Question

Firms are likely to prefer selective distribution when intermediaries

Answer 1

If the intermediary provides some type of extra support, and if they provide exclusivity for the product, the firm will likely pursue this avenue. Selective distribution holds that a company will use some, but not all, of the distributors as a way of getting their products to market, and in this case, finding intermediaries who will not provide competitors for the product is a smart way of maximizing profitability.