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

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Abstract

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.

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Acknowledgements

Financial support from National Natural Foundation of China Programs (No. 70672055 and No. 70121001) is gratefully acknowledged.

Author information

Authors and Affiliations

  1. The School of Management, Xi’an Jiaotong University, Xian, 710049, The People’s Republic of China

    Guijun Zhuang

  2. Department of Marketing, Hong Kong Baptist University, Renfrew Road, Kowloon Tong, Hong Kong

    Alex S. L. Tsang

Authors
  1. Guijun Zhuang
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  2. Alex S. L. Tsang
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Corresponding author

Correspondence to Guijun Zhuang.

Additional information

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.

Appendix

Appendix

Appendix: Instrument

In the following situations, please express your opinions of Mr. Lee and Mr. Liu’s behavior. (“1” = strongly disagree and “7” = strongly agree)

S1: Kickbacks. Mr. Lee is the purchasing manager for Firm A. Mr. Liu is a sales agent for Firm B. Firm A had a big order for purchasing raw materials. To get the order, Mr. Liu gave Mr. Lee a kickback of 5% of the price of the order. The order should have been given to Firm C, but because of the kickback, Mr. Lee gave the order to Firm B.

On Mr. Lee’s behavior

  1. 1.

    Mr. Lee’s behavior is unethical

  2. 2.

    Mr. Lee’s is not appropriate, but it is understandable.

  3. 3.

    Mr. Lee’s behavior will be discovered. He will be severely punished.

4. If I were Mr. Lee, I would have done the same.

On Mr. Liu’s behavior

  1. 1.

    Mr. Liu’s behavior is unethical.

  2. 2.

    Mr. Liu’s behavior is not appropriate, but it is understandable.

  3. 3.

    Mr. Liu’s behavior will be discovered. He will be severely punished.

  4. 4.

    If I were Mr. Liu, I would have done the same.

S2: Giving gifts in advance. Mr. Lee is the purchasing manager for Firm A. Mr. Liu is a sales agent for Firm B. Firm A had a purchase order for raw materials. To get the order, Mr. Liu sent Mr. Lee a large sum of money on his birthday as a gift. Mr. Lee took it and did not return it.

On Mr. Lee’s behavior

  1. 1.

    Mr. Lee’s behavior is unethical

  2. 2.

    Mr. Lee’s is not appropriate, but it is understandable.

  3. 3.

    Mr. Lee’s behavior will be discovered. He will be severely punished.

  4. 4.

    If I were Mr. Lee, I would have done the same.

On Mr. Liu’s behavior

  1. 1.

    Mr. Liu’s behavior is unethical.

  2. 2.

    Mr. Liu’s behavior is not appropriate, but it is understandable.

  3. 3.

    Mr. Liu’s behavior will be discovered. He will be severely punished.

  4. 4.

    If I were Mr. Liu, I would have done the same.

S3: Giving gifts afterwards. Mr. Lee is the purchasing manager for Firm A. Mr. Liu is a sales agent for Firm B. Representing Firm A, Mr. Lee gave a big purchase order for raw materials to Firm B, represented by Mr. Liu. Mr. Liu, in order to thank Mr. Lee sent him a birthday gift of a large sum of money. Mr. Lee received the gift and did not return it.

On Mr. Lee’s behavior

  • 1. Mr. Lee’s behavior is unethical

  • 2. Mr. Lee’s is not appropriate, but it is understandable.

  • 3. Mr. Lee’s behavior will be discovered. He will be severely punished.

  • 4. If I were Mr. Lee, I would have done the same.

On Mr. Liu’s behavior

  1. 1.

    Mr. Liu’s behavior is unethical.

  2. 2.

    Mr. Liu’s behavior is not appropriate, but it is understandable.

  3. 3.

    Mr. Liu’s behavior will be discovered. He will be severely punished.

  4. 4.

    If I were Mr. Liu, I would have done the same.

S4: Giving gifts to relatives. Mr. Lee and Mr. Liu are relatives. In order to get a business order, Firm B asked Mr. Liu, to send a large sum of money to Mr. Lee for his birthday. Mr. Lee took the gift and did not return it.

On Mr. Lee’s behavior

  1. 1.

    Mr. Lee’s behavior is unethical

  2. 2.

    Mr. Lee’s is not appropriate, but it is understandable.

  3. 3.

    Mr. Lee’s behavior will be discovered. He will be severely punished.

  4. 4.

    If I were Mr. Lee, I would have done the same.

On Mr. Liu’s behavior

  1. 1.

    Mr. Liu’s behavior is unethical.

  2. 2.

    Mr. Liu’s behavior is not appropriate, but it is understandable.

  3. 3.

    Mr. Liu’s behavior will be discovered. He will be severely punished.

  4. 4.

    If I were Mr. Liu, I would have done the same.

S5: Buying meals. Mr. Lee is the purchasing manager for Firm A. Mr. Liu is a sales agent for Firm B. Representing Firm A, Mr. Lee gave a big purchasing order to Firm B, represented by Mr. Liu. Mr. Liu, in order to thank Mr. Lee for the order, invited Mr. Lee to an expensive dinner. Mr. Lee went.

On Mr. Lee’s behavior

  1. 1.

    Mr. Lee’s behavior is unethical

  2. 2.

    Mr. Lee’s is not appropriate, but it is understandable.

  3. 3.

    Mr. Lee’s behavior will be discovered. He will be severely punished.

  4. 4.

    If I were Mr. Lee, I would have done the same.

On Mr. Liu’s behavior

  1. 1.

    Mr. Liu’s behavior is unethical.

  2. 2.

    Mr. Liu’s behavior is not appropriate, but it is understandable.

  3. 3.

    Mr. Liu’s behavior will be discovered. He will be severely punished.

  4. 4.

    If I were Mr. Liu, I would have done the same.

I am a person with high morals. (1 = strongly disagree, 2 = disagree, 3 = barely disagree, 4 = no comment, 5 = barely agree, 6 = agree, 7 = strongly agree)

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Zhuang, G., Tsang, A.S.L. A Study on Ethically Problematic Selling Methods in China with a Broaden Concept of Gray-marketing. J Bus Ethics 79, 85–101 (2008). https://doi.org/10.1007/s10551-007-9397-1

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  • DOI: https://doi.org/10.1007/s10551-007-9397-1

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