Photo AI
A business has shifted from intensive distribution to more selective distribution - HSC - SSCE Business Studies - Question 8 - 2014 - Paper 1
Question 8
A business has shifted from intensive distribution to more selective distribution. What is the most likely reason for this? (A) To increase market share (B) To decr... show full transcript
Worked Solution & Example Answer:A business has shifted from intensive distribution to more selective distribution - HSC - SSCE Business Studies - Question 8 - 2014 - Paper 1
Step 1
What is the most likely reason for this?
Answer
The most likely reason for a shift from intensive distribution to more selective distribution is:
Repositioning Products as Higher Quality
This strategy indicates that the business aims to market its products at a higher price point and enhance their perceived value. By selecting specific distributors, the business can control where and how products are sold, thus aligning with a premium image that appeals to target consumers who associate limited availability with quality. Overall, this move can help establish a brand identity that differentiates the products in a competitive marketplace.