What is one benefit of a selective distribution strategy?

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for UCF MAR3023 Exam 4. Study effectively with quizzes and flashcards. Enhance understanding with multiple choice questions, each featuring hints and explanations. Be confident and exam-ready!

A selective distribution strategy is characterized by the choice to offer products through a limited number of selected intermediaries, rather than through all possible outlets. One significant benefit of this approach is the greater control over the flow of merchandise. This controlled distribution allows a company to manage how its products are presented, marketed, and sold, ensuring that they align closely with the brand's image and target market.

By being selective with distribution channels, a company can maintain higher standards of service and protect the brand's reputation. This strategic control also enables the company to develop stronger relationships with distributors, facilitating better communication and aligning marketing efforts effectively.

The other options represent benefits that may not be as directly associated with selective distribution. For instance, lower shipping costs and wider market exposure are more characteristic of intensive distribution strategies, while higher prices for consumers typically relate to premium product positioning rather than the distribution strategy itself. Thus, the focus on achieving greater control over merchandise flow stands out as a primary advantage of selective distribution.