• Title/Summary/Keyword: Consumer's Brand Trust

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Effect of Consumer Characteristics on Intention to Use Product Reviews to Make Online Purchasing Decisions (소비자의 특성이 온라인 상품평 활용의도에 미치는 영향)

  • Park, Yoon-Joo
    • Journal of Information Technology Services
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    • v.16 no.2
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    • pp.21-32
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    • 2017
  • This study analyzes the variable consumer characteristics that influence the intention to use online product reviews. In online e-commerce, where purchases take place without consumers seeing the products in person, the product reviews left by other consumers who have already purchased the product are believed to be valuable information. However, when different consumers read the same product review, their responses to it may vary. This study analyzes the characteristics of consumers who utilize product reviews for their purchases. Consumer characteristics are categorized into personal information, personality, purchasing tendency, and experience related to product reviews. These factors are examined to see if they have direct or indirect effects on a consumer's intention to use product reviews when making online purchases. We surveyed a total of 240 consumers who had experience using e-commerce and knew about online product reviews. Once the data was collected, path analysis was conducted using the statistics tool AMOS. The study results reveal that consumers who are female, extroverted, and have higher price sensitivity think that product reviews left by others are useful, and that this "perceived usefulness" has a positive effect on the intention to use product reviews for making online purchasing decisions. In addition, consumers who are agreeable to others, have high brand sensitivity, and who have left numerous reviews themselves demonstrated the tendency to trust reviews left by others more. Thus, we conclude that this "perceived reliability" makes it more likely that a consumer will use product reviews when making online purchasing decisions. Future research can be done to develop this study further by analyzing whether providing online product reviews corresponding to the personal characteristics of consumers enhances the effect of product reviews on online purchasing decisions.

A Study on the Development Strategies and Measuring Consumer′s Willingness to Pay for the Quality-Certificated Environmental-Friend Products - Focused on Rice, Lettuce, and Bean Curd at Cheonan-city (품질인증 친환경농산물의 소비자가치 추정 및 유통정책 방향에 관한 연구 - 천안지역의 쌀, 상추, 두부를 중심으로 -)

  • Jung, Chan-Wung;Heo, Seung-Wook;Kim, Ho
    • Korean Journal of Organic Agriculture
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    • v.11 no.2
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    • pp.23-42
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    • 2003
  • The study must have standpoints for the stable market construction of the Environmental-Friendly agricultural products of the quality-certificated which has rapidly grown due to a discussion of the environment and agriculture, income increase and the interests on foods stability. The survey was conducted through face-to-face interview of 200 adults who are in their twenties or more in Cheonan-city. In this research, the Environmental-Friendly agriculture was a clean agriculture not using a fertilizer or chemicals and the agriculture which protects the environment by preventing the environmental pollution. In the analyses of the consumer's willingness to pay, the rice showed 69,851 won, and a lettuce and bean-curd showed 947 won and 1.412 won respectively. In terms of current issues of the policy, to establish the stable circulation structure and consumption strategy, there must be a clearness raise of the Quality Authentication (QA) Mark. To raise the trust through quality authentication, there must be transparency raise of information by distribution stages and the thorough post management of the official institutes. Also, to persue the competitive product differentiation, there must be the settlement of the product brand on the market, development of the new production technology and a classification of consumers by incomes. Finally to construct stable distribution and price system, there must be active participation of the local agricultural cooperatives in the distribution of the Environmental-Friendly agricultural products of the quality-certificated and the understanding of the proper price of the consumer market and flexible strategy of the price change.

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Transference of Trust from Retailers to Private Label Products and their Manufacturers (유통업체에 대한 신뢰가 Private Label 제품과 제조업체에 대한 신뢰로 전이되는 현상에 관한 연구)

