Because Dunkin’ Donuts’ market coverage includes retail outlets, convenience stores, grocery stores, and direct distribution of bagged coffee via the Internet, it is best described as ________ distribution.Multiple Choiceselectiveintensivewholesaleexclusive
Question
Because Dunkin’ Donuts’ market coverage includes retail outlets, convenience stores, grocery stores, and direct distribution of bagged coffee via the Internet, it is best described as ________ distribution.Multiple Choiceselectiveintensivewholesaleexclusive
Solution
The correct answer is "intensive" distribution.
Here's why:
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Dunkin’ Donuts distributes its products through a wide variety of outlets, which is a characteristic of intensive distribution.
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Intensive distribution aims to provide saturation coverage of the market by using all available outlets. For a product like Dunkin’ Donuts coffee, which is a mass market item that consumers expect to find everywhere, this strategy makes sense.
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Selective distribution would involve using a limited number of outlets in a geographical area to sell products, which is not the case here.
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Exclusive distribution involves limiting distribution to a single outlet. The product is usually highly priced, and requires a specific type of selling effort, which is not applicable to Dunkin’ Donuts.
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Wholesale distribution would involve selling goods in large quantities to be retailed by others, which is not the primary method of distribution for Dunkin’ Donuts.
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