The Pinewire Company is a renowned electronics company that usually sells its products like laptops,phones,and MP3 players,through dedicated dealers.However,Sonic Shack,an audio equipment retailer,signs an agreement with Pinewire which gives Sonic permission to sell the products provided that Pinewire products get superior display,shelf space,and promotion compared to their competing products.The agreement also requires that Sonic sell other non-audio Pinewire products at its store.Which of the following types of marketing strategies is Sonic adopting when accepting to sell non-audio products of Pinewire?
A)horizontal price fixing
B)horizontal merger
C)full-line forcing
D)direct marketing
E)disintermediation

Question

Quizplus · Accepted Answer

The marketing strategy being adopted by Sonic in this scenario is full-line forcing, which is the practice of requiring a retailer to carry a manufacturer's entire line of products in order to be allowed to sell a particular product. In this case, Sonic is required to sell other non-audio Pinewire products in order to sell the audio equipment, ensuring that the entire Pinewire product line is available at the store. Horizontal price fixing, horizontal merger, direct marketing, and disintermediation are not relevant to this scenario.

The Pinewire Company Is a Renowned Electronics Company That Usually