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This specifically qualitative study explores a situation where marketing channels become lengthened, not shortened, because of the ability of Internet users to overcome knowledge gaps and demolish established channel barriers. The complexity and problems of control in a vertical marketing system (VMS) when it crosses borders and cultures is presented. The example of the motor car is used as a familiar high involvement purchase. The several sources of conflict in the channel are identified and the motivations of the channel partners understood. The historical holders of power in the channel come under pressure to release their hold and face the new changes that the Internet has brought. The study concludes by considering the implications for the future of this complicated and high value VMS.

This chapter considers how social capital is evolving in the era of globalization today especially under COVID-19 pandemic conditions globally. Definitions of social capital have varied: some broad others narrow. The Organisation for Economic Co-operation and Development (OECD), for example, currently has a broad research project on social capital. These researchers have defined social capital as comprising four key areas. These areas are:

• Personal relationships, referring to the structure of people’s social networks.

• Depth and breadth of social network support available to each person in their networks.

• Civic engagement activities such as volunteering and community action.

• Beliefs, attitudes, and action frames of reference such as trust and cooperative norms, of reciprocity.

Personal relationships, referring to the structure of people’s social networks.

Depth and breadth of social network support available to each person in their networks.

Civic engagement activities such as volunteering and community action.

Beliefs, attitudes, and action frames of reference such as trust and cooperative norms, of reciprocity.

Thus, there are tacit as well as explicit aspects of social capital though some of these may seldom if ever be articulated and delineated for others.

As Claridge (2020) indicates, there are distinct, but dynamically interrelated, levels of social capital. These levels range between the micro- or individual level. That is personal “habitus” – which Bourdieu (1977) describes as a person’s “taken-for-granted” – ways of being, thinking, and reacting to events and to other people. Then, the next level above the individual is the meso-level, which is “how things are done here amongst us,” that is, the level of a group’s social capital (such as a team, or an organizational or local community level). Lastly, and wider still, the top level is the macro- or cultural-societal structural level of the nation.

The social capital systems in any location encompasses sets of acceptable or culturally legitimated behavioral norms and rules of engagement between community members which include types of greetings, forms of cooperation, communications, and signaling between diverse members. Thus, social capital may be present in the tacit, or unspoken/taken-for-granted assumptions as much as in explicit or formalized codes of behavior. The forms of social interactions at each of the levels may have norms for specific types communication and address in particular sets of circumstances such as social gatherings at home or in public or when attending communal gatherings or ceremonial occasions, or between people of different social status. Social capital generates trust and social cohesion and some level of cultural and attitudinal consensus and interest, which in turn delivers a stable environment for the local community or larger society, business, or the economy.

• (1)

  Social capital is the development of relationships that help contribute to a more efficient production of goods and services as there is embedded trust, embodied in practice, that is, in behaviors regarded as trustworthy and socially helpful.

• (2)

  There are three types of social capital at each level of interaction – bonding, bridging, and linking. Bridging and linking are similar though they operate in different directions socially. Bonding social capital describes the connections between people in similar social levels or groups of people who share the same characteristic norms and beliefs, whereas linking social capital facilitates connects between different groups.

• (3)

  Social capital can therefore make or break businesses, especially small businesses or start-ups as those with the right kind and amount of social capital, such as good connections and contacts in the trade or profession, can usually thrive as they are able to get work done more quickly, effectively, and efficiently. Conversely, a lack of social capital denoting some distrust between groups can undermine social stability.

Social capital is the development of relationships that help contribute to a more efficient production of goods and services as there is embedded trust, embodied in practice, that is, in behaviors regarded as trustworthy and socially helpful.

There are three types of social capital at each level of interaction – bonding, bridging, and linking. Bridging and linking are similar though they operate in different directions socially. Bonding social capital describes the connections between people in similar social levels or groups of people who share the same characteristic norms and beliefs, whereas linking social capital facilitates connects between different groups.

Social capital can therefore make or break businesses, especially small businesses or start-ups as those with the right kind and amount of social capital, such as good connections and contacts in the trade or profession, can usually thrive as they are able to get work done more quickly, effectively, and efficiently. Conversely, a lack of social capital denoting some distrust between groups can undermine social stability.

The meso- or macro-levels of bridging type social capital ensures acceptance of established social roles locally and linking forms of social capital boost levels of acceptance of other roles such as those of leaders and followers.

All three forms of social capital and the three levels are not mutually exclusive but instead are mutually inclusive and interrelated. That is, they co-evolve, each impacting the other while dynamically interacting with the social capital anchored as it is emerging from the complex and interwoven fields of tacit and explicit norms of social interaction underpinning each of the levels of interaction over time.

The purpose of this study is to investigate the impact of parallel importation on brand equity in high and low product involvement arrangements.

A 2 × 2 (authorized goods/gray‐marketed goods)×(high involvement/low involvement) between‐subjects experimental design is utilized; consumer electronics and ballpoint pens are examined.

The results of this empirical study show that source channel (authorized goods versus gray goods) has a significant impact on brand equity; among the five brand equity dimensions, consumers are most concerned about the difference in “perceived quality” between gray goods and authorized goods; given the levels of stimuli, sourcing channel stimuli are found to have more powerful effects than product involvement on consumer evaluations of brand equity.

Marketing implications of the study are as follows. For authorized agents: they could emphasize the “perceived quality” of their products in order to prevent market “squatting” from gray marketers. For manufacturers: authorized goods have a stronger effect on brand equity than gray goods; therefore, manufacturers could adapt the contents and packaging of their products to match consumption behavior in each different country to achieve the purpose of market segmentation and to prevent the products from being diverted. For gray marketers: they should not only emphasize the lower prices of their products, but also highlight their brand knowledge and the brand recognition and provide a valid and sensitive reflection of the brand's standing to their customers.

The most notable finding from this study may be that given the levels of stimuli, sourcing channel stimuli were found to have more powerful effects than product involvement on consumer evaluations of brand equity.