  • Kim, Hyang-Mi;Kim, Jae-Wook;Lee, Jong-Ho
    • Journal of Distribution Research
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    • v.14 no.2
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    • pp.67-95
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    • 2009
  • The purpose of this study is to empirically examine the transference of trust process, an important factor to consumer's purchase decision-making. Even though several researchers have discussed the trust transference process, there is no research related to this concept. Specifically we have focused on the transference of trust from the retailer to low involvement private label (PL) products. PL products were chosen as transference of trust occurs under ambiguity due to lack of information about the product and their manufacturer. PL products provide relatively less information than national brand (NB) products. In addition, retailers have been rapidly expanding their PL product categories. To identify the theoretical and empirical limitations of prior studies, we discuss several theories explaining the transference of trust: 'Balance theory' and 'availability heuristic' in transference of cognitive trust; 'affective transference' and 'affect as information' in transference of affective trust. An empirical test was performed. A self completion questionnaire was developed and administered to a convenience sample of PL users. 206 usable questionnaire were received. The results show that the transference of trust plays a mediating role linking the retailer to the manufacturer and to the product. Although our model, which included the transference process of trust as a mediating effect, did not improve the competitive model, the coefficients of the respective paths were found to be better. This study confirms the transference of cognitive trust from the retailer to both the manufacturer and the product, but not for affective trust. We offer the explanation that PL products may tend to have affective trust resulting from brand familiarity but not to their PL manufacturers.

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Enhancing the Customer's Information-sharing Intention Through Omnichannel Strategies

  • Nguyen Thi Tuyet, NHUNG;Van Thanh-Truong, NGUYEN;Nguyen Tuong An, HUYNH;Bui Thanh, KHOA
    • Journal of Distribution Science
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    • v.21 no.3
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    • pp.83-92
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    • 2023
  • Purpose: An omnichannel strategy creates a consistent brand image and customer experience across all channels, making it easier for customers to interact with a business and share information. This research aimed to investigated the relationship between consumers' information-sharing intention and their omnichannel experiences. Research design, data, and methodology: Through an online survey conducted in Vietnam, the study obtained 915 responses. The study used Partial Least Square Structural Equation Modeling (PLS-SEM) to analyze research data and confirm proposed research hypotheses. Results: Research results indicated that information-sharing intention is affected by both online and offline customer experience, and at the same time, the study also confirmed that omnichannel's three characteristics (integration, individualization, interaction) positively impact on customer experience. Conclusions: From the research result, businesses may boost consumer trust and loyalty with the help of an omnichannel approach, which in turn increases customers' propensity to provide personally identifying information to the firm. One way to do this is to facilitate information exchange by delivering customized and relevant offers. Furthermore, companies show consumers the benefit of providing their data by utilizing it to enhance the customer experience.

The Effects of Mongolian Consumer's Lifestyle and Advertisement Properties on Advertisement Behavior of Korean Cosmetics (몽골 소비자 라이프스타일과 광고모델 속성이 한국 화장품 광고태도에 미치는 영향)

  • Batshugar, Uuriintuya;Kim, Kyung-Tae
    • Journal of Distribution Science
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    • v.14 no.8
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    • pp.123-128
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    • 2016
  • Purpose - Korean Wave that overspreads around Asia and America, especially the Korean beauty wave, has reached Mongolia and Mongolian consumers. Mongolia consumers usually prefer foreign cosmetic brands to local brands, because the local brands cannot satisfy fast changing needs and wants of local consumers. Research design, data, and methodology - Based on previous studies about life style of Mongolian consumers, advertisement properties and consumer behaviors, we propose a research model and related hypothesis. In order to test hypotheses, we analyzed 366 survey data out of 376 by eliminating improper 10 responses. Factor analysis and reliability analysis was conducted by SPSS 22.0. We used multiple regression analysis and parameter analysis to test the relation between variables. Results - As exploring the Mongolian consumers' current usage of cosmetic products, we found that the customers' focus is how the products fit with their skin. Mongolian consumers often get the information about cosmetic products through TV and internet. Mongolian consumers show positive attitudes on the appearance of Korean celebrities in responsibility, while there is no significant effect on attractiveness. Mongolian consumer's behaviors toward brand have positive effect on both responsibility and attractiveness of Korean commercial celebrities. Responsibility and attractiveness of Korean commercial celebrities have positive effect on the behaviors toward advertisements of cosmetic products. Conclusions - Behaviors toward advertisements of cosmetic products have positive effect on both purchase intention and loyalty of customer. Responsibility and attractiveness of Korean commercial celebrities have positive effect on mediating variable of behavior toward advertisement and independent variable of purchase intention. Responsibility and attractiveness of Korean commercial celebrities have positive effect on mediating variable of behavior toward advertisement and independent variable of loyalty of customer. In order to improve the effect of advertisements, firms need to consider not only the technique of the model but also the image of model in regard to trust and professionalism appealing to consumers. In addition, firms need to choose the model who fits in with the image of the firms and the products and service of the firms. Finally, Mongolian consumers tend to acquire the shopping information through TV advertisements, especially featuring Korean popular stars, thus, TV advertisements can be a wise option in Mongolian cosmetic market.

