Which of the following, if true, strengthens the argument for intensive distribution?
A) Competitors sell through exclusive outlets.
B) Phoenix is concerned about the effects of channel conflicts.
C) Consumers treat the kinds of shoes that Phoenix will produce as commodities.
D) Phoenix wishes to build positive relationships with its retail partners by encouraging them to charge high mark-ups.
E) Phoenix seeks to enhance the brand's image and generate the strongest support from retailers.
Answer: C
Explanation: C) If people treat the shoes as commodities, Choice C, then they will be unwilling to go out of their way to buy Phoenix's shoes as opposed to other companies' shoes. In that case, making the shoes available in more places would be a good idea. Choice A: What competitors do doesn't tell us what Phoenix should do. Choice B: Channel conflicts can happen with either distribution approach. Choice D conflicts with the intensive approach. Selling everywhere makes it harder for individual sellers to add much to the price. Choice E is a reason to go with an exclusive approach.
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