• Title/Summary/Keyword: Buying Channels

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The Influence of Transaction Cost Approach Factor on Channel Loyalty (거래비용접근방법 불확실성요인과 거래관계성이 채널 충성도에 미치는 영향에 관한 연구)

  • Lee, Ji-eun
    • Management & Information Systems Review
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    • v.33 no.2
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    • pp.281-299
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    • 2014
  • This study using a transaction cost approach perspective, this paper presents a model for understanding shopper's buying behavior. Finally, based on the results of these studies, this paper suggests practical implications to companies establishing their management strategy of the channels. In order to achieve the research purpose, it derived hypotheses from the literature studies and conducted questionnaire survey for the buyer who actually purchased by distribution channels. In this paper, 876 of the samples has been used in practice and with those samples it analyzes its empirical testing through reliability verification, validation, factor analysis, correlation analysis and covariance structure analysis.

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Consumers' Device Choice in E-Retail: Do Regulatory Focus and Chronotype Matter?

  • Haider, Syed Waqar;Guijun, Zhuang;Ikram, Amir;Anwar, Bilal
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.14 no.1
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    • pp.148-167
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    • 2020
  • Today, digital shoppers express increasingly complex buying behavior. They can use multiple channels for shopping and also they can switch from one to another channel almost effortlessly, in the result of engaging in omnichannel shopping behavior. A few years ago, consumers were using brick and mortar stores to make their purchases. However, nowadays, they possess different digital devices (mobile and/or desktop) to search for different alternatives and to make a better shopping choice. These devices (mobile and desktop) are different and offer unique benefits to consumers. However, there has been very little research that has treated mobile and desktop devices separately. Perhaps this study is the pioneer when it comes to investigating the effect of regulatory focus (prevention vs. promotion) and chronotype (morning and evening person) on a sample of university students using desktop and mobile channels for their shopping. The findings from a sample of 312 digital consumers (mobile and/or desktop) confirmed that the desktop channel provides a greater fit for morning-type respondents and that the mobile channel offers better value for evening-type respondents in e-retail. Furthermore, promotion-focused shoppers favor the mobile channel, and prevention-focused shoppers favor the desktop channel. The new insights and contributions of this study provide a better understanding of digital consumers to help sellers to develop a more effective e-retail strategy.

Consumers' Attitude on Textile for Quick Response based Mass-Customization in Marketing Channels (Quick Response 기반의 Moss-Customization 구현을 위한 점포유형에 관한 소비자 태도 연구)

  • 신상무;이효정
    • Journal of the Korean Society of Clothing and Textiles
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    • v.26 no.11
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    • pp.1527-1576
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    • 2002
  • Quick Response based Mass-Customization can be produced and distributed customized goods and services on mass basis in apparel e-business. Because consumers can: t touch and feel the apparel products in e-business, they tend to have the negative buying behavior. The purpose of this study is to investigate the differences of consumer's texture sensibility of apparel products based on marketing channels (on-line/off-line). Two types of questionnaires for on-line and of f-line were used to assess consumer sensibility on apparel fabric. The 8 swatches were selected in regard to the previous literatures. 205 questionnaires for each type (on-line/off-line) were distributed. Statistical devices were t-test, mean and standard deviation with SPSS10.0. The result of this study was showed that there were partially significant differences on consumers' texture sensibility on apparel products between on-line and off-line. Under on-line environment, consumers perceived corduroy as warm, strong, and sandy. taffeta as warm, sandy, and glossy, denim as sandy, and warm, organza as sandy, and thin, satin as sandy, dense, and modern, chiffon as sandy, and flat, velvet as warm, and soft, single jersey as warm, soft, and comfortable. Therefore, apparel firms cooperating based Mass-Customization in e-business have to pay attention to the differences on consumers’ texture sensibility of on-line apparel products from those of off-line.

