How Does Enforcement Deter Gray Market Incidence?

Journal of Marketing: Vol. 70, No. 1, pp. 92-106

University of Alberta School of Business Research Paper No. 2013-371

16 Pages Posted: 26 Aug 2014

See all articles by Kersi Antia

Kersi Antia

University of Western Ontario - Richard Ivey School of Business

Mark E. Bergen

University of Minnesota - Carlson School of Management

Shantanu Dutta

University of Southern California - Marshall School of Business

Robert Fisher

University of Alberta - Department of Marketing, Business Economics & Law

Date Written: January 1, 2005

Abstract

Gray market activity has become increasingly prevalent. The prevailing wisdom in marketing is to use more severe enforcement to deter gray marketing. However, the certainty and speed of enforcement may also have a bearing on the incidence of violations. This article examines whether and how enforcement deters gray marketing. The results from a field survey of manufacturers and an experimental design suggest that, by itself, enforcement severity has no impact. Deterrence results only when the multiple facets of enforcement are used in combination.

Suggested Citation

Antia, Kersi and Bergen, Mark E. and Dutta, Shantanu and Fisher, Robert, How Does Enforcement Deter Gray Market Incidence? (January 1, 2005). Journal of Marketing: Vol. 70, No. 1, pp. 92-106, University of Alberta School of Business Research Paper No. 2013-371, Available at SSRN: https://ssrn.com/abstract=2274877

Kersi Antia (Contact Author)

University of Western Ontario - Richard Ivey School of Business ( email )

1151 Richmond Street North
London, Ontario N6A 3K7
Canada

Mark E. Bergen

University of Minnesota - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States
612-624-1821 (Phone)

Shantanu Dutta

University of Southern California - Marshall School of Business ( email )

Hoffman Hall 701
Los Angeles, CA 90089-1427
United States
213-740-5038 (Phone)
213-740-7828 (Fax)

Robert Fisher

University of Alberta - Department of Marketing, Business Economics & Law ( email )

Edmonton, Alberta T6G 2R6
Canada