Browse > Article
http://dx.doi.org/10.21219/jitam.2017.24.1.093

Classification and Analysis for the Business Models of Reverse Overseas Direct Purchasing  

Lim, Gyoo Gun (Business School, Hanyang University)
Hong, Seung Cho (Business School, Hanyang University)
Publication Information
Journal of Information Technology Applications and Management / v.24, no.1, 2017 , pp. 93-110 More about this Journal
Abstract
This study aims at classifying and analyzing the business models of reverse overseas direct purchasing through online shopping-malls. After analyzing the current status of the reverse overseas direct purchasing online markets, this study identifies relevant critical business factors and synthesizes prior studies to construct and analyse the business models. This study proposes that the business models can be classified into five types according to the operation modes and three types according to the delivery methods. So theoretically 15 business models can be identified. For each business model this study analyzes the characteristics and the pros & cons. It also suggests deployment strategies for companies by considering cost reduction, brand establishment, customer management, customer aquisition, and easiness from the business perspective. From the customers perspective, cost reduction, reliability, royalty, ease to purchase, and accessibility can be considered according to the types of operation mode. The main contribution of this study is to provide the basic classifications and structures of reverse overseas direct purchasing business models systematically. As the result, our study evaluates the business models that which one is better than others in a situation in terms of company and customer. Lastly, we talk about limits and future prospects of the study.
Keywords
Reverse Overseas Direct Purchasing; Overseas Direct Purchasing; Online Shopping Mall; Consumer Shopping Behavior; Business Model;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
연도 인용수 순위
1 Afuah, A. and Tucci, C. L., Internet Business Model and Strategies : Text and Cases, McGraw-Hill, 2001.
2 Amit, R. and Zott, C., "Value Creation in e-Business", Strategic Management Journal, Vol. 22, No. 6-7, 2001, pp. 493-520.   DOI
3 Asian Economy, http://www.asiae.co.kr.
4 Chesbrough, H. and Rosenbloom, R. S., "The Role of the Business Model in Capturing Value from Innovation : Evidence from Xerox Corporation's Technology Spin-off Companies", Industrial and Corporate Change, Vol. 11, No. 3, 2002, pp. 529-555.   DOI
5 Cho, H., Kim, K.-H., and Byun, S.-H., "Analysis on Overseas Direct Purchasing Utilizing Global Online Shopping Mall (B2C)", The e-Business Studies, Vol. 15, No. 4, 2014, pp. 343-361.   DOI
6 ET News, http://www.etnews.com/.
7 Han, K. H., "Promotion Strategy for Domestic Internet Shopping-malls in Foreign Consumer Market", The Korean-Japanese Journal of Economics and Management Studies, Vol. 65, 2014, pp. 139-165.
8 Korea Transport Institute, "Distribution Revolution Triggered by Overseas Direct Purchasing and Response Strategies of Domestic Logistics Firms", Logistics Brief, Vol. 3, No. 4, 2014, pp. 2-5.
9 KOTRA Overseas Business Information Portal, http://globalwindow.org.
10 KOTRA, "Fastest Growing Reverse Direct Purchasing, Greater China Customers", Korea Investment and Securities Center Newsletter, Vol. 399, 2014.
11 Song, C. H., Song, S. Y., and Song, M. R., "A Study on the Relationships between Logistics Service Quality and Post-purchase Behavior in Import Agency Shopping Malls", Journal of International Trade and Commerce, Vol. 10, No. 2, 2014, pp. 935-958.   DOI
12 Rappa, M., "Business Models on the Web," http://ecommerce.ncsu.edu/business_model.htm, 1999.
13 Rayport, J. F. and Jaworski, B. J., Introduction to e-commerce, McGraw-Hill/Irwin marketspace U, 2002.
14 Slywotzky and Morrison, Profit Zone, Harvard Business School Press, 1998.
15 Statistics of the National Statistical Office, http://kosis.kr.
16 Timmers, P., "Business Model for Electronic Markets", Electronic Markets, Vol. 8, No. 2, 1998, pp. 3-8.
17 Yun, N. H., Chon, D. G., Chu, H. J., and Kim, H. S., "The customer value of reverse overseas direct purchasing : Hedonic vs. utilitarian", Proceedings of 2014 Spring Conference of Korean Association of Distribution, 2014, pp. 183-191.
18 Zhang, Y. Y., "The Development Strategy for the Chinese Online Shopping Express Delivery services", Department of International Trade Graduate School CheongJu University Cheongju, Korea, 2013.
