Which of the following products is most likely to have an exclusive channel for distribution?
(A) Computers
(B) Soft drinks
(C) Mobile phones
(D) Designer jewellery - HSC - SSCE Business Studies - Question 1 - 2011 - Paper 1
Question 1
Which of the following products is most likely to have an exclusive channel for distribution?
(A) Computers
(B) Soft drinks
(C) Mobile phones
(D) Designer jewell... show full transcript
Worked Solution & Example Answer:Which of the following products is most likely to have an exclusive channel for distribution?
(A) Computers
(B) Soft drinks
(C) Mobile phones
(D) Designer jewellery - HSC - SSCE Business Studies - Question 1 - 2011 - Paper 1
Step 1
Evaluate the exclusive distribution channel
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Answer
Exclusive distribution refers to a situation where a product is sold through a limited number of outlets. This strategy is often adopted for high-end or luxury products that need to maintain a certain brand image and customer experience. This leads us to consider which of the listed products requires such an approach.
Among the options:
Computers (A): Widely available through various channels including retail and online stores.
Soft drinks (B): Typically distributed through extensive networks to ensure maximum availability.
Mobile phones (C): Generally sold through multiple channels, though some high-end brands may have exclusive stores.
Designer jewellery (D): Often requires an exclusive distribution strategy to maintain its luxury and prestige, making it the most likely candidate for an exclusive channel.
Step 2
Select the most likely product
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Answer
Based on the analysis, the product that is most likely to have an exclusive channel for distribution is (D) Designer jewellery.