A manufacturer can limit price competition in a retail area through use of intensive distribution.

Question

Quizplus · Accepted Answer

Intensive distribution refers to supplying a product through as many retail outlets as possible, which may lead to increased price competition as retailers try to offer the product at lower prices to attract customers. Therefore, intensive distribution does not limit price competition. Instead, manufacturers can limit price competition through selective distribution, which involves supplying a product through a limited number of retailers who are chosen based on certain criteria such as location, level of service, or reputation.

A Manufacturer Can Limit Price Competition in a Retail Area