A Factor Analysis on Resident's Satisfaction of the Efficient Rural Development Projects: Focusing on the Rural Development Projects under the Block Grants System in Buyeo (효율적인 농산어촌지역개발사업을 위한 주민만족요인분석 -부여군 포괄보조금제도하에 지역개발사업을 중심으로-)

  • Yoon, Jun Sang;Park, Eun Byong
    • Journal of Agricultural Extension & Community Development
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    • v.19 no.4
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    • pp.773-798
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    • 2012
  • The study present the findings divide into brand naming, image, positioning. The farms built trust by consumer relationship with the farm brand. The results of the study provide insights for agricultural marketers who intend to design brand stories that align with their produce. This study is a regional case study of the factor analysis which explain residents' satisfaction of the efficient rural development projects under the Block Grants System in Buyeo. This study attempted to proceed the empirical survey of 353 residents who live in one 'town(eup)' and 13 'village(meon)' in Buyeo-gun and analyzed through SPSSWIN. The results of the satisfaction analysis in the local development projects satisfied with the overall average 3.16 and then empirically verified the important factors of the 'cultural and leisure activities', 'learning environment', 'jobs and working conditions', 'transportation'. The factor analysis of 12 variables united into three factors, the first Factors are 'transportation', 'learning environment', 'social welfare', 'cultural and leisure activities', 'Information and Communication', 'Health and Medical Services'. The second factors are 'crimes and accidents', 'environmental management', 'neighbor relations and social participation', and the third factors united into 'income and consumption activities', 'job creation' which imply the economic variables, and 'residential environment' as the common category.

Study on Relationship Between Consumption Values of Masstige and Consumer Happiness (매스티지 브랜드의 소비가치와 소비자 행복과의 관계에 관한 연구)

  • Kim, Yu-Kyung
    • Journal of Distribution Science
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    • v.13 no.1
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    • pp.105-118
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    • 2015
  • Purpose - The objective of this study is to verify whether there are differences between Korean and Chinese consumers in the importance of the attributes such as shopping value and loyalty in social commerce. With the purpose of finding out these differences, the following questions are set up as research questions. First, will there be a difference between Korea and China in the importance of attributes of social commerce? Second, will there be a difference between Korean and Chinese consumers in shopping value? Third, will there be a difference between Korean and Chinese consumers in their loyalty? Research design, data, and methodology - The researchers collected data through self-administered questionnaires from Korean and Chinese consumers who had used social commerce within the past six months before answering the questionnaire. First, for social commerce users in Korea, comprising male and female university students in Chungcheong, a questionnaire was circulated. For social commerce users in China, university students within Beijing were surveyed. Responses to 336 questionnaires were used, excluding those with no answers or unreliable answers. Data coding and data cleaning were used. SPSS 18.0 was used. First, exploratory factor analysis is done to verify the validity of testing tools, and Cronbach's α coefficient is used to verify credibility. For factor analysis, the Varimax method is used. To verify the internal consistency reliability of each factor, the Cronbach's α coefficient is used to verify the credibility. Second, a T-test is done to verify differences between Korean and Chinese consumers for the importance of attributes. Third, ANOVA (Analysis of variance) is done to verify differences between Korean and Chinese consumers in shopping value and loyalty. Results - When Korean and Chinese consumers use social commerce, first, the importance of the attributes of social commerce is affected by four factors; playfulness and economic factors are more important to Korean consumers than Chinese consumers. As for informativeness factors, including product information and quality, and buyer comments, there was no confirmed difference between Korean and Chinese consumers. The convenience factor is more important to Chinese consumers than Korean consumers. Second, the factors affecting shopping value for Korean and Chinese consumers were hedonic shopping value and rational shopping value. To see the difference between Korean and Chinese consumers in shopping value factors, a t-test is conducted. As a result, in the rational shopping value factors of social commerce, Korean consumers scored higher than did Chinese consumers. These results were verified to be meaningful through statistics. In the hedonic shopping value factor of social commerce, Korean consumers scored higher than Chinese consumers. These results showed a significant difference. Third, loyalty in social commerce is higher for Chinese consumers than for Korean consumers. However, there is no difference in loyalty depending on sex. Conclusions - These results will hopefully be valuable and used in the future by Korean companies that wish to enter the Chinese social commerce market.

