APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 92
An international organization has a pricing strategy that allows it to sell its product at different prices depending on the country where the product is sold.
Which of the following unintended consequences is a result of this strategy?
Answer options
- A. Counterfeit products in the supply chain
- B. Gray market products in the supply chain
- C. Hostile takeover by a conglomerate
- D. Decrease in profits due to variable revenues
Correct answer: A
Explanation
The correct answer is A, as differing prices can encourage counterfeiters to produce imitation products that exploit price differences. Option B is incorrect because gray market products refer to legitimate goods sold outside authorized distribution channels, not directly tied to pricing strategies. Options C and D do not directly relate to the pricing strategy and are therefore not relevant in this context.