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 these alternatives are correct.

Question

Quizplus · Accepted Answer

Selective distribution is a strategy in which a manufacturer selects a limited number of intermediaries to distribute its products. This can help to reduce high administrative expenses caused by a large proportion of small orders, as the manufacturer can focus its efforts on a smaller number of larger orders. Selective distribution can also be suitable for all categories of products, as it allows the manufacturer to target specific markets and customer segments. Additionally, selective distribution is becoming more popular, as manufacturers seek to gain greater control over their distribution channels and improve their 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 bad debt.

Selective Distribution