An Exploratory Empirical Study on Shopping Choice in Retail Channels by the Selective Characteristics of Foods (상품 선택 특성에 따른 쇼핑채널 선택에 관한 연구: 식품 MD를 중심으로)

  • Ha, Kwang-Ok;Lee, Jung-Hee
    • The Journal of Small Business Innovation
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    • v.20 no.1
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    • pp.35-46
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    • 2017
  • The purpose of this study is to obtain the implications for establishing a marketing strategy for retailers by analyzing whether the consumer's preference for products (food) is influenced by on-line, off-line, and omni-channel preferences. The research model consisted of the effects of consumers' food selection characteristics on business preference and omni channel preference. The results of analysis based on 477 questionnaires are summarized as follows. First, food purchasing characteristics that utilize the seven characteristics of (1) freshness of food, (2) taste, (3) quality and safety, (4) tasting, (5) food function and information, (6) country of origin, and (7) brand loyalty, has various effects on types of business preference, omni-channel preference. The adopted hypotheses were selected in order of brand loyalty (5 times), freshness (3 times), tasting (3 times), and origin (1 time). The selective attributes on foods are: (1) what kind of brand, (2) how good the freshness is, (3) tasting. (4) The country of origin is to be compressed. Actually consumers seem to utilize only the core selective factors that are appropriate to the characteristics of the distribution channel rather than all of them in the shopping of the food, and there is three characteristics on Convenience Store and only one or two factors in the other types of business. Second, in the analysis of the omni-channel preference analysis, food selection characteristics has been shown to have a limited effect, which is attributed to the fact that the consumer has not yet understood the concept of omni channel. Third, the results of this study suggest that there is a need to reflect the selection characteristics of foods that have diverse influences by business type in the marketing strategies. Because consumers make reasonable consumption to use both on-line and off-line simultaneously, consumers who use Omni Channel focus on quality and safety of food, identify products through tasting, pursue brands that can trust anywhere. Customers who pursue rationality will have a high preference for using Omni Channel. Product choice characteristic has significant effect on omni-channel preference. For a few years, omni-channel strategy of retailers meets with a difficulty. This study make a first attempt to study omni-channel preference changing retailing paradigm.

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An Exploratory Study on the Components of Visual Merchandising of Internet Shopping Mall (인터넷쇼핑몰의 VMD 구성요인에 대한 탐색적 연구)

