A major watch manufacturer, Time Out Inc., told retail stores that sold Time Out products that they had to sell the watches at set specific prices or else Time Out would refuse to supply them with watches. As a result Time Out
A) is guilty of tied selling
B) is guilty of exclusive dealing
C) is guilty of predatory pricing
D) is guilty of price maintenance
E) is guilty of nothing as it has the right to maintain the price and reputation of its products
D
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In the business-to-business sector, advertising tends to:
A) support other promotional tools such as personal selling, trade promotions, consumer promotions, direct marketing, and trade shows B) be the primary vehicle for communicating to customers C) be performed in-house to prevent competitors from learning about the company's products and communication approach D) identify key new target markets
Existence of gray markets lead to which of the following outcomes?
A) They make the distribution channel stronger. B) They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive. C) Goods sold in grey markets are always counterfeit. D) Goods sold in grey markets come with standard product warranties. E) Taxes imposed on grey market products are very high.