• 유통과학연구
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• 제16권2호
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• pp.89-99
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• 2018

Purpose - In this study, we discuss the current status and barriers of digital transformation focused on small businesses. More specifically, this study consists of two studies. The purpose of study 1 is to investigate the effect of digitization of small businesses on the sales of stores and the number of visiting customers. The purpose of Study 2 is to examine the status and obstacles of online channels use by small businesses. Research design, data, and methodology - In Study 1, we will examine the changes in sales and visitor numbers of stores that are rapidly adapting to digital transformation among small business. For this, we utilize the actual situation of store management survey conducted by the Small Enterprise and Market Service. Specifically, multiple regression equations were used to determine whether blogs and online shopping malls were operating, and the proportion of credit cards to sales as independent variables and sales and number of visiting customers as dependent variables. Next, in Study 2, we surveyed the 15 small business owners in the latest survey on the actual situation of store management survey conducted in 2015, and conducted an in-depth interview to examine the barriers to the use of online channels by small business. Results - As a result of study 1, it is found that the small business who run the blogs have higher sales and visits than the small business who do not. However, there is no difference in the sales and the number of visiting customers between the stores that operate the online shopping malls and those that do not. Second, the higher the proportion of credit cards, the higher the sales and the number of visiting customers. In study 2, we analyzed the barriers to the expansion of online channels by in-depth interviews. Interviews show that barriers to access to online channels are limited by search neutrality, high commission burden, and low bargaining power. These problems are caused by the insufficiency of small business compared to online and mobile portal and O2O platform vendors. Conclusions - This study suggests that small business who have difficulty in establishing direct online channels need digital transformation of small business. In addition, when using such an external platform, we have identified the problems that small business face.

• 유통과학연구
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• 제16권1호
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• pp.87-99
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• 2018

Purpose - The Export Infrastructure Strengthening Program(EISP) is a project to expand exports of agri-food products through providing customized export information to food distribution companies and supporting overseas information activities. A total of 39.6 billion won was provided by 2016. So, the purpose of this study is to analyze whether EISP is effective for expanding exports of agri-food products. Research design, data, and methodology - A simple average difference between the export performance of the policy beneficiaries and the non-policy beneficiaries can be biased if the export capacity or inherent characteristics of the enterprise are not taken into consideration. In order to solve the problem of such a bias, the propensity score matching(PSM) method has been employed in this study. PSM is a method of converting the characteristics of an export company into an index through logit analysis and then reducing the matching to one dimension to improve the accuracy of the performance measurement. Results - The balancing test was conducted to determine how the characteristics of the policy beneficiary group and the matched policy non-beneficiary group corresponded to each other. As a result of the test, we could not reject the null hypothesis that there was no difference between the two groups, so that after the matching, the two groups were similar and the explanatory variables were well controlled. Using the nearest neighbor matching with propensity score estimating through logit analysis, we estimated average treatment effect on the treated(ATT). The food companies participating the EISP had the effect of increasing the exports of $ 5.88 million. As a result, the number of export contracts increased by 11.77, the number of exporting countries by 7.52, the number of export items by 47.51, and the number of buyers' consultation by 3.50. And overseas marketing expenses increased by 35.92 million won. Except for the number of export contracts, other export performance results showed statistically significant results. Conclusions - As the EISP has a positive effect on the expansion of agro-food exports, efforts should be made to find out the limitations or problems of the policy in the future and to make a greater contribution to the increase of exports.

• 유통과학연구
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• 제14권6호
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• pp.81-87
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• 2016