  • Kim, Kwang-Seok;Shin, Jong-Kuk;Koo, Dong-Mo
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.2
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    • pp.19-45
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    • 2008
  • This study is to empirically examine the primary dimensions of visual merchandising (VMD) of internet shopping mall, namely store design, merchandise, and merchandising cues, to be a attractive virtual store to the shoppers. The authors reviewed the literature related to the major components of VMD from the perspective of the AIDA model, which has been mainly applied to the offline store settings. The major purposes of the study are as follows; first, tries to derive the variables related with the components of visual merchandising through reviewing the existing literatures, establish the hypotheses, and test it empirically. Second, examines the relationships between the components of VMD and the attitude toward the VMD, however, putting more emphasis on finding out the component structure of the VMD. VMD needs to be examined with the perspective that an online shopping mall is a virtual self-service or clerkless store, which could reduce the number of employees, help the shoppers search, evaluate and purchase for themselves, and to be explored in terms of the in-store persuasion processes of customers. This study reviewed the literatures related to store design, merchandise, and merchandising cues which might be relevant to the store, product, and promotion respectively. VMD is a total communication tool, and AIDA model could explain the in-store consumer behavior of online shopping. Store design has to do with triggering a consumer attention to the online mall, merchandise with a product related interest, and merchandising cues with promotions such as recommendation and links that induce the desire to pruchase. These three steps might be seen as the processes for purchase actions. The theoretical rationale for the relationship between VMD and AIDA could be found in Tyagi(2005) that the three steps of consumer-oriented merchandising are a store, a product assortment, and placement, in Omar(1999) that three types of interior display are a architectural design display, commodity display, and point-of-sales(POS) display, and in Davies and Ward(2005) that the retail store interior image is related to an atmosphere, merchandise, and in-store promotion. Lee et al(2000) suggested as the web merchandising components a merchandising cues, a shopping metaphor which is an assistant tool for search, a store design, a layout(web design), and a product assortment. The store design which includes differentiation, simplicity and navigation is supposed to be related to the attention to the virtual store. Second, the merchandise dimensions comprising product assortments, visual information and product reputation have to do with the interest in the product offerings. Finally, the merchandising cues that refer to merchandiser(MD)'s recommendation of products and providing the hyperlinks to relevant goods for the shopper is concerned with attempt to induce the desire to purchase. The questionnaire survey was carried out to collect the data about the consumers who would shop at internet shopping malls frequently. To select the subject malls, the mall ranking data announced by a mall rating agency was used to differentiate the most popular and least popular five mall each. The subjects was instructed to answer the questions after navigating the designated mall for five minutes. The 300 questionnaire was distributed to the consumers, 166 samples were used in the final analysis. The empirical testing focused on identifying and confirming the dimensionality of VMD and its subdimensions using a structural equation modeling method. The confirmatory factor analysis for the endogeneous and exogeneous variables was carried out in four parts. The second-order factor analysis was done for a store design, a merchandise, and a merchandising cues, and first-order confirmatory factor analysis for the attitude toward the VMD. The model test results shows that the chi-square value of structural equation is 144.39(d.f 49), significant at 0.01 level which means the proposed model was rejected. But, judging from the ratio of chi-square value vs. degree of freedom, the ratio was 2.94 which smaller than an acceptable level of 3.0, RMR is 0.087 which is higher than a generally acceptable level of 0.08. GFI and AGFI is turned out to be 0.90 and 0.84 respectively. Both NFI and NNFI is 0.94, and CFI 0.95. The major test results are as follows; first, the second-order factor analysis and structural equational modeling reveals that the differentiation, simplicity and ease of identifying current status of the transaction are confirmed to be subdimensions of store design and to be a significant predictors of the dependent variable. This result implies that when designing an online shopping mall, it is necessary to differentiate visually from other malls to improve the effectiveness of the communications of store design. That is, the differentiated store design raise the contrast stimulus to sensory organs to promote the memory of the store and to have a favorable attitude toward the VMD of a store. The results that navigation which means the easiness of identifying current status of shopping affects the attitude to VMD could be interpreted that the navigating processes via the hyperlinks which is characteristics of an internet shopping is a complex and cognitive process and shoppers are likely to lack the sense of overall structure of the store. Consequently, shoppers are likely to be alost amid shopping not knowing where to go. The orientation tool enhance the accessibility of information to raise the perceptive power about the store environment.(Titus & Everett 1995) Second, the primary dimension of merchandise and its subdimensions was confirmed to be unidimensional respectively, have a construct validity, and nomological validity which the VMD dimensions supposed to have a positive correlation with the dependent variable. The subdimensions of product assortment, brand fame and information provision proved to have a positive effect on the attitude toward the VMD. It could be interpreted that the more plentiful the product and brand assortment of the mall is, the more likely the shoppers to favor it. Brand fame and information provision as well affect the VMD attitude, which means that the more famous the brand, the more likely the shoppers would trust and feel familiar with the mall, and the plentifully and visually presented information could have the shopper have a favorable attitude toward the store VMD. Third, it turned out to be that merchandising cue of product recommendation and hyperlinks affect the VMD attitude. This could be interpreted that recommended products could reduce the uncertainty related with the purchase decision, and the hyperlinks to relevant products would help the shopper save the cognitive effort exerted into the information search and gathering, which could lead to a favorable attitude to the VMD. This study tried to sheds some new light on the VMD of online store by reviewing the variables mentioned to be relevant with offline VMD in the existing literatures, and tried to link the VMD components from the perspective of AIDA model. The effect size of the VMD dimensions on the attitude was in the order of the merchandise, the store design and the merchandising cues.It is said that an internet has an unlimited place for display, however, the virtual store is not unlimited since the consumer has a limited amount of cognitive ability to process the external information and internal memory. Particularly, the shoppers are likely to face some difficulties in decision making on account of too many alternative and information overloads. Therefore, the internet shopping mall manager should take into consideration the cost of information search on the part of the consumer, to establish the optimal product placements and search routes. An efficient store composition would be possible by reducing the psychological burdens and cognitive efforts exerted to information search and alternatives evaluation. The store image is in most part determined by the product category and its brand it deals in. The results of this study support this proposition that the merchandise is most important to the VMD attitude than other components, the manager is required to take a strategic approach to VMD. The internet users are getting more accustomed and more knowledgeable about the internet media and more likely to accept the internet as a shopping channel as the period of time during which they use the internet to shop become longer. The web merchandiser should be aware that the product introduction using a moving pictures and a bulletin board become more important in order to present the interactive product information visually and communicate with customers more actively, therefore leading to making the quantity and quality of product information more rich.

