Gray markets involve which of the following activities?
A) Gray markets strengthen the distribution channel.
B) Gray markets divert branded products from authorized distribution channels.
C) Goods sold in gray markets are always counterfeit.
D) Goods sold in gray markets come with standard product warranties.
E) Taxes imposed on gray-market products are very high.

Question

Quizplus · Accepted Answer

Gray markets involve the diversion of branded products from authorized distribution channels, which can harm the relationship between manufacturers and authorized resellers. This can result in a loss of sales for authorized resellers and cause consumer confusion and dissatisfaction.

Note: None of the other options listed are true for all gray-market activities.

Gray Markets Involve Which of the Following Activities