if some of the available intermediaries are not financially solid, as it allows the manufacturer to reduce its risk of exposure to financial losses.

Selective Distribution