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Question

A small electronics company manufactures a line of low to moderate quality stereo components that are distributed through wholesalers to mass market retailers such as Walmart. The electronics company has begun production of a small line of high quality, professional studio model components. How should the small electronics company distribute its new products?

A use its established channel Correct Answer Incorrect Answer
B distribute indirectly to mass market retailers Correct Answer Incorrect Answer
C distribute through agents who sell to specialty electronics stores who will feature the new line Correct Answer Incorrect Answer
D sell indirectly to specialty electronics stores who will feature the new line Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

The new products need an upscale outlet, but the electronics company does not have the sales force to call on thousands of specialty stores, and there is no indication that the new products warrant creating one.

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