Which of the following, if true, weakens the argument for intensive di

QUESTION

Which of the following, if true, weakens the argument for intensive distribution?

A) Competitors follow an intensive distribution strategy.
B) The company follows a penetration pricing policy to increase its market share.
C) Market research indicates that customers prefer convenience and easy access to products while shopping.
D) The company’s attempts at direct channel distribution were not successful in the past.
E) The company plans to market the shoes as a high-end luxury brand.

ANSWER

Answer: E
Explanation: E) Intensive distribution enhances brand exposure and provides convenient access for customers. However, a high-end luxury strategy, Choice E, is most consistent with some kinds of limited distribution. Exclusive distribution makes more sense with exclusive products. Put another way, a high-end, luxury position would make less sense if Phoenix were trying to sell the shoes to everyone. Choice A doesn’t make a clear difference either way. What competitors do does not tell us what Phoenix should do. Choices B and C strengthen the argument. Penetration pricing is more appropriate with intensive distribution. Similarly, intensive distribution is consistent with an interest in convenience shopping. Choice D doesn’t help because we don’t know why the company did what it did or what the results were.