Final answer:
Caterpillar employs an exclusive distribution strategy for its earthmoving equipment in Canada, selling through approximately eight dealers. This approach allows for a high level of control over service quality, price, and brand image.
Step-by-step explanation:
Based on the information provided, Caterpillar, the manufacturer of tractors and other earthmoving equipment, uses a type of distribution strategy where its products are sold through a limited number of dealers in a given area. With approximately eight dealers covering all of Canada, this implies a very exclusive network of distribution points. As a result, the type of distribution Caterpillar uses is c. exclusive. Exclusive distribution is a strategy used by manufacturers that limits the number of outlets in a geographical area. This approach is often used for products that have a high market share, require a significant level of service and support, or are premium products. By limiting the points of sale, the manufacturer can maintain a high level of control over the service quality, price, and brand image.