Many manufacturers sell products in outlet stores at 25—70 percent off retail prices. Retailers do not like the added competition from their own suppliers despite manufacturers’ claims that they are only selling last season’s merchandise.
a. How could business objectives, buyer behavior, product attributes, or environmental forces affect a manufacturer’s decision to distribute through outlet stores? Be sure to answer all of the concepts (4).
b. By selling in outlet stores, how have these manufacturers changed their intensity of market coverage? How is customer service different at an outlet store?