A producer of a strong brand that agrees to sell its brand to a dealer only if the dealer will take some or all of the rest of the line is using ________.
A) exclusive distribution
B) exclusive dealing
C) intensive distribution
D) a tying agreement
E) disintermediation

Question

Quizplus · Accepted Answer

This is an example of a tying agreement where the sale of the strong brand is tied to the purchase of the rest of the line. This is a form of vertical integration in which the producer aims to increase sales of its less popular products by forcing dealers to purchase them in order to access the more popular product. This can be seen as anti-competitive behavior and may lead to legal challenges.

A Producer of a Strong Brand That Agrees to Sell