Impact of Pursuing Goals on Customer Channel Preference: Mediating Effects of Product Utility and Process Utility

  • Li, Dao-sheng;Lee, Hyunjoung;Hong, Jinhwan
    • Asia Marketing Journal
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    • v.16 no.2
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    • pp.15-38
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    • 2014
  • This paper explores the influence of pursuing goals on customer channel preference in Chinese rural market. With the rapid change in distribution channels and increase in multi-channels, it is necessary to understand the preference for channel choice as well as product choice. This study empirically validated the conceptual framework of the relationship between the pursuing goals and customer channel choice proposed by Balasubramanian, Raghunathan, and Mahajan (2005). Based on the survey data of 232 fertilizer customers in Chinese rural market, this study explores how economic, social, and psychological pursuing goals can impact customer channel preference by mediating variables of product utility and process utility. The results indicate that pursuing goals positively related with product utility and process utility, and product / process utility can mediate the relationship between pursuing goals and customer channel preference positively. Consequently, we can conclude that customers' economic-social-psychological pursuing goals can directly influence customer channel preference via their purchase process utility and product utility. This result also implies that product utility is effective on process utility during consumer's buying decision making, and process utility and product utility are not mutually independent. Therefore, purchase process utility is a "latent driving force" on customer's channel choice decision.

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The Study of Consumer Sensibility on Apparel Texture Image regarding Marketing Channels

  • Shin, Sang-Moo;Lee, Hyo-Jeong
    • Journal of Fashion Business
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    • v.7 no.6
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    • pp.85-91
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    • 2003
  • Quick Response based Mass-Customization can be produced and distributed customized goods and services on mass basis in apparel e-business. Because consumers cannot touch and feel the apparel products in e-business, they tend to have the negative buying behavior. The purposes of this study were to analyze factors of texture image, and to investigate the differences of consumer sensibility on texture image of apparel products based on different marketing channels (on-line/off-line). Two types of questionnaires for on-line and off-line were used to assess consumer sensibility on apparel fabric. The 8 swatches were selected based on the previous literatures. 202 returned questionnaires for each type (on-line/off-line) were analyzed by t-test, mean and standard deviation with SPSS 10.0. The result of this study was showed that there were partially significant differences on consumer sensibility on texture image of apparel products between on-line and off-line. In case of corduroy, consumers perceived more high-class image under on-line than off-line. In case of taffeta, consumers perceived more thin and dense image under off-line (traditional marketing channel) than on-line (e-commerce). In case of denim, consumers perceived more thin and natural image under off-line than online. In case of organza, consumers perceived more natural image under on-line than off-line. In case of satin, consumers perceived more natural image under on-line than off-line. In case of chiffon, consumers perceived denser image under on-line than off-line. In case of velvet, consumers perceived thinner image, higher-class image, and more natural image of texture sensibility under on-line than off-line. In case of single jersey, consumers perceived higher-class image, and denser image of texture under on-line than off-line.

Development of a New Direct Marketing Channel in the Chinese Rural Market: The Case of Hongfu Fertilizer Company

  • Li, Dao-sheng;Hong, Jinhwan
    • Asia Marketing Journal
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    • v.15 no.2
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    • pp.29-47
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    • 2013
  • Distribution channel decisions involve long-term commitments with other firms that are very difficult to change or replace. In particular, marketing channel decisions in emerging markets are much more complicated due to unfamiliar conditions and problems such as lack of market data and distribution systems. Therefore, when a company considers changing or introducing a marketing channel in an area, it is much more difficult to judge its effectiveness in an emerging market than in a developed market. In this study, we investigate the development process of a new direct marketing channel of Hongfu Fertilizer Company (hereafter Hongfu), a medium-sized Chinese fertilizer manufacturer, and propose an approach to test the feasibility of this new marketing channel in the Chinese rural market. We measure the effectiveness of Hongfu's new marketing channel from two perspectives: i) from customers' perspective through direct responses of farmers, which showed that a new channel can increase the convenience and lower the purchasing costs for the farmers, and ii) from the company's perspective, by calculating the incremental profit of the company using the expansion factor (T/Q) method, which suggested that the execution of Hongfu's strategy to expand a new marketing channel will result in an increase in profits. The results of this study contribute to the development of a methodology to test the feasibility of a new direct marketing channel in the emerging markets such as the Chinese rural market. Traditional and indirect distribution channels in emerging markets are generally not very efficient and difficult to change. Especially, in emerging markets, like the Chinese rural market, the methods of testing channel feasibility must be different from that of developed markets. Considering market situations, market experiments can be more effective then systematic market surveys in testing channel feasibility in emerging markets. This study implies that managers must learn to cope with a transition from the traditional marketing channels in emerging markets. With the development in farmers' understanding of marketing concept, the transition from traditional marketing channel is unavoidable for all firms. Farmers in China are generally very conservative, however, their buying behaviors are changing. Therefore, fertilizer companies should try to adjust in accordance with farmers' demand characteristics that the efforts to meet the economic needs of farmers with new marketing channels as well as trust building are critical in the near future.

