When would a manufacturer use an exclusive distribution strategy to market a product?
A) When there is a need to create promotional advantage
B) When the manufacturer has a low cost product that is new for the market
C) To build a strong relationship between the manufacturer and the wholesaler
D) When the manufacturer wants to break into a new geographic location
E) When the item is a high-cost or prestige product
Answer: E
Explanation: E) With exclusive distribution, a manufacturer grants the exclusive right to distribute or sell a product to a limited number of wholesalers or retailers, usually in a given geographic area. Such agreements are most common for high-cost prestige products. Rolex watches are sold only by "Official Rolex Jewelers."
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