Question : Which of the following statement is correct?
Statement 1: According to similar channel policy a company choose the same channel of distribution as is being used by its competitive company.
Statement 2: According to separate channel policy a company choose a channel of distribution which is different from the channel being used by its competitive company.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer:
Both are true
Solution : According to similar channel policy a company choose the same channel of distribution as is being used by its competitive company. According to separate channel policy a company choose a channel of distribution which is different from the channel being used by its competitive company.
Hence, option A is correct.