| Hastings & C’s decision to go with an exclusive distribution instead of a full distribution rests on which of the following assumptions? A) The number of customers who buy hats is greater than the number of people who buy belts. B) Currently, Hastings & Cap's other products are sold only through an established network of select stores. C) A growing number of hat customers prefer to shop online to purchase counterfeit goods. D) Some expensive leather products use leather that is indistinguishable from that used in inexpensive leather products. E) Counterfeiters will not be likely to copy the hats if the hats are not sold in their country.
Hastings & Cap is a hat company looking to reduce the number of counterfeit items produced from its designs overseas. The company is also planning to extend its product category by producing a range of high-end hats for both men and women.
With these thoughts in mind, Hastings & Cap’s marketing managers are finalizing the best distribution strategy for its high-end product category.
The full distribution strategy would involve marketing the hats in all of the countries in which Hastings & Cap products are presently sold. This would, of course, involve distributing the products in those countries that Governments typically endorse the rule of man and tolerate companies that routinely counterfeit brand-name products.
Alternatively, if they choose to bypass the full distribution strategy, they would likely have toward setting up exclusive distribution arrangements with leading retailers, effectively, opting for a high-end luxury distribution strategy. They would then also restrict distribution arrangements to vendors in those countries whose governments endorse the rule of law and most aggressively protect intellectual property rights and, correspondingly, police counterfeiters.
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Question | Hastings & C’s decision to go with an exclusive distribution instead of a full distribution rests on which of the following assumptions?
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