When distributors do not have authorization from manufacturers but divert products from low-price markets and sell them in high-price markets,they are practicing ____________.
A)Gray marketing
B)Price fixing
C)Dumping
D)Compensation trading
E)Offset pricing

Question

Quizplus · Accepted Answer

The second major issue is the gray market, which involves the unauthorized diversion of branded products into global markets. Gray market distributors (who are often authorized distributors) divert products from low-price to high-price markets. Companies should carefully watch unusual order patterns among their distributors because that can signal a gray market problem.

When Distributors Do Not Have Authorization from Manufacturers but Divert