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A business has shifted from intensive distribution to more selective distribution - HSC - SSCE Business Studies - Question 8 - 2014 - Paper 1

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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 de... 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

To reposition products as higher quality

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Answer

The most likely reason for a business to shift from intensive distribution to more selective distribution is to reposition products as higher quality. This strategy allows companies to create an image of exclusivity and premium value, targeting specific consumers and offering a curated buying experience.

In selective distribution, products are not available everywhere; rather, they are sold through designated resellers that can enhance the brand's image and provide a better environment for selling higher-end products. This can lead to higher margins and improved brand equity.

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