White-Labelling Welcome! You are encouraged to register with the site and login (for free). When you register, you support the site and your question history is saved.White-labelling is the practice is providing a product to another company to be sold under that company's high-quality brand. Since white-labelling allows the designer of a product to obtain additional revenue from a given design at minimal cost, and it allows the seller of the white-labelled product to sell a product and obtain product without having had to design the product, white-labelling is usually advantageous for both parties. Which of the following, if true, most seriously weakens the argument? When the designer of a white-labelled product improves the design, the seller may be able to benefit immediately by switching over to the new design. If consumers learn the details of a white-labelling arrangement, they may perceive the provider of the product as being of low quality. The products best suited to white-labelling are those that are related but not core to the seller's key product offering, if the seller specializes in one offering. The seller of a white-labelled product will have to make some investment in the product, such as designing a brand and a name for the product and dedicating inventory space to that product. The seller of a white-labelled product may not have sufficient knowledge to sell the product through its own sales channels as well as the designer of the product might be able to do. Review Answer