Which method of distribution typically results in higher prices due to limited availability?

The method of distribution that typically results in higher prices due to limited availability is exclusive distribution. This approach involves a manufacturer granting a limited number of retailers the right to sell their products in a specific area or market. By controlling the number of outlets carrying the product, the brand can create a sense of scarcity and exclusivity.

This limited availability often allows companies to maintain higher price points because consumers perceive the product as more desirable or prestigious. When a product is available in fewer locations, it can foster a sense of urgency among consumers, which can also justify higher pricing. Exclusive distribution is commonly seen in luxury brands and high-end products where maintaining a specific brand image and consumer experience is crucial.

In contrast, selective distribution allows for a wider range of retailers while still controlling some aspects of the product’s distribution, which can lead to more moderate pricing strategies. Intensive distribution aims for maximum product availability, typically resulting in lower prices due to increased competition among retailers. Indirect distribution involves intermediaries, which can dilute brand control and often leads to lower prices as well.