Manufacturers of branded products are concerned about gray market activity because it can lead to

Question 80

Multiple Choice

Manufacturers of branded products are concerned about gray market activity because it can lead to
Question 80

Manufacturers of branded products are concerned about gray market activity because it can lead to ________.


A)a tarnished brand image
B)empowerment of distributors
C)lower quality outputs
D)decreased productivity

Correct Answer:

Tags

Choose question tag

    10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.

    Explore This Quiz Learn More

    Business

    Explore our library and get Management Homework Help with various study sets and a huge amount of quizzes and questions

    View All Business Study Sets


    • Q75:

      Gray market activity is also called ________. A)market diversification B)target costing C)puffery D)parallel importation

    • Q76:

      The root cause of gray market activity is ________. A)a firm's inability to control production and distribution costs B)a significant difference in price between national distributors C)the dominance of substandard products in local markets D)a large enough difference in price of the same product between two countries

    • Q77:

      MNEs typically centralize transfer pricing under the direction of the chief financial officer at corporate headquarters.

    • Q78:

      Prices do not affect customers' perception of value.

    • Q79:

      In a short essay, discuss the three common pricing strategies. How do firms employ each strategy? What are the main advantages and disadvantages of using such strategies?

    • Q81:

      International advertising expenditures vary depending on the size and extent of a firm's foreign operations.

    • Q82:

      ________ refers to the number of distributors or other intermediaries that it takes to get the product from the manufacturer to the market. A)Channel depth B)Marketing mix C)Channel length D)Social network

    • Q83:

      Buyer receptiveness differs as a function of ________. A)culture and language B)lobbying C)media expenses D)product quality

    • Q84:

      Direct marketing entails selling directly to end users.

    • Q85:

      Serving a key global customer in a consistent and standardized manner, regardless of where in the world it operates is known as ________. A)global account management B)offshoring C)marketing communications D)insourcing

    What are the causes of gray market?

    The gray market has many causes, such as unauthorized dealers obtaining discounted products from OEMs due to price arbitrage and transferring those products to another country for resale, and other misuses of incentive programs.

    What is the gray market in business?

    The gray market (sometimes spelled as "grey market") is the collective system of unauthorized sales channels for products. Gray market products may be less expensive than those bought through official distribution channels but are sometimes inferior.

    What is the best way to compete with the gray market?

    Not surprisingly, companies are more tolerant of gray market activity when such benefits are present..
    INCREMENTAL SALES. ... .
    SUPPLY CONSTRAINTS. ... .
    COMPETITIVE NECESSITY OR OPPORTUNITY. ... .
    MARKET SEGMENTATION. ... .
    CHANNEL MANAGEMENT. ... .
    CHANGING MARKET CONDITIONS. ... .
    MARKET INTELLIGENCE..

    How do you stop gray markets?

    How to Stop Grey Market Sellers.
    Identify Unauthorized Sellers. You can't stop the grey market if you don't know where—and what—it is first. ... .
    Educate Your Consumers. Next up is good ol' consumer education. ... .
    Send Cease-and-Desist Letters. ... .
    Take Them to Court..