Which of the following, if true, strengthens the argument for exclusiv

QUESTION

Which of the following, if true, strengthens the argument for exclusive distribution?

A) A growing number of shoe customers prefer to shop online instead of visiting stores.
B) The number of customers who buy shoes is greater than the number of people who buy belts.
C) Some expensive leather products use leather that is indistinguishable from that used in inexpensive leather products.
D) Consumers who purchase Phoenix products are motivated primarily by price considerations.
E) Currently, Phoenix’s other products are sold only through an established network of select stores.

ANSWER

Answer: E
Explanation: E) Building a relationship with exclusive dealers could be a disadvantage to the exclusive distribution approach. If, however, Choice E were true and Phoenix already has a network, then this potential disadvantage would not apply. Choice E, therefore, strengthens the argument for exclusive distribution. Choice A, if anything, suggests that a broader appeal is a good idea, which goes the wrong way. But Choice A is really irrelevant because both exclusive and intensive distribution can work with online distribution. Choice B doesn’t tell us the best way to sell these shoes, although, again, the sheer number of customers slants toward the intensive distribution approach. Choice C doesn’t say anything about Phoenix. Choice D suggests an intensive distribution approach.