Participation of SME distributors in the gray market: An empirical analysis of Spanish firms

Within the distribution channels of fast-moving consumer goods (FMCG), the negotiating of agreements with official suppliers is critical for the performance of small and medium-sized (SME) distributors. These distributors are limited by their size and negotiating power, which is significantly lower than that of their suppliers, leading them to seek alternative supply sources, such as that provided by the gray market. The participation of SME distributors in the gray market is not only conditioned by the negotiations with their official suppliers, but also by the role played by the size of the gray market and by the relationship with their suppliers. The literature shows very few studies into SMEs within this area of the distribution channel, so this article contributes an explanatory model of this phenomenon. Based on a sample of 181 Spanish distribution companies, our results confirm that negotiation is a favorable element, while granting limited importance to the role of the relationship. In addition, we find evidence of the key role of commitment between parties in a situation as peculiar as that of parallel marketing channels.

Prevalence and Correlates of Gray Market Use for Aging and Dementia Long-Term Care in the U.S

Objectives To estimate the national prevalence and sociodemographic correlates of gray market utilization, consisting of paid providers who are unrelated to the recipient, not working for a regulated agency, and potentially unscreened and untrained, for aging and dementia-related long-term care. Methods We surveyed a nationally representative sample of 1,037 American Life Panel respondents aged 18 years and older. Results Nearly a third of Americans who arranged paid care sought gray market care for persons with dementia, and most (65%) combined it with unpaid care. Respondents who arranged gray market care had 66% lower odds of currently working, and those living in rural areas had an almost 5-times higher odds of arranging dementia gray market care. Discussion Gray market care represents a substantial proportion of paid, long-term care for older adults and may fill gaps in access to care.

Paired Exchanges, Chain Donations, and Organ Markets

This chapter introduces the use of an innovation called “paired exchange,” a way to encourage donations even when there is no match. The chapter shows a graphic presentation to simply describe the idea of paired donation exchange. It explains the risks of paired exchange for the donors' and recipients' perspective, arguing that the risks were the same from the donors' perspective, while the outcomes from the recipients' perspective would be much better as a result of receiving a histocompatible organ than they would be if they received their own designated recipient's organ. The chapter also offers some legal questions after lawyers wondered whether a paired kidney exchange was a sort of barter and thus the beginning of a gray market in organs. Ultimately, the chapter looks at another suggestion of creating a serial chain of donor–recipient pairs, with the world's first kidney–liver swap took place in 2017.

Home Care for Sale

This chapter begins by assessing the psychological and emotional demands of home care work. It then explains how home care, like other aspects of health care in the United States, is a marketplace commodity. Because need is so great, this commodification of home health care has proved tremendously profitable to the agencies serving as middlemen. In theory, these agencies impose a certain quality control, carefully screening and training the aides they send out to work. Unfortunately, this is not always the case. Those agencies that work on a strictly private-pay basis and do not accept Medicaid clients are not subject to the federal regulations and are not legally required to provide aides with any training whatsoever. Moreover, the high cost of using agencies has generated a vast gray market for aides who work freelance and privately, without working for an agency or under any supervision other than that of the client and the client's family.

gray-market, gray-market products, brand image, price consciousness, price-quality inference, risk averseness.

This study aims to determine the factors of consumer willingness to buy gray-market goods. The authors considered the impact of gray-market products on the product's brand image through Pakistan's empirical evidence. This study included three factors of gray goods: price consciousness, price-quality inference, and risk averseness and to check their impact individually and collectively on brand image. A field survey was conducted in this study to check the respondent's behavior toward gray markets and its impact on their brand image. The respondents of this research were those individuals who were habitual buyers of gray-market perfume products. Therefore, the population size was large enough to apply the probabilistic sampling method of Simple Random Sampling. The sample size of 350 was determined adequately. Hence, 350 respondents were asked to fill the questionnaire. The instrument of this study was self-developed. The close-ended questions by a Likert scale (7 points) were used to collect quantitative data. The internal consistency of the data was checked through the «Cronbach's Alpha» value. Hence, Cronbach's alpha's value was 81.7%. It was more than 70% threshold and showed the data was reliable and internally consistent for further data analysis. Regression analysis was performed on the data set to test the significance of hypothesized hypothesis. The result indicated that overall, there was a significant positive impact of gray-market goods on the companies' brand image. This study concluded that price consciousness did not significantly impact the purchase of gray goods. Thus, consumers are not price-sensitive, particularly in the Pakistan market. At the same time, gray goods impact the brand image in the Pakistani context. Simultaneously, the price-quality and risk averseness factors of gray goods a concern. These factors showed that companies' brand image is affected negatively. The policy and market regulators must consider the two factors pointed out in this research to mitigate the problem of gray-market goods in the developing economies.

Arbitrage in gray markets and its impact on supply chain decisions

PurposeThe purpose of this paper is to investigate the impacts of different gray markets’ structures on both supply chain decisions and associated profits.Design/methodology/approachWithin the context of gray markets, using game theory approach in this paper, supply chains have been considered as assets of manufacturers, distributors and speculators, within which manufacturers sell products to distinctive markets either directly or through authorized distributors, while speculators buy products from a lower price market and then sell them in a higher price market. Our study has examined different decision variables within such a framework.FindingsConsidering a situation where one manufacturer sells its products either directly in one market (Market 1) or through its authorized distributor (Market 2), due to different products prices in both markets, results have shown that, when market elasticity is less than its critical value, a speculator can sell a gray market product arbitrage in market 2, whereas when the market elasticity is greater than its critical value, a speculator can sell a gray market product arbitrage in market 1. In addition, manufacturers—as leaders of Stackelberg game—are always the most profitable stakeholders within a gray market supply chain.Practical implicationsIn this study, equilibrium results for each market have been obtained, optimal results have been compared, and accordingly, valuable insights have been developed. Such results would help managers to take better managerial decisions, as well as strategizing policies in gray markets.Originality/valueIn this paper, we have considered a gray market where both distributors and speculators exist and act as parallel channels. To the best of our knowledge, the extant literature focuses either on distributors or speculators, but never concurrently on both. In fact, the coexistence of one distributor and one speculator in a gray market will impact their own decisions, as well as both decisions and profits of other stakeholders, and hence, will exert an impact on the manufacturer side.