Premier Department Store, David Jones, Terminated Its Arrangements with Country

question 104

Multiple Choice

Premier department store, David Jones, terminated its arrangements with Country Road for the supply of clothing after Country Road became increasingly involved with discounting at Country Road stores and also distributing via Direct Factory Outlets (DFOs) . David Jones believed that Country Road's distribution activities were not only a direct source of direct competition, but were also inconsistent with David Jones' carefully crafted image as a prestige brand. This is an example of:

• A) a power struggle.
• B) selective distribution.
• C) exclusive dealing.
• D) channel conflict.
• E) none of the above

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Definitions:

Monopoly Power

The ability of a company or group to control the market for its product or service, thus limiting competition.

Local Community

A group of people living in the same area or having a particular characteristic in common, often sharing local governance, resources, and interests.

Government-operated Firm

is a business entity controlled or owned by the government to provide goods or services to the public.

Residual Claimants

Individuals or entities that have a claim on the remaining assets of a company after all liabilities have been satisfied, typically the shareholders.