Consumer attitude toward gray market goods

Abstract

Gray market activities have become global, occurring not only in less developed or volatile markets, but also in many well-developed markets. Although the gray market problem has been discussed in the literature, pertinent research from a demand perspective remains scarce. This study establishes a valid measure of consumer attitude toward gray market goods and investigates the relationships between consumer attitude toward gray market goods and their antecedents. Data analysis reveals that both Price-quality inference and risk averseness significantly and negatively affect consumer attitude toward gray market goods. Strategies for managers of international brands to address gray market problems are presented.