Gray Market Channels of Distribution in a Developing Country Context
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Research indicates that cross-market pricing differences, either through distribution pricing policies or trade barriers, are the underlying factor leading to the formation of gray markets. This exploratory study examines the gray market pricing postulate in a developing country context. Semi-structured interviews were conducted with both buyers and sellers in Jordan's central marketplace in Amman. Emergent themes are drawn from the research to better understand the intricacies of gray market phenomena in a developing country context. Results of this exploratory study indicate that gray market formation in developing countries may be more complex than simple price differentiation. Thus, this study provides an exploratory foundation from which a research agenda can be based. 1997 by The Haworth Press, Inc. All rights reserved.