Question 25
DistributionUse the following information to answer questions 25 and 26.
Possy Petroleum Refining Ltd. operates both in The Gambia and Nigeria. The company in The Gambia distributes its products via direct channel because rival firms do so, while, in Nigeria, the product is distributed via independent marketers because the law mandates them to do so.
Which factor influenced the company's choice of distribution channel in Nigeria?
- A.Competitive factor
- B.Market characteristics
- C.Government regulations
- D.Nature of the product
Show the answer and explanation
Answer: C (Government regulations)
Explanation
In Nigeria the law requires independent marketers: a government regulation.