How may a company control a channel of distribution?
A)A franchise
B)Exclusive dealing arrangements
C)Vertical integration
D)All of the above are methods of control

Question

Quizplus · Accepted Answer

A company can control a channel of distribution through various methods such as franchise, exclusive dealing arrangements, and vertical integration. Franchising allows a company to control distribution through a network of independently owned and operated outlets. Exclusive dealing arrangements enable a company to control distribution by selling its products exclusively to one retailer or limiting the number of retailers it sells to. Vertical integration allows a company to control distribution by owning and operating all the stages of production and distribution from raw materials to the end consumer. Therefore, D is the correct answer.

How May a Company Control a Channel of Distribution