4. The internet has become a powerful place for products, information, and every

Question

4. The internet has become a powerful place for products, information, and everything you can think of today and internet retailing has become increasingly accepted by most consumers. While consumers are surfing for the best prices, it is difficult for them to tell a legitimate, authorized dealer from a gray marketer. Assuming that you are a consultant of a famous computer company, what are your recommendations for the firm to be able to combat gray market activities? Could the company continuously attract bargain-seeking consumers by informing consumers of the dark side of gray market retailing?

Textbook: Global Marketing Management Seventh Edition Kotabe Helsen Chapter 16 DQ #4

Explanation / Answer

It is definitely possible to educate the consumers about the gray market products. If I am a consultant of a famous computer company, I would ask them to develop a security feature on all the websites for online payments and vendor registration. These two places are the biggest loopholes in an e-commerce company. The security feature should not allow the vendors to register unless they provide the required security document. It should not allow the user to make a payment if the product is from an unauthorized vendor on the website.

The same information can be told to the customers through various marketing campaigns. The marketing should not degrade the value of the company the message should be conveyed in a fun and sensitive way so that it stays in the minds of the people. The same content can be put on the company website as well to educate the customers.The reality of the gray market should be told to all and the people should be well informed of the products that they are buying online. The same should be followed even when the customers are looking for a bargain. The customer should be given the best even when the price is high. The company should not compromise on customer satisfaction and quality of the service. This will help the customers to realize the importance of not buying from unauthorized users on the internet.

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