Caterpillar, the manufacturer of tractors and other earthmoving equipment, has an extremely high market share, which means customers seek out the dealers, regardless of where they are. There are approximately eight Caterpillar dealers in all of Canada. From this information, which type of distribution does Caterpillar use?

Question

Quizplus · Accepted Answer

Caterpillar uses exclusive distribution, as they only allow a very limited number of dealers (approximately eight in all of Canada) to sell their products. This ensures that the dealers are highly trained and specialized in Caterpillar equipment, and customers who seek out Caterpillar products will only be able to find them through these exclusive dealers.

Caterpillar, the Manufacturer of Tractors and Other Earthmoving Equipment, Has