Purpose - In recent, a research finds that advanced selling can influence a consumer's choice(Kim et al., 2013). Advanced selling is defined as the new product launching strategy which company allows consumers to preorder new product before its release(Chu & Zhang, 2011). Prior researches have focused on the benefits of advanced selling(e.g., information gathering for demand prediction, an advantage for pricing strategy, and so on) for companies using this strategy(Chen, 2001; Chu & Zhang, 2011; Li & Zhang, 2013; Tang et al., 2004; Xie & Shugan, 2009). However, Kim et al.(2013) find it can also influence a consumer's choice. In detail, they suggest that when consumers use advanced selling, they are likely to prefer high-performance options rather than low-price options based on construal level theory(Trope & Liberman, 2003). In this paper, we tried to expand the prior researches for finding the mechanism of the influence of advanced selling on a consumer's choice. The purpose of this research is to test the mediating effect on the influence of advanced selling. Research design, data, and methodology - To find the mechanism of the influence of advanced selling, we designed an experiment for testing mediation effect. we recruited 93 students from a university. We assigned participants into one of two groups using randomization method. The participants with each group were given a scenario describing the sales strategy. Finally, they made a choice between high-performance option and low-price option. Sequentially, they also responded some questions for testing mediation effect. Results - First, we replicated prior research to test the influence of advanced selling. As a result, we could find that consumers prefer the high-performance option when they preorder it to purchase at the time of consumption. Thus, the replication result is the same as prior research. Second, we tested that advanced selling can influence the perception of temporal distance. The results confirmed that consumers perceived longer temporal distance in advanced selling condition(β = 1.575, SE = 0.272, p < 0.001). Third, we predicted that temporal distance can increase the importance of desirable attributes and decrease the importance of feasible attributes. The results suggested that temporal distance decreased significantly the importance of attributes related to feasibility(β = -0.19, SE = 0.07, p < 0.01), however, it had non-significant effect on increasing the importance of desirable attributes. Finally, we used Sobel-test for testing mediation effect, and it confirmed that the importance of feasible attributes had mediating role of the influence of advanced selling(Sobel test statistic = -2.110, SE = 0.111, p < 0.05). Conclusions - In this paper, we tried to find the mechanism of the influence on advanced selling from a consumer's choice. With an experiment, we confirmed that the importance of feasible attributes could mediate the effect on advanced selling. Therefore, we suggested some theoretical and practical contributions from this research. Finally, we discussed research limitations and suggested future research topics.

• 유통과학연구
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• 제13권10호
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• pp.83-91
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• 2015

Purpose - The purpose of this study is to identify whether the operation of cultural centers in discount stores contributes to their profitability. Thus, this study is aimed at exploring how the lifestyles of customers who use the cultural centers influence their intention to use the discount stores. Specifically, the effect of shopping value on the correlation between the lifestyle types and usage intention of the customers were examined through a structured research model. To verify the effect, a survey on 139 customers of the Cultural Center of Nonghyup Hanaro Club's S branch was conducted and the valid questionnaires were used for analysis. Research design, data, and methodology - The findings are as follows. First, the lifestyles seeking self-realization had a positive effect on utilitarian value, and lifestyles seeking pop cultures had a positive effect on hedonic value. Second, the mediating effect of shopping value on the correlation between the lifestyle types and usage intention of the customers is as follows. Utilitarian value had a mediating effect only on the lifestyles seeking self-realization. In case of lifestyles seeking pop cultures, the use of Cultural Center had no effect on the intention to use the discount store. Third, an analysis of a revised research model revealed that the store usage intention of lifestyles seeking pop cultures can be enhanced by boosting the utilitarian value through hedonic value. Results - The findings suggest the following. Customers with lifestyles seeking self-realization, who value what is beneficial to them with little attention to the perceptions of others, are highly interested in the benefits they can gain from shopping. As for customers with lifestyles seeking pop cultures, they are highly likely to consume products popular in a particular culture such as new products and sports, based on financial stability they pursue. Thus, they prefer more subjective, personal experience, unlike consumers pursuing utilitarian value. Conclusions - As a result, the former pursues hedonic value gained in the process of shopping with fun and joy, rather than doing shopping with a particular purpose in mind. Therefore, Cultural Centers need to offer information that fits the lifestyles of the users so that they are more likely to use the discount stores. However, if the Cultural Centers offer unified, profit-driven products and information, just to increase their store sales, it can backfire, which occurred in the past. On the other hand, if they provide information that fits the lifestyles of the users, it can actually increase the sales. Also, the findings suggest that sophisticated marketing strategies that can boost the hedonic value of customers by linking the educational contents of Cultural Centers to actual shopping, which is beneficial to consumers, should be set and operated by discount stores. In particular, customers with lifestyles seeking self-realization can be encouraged to use the stores by making them recognize the utilitarian value. However, the use of Cultural Centers doesn't necessarily lead to higher sales among customers with lifestyles seeking pop cultures. As mentioned previously, unified marketing strategy is not as effective for Cultural Centers of large discount stores.

