This presentation is part of: D12-1 (2142) Consumer Economics

Gray Marketing: Investigating from Consumer Exploratory Tendency Behavior

Hsiu-Li Chen, Ph.D., Dept. of International Business, Ming Chuan University, 250 Zhong Shan N. Rd. Sec.5, Taipei, 111, Taiwan

Gray marketing (or so-called parallel importing) has received much attention among international manufacturers and retailers since the mid-1980s (Mitchell, 1998; Eagle, Rose, & Moyle, 2003). The so-called ‘gray marketing’ indicates the sale of genuine trademarked products through distribution channel unauthorized by the manufacturer or brand owner (Inman 1993). This study examines consumer’s purchasing behavior on gray goods from the aspect of consumer’s intrinsic motivation, i.e., exploratory behavior tendency. The empirical results indicate that (1) optimum stimulation level has significant impact on consumer exploratory tendency behavior and in turn has indirectly influence on the choice of gray goods attributes; (2) ‘Risk taking’ tendency has significant effect on ‘Product type newness’ attribute, therefore, gray marketer could emphasize the type newness to consumers to attract those who are attached to risk taking tendency; and (3) Since advertising stimulus has positive effect on the probability of purchasing gray good, therefore, gray marketer could use positive message of gray goods advertising to attract consumers to buy gray goods.