• Journal of Distribution Science
• /
• v.13 no.11
• /
• pp.47-58
• /
• 2015

Purpose - This study aims to seek determinants of department store sales commission rates under consignment contracts based on transaction cost theory, the power-dependence view, and the resource-based view. A consignment contract is a unique contract where the retailer, over a given period, takes possession of goods owned by a supplier, promotes the sales of these goods, and receives a profit share from their sales. Under this contract, the supplier owns the goods until they are sold. In department stores in South Korea, over 70% of overall sales comes through consignment contracts. In other words, this is the most popular contract agreement between large retailers and vendors in South Korea. Consignment contracts yield high profits to department stores with minimal sales uncertainty, stock cost, and marketing investment. Many suppliers believe the consignment contract commission rates are too high. However, department stores disagree. They state that the commissions are not high as they generate new value for the suppliers by accumulating up-to-date merchandise and supporting various marketing programs on their behalf. Recently, consignment contracts have been critically examined and scrutinized by politicians, mass media, and the public of Korea. This study further intends to derive implications reflecting both buyer and seller perspectives as well as offer insights to policy makers in making appropriate decisions. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 164 suppliers, which currently have relationships with department stores. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. The data were analyzed using SPSS 18.0 and AMOS structural equation modeling program Results - For the transaction cost theory and the power-dependence view, the results indicated that product diversity and demand volatility had a positive impact on the sales dependence on a department store. Dependence in turn had a positive effect on the sales commission under the consignment contract. Based on the resource-based view, the department store's marketing capability, the supplier's perception toward merchandising, and supporting activities could enhance the department store's channel leadership in the buyer-seller relationship. Subsequently, the channel leadership had a positive effect on the sales commission. However, product complexity had no relationship with department store dependence. Conclusions - This is the first empirical research that investigates the determinants of sales commissions under consignment contracts in the domestic retail industry. This study reveals several theoretical and practical implications for both marketing scholars and marketers. In terms of theoretical implication, this study integrated and enlarged certain theoretical background, such as transaction cost theory, the power-dependence view, and the resource-based view, to explain the determinants of sales commissions under consignment contracts that include sales revenue. From a business management viewpoint, this research offers useful insights for policy makers by applying two different perspectives, both the manufacturer and the retailer, in terms of the sales commission issue under a consignment contract.

• Korean Journal of Ichthyology
• /
• v.13 no.4
• /
• pp.267-273
• /
• 2001

This study investigated consignment quantity and value of marine fishes consigned in Kunsan Harbor from 1993 to 1999. The total quantity of fishes consigned over seven years period was 194,531 tons (t), of which 31,632 t (16.3%) in 1994 was the largest, while 25,956 t (13.3%) in 1997 was the smallest. The total consignment value was 367,352,125 thousand won, of which 63,221,365 thousand won (17.2%) in 1996 was the highest, and 38,835,400 thousand won (10.6%) in 1999 the lowest. The group of fish that held the largest weight of consignment sale in Kunsan Harbor was croakers; their consignment quantity was 21,217 t. or 10.9% of all fishes, and their consignment value was 112,768,637 thousand won which is 30.7% of the total value. Fishes consigned in Kunsan Harbor were of great significance in the regional economy, as they comprised 74.7% of the consignment quantity and 76.4% of the consignment value of all marine fishes in Jeollabuk-do, although they came under very low weight as 3.1% of the consignment quantity and 4.2% of the consignment value of the total consignment sales of Korea.

• Journal of the Korean Society of Food Culture
• /
• v.24 no.6
• /
• pp.721-727
• /
• 2009

In this study, the current status of the business foodservice industry, evaluation of leftover food and customer satisfaction with foodservice at direct operation and consignment foodservice businesses in Chungbuk were examined. This study has managerial implications in terms of improving the quality and effectiveness of the business operation of the foodservice industry. The sample size of this study included 800 customers who use foodservices provided by 11 selected businesses including 6 direct operation and 5 consignment foodservice businesses. From these 800 customers, a total of 692 were used (direct operation foodservice (n=361) and consignment foodservice (n=331) businesses). The results were as follows; First, as for the main reasons for using the employee restaurants in types of direct operation and consignment foodservice business, 'the close location' had the high percentage. Approximately 41% of respondents were not satisfied with the foodservice in the employee restaurants. Second, leftover food from consignment foodservices was higher than that for direct operation foodservices. Third, there were significant differences in customer satisfaction with five areas of foodservice between the two types of food service businesses: food, sanitation, feeding environment, mealing process and information and service. Customer satisfaction in the direct operation foodservice was higher than that of the consignment foodservice. In terms of the satisfaction level of foodservices, mealing process was the highest, followed by sanitation, food, and information and service in the direct operation and consignment foodservice businesses. Overall, satisfaction with the business foodservice was affected by the customers' satisfaction in five areas of foodservices (e.g., food, sanitation, feeding environment, mealing process, information and service). Especially, 'food' and 'information and service' were important areas for determining overall customer satisfaction with foodservice. In addition, the overall satisfaction was negatively correlated with the quantity of leftover food in the direct operation and consignment foodservice business.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.37 no.4
• /
• pp.1-18
• /
• 2012

