Question

In the context of distribution coverage required, identify a true statement about exclusive distribution.

A. The manufacturer gains exposure through as many wholesalers as possible.

B. The product requires certain specialized selling effort or investment in unique facilities or large inventories.

C. The intermediary's reputation is an important factor in this form of distribution.

D. The manufacturer limits the use of intermediaries to the ones believed to be the best available in a geographic area.

Answer 1

Exclusive distribution implies a system of distributing a product in which manufacturer specifically use a particular intermediary in a particular geographical area for distribution of its product.

No other is distributing the product of manufacturer in such geographical area.

Thus,

Exclusive distribution implies that the manufacturer limits the use of intermediaries to the ones believed to be the best available in a geographic area.

Hence, the correct answer is the option (D).