Question

Diamond Motor Car Company produces some of the most luxurious and expensive cars in the world. Typically, only a single dealership is authorized to sell its cars in certain major cities. In less populous areas, Diamond authorizes a single dealer for an entire state or region. The manufacturer of Diamond automobiles is using a(n) ___________ distribution strategy for its product.

Answer 1

Answer:

Exclusive

Explanation:

Exclusive distribution is strategy wherein very limited retailers are allowed to sell the product of any particular brand. An agreement is done between manufacturer and retailer that manufacturer  will not authorize any other retialer to sell its product in the region of concerned retailer. This agreement enables manufacturer to charge premium from retailer for this service and get better profit margin. Another advantage is to have control of the product supply and maintain flow of product in the market.