• Title/Summary/Keyword: Life Cycle Hypothesis

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Dual Path Model in Store Loyalty of Discount Store (대형마트 충성도의 이중경로모형)

  • Ji, Seong-Goo;Lee, Ihn-Goo
    • Journal of Distribution Research
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    • v.15 no.1
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    • pp.1-24
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    • 2010
  • I. Introduction The industry of domestic discount store was reorganized with 2 bigs and 1 middle, and then Home Plus took over Home Ever in 2008. In present, Oct, 2008, E-Mart has 118 outlets, Home Plus 112 outlets, and Lotte Mart 60 stores. With total number of 403 outlets, they are getting closer to a saturation point. We know that the industry of discount store has been getting through the mature stage in retail life cycle. There are many efforts to maintain existing customers rather than to get new customers. These competitions in this industry lead firms to acknowledge 'store loyalty' to be the first strategic tool for their sustainable competitiveness. In other words, the strategic goal of discount store is to boost up the repurchase rate of customers throughout increasing store loyalty. If owners of retail shops can figure out main factors for store loyalty, they can easily make more efficient and effective retail strategies which bring about more sales and profits. In this practical sense, there are many papers which are focusing on the antecedents of store loyalty. Many researchers have been inspecting causal relationships between antecedents and store loyalty; store characteristics, store image, atmosphere in store, sales promotion in store, service quality, customer characteristics, crowding, switching cost, trust, satisfaction, commitment, etc., In recent times, many academic researchers and practitioners have been interested in 'dual path model for service loyalty'. There are two paths in store loyalty. First path has an emphasis on symbolic and emotional dimension of service brand, and second path focuses on quality of product and service. We will call the former an extrinsic path and call the latter an intrinsic path. This means that consumers' cognitive path for store loyalty is not single but dual. Existing studies for dual path model are as follows; First, in extrinsic path, some papers in domestic settings show that there is 'store personality-identification-loyalty' path. Second, service quality has an effect on loyalty, which is a behavioral variable, in the mediation of customer satisfaction. But, it's very difficult to find out an empirical paper applied to domestic discount store based on this mediating model. The domestic research for store loyalty concentrates on not only intrinsic path but also extrinsic path. Relatively, an attention for intrinsic path is scarce. And then, we acknowledge that there should be a need for integrating extrinsic and intrinsic path. Also, in terms of retail industry, this study is meaningful because retailers want to achieve their competitiveness by using store loyalty. And so, the purpose of this paper is to integrate and complement two existing paths into one specific model, dual path model. This model includes both intrinsic and extrinsic path for store loyalty. With this research, we would expect to understand the full process of forming customers' store loyalty which had not been clearly explained. In other words, we propose the dual path model for discount store loyalty which has been originated from store personality and service quality. This model is composed of extrinsic path, discount store personality$\rightarrow$store identification$\rightarrow$store loyalty, and intrinsic path, service quality of discount store$\rightarrow$customer satisfaction$\rightarrow$store loyalty. II. Research Model Dual path model integrates intrinsic path and extrinsic path into one specific model. Intrinsic path put an emphasis on quality characteristics and extrinsic path focuses on brand characteristics. Intrinsic path is based on information processing perspective, and extrinsic path emphasizes symbolic and emotional dimension of brand. This model is composed of extrinsic path, discount store personality$\rightarrow$store identification$\rightarrow$store loyalty, and intrinsic path, service quality of discount store$\rightarrow$customer satisfaction$\rightarrow$store loyalty. Hypotheses are as follows; Hypothesis 1: Service quality perceived by customers in discount store has an positive effect on customer satisfaction Hypothesis 2: Store personality perceived by customers in discount store has an positive effect on store identification Hypothesis 3: Customer satisfaction in discount store has an positive effect on store loyalty. Hypothesis 4: Store identification has an positive effect on store loyalty. III. Results and Implications We examined consumers who patronize discount stores for samples of this study. With the structural equation model(SEM) analysis, we empirically tested the validity and fitness of the dual path model for store loyalty in discount stores. As results, the fitness indices of this model were well fitted to data obtained. In an intrinsic path, service quality(SQ) is positively related to customer satisfaction(CS), customer satisfaction(CS) has very significantly positive effect on store loyalty(SL). Also, in an extrinsic path, the store personality(SP) is positively related to store identification(SI), it shows significant effect on store loyalty. Table 1 shows the results as follows; There are some theoretical and practical implications. First, Many studies on discount store loyalty have been executed from various perspectives. But there has been no integrative view on this issue. And so, this research was theoretically designed to integrate various and controversial arguments into one systematic model. We empirically tested dual path model forming store loyalty, and brought up a systematic and integrative framework for future studies. We want to expect creative and aggressive research activities. Second, a few established papers are focused on the relationship between antecedents and store loyalty; store characteristics, atmosphere, sales promotion in store, service quality, trust, commitment, etc., There has been some limits in understanding thoroughly the formation process of store loyalty with a singular path, intrinsic or extrinsic. Beyond these limits in single path, we could propose the new path for store loyalty. This is meaningful. Third, discount store firms make and execute marketing strategies for increasing store loyalty. This research provides real practitioners with reference framework needed for actual strategy formation. Because this paper shows integrated and systematic path for store loyalty. A special feature of this study is to represent 6 sub dimensions of service quality in intrinsic path and 4 sub dimensions of store personality in extrinsic path. Marketers can make more analytic marketing planning with concrete sub dimensions of service quality and store personality. When marketers of discount stores make strategic planning like MPR, Ads, campaign, sales promotion, they can use many items which are more competitive than competitors.

