The Pinewire Company Is a Renowned Electronics Company That Usually

question 51

Multiple Choice

The Pinewire Company is a renowned electronics company that usually sells its products like laptops,phones,and MP3 players,through dedicated dealers.However,Sonic Shack,an audio equipment retailer,signs an agreement with Pinewire which gives Sonic permission to sell the products provided that Pinewire products get superior display,shelf space,and promotion compared to their competing products.The agreement also requires that Sonic sell other non-audio Pinewire products at its store.Which of the following types of marketing strategies is Sonic adopting when accepting to sell non-audio products of Pinewire?

• A)horizontal price fixing
• B)horizontal merger
• C)full-line forcing
• D)direct marketing
• E)disintermediation

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Definitions:

Creative Destruction

A concept in economics introduced by Joseph Schumpeter, describing the process by which old industries or technologies are destroyed and replaced by new ones.

"Destroyed" Industries

Refers to industries that have significantly declined or been rendered obsolete due to technological advancements, market shifts, or regulatory changes.

"Created" Industries

Sectors or markets that have emerged as a result of innovation, technological advances, or governmental policy.

Entrepreneurs

Individuals who take the initiative to start and manage a business, taking on financial risks with the aim of making a profit.