A Study on Ethically Problematic Selling Methods in China with a Broaden Concept of Gray-marketing

This paper expands the definition of gray-marketing to include some ethically problematic marketing activities and techniques used in personal selling in China. Based on this, a conceptual model of gray-marketing for a particular type of selling in which both the sellers and the buyers exhibit problematic ethics in an exchange and the associated hypotheses are developed and tested. The findings show that, first, the respondents have different ethical evaluations of different marketing practices used in personal selling such as giving and accepting gifts, buying and accepting meals, and offering and accepting kickbacks. Some of these practices may not be considered unethical. Second, in terms of ethical assessment, gray-marketing practiced by buying agents is more unacceptable than when practiced by sales agents. Third, a person’s ethical evaluation of gray-marketing behavior, empathy for gray-marketing, and belief that gray-marketing has serious consequences, significantly affects his inclination to use gray-marketing. This paper concludes with a discussion of some possible applications of our research findings. Both authors contributed equally to this work. Guijun Zhuang (Ph.D., City University of Hong Kong) is a professor of marketing in the School of Management, Xi’an Jiaotong University, Xi’an, the People’s Republic of China. His current research interests include marketing channel behaviors, relationship marketing, and consumer choice. He has published in European Journal of Marketing, Industrial Marketing Management, Journal of International Consumer Marketing, and many leading marketing and management journals in China. Alex S.L. Tsang (Ph.D., City University of Hong Kong) is an assistant professor at the Department of Marketing, Hong Kong Baptist University. His research currently focuses on cross-cultural consumer behavior, marketing in China, and marketing communication. He has published in Journal of Business Research, European Journal of Marketing, and Business Horizons, among others.