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How can high-tech companies manage gray markets, or unauthorized distribution channels?

Causes Solutions
Volume discount price policies Eliminate sales to the source of the gray market
Differentials in exchange rates Eliminate the arbitrage problem: one-price policy
Different resellers’ cost structures Increase market penetration
Highly selective distribution Gather information on gray market problem
Producers performing many marketing functions Institute consistent performance measures internally
Inconsistent internal policies
 
 
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