Gray Markets Can Be a Challenge to Marketers Because
periodical article
Periodical of International Business Studies
Published By: Palgrave Macmillan Journals
https://www. jstor .org/stable/155271
Each yr, the value of greyness market products sold throughout the world runs into the billions of dollars. By research has stated that exporters of manufactured appurtenances can hardly afford to ignore the possibility of this phenomenon due to the often severe effects on their sales volume, margins, and relationships with distributors and end-users. Through a survey of export managers of manufacturing firms, coupled with a series of qualitative interviews, this study investigates how organizational specific, command specific, and market specific factors drive grey market activity, and in plow explores the effects of unauthorized distribution on export performance. Several factors are shown to evaluate the potential of unauthorized distribution in their export markets, namely the centralization of determination making, the degree to which the production is standardized, channel integration, and channel command. International experience, market volatility, and the number of markets served were found to have no consequence on gray market place activity, this contrary to traditional thinking. Furthermore, the effects of gray marketplace activity on strategic versus economical performance is shown to be significantly different. Each of these problems is discussed in item, along with the implications for export managers.
Journal of International Business Studies (JIBS) is a top-ranked peer-reviewed periodical in the field of international business; its goal is to publish insightful, innovative and impactful inquiry on international business. JIBS is multidisciplinary in scope, and interdisciplinary in content and methodology. JIBS is an official publication of the Academy of International Business organisation. JIBS is published 9 times a year.
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Source: https://www.jstor.org/stable/155271
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