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Surrogate Internet Shopping Malls: The Effects of Consumers' Perceived Risk and Product Evaluations on Country-of-Buying-Origin Image (망상대구점(网上代购店): 소비자감지풍험화산품평개대원산국형상적영향(消费者感知风险和产品评价对原产国形象的影响))

  • Lee, Hyun-Joung;Shin, So-Hyoun;Kim, Sang-Uk
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.208-218
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    • 2010
  • Internet has grown fast and become one of the most important retail channels now. Various types of Internet retailers, hereafter etailers, have been introduced so far and as one type of Internet shopping mall, 'surrogate Internet shopping mall' has been prosperous and attracting consumers in the domestic market. Surrogate Internet shopping mall is a unique type of etailer that globally purchases well-known brand goods that are not imported in the market, completes delivery in the favor of individual buyers, and collects fees for these specific services. The consumers, who are usually interested in purchasing high-end and unique but not eligible brands, have difficulties to purchase these items overseas directly from the retailers or brands in other countries due to worries of payment failure and no address available for their usually domestic only delivery. In Korea, both numbers of surrogate Internet shopping malls and the magnitude of sales have been growing rapidly up to more than 430 active malls and 500 billion Korean won in 2008 since the population of consumers who want this agent shopping service is also expending. This etail business concept is originated from 'surrogate-mediated purchase' and this type of shopping agent has existed in many different forms and also in wide ranges of context level for quite a long time. As marketers face their individual buyers' representatives instead of a direct contact with them in many occasions, the impact of surrogate shoppers on consumer's decision making has been enormously important and many scholars have explored various range of agent's impact on consumer's purchase decisions in marketing and psychology field. However, not much rigorous research in the Internet commerce has been conveyed yet. Moreover, since as one of the shopping agent surrogate Internet shopping malls specifically connect overseas brands or retailers to domestic consumers, one specific character of the mall's, image of surrogate buying country, where surrogate purchases are conducted in, may play an important role to form consumers' attitude and purchase intention toward products. Furthermore it also possibly affects various dimensions of perceived risk in consumer's information processing. However, though tremendous researches have been carried exploring the effects of diverse dimensions of country of origin, related studies in Internet context has been rarely executed. There have been some studies that prove the positive impact of country of origin on consumer's evaluations as one of information clues in product manufacture descriptions, yet studies detecting the relationship between country image of surrogate buying origin and product evaluations rarely undertaken regarding this specific mall type. Thus, the authors have found it well-worth investigating in this specific retail channel and explored systematic relationships among focal constructs and elaborated their different paths. The authors have proven that country image of surrogate buying origin in the mall, where surrogate malls purchase products in and brings them from for buyers, not only has a positive effect on consumers' product evaluations including attitude and purchase intention but also has a negative effect on all three dimensions of perceived risk: product-related risk, shipping-related risk, and post-purchase risk. Specifically among all the perceived risk, product-related risk which is arisen from high uncertainty of product performance is most affected (${\beta}$= -.30) by negative country image of surrogate buying origin, and also shipping-related risk (${\beta}$= -.18) and post-purchase risk (${\beta}$= -.15) get influenced in order. Its direct effects on product attitude (${\beta}$= .10) and purchase intention (${\beta}$= .14) are also secured. Each of perceived risk dimension is proven to have a negative effect on purchase intention through product attitude as a mediator (${\beta}$= -.57: product-related risk ${\rightarrow}$ product attitude; ${\beta}$= -.24: shipping-related risk ${\rightarrow}$ product attitude; ${\beta}$= -.44: post-purchase risk ${\rightarrow}$ product attitude) as well. From the additional analysis, the paths of consumers' information processing are shown to be different based on their levels of product knowledge. While novice consumers with low level of knowledge consider only perceived risk important, expert consumers with high level of knowledge take both the country image, where surrogate services are conducted in, and perceived risk seriously to build their attitudes and formulate decisions toward products more delicately and systematically, which is in line with previous studies. This study suggests several pieces of academic and practical advice. Precisely, country image of surrogate buying origin does affect on consumer's risk perceptions and behavioral consequences. Therefore a careful selection of surrogate buying origin is recommended. Furthermore, reducing consumers' risk level is required to blossom this new type of retail business whether its consumer are novices or experts. Additionally, since consumer take different paths of elaborating information based on their knowledge levels, sophisticated marketing approaches to each group of consumers are required. For novice buyers strong devices for risk mitigation are needed to induce them to form better attitudes and for experts selections of better and advanced countries as surrogate buying origins are advised while endorsement strategy for the site might work as a reliable information clue to all consumers to mitigate the barriers to purchase goods online. The authors have also explained that the study suffers from some limitations, including generalizability. In future studies, tests of and comparisons among different types of etailers with relevant constructs are recommended to broaden the findings.

