Business Degree Certification Practice Test

What is the most appropriate level of market coverage for shopping goods?

1. Intensive distribution

2. Selective distribution

3. Uniform distribution

4. Exclusive distribution

The correct answer is: Selective distribution

Selective distribution is the most appropriate level of market coverage for shopping goods because it strikes a balance between availability and consumer choice. Shopping goods, which are typically more expensive and require comparison shopping—like electronics, clothing, and furniture—benefit from being offered in a limited number of carefully chosen outlets. This distribution strategy allows manufacturers to maintain a degree of control over where their products are sold, ensuring they are marketed in environments that reflect the quality and value of the goods. It also helps create a sense of exclusivity, as customers know that these products can be found in a select number of locations, thereby enhancing the shopping experience. In contrast, intensive distribution typically aims to maximize coverage to facilitate convenience for consumers, which is better suited for everyday low-cost items like groceries. Exclusive distribution restricts availability to a single retailer in a particular area, which is not ideal for shopping goods that thrive on comparative shopping and consumer selection among multiple retailers. Uniform distribution does not accurately represent common industry practices, as it implies equal coverage in all locations, which does not align with the strategic intent behind marketing shopping goods.