A computer manufacturer is producing a one-of-a-kind innovation called Innovel, a cloud computing software that helps to navigate Internet content. While making the channel decision and finalizing the distribution arrangement, the manufacturer is keen on limiting the distribution of Innovel and gives only Techaven Inc. the rights to sell Innovel in that region. Techaven is known for its unique facilities and specialized inventories. In this case, the manufacturer is using the _____ arrangement of distribution.
A) selective
B) restrictive
C) exclusive
D) intensive

Question

Quizplus · Accepted Answer

The manufacturer is limiting the distribution to only one organization, Techaven Inc., which means they are using an exclusive distribution arrangement. This is a common strategy used for unique and specialized products where having too many distributors may not be beneficial. Selective distribution involves choosing a limited number of retailers to carry the product, intensive distribution involves making the product available in as many outlets as possible, and restrictive distribution can refer to a number of different strategies, such as limiting the quantity of product available or restricting who can purchase the product.

A Computer Manufacturer Is Producing a One-Of-A-Kind Innovation Called Innovel