• Title/Summary/Keyword: Local Retailers

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The Entry Modes Strategy in FDI: Expansion of Korean Retailers into China and Indonesia

  • Kang, Min-Jeong;Kim, So-Hyung
    • Journal of Distribution Science
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    • v.12 no.7
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    • pp.45-51
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    • 2014
  • Purpose - This study aims to explore the success of Lotte Mart in the global market, as well as examining the factors related to its entry methods. Research design, data, and methodology - This study analyzed the differences between Lotte Mart and E-mart in terms of their market entry methods, based on references and secondary data. This study is based on qualitative research that analyzes actual cases. Based on the results, this study analyzed and discussed actual cases based on references and secondary data, including newspaper interviews on Lotte Mart. Results - Lotte Mart succeeded in adapting to local markets it did this by ensuring the use of both mergers and acquisitions (M&As) and greenfield methods. In contrast, E-mart utilized only greenfield methods. Conclusions - The findings of this study may not be generalized to all industries, as only Lotte Mart was examined using the case analysis method. Therefore, the successful market entry modes of various companies should be explored in terms of FDI.

The Impact of Information Lead Time Improvement on the Distributed Supply Chain System (분산형 공급체인에서 단계별 정보지연 개선이 주는 효과)

  • 김철수;최근영
    • The Journal of Information Systems
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    • v.10 no.2
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    • pp.129-150
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    • 2001
  • In this study, we model a decentralized supply chain system which is managed by four types of centers, sequentially located: Retailer, Wholesaler, Distributor, and Factory Each center contributes to enhancing the performance of the supply chain system individually with its own local inventory information. Through experiments which are performed with a programmed simulation (like the MIT beer game), we investigate how the information lead time improvement in each center affects the whole system. And we show that the impact of the lead time improvement in the downstream, like retailers, affects more to the system than the one in the upstream, like factories, in a cost-effective way. Moreover, by using information lead time for each center, we analyze how much the extent of the improvement affects the whole system, especially for the total cost and the order level.

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Consideration of Traditional Markets' Impact on the Self-Consciousness of Retailers: A Focus on the S Marketing Area (전통시장 상권 활성화에 대한 상인들의 의식구조 고찰 : S상권을 중심으로)

  • Kim, Min-Soo;Jeon, Jin-Ho;Lim, Jin
    • Journal of Distribution Science
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    • v.12 no.2
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    • pp.17-25
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    • 2014
  • Purpose - This study used empirical methods to investigate the consciousness structure of vendors in the S marketing area, which is a commercial revitalization district in the country, and examined its effect on their business activities. Based on the results derived through the performance of an actual proof analysis, this study aims to facilitate the promotion of changes in the consciousness structures of traditional market vendors, with a view to allowing them to adapt to the current economic realities in the country. Further, this study aims to provide suggestions that would improve the efficiency of the commercial revitalization program of the government. Research design, data, and methodology - This study examined all the stores in the S marketing area using a questionnaire survey conducted over three weeks beginning on July 4, 2012, and involved the performance of a data analysis on 1,859 samples. The questionnaire consisted of two parts. The first part addressed the market revitalization and the second part addressed the store management strategies. Questionnaire responses were calibrated based on a Likert scale. Statistical analysis was conducted using PASW version 18.0. Results - The results of the analysis of the consciousness structure of merchants in the S marketing area have led to the discovery that they have a medium level of satisfaction with market revitalization. There was a difference in the perceptions of the concept of store management between merchants and customers. Merchants have poor strategies for store management, which do not go much beyond an imitation of the practices of large domestic discount stores. Conclusions - The appearance of big discount stores and the accompanying changes in people's consumption patterns have led to a decline in local market areas. The government has sought new ways to secure autogenic power for local markets. To create regional economies, the government enacted a revised "Law for creating traditional markets and shopping streets" in 2010 and introduced a commercial district revitalization program. This program, which originally supported only the S marketing area, has subsequently expanded into neighboring shopping districts so that the whole of the regional market can be revitalized. However, since the revitalization of the traditional market and the government support required for it were mostly limited to facilities, the result has not proved to be effective. Although there are several reasons why the government investment was characterized by poor efficiency, traditional market vendors' consciousness structure, which did not adapt well to the vagaries of time and its consequent changes, was a major cause. Only when vendors have a true merchant spirit can they have a real service focus that will enable them to clearly understand the distribution organization. This will have the effect of bring about complete customer satisfaction and will ensure the survival and development of traditional markets.

