When a Seller Requires Its Dealers to Abstain from Handling

question 55

Multiple Choice

When a seller requires its dealers to abstain from handling competitors' products, it is called ________.

• A) subjective distribution
• B) exclusive dealing
• C) selective distribution
• D) exclusive pricing
• E) disintermediation

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Definitions:

Discount Retailers

Stores or outlets that sell products at lower prices than those typically charged by traditional retail outlets.

Exclusive Territories

Areas or regions where a distributor or sales agent is given the sole rights to sell a company's product, preventing competition within that territory.

Vertical Contracts

Agreements between companies at different levels in the supply chain, such as between a manufacturer and a retailer, aiming to increase efficiencies and reduce costs.

Costly Activities

Actions or endeavors that require significant expenditures of resources, such as money, time, or effort.