关键词: 平行进口, 促销努力, 溢出效应, Stackelberg博弈

Abstract: Parallel import is a form of importation where non-authorized distributors acquire products through legitimate channels and directly enter the domestic market for sale. There is often a significant price difference between asymmetrical markets for the same product. Parallel imported goods can meet the demand of consumers in high-priced markets for lower-priced products. However, parallel imported goods may suffer from devaluation due to issues such as lack of after-sales services and certification. Active parallel imports severely harm the interests of manufacturers’ authorized distribution channels. In reality, the manufacturer can counter parallel import behavior through promotion efforts. Promotion activities such as advertising and sales services are believed to enhance brand image and awareness, improve consumer perception and satisfaction in the consumption process, and increase consumer recognition and trust in products sold through authorized channels. However, in asymmetrical markets with parallel import activities, the manufacturer’s promotion investments often have spillover effects. This means that the manufacturer’s promotion actions not only increase the sales of authorized channels but also lead to an increase in consumers purchasing parallel imported goods.
This study combines parallel imports and promotion efforts to investigate the impact of promotion efforts with spillover effects on parallel import behavior and supply chain performance. The following questions are addressed: (1)Can manufacturer’s promotion efforts suppress parallel import behavior? (2)Considering the spillover effects of promotion efforts, how should the manufacturer adjust their decisions? (3)Under what conditions can manufacturer achieve optimal promotion efforts and profits when parallel imports are active? Consider a manufacturer selling the same product in two markets simultaneously. Market 1 is a low-end market with consumers having a lower willingness to pay, while Market 2 is a high-end market with consumers having a higher willingness to pay. Due to factors such as geographical location and information asymmetry, consumers in both markets are unable to directly purchase goods from the other market. However, parallel importers can sell products from Market 1 to Market 2.To counter parallel import behavior, the manufacturer can implement promotion efforts in Market 2.Considering that the manufacturer’s promotion efforts have spillover effects, it not only improves its own sales but also benefits parallel importers. Based on this, this study considers five scenarios.
This paper combines parallel imports and promotion efforts to examine the supply chain model of a single manufacturer selling a product in both high-end and low-end markets. The following conclusions are drawn: (1)Parallel import behavior erodes the manufacturer’s profits but enhances their pricing power in the low-end market. (2)When parallel imports are active, promotion efforts without spillover can improve the manufacturer’s profits, and sufficient promotion investment can counteract parallel import behavior. (3)When promotion efforts have spillover effects, increasing promotion investment within the threshold of the spillover rate can enhance the manufacturer’s profits. Different from existing research, this study considers two asymmetrical markets and characterizes market demand in the presence of parallel imported goods based on consumer utility. It proposes the use of manufacturer’s promotion efforts to address parallel import issues and considers spillover effects of promotion efforts in a cross-market market structure, thereby improving the study of promotion efforts. The model constructed and the managerial insights derived in this study have practical implications for relevant companies. However, there are certain limitations to this study. The paper considers a supply chain model where a manufacturer sells products in two markets. In practice, the manufacturer may collaborate with retailers to sell products in overseas markets. Future research can consider a two-tier supply chain model involving manufacturers and retailers. Additionally, this study assumes that all products in different markets have the same quality level. However, in reality, the quality of products sold in different regions may vary.

Key words: parallel import, promotion efforts, spillover effect, Stackelberg game model