When channel members load up on discounted products featured in the manufacturer's promotion but pass on the lower price for just a portion of the amount purchased to their customers,they are most likely to be engaged in:
A) the gray market.
B) Price fixing.
C) Forward buying.
D) Price pointing.
E) Free riding.

Question

Quizplus · Accepted Answer

This is an example of forward buying, where channel members take advantage of manufacturer promotions to purchase products at a discount, but only pass on a portion of the savings to their customers. This allows them to increase their profit margins by selling the products at the regular price, while still taking advantage of the promotional offer. The other answer options (A) gray market, (B) price fixing, (D) price pointing, and (E) free riding do not accurately describe this behavior.

When Channel Members Load Up on Discounted Products Featured in the Manufacturer's