If it is one of just two or three retailers carrying

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Unformatted text preview: r levels of expenditures on promotion and customer service. If it is the only retailer to carry this product in its competitive area (exclusive distribution), it is much easier to get the retailer to maximize expenditures in these areas since it will reap all the rewards (i.e. the customer has NO other outlet to buy from). Question 12 4 out of 4 points Ciao Footwear designs and manufacturers a high-quality line of fashionable shoes that are popular amoung young professional women. The line is quite expensive--and is sold only through specialty shops which handle only this type of fashion shoe (including competing brands). Ciao will only work with retailers who agree to stock a large variety of sizes and colors of Ciao shoes. For stores that agree to promote the Ciao line very aggressively, Ciao agrees to cut their price to the store an additional 10%, provide significant national advertising and to distribute to no more than two or three other retailers in the specialty store's immediate trading area. Since continuing promotion seems to be necessary in this highly competitive market, advertisements for Ciao shoes appear regu...
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