When Procter & Gamble Uses the Same Distribution System to Deliver

question 13

Multiple Choice

When Procter & Gamble uses the same distribution system to deliver its oral care products and its hair care products to drugstore chains, this is an example of ________.

• A) synergy
• B) focused differentiation strategy
• C) diversification strategy
• D) unrelated diversification strategy

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Definitions:

Rent Controls

Government-imposed limits on the amount landlords can charge for leasing properties, aimed at making housing more affordable.

Inefficiently Low Quality

A form of inefficiency in which sellers offer low-quality goods at a low price even though buyers would prefer a higher quality at a higher price; often a result of a price ceiling.

Allocation

The process of distributing resources or goods among different uses, users, or parties in a way that optimally meets criteria or objectives.

Mandated Price

A price set by government regulation or law, rather than determined by market forces of supply and demand.