Inconsistency between Information Search and Purchase Channels: Focusing on the "Showrooming Phenomenon" (멀티채널 환경에서 정보탐색채널과 구매채널의 불일치 현상에 관한 연구: 쇼루밍 현상을 중심으로)

  • Yeom, Min-Sun
    • Journal of Distribution Science
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    • v.13 no.9
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    • pp.81-93
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    • 2015
  • Purpose - "Showrooming" refers to the phenomenon where a shopper visits a store to see and compare products but makes the purchase online at a lower price. Surveys on showrooming activities at home and abroad indicate that a significant number of consumers pursue showrooming activities. The advent of "showroomers," who engage in buying activities, hovering both on and offline, while selectively choosing sales channels to suit their needs, is powerful enough to erode the borders between channels and bring about seismic changes in the distribution industry. However, surprisingly, there has been no in-depth discussion on showrooming. This study seeks to theoretically investigate what impact personal characteristics have on showrooming preferences and attitudes in a multi-channel environment. Specifically, assumptions have been made that price perception, perceived performance risk, and trust in online shopping not only have a direct impact on showrooming attitudes but also indirectly affect it through the means of contact motivation. Research design, data, and methodology - To test the hypotheses, this study conducted a survey of male and female shoppers, ages 20 through 40s, who live in metropolitan areas, and have actively showroomed fashion items in the last six months. A clothing item usually purchased after a careful decision-making process was chosen as the target product of the study. The survey was conducted between October and November 2014, using a professional survey service provider. A total of 200 surveys were collected, of which 198 were used for analysis. Conceptual model Structural Equation Modeling (SEM) and Amos 18.0 were employed for data analysis and model verification. In addition, following the confirmatory factor analysis and measurement model analysis, the theoretical model that corresponds to the research model was analyzed. Results - Analysis results show that price perception, perceived performance risk, and trust in online shopping have a statistically significant and positive (+) impact on showrooming attitudes. In addition, in terms of the indirect influence of price perception and perceived performance risk on showrooming attitudes through means of contact motivation, price perception had a statistically significant and positive impact on means of contact motivation, whereas perceived performance risk did not have a statistically significant impact on it, with the relevant hypothesis rejected. Conclusions - These analysis results imply that the ultimate goal of consumers is to maximize their shopping benefits by selectively and strategically taking advantage of different channels in a complementary manner. This study presents many implications for distributors to encourage a deep understanding of showrooming consumers who have complicated consumption behaviors and to build channel integration strategies. This study has limitations in theoretical and practical implications. Therefore, subsequent studies need to focus on verifying that showrooming activities are based on reasonable and planned decisions by applying the theory of reasoned or planned behavior. In addition, the scope of the study should expand to include web showrooming, where consumers conduct product research online and purchase offline.