A Study on the Impacts of Manufacture's Sales Policy of Each Power Source on Sales Will by Agency (제조업체의 파워원천별 영업정책이 대리점의 판매의지에 미치는 영향에 관한 연구)

  • Lee, Han-Il;Park, Jong-Oh
    • Management & Information Systems Review
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    • v.29 no.3
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    • pp.23-50
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    • 2010
  • This study is that the manufacturer's sales policy power appeared on the source of local distributors through the sale willingness impact on research for coexistence between the manufacturer and dealer sales for developing policy. Dealers in terms of the sale of regional sales willingness says "manufacturers and retailers to connect to the regional distribution on the path to regional sales representative for manufacturers based on trust companies that supply products or products manufactured by local retailers for about a unilateral will sale whether the continued willingness and indicates the degree of business". This study topics are the results of this measure will sell a total of 24 entries are four factors. In variety sales policy of each power source, First, sales policy in Reward Power, compensatory power as the manager of promotion support, sales support and sales activities will significantly impact respectively. Second, sales policy of Coercive Power, reduction of credit limits act as an element of discontent and the sales will appear in the negative hypothesis of the influence was partially supported. Third, sales policy in Referent Power, the information trust, the most significantly impact of trade policy, respectively. Fourth, sales policy in Professional Power, delay time delivery of goods, sales of our product and sales knowledge will have a significantly effect appear to be related.

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The Effect of Global Retailer's Service Marketing Mix on Local Customers' Satisfaction and Loyalty Behaviors (글로벌 소매상의 서비스 마케팅믹스 요인이 고객만족 및 충성도에 미치는 영향)

  • Kim, Gil-Sung;Ryoo, Yun-Woong;Sui, Teng-Yu
    • Korea Trade Review
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    • v.42 no.2
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    • pp.77-96
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    • 2017
  • This paper attempts to analyze the influences of Korean global retailer's service marketing mix on local customers' satisfaction and their loyalty behaviors. Based on a literature review, three hypotheses are putting forward. The data from 139 customers in Weihai, China were used to test these hypotheses. This paper used Structural Equation Modeling to identify the relationship among the service marketing mix, the customer satisfaction and the customer loyalty behaviors. According to the empirical analysis, this study showed satisfactory data-fit of the proposed model and supported two of the three hypotheses. The empirical results indicated that the service marketing mix factors except the promotion factor take significant effect on the local customer satisfaction, and this in turn have influence on the customer loyalty behaviors. The result shows that Korean global retailers will need to leverage service marketing mix strategically when entering China. Practical implications of these findings needs to be considered for the global retailer to establish an effective marketing strategy.

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A Study on the Customers' Awareness for Modernizing the Facilities of Traditional Market (재래시장 시설현대화에 따른 소비자 인식도에 관한 연구 - 목포지역 소비자들을 대상으로 -)

  • Kim, Pan-Jin;Kim, Kyeong-Cho;NamKoong, Seok;Youn, Myoung-Kil
    • Journal of Distribution Science
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    • v.7 no.1
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    • pp.55-70
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    • 2009
  • There is under restructuring of whole distribution market in Mokpo recently. Large-Scale Discount Stores such as E-mart, Lotte Mart, Homeplus and Nonghyup Hanaro Mart entered successfully in the distribution environment in Mokpo. However, the small and medium distributors are falling rapidly, and traditional market is depressed. This status gives some positive effects to make one-stop, good price, good quality and great variety of shopping for saving the time and effort through changing the customers' life-style. This change, however, made the traditional market worse that played as the core channel for trading the local special products and an important role for local economic in retailing market. It is a threatening factor for that traditional market to recover the recession. The decline of traditional market and the bankruptcy of small retailing dealers accelerate the stagnation of local economic and commercial power. Therefore, it need a systematic and synthetical study to solve the negative factors for improving life of the local resident. This paper looked into the concept, issues and development strategy of traditional market that affect local economic development directly. It studied the customers' awareness for traditional market that was recently modernized the facilities in Mokpo. Particularly, based on the research material that was published last academic symposium, it looked about the issues and development strategy that could happen in traditional market not the market of a specific region but all over the country. Therefore, the purpose of this paper is that the central and local government and retailers get a help to make the efficient and useful development strategy through analyzing the effects of customers for modernizing the facilities of traditional market.