19 Jiao, X., "Effect of Consumer Review characteristics on product reliability and Customer Purchase Intention in Overseas Direct Purchase site : Focusing on the Chinese consumer", Department of Business Administration, Graduate School Chungnam National University Daejeon, Korea, 2015.
20 Jeong, Y. S., Kim, S. M., and Jeong, D. Y., "Consumer Complaints Analysis of Direct Purchase from Oversea Internet Shopping Malls", Korean Academic Society of BUSINESS ADMINISTRATION 2014 Conference, 2014, pp. 3666-3681.
21 Joongang Ilbo Economy, http://article.joins.com.
22 Kim, E., Park, J., and Park, J., "Examining consumer types that directly purchase products from foreign countries : A Q-method study", The Korean Journal of Advertising, Vol. 26, No. 1, 2015, pp. 75-102.   DOI
23 Jung, S. Y., "A Study on the Effects of Languages and Price Perception in Overseas Buying Service Shopping Malls on Consumers' Attitudes", Major in Multi-media communication The Graduate School of Advertising and Public Relations Hong-ik University, 2008.
24 Jung, S.-M. and Park, S.-L., "A Study on the Effect of the Facilitating Factors of B2C e-Commerce on the Online Shopping and the Overseas Direct Purchase", International Commerce and Information Review, Vol. 18, No. 1, 2016, pp. 27-55.
25 Kaplan, S. and Sawhney, M., "E-hubs : the new B2B marketplaces", Harvard Business Review, Vol. 78, No. 3, 2000, pp. 97-106.
26 Lim, G. G. and Lee, J. K., "Buyer-Carts for B2B EC: The b-Cart Approach", Organizational Computing and Electronic Commerce, Vol. 13, No. 3-4, 2003, pp. 289-308.   DOI
27 Lee, J.-M. and Rha, J.-Y., "Consumers' Conflict in Cross Border E-Commerce : Applying Grounded Theory", Consumption Culture Study, Vol. 18, No. 4, 2015, pp. 193-219.   DOI
28 Lee, J.-Y., Choo, H. J., and Lee, H. J., "Research : Fashion Consumers' Purchase Intention on Cross-border Online Shopping", Fashion and Textile Research Journal, Vol. 17, No. 5, 2015, pp. 741-753.   DOI
29 Lee, Y., Ryu, M., and Lee, S., "A Study of Consumer Attitudes and Usage Intentions toward Overseas Direct Online Shopping-Focusing on the Extended Technology Acceptance Model", Journal of Consumer Studies, Vol. 26, No. 5, 2015, pp. 201-222.
30 Lim, G. G. et al., "A Study on the Customs Administration Support Strategies for Revitalizing Direct Overseas Purchasing Exports, Korea Customs Service, 2015.
31 Lim, S.-Y., Ryu, M.-H., and Lee, S.-S., "Complaints Behavior to Online Shopping Agents for Purchasing Products from Overseas in their 20s and 30s", Journal of Korean Home Management Association, Vol. 28, No. 3, 2010, pp. 81-95.
32 Magretta, J., "Why Business Models Matter", Harvard Business Review, 2002.
33 Mahadevan, B., "Business Models for Internet-Based e-Commerce", California Management Review, Vol. 42, No. 4, 2000, pp. 55-69.   DOI
34 Korea Customs Service, "Electronic Commerce Export (Reverse Direct Purchasing) Trend", 2015a.
35 Kim, E., Park, J., and Park, J., "Factors Influencing Consumers' Overseas-directpurchase Behaviors", The Korean Journal of Advertising and Public Relations, Vol. 103, 2014, pp. 139-175.
36 Kim, J.-H., "Online overseas direct purchasing market trends in major countries", KOTRA, 2015.
37 Kim, S. and Lim, J.-W., "The Effects of Consumer Characteristics on the Use of Cross-Border E-Commerce", Korea Trade Research Association, Vol. 40, No. 4, 2015, pp. 21-39.
38 Korea Customs Service statistics, http://www.customs.go.kr.
39 Korea Customs Service, "Export Support Policies for E-Commerce", Korea Customs Service Briefing Session, 2015b.
40 Korea Fashion Association Materials, http://koreafashion.org/.
41 Korea International Trade Association, "The era of overseas direct sales, let's not export to China, but sell", Trade Brief, 2014.
42 Park, J. Y., Chae, D. B., and Ju, Y. E., "The effect of logistics service quality on market performance in overseas direct purchase : focused on delivery agency service", Korea Marketing Society 2015 Spring Conference.