Question

Gray markets impose several costs or consequences on global marketers, which does not include:

A) damage to channel relationships.
B) dilution of exclusivity.
C) free riding
D) reputation and legal liability.
E) increase product demand

Answer 1

Gray markets impose several costs or consequences on global marketers, but they do not include an E) increase in product demand.

Step-by-step explanation:

Gray markets impose several costs or consequences on global marketers, but one cost they do not include is an increase in product demand. Gray markets refer to the unauthorized sale of genuine branded products outside of the authorized distribution channels. These markets can create various challenges for global marketers, such as damaging channel relationships, diluting exclusivity, benefiting from free riding, and exposing marketers to reputation and legal liability. However, gray market sales typically do not drive an increase in product demand.