Abstract
Gray market has been widely regarded as potential erosion to authorized channel members to sell the authentic products. To mitigate its eroding effect, existing literatures of this institutional practice has heavily worked on the distribution channel management. However, very limited studies dig into the essential origin to dispel the risk of gray market. This paper investigates how and when the gray market derives in a two independent retailing channel extant, and analyzes the production and market factors which the gray market depends on. Meanwhile, we investigate the impact of gray market on the incumbent retailer and the entry retailer. A key finding is that the retailer in the high-level market can weaken the effect of gray market on its retailing channel.
Original language | English |
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Title of host publication | Proceedings of 2016 13th International Conference on Service Systems and Service Management, ICSSSM 2016 |
Editors | Jian CHEN, Xiaoqiang CAI, Changchun ZHOU, Kaida QIN, Baojian YANG |
Publisher | IEEE |
Number of pages | 6 |
ISBN (Electronic) | 9781509028429 |
ISBN (Print) | 9781509028436 |
DOIs | |
Publication status | Published - 9 Aug 2016 |
Externally published | Yes |
Event | 13th International Conference on Service Systems and Service Management, ICSSSM 2016 - Kunming, China Duration: 24 Jun 2016 → 26 Jun 2016 |
Conference
Conference | 13th International Conference on Service Systems and Service Management, ICSSSM 2016 |
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Country/Territory | China |
City | Kunming |
Period | 24/06/16 → 26/06/16 |
Bibliographical note
The authors sincerely thank the editor and the anonymous reviewers for their constructive and important comments on the pa- per.Funding
Lei Xu's research is partially supported by National Natural Science Foundation of China, grant no. 71302005, Humanities and Social Sciences Foundation of Ministry of Education in China, grant no. 14YJC630049, and Scientific Development Strategy Project of Tianjin, grant no. 13ZLZLZF03500.
Keywords
- channel management
- gray market
- supply chain management