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The Market Segmentation of Coffee Shops and the Difference Analysis of Consumer Behavior: A Case based on Caffe Bene (커피전문점의 시장세분화와 소비자행동 차이 분석 : 카페베네 사례를 중심으로)

  • Yu, Jong-Pil;Yoon, Nam-Soo
    • Journal of Distribution Science
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    • v.9 no.4
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    • pp.5-13
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    • 2011
  • This study provides analysis of the effectiveness of domestic marketing strategies of the Korean coffee shop "Caffe Bene". It bases its evaluation on statistical outputs of 'choice attributes,' "market segmentation," demographic characteristics," and "satisfaction differences." The results are summarized in four points. First, five choice attributes were extracted from factor analysis: price, atmosphere, comfort, taste, and location; these are related to coffee shop selection behavior. Based on these five factors, cluster analysis was conducted, with statistical results classifying customers into three major groups: atmosphere oriented; comfort oriented; and taste oriented. Second, discriminant analysis tested cluster analysis and showed two discriminant functions: location and atmosphere. Third, cross-tabulation analysis based on demographic characteristics showed distinctive demographic characteristics within the three groups. Atmosphere oriented group, early-20s, as women of all ages was found to be 'walking down the street 'and 'through acquaintances' in many cases, as the cognitive path, and mostly found the store through 'outdoor advertising', and 'introduction'. Comfort oriented group was mainly women who are students in their early twenties or professionals, and appeared as a group to be very loyal because of high recommendation to other customers compared to other groups. Taste oriented group, unlike the other group, was mainly late-20s' college graduates, and was confirmed, as low loyalty, with lower recommendation activity. Fourth, to analyze satisfaction differences, one-way ANOVA was conducted. It shows that groups which show high satisfaction in the five main factors also show high menu satisfaction and high overall satisfaction. This results show that segmented marketing strategies are necessary because customers are considering price, atmosphere, comfort, taste, location when they choose coffee shop and demographics show different attributes based on segmented groups. For example, atmosphere oriented group is satisfied with shop interior and comfort while dissatisfied with price because most of the customers in this group are early 20s and do not have great financial capability. Thus, price discounting marketing strategies based on individual situations through CRM system is critical. Comfort oriented group shows high satisfaction level about location and shop comfort. Also, in this group, there are many early 20s female customers, students, and self-employed people. This group customers show high word of mouth tendency, hence providing positive brand image to the customers would be important. In case of taste oriented group, while the scores of taste and location are high, word of mouth score is low. This group is mainly composed of educated and professional many late 20s customers, therefore, menu differentiation, increasing quality of coffee taste and price discrimination is critical to increase customers' satisfaction. However, it is hard to generalize the results of study to other coffee shop brand, because this study have researched only one domestic coffee shop, Caffe Bene. Thus if future study expand the scope of locations, brands, and occupations, the results of the study would provide more generalizable results. Finally, research of customer satisfactions of menu, trust, loyalty, and switching cost would be critical in the future study.

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