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A Study on a Effect of Product Design and a Primary factor of Qualify Competitiveness (제품 디자인의 파급효과와 품질경쟁력의 결정요인에 관한 연구)

  • Lim, Chae-Suk;Yoon, Jong-Young
    • Archives of design research
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    • v.18 no.4 s.62
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    • pp.95-104
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    • 2005
  • The purpose of this study is to estimate the determinants of product design and analyze the impacts of product design on quality competitiveness, product reliability, and consumer satisfaction in an attempt to provide a foundation for the theory of design management. For this empirical analysis, this study has derived the relevant measurement variables from a survey on 400 Korean manufacturing firms during the period of $August{\sim}October$ 2003. The empirical findings are summarized as follows: First, the determinants of product design are very significantly (at p<0.001) estimated to be the R&D capability, the level of R&D expenditure, the level of innovative activities(5S, TQM, 6Sigma, QC, etc.). This empirical result can support Pawar and Driva(1999)'s two principles by which the performance of product design and product development can be simultaneously evaluated in the context of CE(concurrent engineering) of NPD(newly product development) activities. Second, the hypothesis on the causality: product design${\rightarrow}$quality competitiveness${\rightarrow}$customer satisfaction${\rightarrow}$customer loyalty is very significantly (at p<0.001) accepted. This implies that product design positively affects consumer satisfaction, not directly but indirectly, by influencing quality competitiveness. This empirical result of this study can also support the studies of for example Flynn et al.(1994), Ahire et at.(1996), Afire and Dreyfus(2000) which conclude that design management is a significant determinant of product quality. The aforementioned empirical results are important in the following sense: the empirical result that quality competitiveness plays a bridging role between product design and consumer satisfaction can reconcile the traditional debate between QFD(quality function development) approach asserted by product developers and conjoint analysis maintained by marketers. The first empirical result is related to QFD approach whereas the second empirical result is related to conjoint analysis. At the same time, the empirical results of this study can support the rationale of design integration(DI) of Ettlie(1997), i.e., the coordination of the timing and substance of product development activities performed by the various disciplines and organizational functions of a product's life cycle. Finally, the policy implication (at the corporate level) from the empirical results is that successful design management(DM) requires not only the support of top management but also the removal of communication barriers, (i.e. the adoption of cross-functional teams) so that concurrent engineering(CE), the simultaneous development of product and process designs can assure product development speed, design quality, and market success.

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The effect of technology capability of product development process on R&D sales performance: Focusing on the moderating effect of government support by the growth stage (제품개발공정의 기술능력이 R&D 매출 성과에 미치는 영향: 성장단계별 정부지원의 조절효과를 중심으로)

  • Kim, Sunyoung;Ba, Kuk Jin;Park, Sangmoon;Choi, Yun Jeong
    • Journal of Technology Innovation
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    • v.22 no.4
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    • pp.235-259
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    • 2014
  • New product or new technology developments are directly linked to a firm's survival and thus their performance and improvement are gaining attention in the midst of rapidly changing business environment and aggravating competition. However, despite SMEs' significance in the national economy, they are limited in terms of size and resources in possession, so the government provides a variety of supports as a policy. According to a study on the organizational life cycle, a firm's limits and difficulties differ by growth stage, so the supports need to be tailored. Based on the data from 2,575 firms that responded to the "2011 SMEs Technological Statistics," how technological capability level and deviation in the R&D process affect the R&D sales performance was studied. The result of analysis revealed that the technological capability has a positive impact on the R&D sales performance. It was also learned that the relationship between deviation in the technological capability and R&D sales performance was moderated by the government support. For the hypothesis that the government support would have a different moderating effect by growth stage for the impact the technology level has on the R&D sales performance, the empirical analysis showed a different meaningful moderating effect for each growth stage. The theoretical implications of the study are that, instead of a simple relation of dynamics that does not take the growth stages into account, it suggested a more realistic causal relationship model that reflects the complex environment the SMEs are in and that the need for measuring and using the deviation in technological capability as a research variable has been justified. The practical implications are that the government policy for supports can be tailored to a growth stage and that the guidelines have been suggested to effectively use the government funding by encouraging the SMEs in a different growth stage to adapt to the customized policy.

