What is the primary purpose of making idiosyncratic investments?
A) Building channel commitment
B) Limiting the supplier's risk
C) Increasing entry barriers
D) Aligning marketing strategies
E) Enhancing brand equity

Question

Quizplus · Accepted Answer

Idiosyncratic investments are specialized investments made by a company in a relationship with another party (such as a supplier or distributor) that are specifically tailored to that relationship. The primary purpose of these investments is to build channel commitment by creating a situation where both parties have a vested interest in maintaining and enhancing the relationship, due to the unique value that has been created through these specialized investments.

What Is the Primary Purpose of Making Idiosyncratic Investments