Gray market activities harm distributor relations, tarnish the manufacturer's brand equity, and undermine the integrity of the distribution channel.

Question

Quizplus · Accepted Answer

Gray market activities involve the sale of genuine products by unauthorized distributors or retailers in channels not intended by the manufacturer. This can lead to undercutting of prices, unfair competition between authorized and unauthorized distributors, and the presence of counterfeit or damaged products in the gray market. All these factors can harm the relationship between the manufacturer and its authorized distributors, damage the brand image of the manufacturer, and compromise the quality and safety of products sold through the distribution channel.

Gray Market Activities Harm Distributor Relations, Tarnish the Manufacturer's Brand