Distribution intensity (intensive, selective or exclusive) tends to vary across brands. For brands that score low in availability, their major concern is that a high level of availability leads to high costs

Question

BlackTom AI · Accepted Answer

Topic at hand: distribution intensity and its impact on brands with different availability scores. 
Option 1: 'True' — This would mean that if a brand scores low in availability, its major concern is that increasing availability (a high level of availability) leads to higher costs. While cost is certainly a consideration in logistics decisions, the dominant issue for brands scoring low in availability is typically stockouts and inadequate service levels, not primarily the cost implication of higher availability. In practice, brands with low availability are more concerned with securing sufficient product availability to meet demand, and they weigh costs as a secondary constraint. Therefore, presenting cost as the major worry misstates the primary challenge for low-availability brands. 
Option 2: 'False' — This statement is not accurate as written because it incorrectly characterizes the primary concern of brands with low availability. The usual concern for these brands is to improve or maintain adequate availability to avoid stockouts and lost sales, rather than focusing on the notion that high availability inherently causes high costs as the main worry. Costs are a factor, but they are not typically framed as the major concern driving decisions when a brand’s availability is low; stockouts and service levels take precedence in most analyses of distribution intensity. 
In summary, the claimed priority in the true statement clashes with the common emphasis on preventing stockouts and ensuring sufficient service levels for low-availability brands, making the assertion inaccurate.

MKTG1021.07|.08|.09 Fall 2025 Marketing Principles [Wang] MKTG1021-Final Exam- Requires Respondus LockDown Browser

Distribution intensity (intensive, selective or exclusive) tends to vary across brands. For brands that score low in availability, their major concern is that a high level of availability leads to high costs

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