Which statement best describes why Dual Distribution is becoming more common with producers and retailers?
A. It is best applicable for convenience products and business suppliers.
B. Retailers want large quantities with a lower price per unit.
C. Present channel members are doing an excellent job.
D. Both (A) and (C).
E. All of the above
Answer: (B) Dual distribution occurs when a producer uses several competing channels to reach the same target market. One reason this occurs is that retailers want large quantities with a lower price per unit; (B) is the best choice. Dual distribution is not needed for convenience products and business suppliers. These types of products are best served by intensive distribution because customers want these products available everywhere. One of the reasons a producer moves toward dual distribution is that current channel members are doing a poor job, so (C) is not a correct answer. (D) is not correct because both (A) and (C) are incorrect and, therefore, (E) cannot be correct either.