An exclusive-territory policy may be acceptable when:
A) the retailers involved have established a horizontal marketing system.
B) the distributor is not prohibited from carrying competitive products.
C) the channel does not have a recognizable channel leader.
D) channel conflict is an ongoing problem.
E) a company is a newcomer to the market.

Question

Quizplus · Accepted Answer

An exclusive-territory policy can be acceptable when a company is a newcomer to the market as it allows the company to establish a foothold and build brand presence without immediate competition in the designated area.

An Exclusive-Territory Policy May Be Acceptable When