For which of the following products would exclusive distribution be most appropriate?

• A. Basic household cleaning supplies
• B. Generic over-the-counter pain relievers
• C. Bottled water
• D. Luxury automobiles

Answer: (D)

Verified step by step guidance

1. Understand the concept of exclusive distribution: it is a strategy where a manufacturer grants exclusive rights to a single distributor or retailer to sell its product in a particular geographic area. This approach is typically used for products that require a high level of service, have a prestigious brand image, or need controlled availability.
2. Analyze the characteristics of each product listed: basic household cleaning supplies, generic over-the-counter pain relievers, bottled water, and luxury automobiles. Consider factors such as product differentiation, brand image, and the level of customer service required.
3. Recognize that basic household cleaning supplies, generic pain relievers, and bottled water are generally mass-market products with low differentiation and high availability, making intensive or selective distribution more appropriate for them.
4. Identify that luxury automobiles are high-value, differentiated products that often require personalized service, brand exclusivity, and controlled distribution to maintain their prestige and customer experience.
5. Conclude that exclusive distribution is most appropriate for luxury automobiles because it helps maintain the brand's exclusivity, ensures high-quality customer service, and supports the product's premium positioning.