Internet Research- Product Pricing and Channel Selection

gray-market- trade of a commodity through distribution channels unintended and unauthorized by the original manufacturer
• In contrast to the “black market,” which is illegal (either the goods themselves or the distribution channel), the gray-market is legal
• Companies selling the commodities may have no relationship with the producer
• Often occurs when the price of a product is significantly cheaper in another country
• Very hard to track because once a product is sold to an unauthorized dealer, the manufacturer has no way of tracking the sale of the product

Parallel market- importation or trade of a non-counterfeit product from another country without the permission of the property owner
• May interfere with the marketing scheme of the manufacturer

Market diversion- sell or trade of products outside the manufacturer’s intended channel of distribution

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