• 유통과학연구
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• 제12권9호
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• pp.113-123
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• 2014

Purpose - After Korea's Free Economic Zone (FEZ) system was launched in 2003, there have been many debates about upgrading it and its support systems. However, as of 2013, there were insufficient results. Further, upon the designation of the East Coast and Chungbuk as official FEZs from February 4, 2013 by the 56th the Commission, there is a concern that many people are in the area designated as FEZ 8. This study investigates Korea's new FEZ system as part of Korea's primary new economic development policy in the 21st century. Therefore, this study examines views on the weaknesses of the past ten years of FEZs so that Korea can expand its FEZ system. Research design, data, and methodology -Many countries have considered the FEZ as an economic special zone. By reviewing previous research models, this study provides an update using recent data and materials, until 2013, from the Center of Free Economic Zones. In previous studies, the lack of support systems was attributed to proposals to ensure operational autonomy and differentiation of each FEZ; however, the main cause cannot be solved through regulatory issues, as difficulties caused by the operational system are responsible for the problems. We wish to analyze the FEZ, specifically the operational system; this is the main issue of this study. Results - After the first FEZs were established, it became necessary to have basic plans, as investment results in 2013 compared to the same period this year led to lower earnings in the first half of 2014. We propose an improvement of the operational system because in the free economic zones, the operational system is the root cause of the underlying problem. The results of this research are as follows. The weak management of the FEZ system is influenced by weak investment, delayed development, foreigners' living facilities, benefits of foreign investments, the control tower's policy making decision process, quickness of the process of satisfying legal requirements, and support For the independence of FEZs. Conclusion - Local governments do not have legal rights over FEZ deregulation and investment industries. This study suggests that the local government should have more independence from the central government. Moreover, independent management committees are more effective for ensuring public rights, better employee responsibilities, and better-qualified personnel. The FEZ committee struggles to effectively manage the locations of FEZs, foreign investments, and related facilities under the control of the Ministry of Trade, Industry and Energy. Thus, the FEZ committee should be under either the Prime Minister's office or the Presidential committee, to control and effectively coordinate between the local and central governments. If the problem clearly applies to the operational system in 2013, it is necessary to provide materials and methods so that the results of the first half of 2014 can be computed despite the data limits and lack of resources, and the data can be analyzed in a more diachronic thesis.

• 유통과학연구
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• 제11권10호
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• pp.47-53
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• 2013

Purpose - Six months have passed since the amendment of the SSM regulation law; however, as yet, there is no confirmed research or report on the effects of this amendment, which are indefinite. Further, there have been no attempts to study the effects of the SSM regulation law from the consumers' viewpoint, which is important because consumers are the main agents that are greatly influenced by the amendment law. Therefore, this study aims to investigate the consumers' attitude toward the SSM regulation law as well as the effects of the SSM regulation law on the changes in purchase behavior. Research design, data, and methodology - This study was initiated from four research problems that are linked to consumer reaction to the SSM regulation law. Research problem 1: What is the consumers' reaction (perception, attitude, and perceived fairness) to the SSM regulation law? Research problem 2: How do the consumers' reactions to the SSM regulation law differ by consumers' characteristics? Research problem 3: Could the SSM regulation law change a consumer's purchase behavior? Research problem 4: Is it necessary to amend the SSM regulation law? This study collected the data through the interview and survey of housewives for the purpose of solving the research problems. The interview was conducted as a pilot study for the field survey. We interviewed three housewives, who were: an employed housewife, a full-time homemaker, and a manager of a housewife club, respectively. We then conducted a field survey of 232 housewives who were housewife club members or elementary school parents in Chunghcheong-do. Results - We verified the reliability and validity of the data, and analyzed it to solve the research problems. The main findings of this study were as follows. First, consumers still have a positive attitude toward large discount chains and SSM, which has been the case since the law was introduced. Second, perceived risk of consumers associated with traditional markets and small neighborhood shops was low. Third, consumers think that amendments of the SSM regulation law are important, and they positively assess the satisfaction, necessity, and propriety of the law. Fourth, although the SSM regulation law caused inconvenience to consumers, this law did not have any influence on the usage frequency and the use-behavior of large discount chains. Finally, consumers reacted very negatively to the toughening up of the SSM regulation law. Conclusions - In short, consumers still have a positive attitude toward the SSM regulation law. However, this act did not have any influence on the use-behavior of large discount chains (General Super Market). Thus, policy making authorities require active communication and promotions to enhance the effect of the SSM regulation law. This study was of the nature of exploratory research, which did not focus on hypothesis testing, but on finding solutions to the research problems. Therefore, this study is no more than a simple data analysis. Future studies should attempt to investigate the actual effects of the SSM regulation law, on the basis of sufficient literature review and real sales data.

