Because a they are just as illegal as black markets b

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because: A. they are just as illegal as black markets. B. they may tarnish the manufacturer's image. C. they are legal in some states and illegal in others. D. consumers are against them, but retailers support them E. None of these. A gray market is a situation in which goods end up being sold at prices lower than those intended by the manufacturer. This can hurt the manufacturer's image by communicating poor quality. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-01 List the four pricing orientations. Topic: 5 Cs of Pricing 121. (p. 280) To discourage consumers from buying in gray markets, some manufacturers have: A gray market is a situation in which goods end up being sold at prices lower than those intended by
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the manufacturer. This can hurt the manufacturer's image by communicating poor quality. Since gray markets do not necessarily result from illegal behavior, manufacturers have relatively little control over the situation, except to threaten to withhold extra services like warranties. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-01 List the four pricing orientations. Topic: 5 Cs of Pricing 122. (p. 281) The fact that millions of consumers are using online search engines for comparison shopping has: The Internet makes it easier for consumers to conduct price comparisons, which will increase the price elasticity of demand. AACSB: Analytic Blooms: Understand Difficulty: 3 Hard Learning Objective: 13-01 List the four pricing orientations. Topic: Macro Influences on Pricing
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123. (p. 281) In addition to knowing more about the products, services, manufacturers and retailers, Internet users know more about prices. These consumers are becoming more: The Internet makes it easier for consumers to conduct price comparisons, which increases price sensitivity. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-01 List the four pricing orientations. Topic: Macro Influences on Pricing 124. (p. 282) While prestige products and products for the status conscious command high prices and are targeted toward customers with plenty of
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Christopher Reinemann
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