With the enormous growth and various applications of private brands, national brand manufacturers are confronted with a dilemmatic situation. That is, paradoxically, some manufacturers have come to produce private brands of retailers which are potential competitors to their own brands. This study reveals why manufacturers with their own brands let themselves do the consignment production of retailers' private brands although those private brands may become strong competitors of their own brands and then investigates the condition in which manufacturers may benefit from such consignment production. Through an analysis of a game theoretical model assuming a monopoly market, the present study presents the theoretical backgrounds and provides new insights about consignment production of manufacturer with its own brand for retailer's private brand. First, such consignment production can play a role in mitigating the loss in the consignee manufacturer's own brand sales caused by the private brand in the competitive environment. Second, the effectiveness of such role is affected by the quality of the private brand produced under consignment. In other word, only if the consignee manufacturer keeps the quality of the private brand low, the manufacturer can maintain the benefit from its own brand. In addition, a consigner retailer needs to consider the final objective of launching its private brand, when it chooses its consignee manufacturer of the brand. Finally, a manufacturer with its own brand may consider consignment production as not merely an unavoidable option compelled by a retailer's power but a reasonable strategic choice to reduce the risk from competition.

• Journal of Distribution Research
• /
• v.14 no.1
• /
• pp.67-86
• /
• 2009

The Gang-Seo wholesale market is an experimental system in that two different distribution channels co-exist in the same marketplace; the auction system and the consignment system. The government expects the consignment system offers higher and more stable prices to farmers than the auction system. This study tested if that is the case, but the results did not support the hypotheses. The consignment system needs institutional complements and more transparent operations before wide-spreading.

• Journal of the Korean Statistical Society
• /
• v.9 no.2
• /
• pp.213-217
• /
• 1980

This paper aimed at studying an efficient sampling design of the survey for non-consignment fishery products including both marine fisheries and seaculture. An analysis was done on the relationship between precision and sample size. On the basis of the analysis, the sample size was determined to be 1,080 fishery house holds with the expected precision of 4%-5%. The molluscs and seaculture were recognized to be correlated with the non-consignment products. An attempt was made to investigate the coverage of the fish kinds by the sample about 100 fish kinds were found in the 80 selected sample villages, whereas the population includes about 120 in total. This shows that the sample represents the population with satisfaction.

• The Journal of the Convergence on Culture Technology
• /
• v.3 no.4
• /
• pp.145-152
• /
• 2017

The accident rate is higher in the small workplace than the large workplace. It is desirable to focus on the small workplace for the disaster prevention activities. The disaster prevention activities for the small workplace are achieved through the private consignment agencies' technical guidance. but it has exposed many demand of the private consignment agencies' experts and its effectiveness has been strengthened. The purpose of this study, it is to provide the system improvement plan that the problem can be solved and to present a plan to improve the effectiveness of the proposed system. It is to listen to the opinions of experts and the direction of the study was set up.

• Journal of Distribution Science
• /
• v.12 no.7
• /
• pp.89-101
• /
• 2014

Purpose - This study aims to show that consignments can enable supply chain collaboration, based on the review of selected studies, and aims to investigate its potential to be a better collaboration program, through an analytical comparison with other collaboration initiatives. Research design, data, and methodology - This study uses a literature review on selected studies that researched consignments. In addition, based on the proposed framework, the current consignment process and other well-known collaboration programs are analyzed in terms of three key collaboration aspects. Results - Most studies employ simple research in terms of their purpose and methodology. An analysis with the proposed framework indicates the potential of consignments to foster supply chain collaboration. Conclusions - Based on the literature review, this study suggests that future research needs to aim for diverse research goals and conduct sophisticated research on consignments. An analysis with the proposed framework shows that consignments would be more effective for supply chain collaboration if active information sharing and joint decision-making are implemented.

• International Commerce and Information Review
• /
• v.6 no.3
• /
• pp.183-201
• /
• 2004

Recently, Electronic commerce market is growing sharply for the expansion of internet and development of means of air transportation. Import Clearance System for express consignments, introduced in Korea, confers some benefit upon express consignments, ie. prompt clearance, simplification of the clearance procedure, exemption of necessary documents. But it has some problems such as lack of social security and trade compliance. So it requires some improvements as follows. Firstly, it has no legal background to clear all articles valued at US$100 or less carried by an express consignment operator. So customs brokers, not express consignment operators, should clear that articles. Secondly, it should be presented necessary documents including commercial invoice to prevent a wrong price declaration in entering express consignments valued at US$100 or less. Thirdly, X-ray inspectors must enhance their inspection ability. Customs must provide education programs for X-ray inspectors to improve their inspection ability. Lastly, Cargo selectivity system for express consignments have to be improved to operate effectively.

• Journal of the Korean Society of Safety
• /
• v.24 no.6
• /
• pp.45-49
• /
• 2009

This study is to prepare a reasonable basis for the improvement of the electrical safety management regulation. The standards in domestic and foreign countries for the application of new and renewable energy facilities and other devices are analyzed. Other regulations excluding the electrical safety fields and wide surveys are also carried out. Consequently, it is asked that the classification between normal and self electrical facilities should be clear and deregulation for small businesses has to be followed. This study is showed that standards investigates of receiving equipment below 600V above 75kW, eletrical safety manager employment of manufacturing industry and Mid-night electric power. And, it is showed that consignment permission and Consignment inspection periodic relaxation about wind development equipment below 1,000kW, consignment of Technical Development equipment for new and renewable energy below 250kW.