• Journal of Korea Trade
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• 제24권4호
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• pp.71-94
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• 2020

Purpose - Multi-National Enterprises (MNEs) tend to face a high level of institutional pressures in regions with high institutional development level. When complying with institutional pressures, firms try to make decisions to maximize profit while minimizing the risks to them. The purpose of this study is to investigate the influence of the institutional development level on institutional compliance timing by MNEs and the relationship between compliance speed and corporate performance. Design/methodology - The research focuses on three main variables, which are the institutional development level (as a determination of the institutional pressure level), the firm's compliance speed (as a determination of the compliance timing), and the firm's financial performance (as a determination of the corporate performance). We collected 19,869 firm-level data from CSMAR (the China Stock Market and Accounting Research), 6,922 CSR data from RKS (the Rankins CSR Ratings), and province and city-level data from the NERIM (National Economic Research Institute Index of Marketization) and NBSC (National Bureau of Statistics of China). The firms in China were chosen for analysis, and the analysis period was from 2008 to 2017. Random Effects GLS Regression was used to test the relationships among the variables. Findings - This study examined the effect of the institutional development level on the firm's compliance speed, together with the effect of compliance speed on the firm's financial performance of the MNEs in China. We found that the institutional development level positively influenced firms' financial performances, which means the firms' financial performances are better in the region with a high institutional development level. The compliance speed of institutional practice by firms was faster in the higher level of institutional development. However, the firm's delayed compliance led to better financial performance. Originality/value - Studies in the resource dependence view of Institutional Theory often fall short in understanding the theory by overlooking the firm's active decision-making. Thus, the findings do not present a full scope of corporate performance in this regard. This study not only found a way to test the role of a firm's independent decision-making (i.e., compliance timing) when facing the institutional pressure but also prove the significant role of the compliance timing on corporate performance. Also, we were able to test the effect of institutional development level, controlling location-specific variables because we used CSR performance data for MNEs operating in China. Lastly, by doing the above, the findings of this study suggest practical implications to the industry practitioners in MNEs.

• Journal of Korea Trade
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• 제26권2호
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• pp.45-64
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• 2022

Purpose - This paper examines South Korea's potential status as a carbon leakage country, and the level of risk posed by the Korean emissions trading scheme (ETS) for Korean industries. The economic effects of border carbon adjustments (BCAs) to protect energy-intensive Korean industries in the process of achieving the carbon reduction target by 2030 through the Korean ETS are also analyzed. Design/methodology - First, using the Korean Input-Output (IO) table, this paper calculates the balance of emissions embodied in trade (BEET) and the pollution terms of trade (PTT) to determine Korean industries' carbon leakage status. Analyses of the risk level posed by carbon reduction policy implementation in international trade are conducted for some sectors by applying the EU criteria. Second, using a computable general equilibrium (CGE) model, three BCA scenarios, exemption regulations (EXE), reimbursement (REB), and tariff reduction (TAR) to protect the energy-intensive industries under the Korean ETS are addressed. Compared to the baseline scenario of achieving carbon reduction targets by 2030, the effects of BCAs on welfare, carbon leakage, outputs, and trading are analyzed. Findings - As Korea's industrial structure has been transitioning from a carbon importing to a carbon leaking country. The results indicate that some industrial sectors could face the risk of losing international competitiveness due to the Korean ETS. South Korea's industries are basically exposed to risk of carbon leakage because most industries have a trade intensity higher than 30%. This could be interpreted as disproving vulnerability to carbon leakage. Although the petroleum and coal sector is not in carbon leakage, according to BEET and PTT, the Korean ETS exposes this sector to a high risk of carbon leakage. Non-metallic minerals and iron and steel sectors are also exposed to a high risk of carbon leakage due to the increased burden of carbon reduction costs embodied in the Korean ETS, despite relatively low levels of trade intensity. BCAs are demonstrated to have an influential role in protecting energy-intensive industries while achieving the carbon reduction target by 2030. The EXE scenario has the greatest impact on mitigation of welfare losses and carbon leakage, and the TAF scenario causes a disturbance in the international trade market because of the pricing adjustment system. In reality, the EXE scenario, which implies completely exempting energy-intensive industries, could be difficult to implement due to various practical constraints, such as equity and reduction targets and other industries; therefore, the REB scenario presents the most realistic approach and appears to have an effect that could compensate for the burden of economic activities and emissions regulations in these industries. Originality/value - This paper confirms the vulnerability of the Korean industrial the risk of carbon leakage, demonstrating that some industrial sectors could be exposed to losing international competitiveness by implementing carbon reduction policies such as the Korean ETS. The contribution of this paper is the identification of proposed approaches to protect Korean industries in the process of achieving the 2030 reduction target by analyzing the effects of BCA scenarios using a CGE model.

