Lisbon Gadgets,a California manufacturer,offers a regional trade promotion to West Coast retailers and wholesalers.Winston Wholesalers purchases large quantities of gadgets from Lisbon and distributes the products to stores on the East Coast where the discount is unavailable.Winston Wholesalers is most likely engaged in ________.
A) slotting
B) diverting
C) price gouging
D) forward buying
E) gray marketing

Question

Quizplus · Accepted Answer

Winston Wholesalers is purchasing large quantities of gadgets from Lisbon and distributing them to stores on the East Coast where the discount is unavailable. This is called diverting, which is the act of purchasing goods in one market at a lower price and selling them in another market where the prices are higher.

Lisbon Gadgets,a California Manufacturer,offers a Regional Trade Promotion to West