A Morphological Study of Bamboos by Vascular Bundle Sheath (대나무류(類)의 유관속초(維管束鞘)에 의(依)한 형태학적(形態學的) 연구(硏究))

  • Kim, Jai Saing
    • Journal of Korean Society of Forest Science
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    • v.25 no.1
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    • pp.13-47
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    • 1975
  • Among the many species of bamboo, it is well known that the dwarf-type is widely distributed in the tropical regions, and the slender type in temperated zone. In the temperated zone the trees have extensively differentiated into one hundred species in 50 genera. In many oriental countries, the bamboo wood is being used as a material for construction and for the manufacture of technical instruments. The bamboo shoot is also regarded as a good and delicious edible resource. Moreover, recent medical investigation verifies that the sap of certain species of the bamboo is an antibiotic effect against cancer. Fortunately, it is very easy to propagate the bamboo trees by using cutting from southeastern Asian countries. This important resource can further be used as a significant source of pulp, which is becoming increasingly important. The classification system of this significant resource has not been completely established to date, even though its importance has been emphasized. Initiated by Canlevon Linne in the 18th century, a classification method concerning the morphological characteristics of flowers was the first step in developing a classification. But it was not an easy task to accomplish, because this type of classification system is based on the sexual organs in bamboo trees. Because the bamboo has a long life cycle of 60-120 years and classification according to this method was very difficult as the materials for the classification are not abundant and some species have changed, even though many references related to the morphological classification of bamboo trees are available nowadays. So, the certification of bamboo trees according to the morphological classification system is not reasonable for us. Consequently, the classification system of bamboo trees on the basis of endomorphological characteristics was initiated by Chinese-born Liese. And classification method based on the morphological characteristics of the vascular bundle was developed by Grosser. These classification methods are fundamentally related to Holltum's classification method, which stressed the morphology of the ovary. The author investigated to re-establish a new classification method based on the vascular sheath. Twenty-six species in 11 genera which originated from Formosa where used in the study. The results obtained from the investigation were somewhat coordinated with those of Crosser. Many difficulties were found in distinguishing the species of Bambusa and Dendrocalamus. These two species were critically differentiated under the new classification system, which is based on the existence of a separated vascular bundle sheath in the bamboo. According to these results, it is recommended that Babusa divided into two groups by placing it into either subspecies or the lower categories. This recommendation is supported by the observation that the evolutional pattern of the bamboo thunk which is from outward to inward. It is also supported by the viewpoint that the fundamental hypothesis in evolution is from simple to complex. There remained many problems to be solved through more critical examination by comparing the results to those of the classification based on the sexual organs method. The author observed the figure of the cross-sectional area of vascular trunk of bamboo tree and compared the results with those of Grosser and Liese, i.e. A, $B_1$, $B_2$, C, and D groups in classification. Group A and $B_2$ were in accordance with the results of those scholars, while group D showed many differences, Grosser and Liese divided bamboo into "g" type and "h" type according to the vascular bundle type; and they included Dendrocalamus and Bambusa in Group D without considering the type of vascular bundle sheath. However, the results obtained by the author showed that Dendrocalamus and Bambusa are differentiated from each other. By considering another group, "i" identified according to the existence of separated vascular bundle sheath. Bambusa showed to have a separated vascular bundle sheath while Dendrocalamus does not have a separated vascular bundle sheath. Moreover, Bambusa showed peculiar characteristics in the figure of vascular development, i.e., one with an inward vascular bundle sheath and the other with a bivascular bundle sheath (inward and outward). In conclusion, the bamboo species used in this experiment were classified in group D, without any separated vascular bundle sheath, and in group E, with a vascular bundle sheath. Group E was divided into two groups, i.e., and group $E_1$, with bivascular sheath, and group $E_2$, with only an inward vascular sheath. Therefore, the Bambusa in group D as described by Grosser and Liese was included in group E. Dendrocalamus seemed to be the middle group between group $E_l$ and group $E_2$ under this classification system which is summarized as follows: Phyllostachys-type: Group A - Phyllostachys, Chymonobambus, Arundinaria, Pseudosasa, Pleioblastus, Yashania Pome-type: Group $B_2$ - Schizostachyum, Melocanna Hemp-type: Group D - Dendrocalamu Bambu-type: Group $E_1$ - Bambusa ghi.

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