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The Study of Characteristics of Consumer Purchasing Private Brand Products at Large-Scale Mart (국내 대형마트의 유통업체 브랜드 상품 구매 소비자의 특성 분석에 관한 연구)

  • Hwang, Seong-Huyk;Lee, Jung-Hee;Roh, Eun-Jung
    • Journal of Distribution Research
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    • v.15 no.4
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    • pp.1-19
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    • 2010
  • As having the movement of developing private brand (PB) goods, domestic big retailers are facing up with new problems. Thus, it is required studies of PB products, and how consumers recognize PB products as a consideration commodity set. Also, it is worthy in order that it gives us the important meaning on the marketing strategy with focusing on evaluating the differences between customers buying PB grocery goods with respect to demographic characteristics and purchasing behaviors. PB has some advantages for customers and retailers. However, according to AC Nielson's report (2005), Asian and emerging market has 1/5 sales relatively to Western countries. But we can assume that the emerging market has the most potential growth through this result. As a result from several other studies, it becomes necessary to not only increase the rate of selling composition of PB product temporarily, but also analyze the characteristics of customers using big retailers and segmenting customer groups to make PB product as a consideration commodity set for them. In addition, it is needed to have a variety of acts of marketing. From studies related to PB, there is a prejudice - cheap products have low quality - but, evaluation by customers who have used those products shows neutral stand, and there is a study representing that it is the most important to accumulate the belief between the retailers selling PB products and consumers using those for the accurate evaluation and intention on purchasing. Also, by the result from analyzing the characteristics of customers buying PB products, we could assume that higher income and higher education level, more preference on PB products. Especially, according to TNS's research, the primary targets of PB product are 30's who seeks value for money and planned spending habits, and 40's who have teenager children, and are interested in encouraging themselves. This paper used Probit model to analyze the characteristics of consumers. This model helps us to analyze with the variables representing the demographic characteristics of consumers (gender, age, educational level, occupation, income level, living area), and variables related to purchasing behavior (visiting frequency on big retailers, the average amount that they pay for goods in there, and check-up which brand made those goods). The method we used in this study is by man to man interview and survey on-line with the rate of 89% and 11% in Seoul and Gyunggi Province, respectively, for about one month from the beginning of February, 2008. As a result of this, under the assumption that people buy PB products more as long as they go shopping more, it was not meaningful for target groups which we pointed out as frequently visiting customers to be. Although, we have expected women buy more PB products than men do, gender doesn't mean anything for the result. And, it has inferred that married people buy more PB goods than singles do. It was also meaningless with variables related to occupation. Because housewives are often exposed to any kind of supermarket than workers are, we could not get any relatives. Moreover, we couldn't proof that younger generation prefer big retailers more than older people who 50~60's. Education levels doesn't affect on the purchase of PB product as well. Related to living area, the result is statistically not similar as we expected whether living in Seoul or not. It shows there is no relationship with the preference on retail brands and PB products, and it is similar with the study researched by TNS(2008) that customers tend to buy PB product impulsively no matter which brand it is and where they are even though their shopping place is the big market where customers are often using. Variables on which we had meaningful results are income level and living place. That is, customers who have 3,000,000~6,000,000 WON every month on average are more willing to buy PB products than other customers whose income is over 6,000,000 WON, and residents not living in Seoul prefer PB goods than those who are living in Seoul. To explain more about what we got, if there is only one condition about customer's visiting frequency on big retails, we could come up with this result that more exposed to PB products, more purchasing frequency. Consequently, it brings the important insight that large retailers have to prepare something to make customers visit them often to increase selling rate of PB products. To demonstrate the result of analyzing more, what is more efficient variables are demographically including marital status, income level, and residential area to buy items that affect the PB products and could include the frequency of visiting large markets by the purchase habits. Specifically, then, married couples rather than singles, middle-income customers than high-income customers, and local residents not living in Seoul than customers in Seoul are more likely to purchase PB goods. In addition, as long as a customer visits two times more, then the purchasing rate of PB products is to increase over 5.3%. Therefore, it seems that retailers are better to make a shopping place as fun and comfortable places. With overwhelming the idea that PB products are just cheap, one-time purchase goods, it is needed to increase the loyalty on those goods like NB products, try to make PB products as a consideration products set, and occur to sustainable sales. Especially, as suggested by this paper, it seems like it strongly needs to identify the characteristics of customers who prefer PB, to segment those customers, and to select the main target, and to do positioning with well-planned marketing strategies. Then, it is able to give us a meaningful point on marketing strategy by developing the field of PB study, identifying the difference of life style and shopping habits of customers.

