Strategic Responses to Parallel Importing

Tan, Soo Jiuan; Lim, Guan Hua; Lee, Khai S.

doi:10.1300/j042v10n04_04

Cited by 9 publications

(7 citation statements)

References 5 publications

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“…Myers (1999) analyzes the occurrences, characteristics, and consequences of gray marketing and proposes a strategic management approach to harmonize the benefits between stakeholders. Tan et al (1997) proposes that free-riding is an alternative explanation for the occurrence of gray marketing. Lim et al (2001) extends Tan et al's work and shows that free-riding could be an alternative niche strategy for entrepreneurs contemplating entry into established markets.…”

Section: Gray Marketing/parallel Importingmentioning

confidence: 99%

“…Second, marketing communication activities performed by the gray marketer do not fall within the coordination and control ambit of integrated brand communication. Tan et al (1997) and Keller et al (1998) argue that gray marketers gain a free ride on the market demand and brand image created by authorized agents, without sharing in the cost of the marketing communication activities. However, if gray marketers were to promote their products primarily on the basis of lower price, it is unlikely that such activities will add substantially to the building of brand image.…”

Section: Research Hypothesesmentioning

confidence: 99%

“…The current issue and full text archive of this journal is available at www.emeraldinsight.com/1061-0421.htm disrupt global planning efforts (Coleman and Militello, 1995;Eagle et al, 2003). Parallel importers are often able to gain a free ride, taking advantage of the market demand and brand image created and maintained by authorized agents without sharing in marketing efforts and expenses (Tan et al, 1997). Although "free riding" is not illegal, some people regard gray marketing behavior unethical, because gray marketers are "squatters" on the channel, using authorized goods and the authorized firms' identities to achieve their own objective (Mathur, 1995).…”

Section: Introductionmentioning

confidence: 99%

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Gray marketing and its impacts on brand equity

Chen

2007

Journal of Product &Amp; Brand Management

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Purpose -The purpose of this study is to investigate the impact of parallel importation on brand equity in high and low product involvement arrangements. Design/methodology/approach -A 2 £ 2 (authorized goods/gray-marketed goods) £ (high involvement/low involvement) between-subjects experimental design is utilized; consumer electronics and ballpoint pens are examined. Findings -The results of this empirical study show that source channel (authorized goods versus gray goods) has a significant impact on brand equity; among the five brand equity dimensions, consumers are most concerned about the difference in "perceived quality" between gray goods and authorized goods; given the levels of stimuli, sourcing channel stimuli are found to have more powerful effects than product involvement on consumer evaluations of brand equity. Practical implications -Marketing implications of the study are as follows. For authorized agents: they could emphasize the "perceived quality" of their products in order to prevent market "squatting" from gray marketers. For manufacturers: authorized goods have a stronger effect on brand equity than gray goods; therefore, manufacturers could adapt the contents and packaging of their products to match consumption behavior in each different country to achieve the purpose of market segmentation and to prevent the products from being diverted. For gray marketers: they should not only emphasize the lower prices of their products, but also highlight their brand knowledge and the brand recognition and provide a valid and sensitive reflection of the brand's standing to their customers. Originality/value -The most notable finding from this study may be that given the levels of stimuli, sourcing channel stimuli were found to have more powerful effects than product involvement on consumer evaluations of brand equity.

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Section: Gray Marketing/parallel Importingmentioning

confidence: 99%

Section: Research Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Gray marketing and its impacts on brand equity

Chen

2007

Journal of Product &Amp; Brand Management

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“…They contend that consumers view parallel imports as perfect substitutions for authorized goods. Tan et al (1997) take a slightly different view and suggest that parallel importing may represent an unusual approach to market segmentation, with low priced goods from parallel importers generally not offering the same warranties as those (higher priced) goods available through official channels. Risk‐averse consumers will thus be prepared to pay higher prices for the security of warranties and after sales service.…”

Section: Perceived Benefits Of Gray Marketing/parallel Importingmentioning

confidence: 99%

Brand equity and brand vulnerability

Eagle

Kitchen

Rose

et al. 2003

European Journal of Marketing

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Brand equity has received significant academic attention since the mid‐1990s. This has been driven partly by changes in international accounting standards as they relate to the reporting of the financial value of intangible assets. A more prominent driver concerns the impact of marketing, and of marketing communication activity in particular, on brand performance. Much of the academic debate, however, has centered on conflicting definitions of brand equity and on seeking ways of measuring or quantifying the value of equity. Attention is now turning to examining the nature of equity and of factors that may threaten it. This paper examines the potential impact of parallel importing on brand equity and provides a substantive theoretical background. The paper then reports the findings from an exploratory study involving depth interviews with New Zealand brand managers whose brands have been affected by this activity.

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“…The goodwill established by the``official'' distributor/ trademark owner will suffer if problems arise, and customers find that they do not get the expected post-sale service and warranty protection (see Duhan and Sheffert, 1988). Tan et al (1997) and Michael (1998) claim that parallel importers gain a free ride on the market demand and brand image of the product created by the authorized distributor, without sharing in the marketing communications efforts and expenses which have built both the demand and the associated image. Thus parallel importers are not concerned with developing and expanding the market, but rather with acquiring a share of the market developed by (and at the expense of) authorized channels.…”

Section: The Impact Of Gray Marketing/parallel Importingmentioning

confidence: 99%

Towards a globalized communications strategy: perceptions from New Zealand

Kitchen

Eagle

2002

Mrkting Intelligence & Plan

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Looks at the globalization of communications in New Zealand, in the compelling and e‐volutionary global marketplace. Explores the impact of environmental issues on marketing communications. Managers must reach out to and communicate with customers, consumers, and publics ‐‐ who impact markedly on overall market share and profit performance. The corporation plays a significant role in brand marketing and strategic business unit management, especially marketing communications. Whatever a globalized communications strategy means, it potentially spells integration within and between corporations, individuals, and brands. Whatever integrated global communications may mean, there would certainly be an expectation that communications would focus on customer needs and building relationships. What was found in New Zealand was a focus on globalized and integrated communications in terms of corporate imposition.

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Strategic Responses to Parallel Importing

Cited by 9 publications

References 5 publications

Gray marketing and its impacts on brand equity

Gray marketing and its impacts on brand equity

Brand equity and brand vulnerability

Towards a globalized communications strategy: perceptions from New Zealand

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