Teal Electronics Inc. resells DVD players to retail stores for $300. Teal requires the retailers to charge customers $350. Any retailer that charges less than $350 is in violation of its contract with Teal. Therefore, all the retailers come together and decide that the DVD player should not be sold below $350.
-Which of the following is the marketing practice in which a company seeks to influence the price at which a product is sold?

Question

Quizplus · Accepted Answer

The practice described is resale price maintenance, where the manufacturer (Teal Electronics Inc.) sets the minimum price at which the retailers can sell the product to the end customers. This prevents retailers from selling the product below a certain price point, ensuring a standard pricing across all retail outlets.