• 유통과학연구
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• 제12권4호
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• pp.23-30
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• 2014

Purpose - The purpose of this study is to analyze the efficiency of retail businesses by dividing domestic retailers into discount stores, super supermarkets (SSMs), and department stores. It suggests retail-business investment strategies by using data environment analysis (DEA) to analyze how input elements such as store area, parking lot area, number of employees, and sales management expenses for the convenience of customers positively affect business performance measurements such as sales and visiting customers per day. Research Design, Data, and Methodology - The DEA model calculates a ratio of the weighted mean of various inputs to the weighted mean of various outputs and measures the efficiency of a specific decision making unit (DMU). The study included 19 companies (five discount store DMUs, ten SSM DMUs, and four department store DMUs). Because the business elements and sizes of retail store DMUs used in this analysis are different, average per-store input and output variables were used. Data were collected from "The Yearbook of Retail Industry in Korea (2012)." DEA analysis was used to determine differences in efficiency among discount stores, SSMs, and department stores in terms of the business elements of each retail business. It was also used to determine what business elements were excessively invested in by comparing and analyzing efficiency by business elements using SPSS software's ANOVA (Analysis of Variance). Results - The CCR and BCC efficiency analysis found that the efficiency of discount stores is low. We believe that the saturation state of discount stores is a major factor. The ANOVA analysis confirms the VRS hypothesis with a statistically significant difference among the three groups, based on an analysis confidence interval of 95%. CRS and SE were not found to be significantly different among the three groups. As for the post hoc test, which concretely shows differences by group, the Scheffe's multiple comparison analysis test found the average differences between group 1 (discount stores) and group 2 (SSM) to be statistically significant. Conclusions - The DEA efficiency analysis implies that investment in input elements, including store area, parking lot area, and sales management expenses, were excessive in the case of discount stores, while SSMs need to invest more in promotion activities such as gifts, events, and coupons for customer management. Department stores have found that small companies invest excessively in input elements. Department stores need to invest in differentiated shopping mall complexes. This study was limited in acquiring statistical data; various input variables which might have shown more secure customer management and promotional expenses could not be applied. As the study was limited in various aspects of the efficiency analyses because financial analyses of the companies and of causal relationships, including satisfaction and loyalty of visiting customers, were not done, these aspects will be examined in the next study.

• 유통과학연구
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• 제14권2호
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• pp.123-133
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• 2016

Purpose - Understanding how service convenience drives shopping performance is imperative for retailers such as department and large discount stores. Retailers have to enhance shopping productivity by reducing the costs of shopping, as convenience triggers customers' perceived shopping value, leading to customer satisfaction, and ultimately patronage behavior. Consumers, generally considering time as a scarce resource, are more sensitive to the time costs of tasks in regard to shopping trip, differently from forming perceptions of convenience in time orientation. Therefore, this study attempts to examine the moderating effects of consumers' time orientation on the relationships among service convenience of retailers and shopping performances such as shopping value and service performances. Research design, data, and methodology - The department and discount store chains were chosen as the point of analysis in this study. Data were collected from a survey of real-life consumers and all respondents were screened to ensure only those who had visited in the department and discount store chains within past six month prior to the day of data collection. Out of 600 self-reported surveys that were distributed, a total of 530 responses were returned and after excluding 20 incomplete responses, the final sample size was 510. The three hypotheses were proposed and tested in this study. The one hypothesis was on the moderating effects of time orientation for the effects of service convenience on shopping value (hedonic and utilitarian shopping value). The other two hypotheses were on the comparisons between high and low time-oriented customers with the effects in shopping value from service performance. Hierarchical moderated regression analysis was used to test the hypotheses. Results - The results suggest that the effect of service convenience on utilitarian shopping value and the positive effect of utilitarian shopping value on customer satisfaction are greater in low time orientation than high time orientation customers. Conversely, when customers are highly oriented toward time, the effects of hedonic shopping value on customer satisfaction and revisit intention are greater than for customers who are lowly oriented toward time. Conclusions - This study has two-fold significance. First, this study contributes to the consumer behavior and services marketing literature by incorporating customers' time orientation into the service convenience-shopping performance. Although the effect of service convenience on shopping performance might differ from customers' perceptions concerning shopping, there has been little investigation or comparison between customers' perception on time. This study is a first attempt to consider how the effects of service convenience on shopping value and service performance vary with differing levels of customers' time orientation. This study advances prior studies by showing that the service convenience-shopping value and service convenience-service performance relationships vary across different combinations of the customer's time orientation. The findings of this study suggest that the retailers need to enhance the experiential aspects of the stores for their high time-oriented customers. Conversely, for the low time-oriented customers, the retailers should boost the visual distinctiveness and ease of store navigation.