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Mobile app Loyalty of Cross-over Shoppers: A Comparison of Korean and Chinese (한·중 크로스오버 쇼퍼들의 모바일 앱 충성도에 대한 탐색적 연구)

  • Park, Eunjoo;Jin, Gu;Park, Shinyoung
    • Fashion & Textile Research Journal
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    • v.20 no.3
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    • pp.293-303
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    • 2018
  • Since 2009, consumers could access a new shopping channel called 'mobile shopping' with the generalization of smartphones. Mobile shopping (based on wireless communication technology), emphasizes convenience differentiated from internet shopping. A recent report introduced fashion products as powerful global drivers for mobile shopping sales. Korea and China have the highest percentage of consumer mobile shopping experiences compared to other countries. This study investigates the effects of cross-over shopping orientation, perception of app attributes, and flow on app loyalty that compared Korean and Chinese consumers. We obtained 652 usable questionnaires from two local college students; subsequently, data were analyzed by using factor analysis, Cronbach's alpha, and regression analysis using SPSS 21.0 Package. The study results showed that the cross-over shopping orientation affected perception of app attributes that included Review/Information, Design, Response and Product. Product only affected Flow, which reflected a high similarity between Korean and Chinese consumers. However, Korean and Chinese consumers showed remarkable differences in the factors related to app loyalty. Therefore, the results indicate that retailers of fashion products have developed strategies to improve mobile sales and increase the app loyalty of cross-over shopping orientation consumers.

The Empirical Study on Purchasing Behavior between Costco Wholesale Members and Non-Members

  • KIM, Jae-Jin
    • Journal of Distribution Science
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    • v.17 no.9
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    • pp.25-33
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    • 2019
  • Purpose - The purpose of the study was to seek to find out what factors having differences between paid membership customers (Costco membership) and general customers in retail industry. Since Costco operates differently from other conventional retailers, which is expected to have a substantial impact on consumers' preference of retail stores. Research design, data, and methodology - The survey conducted covered 1,000 adults in their 30s~50s living in Goyang and Gwangmyeong where Costco runs stores to determine the effects of Costco's local market-entry from consumer perspectives. 500 respondents were surveyed in each region and those working in the retail sector were excluded to ensure the objectivity of the answers. Results - Costco members in Goyang considered the price, bulk purchasing, and membership benefits as important criteria when choosing their retail store. On the other hand, as for Gwangmyeong, the non-member group's prominent characteristic was that they considered accessibility including travel distance and location and in-store amenities including food court services as important criteria for decision-making. Conclusion - Unique business model of Costco shows a statistically significant difference in terms of consumer awareness. the feature of Costco served as an critical criteria for consumers in their purchasing decision. Moreover, Bulk packaging purchases at Costco results in a strong supplementary relationship with neighborhood supermarkets.

A Study on Marketing Structure and Efficiency of Major Cash Crops - With Special Reference to Red Peppers and Garlics - (경제작물(經濟作物)의 유통구조(流通構造) 및 능률(能率)에 관(關)한 연구(硏究) - 고추, 마늘을 중심(中心)으로 -)

  • Kim, Sang Gee
    • Current Research on Agriculture and Life Sciences
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    • v.1
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    • pp.215-238
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    • 1983
  • The study was conducted to indentify systematically current marketing structure and markeiing efficiency of major cash crops such as red peppers and garlics. That various data and information have been used to analyze the problems related, some of them have come from secondary sources, but major parts of real circum stances were primarily obtained from the scheduled field survey. Some of valuable facts and consequences stemmed from the research can be summarized as fellows: First of all, the commercial rates of peppers and garlics produced by sample farms were 87.5 percent and 69 percent, respectively. On the other hand, annual handling volumes per marketing firm of those two crops were on the average estimated into 51,000 kyun(about 600gr) for peppers and 20,000 hundred bulbs of garlic. As seen physical losses over the entire marketing channels of each crop, it was approximately calculated in 14.7 percent of peppers and 21.1 percent of garlic, respectively. Secondarily, it was found that marketing chanells of these crops are very diversified and complex. However, the five-staged chanell is typical: i.e., from producers to local consigners, to local carry-out merchants, to consigner-wholesales, and finally to retailers. Thirdly, it was also estimated that gross marketing margin, marketing cost and profit based on average grade of peppers were 56.1 percent, 22.6 and 33.5 percent, respectively, having 43.8 percent of farmer's share, and those of garlic 38.9, 17.1, 21.8 and 61.1 percent, separately. To the end, it seems that current collective bargaining power of farmers' cooperatives is virtually weak compared to free individual marketing firms in terms of bssiness volumes and quantity handled over the year.

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