The "Trema" launch was a success! Now,a year later,you have been receiving calls from U.S.dealers complaining that "Trema" is available from international distributors at prices 50% less than the U.S.price.You are faced with a(n)________ problem due to the international success of your product.
A) gray market
B) export/import problem
C) overstock
D) distributor relationship
E) none of the above

Question

Quizplus · Accepted Answer

The situation described in the question is a classic example of a gray market problem, where a product is sold through unauthorised channels (in this case, international distributors) at prices much lower than the official retail price. This can create a number of issues for the official distributors, such as erosion of profit margins, loss of control over product distribution, and damage to relationships with customers and other channel partners.

The "Trema" Launch Was a Success! Now,a Year Later,you Have