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Negative and Positive Impact Of The Grey Market On The
Manufacturer
Negative
The grey market can also create customer dissatisfaction which can
impact adversely on the brand and its image especially if products that
normally command premium prices are offered at a discount by grey
market vendors. Many customers will desert the official retailer and
purchase from grey market vendors who are free-riding on the
manufacturer’s reputation and brand image (Table 2).
Diagram 2: Source: A K P M G Study In Cooperation With The Anti - Gray
Market Alliance 2002
Overwhelmingly authorised distributers placed manufacturer’s warranty
as their major concern when goods are bought through the grey market
(Diagram 2).
