When the seller requires that only certain dealers carry its products and also that these dealers not handle competitors' products,its strategy is known as ________.

Question

Quizplus · Accepted Answer

The strategy described in the question is known as exclusive dealing, which involves a supplier contracting with one or more distributors to handle its products exclusively, restricting those distributors from carrying competitors' products. This is a vertical restraint of trade, as it involves a supplier imposing restrictions on its downstream partners. Selective distribution, on the other hand, involves a supplier choosing a limited number of outlets to distribute its products based on certain criteria, but not necessarily restricting them from carrying competitors' products. Horizontal restraint of trade involves agreements among competitors to limit competition, while horizontal market division involves dividing a market among competitors to avoid competition. Disintermediation involves bypassing intermediaries in the distribution channel.

When the Seller Requires That Only Certain Dealers Carry Its