A Collaborative Channel Strategy of Physical and Virtual Stores for Look-and-feel Products (물리적 상점과 가상 상점의 협업적 경로전략: 감각상품을 중심으로)

  • Kim, Jin-Baek;Oh, Chang-Gyu
    • Asia pacific journal of information systems
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    • v.16 no.3
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    • pp.67-93
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    • 2006
  • Some consumers prefer online and others prefer offline. What makes them prefer online or offline? There has been a lack of theoretical development to adequately explain consumers' channel switching behavior between traditional physical stores and new virtual stores. Through consumers' purchase decision processes, this study examined the reasons why consumers changed channels depending on purchase process stages. Consumer's purchase decision process could be divided into three stages: pre-purchase stage, purchase stage, and post-purchase stage. We used the intention of channel selection as a surrogate dependent variable of channel selection. And some constructs, that is, channel function, channel benefits, customer relationship benefits, and perceived behavioral control, were selected as independent variables. In buying look-and-feel products, it was identified that consumers preferred virtual stores to physical stores at pre-purchase stage. To put it concretely, all constructs except channel benefits were more influenced to consumers at virtual stores. This result implied that information searching function, which is a main function at pre-purchase stage, was better supported by virtual stores than physical stores. In purchase stage, consumers preferred physical stores to virtual stores. Specially, all constructs influenced much more to consumers at physical stores. This result implied that although escrow service and trusted third parties were introduced, consumers felt that financial risk, performance risk, social risk, etc. still remained highly online. Finally, consumers did not prefer any channel at post-purchase stage. But three independent variables, i.e. channel function, channel benefits, and customer relationship benefits, were significantly preferred at physical stores rather than virtual stores at post-purchase stage. So we concluded that physical stores were a little more preferred to virtual stores at post-purchase stage. Through this study, it was identified that most consumers might switch channels according to purchase process stages. So, first of all, sales representatives should decide that what benefits should be given them through virtual stores at the pre-purchase stage and through physical stores at the purchase and post-purchase stages, and then devise collaborative channel strategies.

The Channels of Distribution and Place Strategy of the Apparel Mart: The Los Angeles Area Apparel Industry in California (어패럴 마트의 유통체계 및 상권분석 -캘리포니아 주를 중심으로-)

  • 원명심
    • Journal of the Korea Fashion and Costume Design Association
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    • v.5 no.2
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    • pp.31-46
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    • 2003
  • The purpose of this study was to explore the ways of improving Korean apparel firms' competitiveness by examining the Korea's number one trading partner U.S. apparel industry. Especially, the Los Angeles area apparel industry which is the second largest and the primary market center on the west coast was analysed. The following strategies are suggested to Korean apparel firms to function more effectively in incleasingly competitive U.S. markets: l)Basics can be produced in lower wage countries meanwhile quick turnaround and high quality works can be produced either in Korea or U.S. 2)Manufacturers might try to have direct relationship with powerful retailers who have their own private labels of store-brand lines. 3)Apparel companies can open market showrooms in the California Market Center. For small firms they can contact with independent representatives who receive commissions for showing lines for manufacturers or rent space for showing the lines during market weeks. 4)Apparel firms can contact buying offices to introduce their products to retail buyers. 5)Korean firms can contact Korean-American apparel firms to gain easy access to U.S.Market.

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