• Title/Summary/Keyword: Online Distribution Channel

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Storytelling and Social Networking: Why Luxury Brand Needs to Tell Its Story

  • Park, Min-Sook
    • Journal of Information Technology Applications and Management
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    • v.27 no.5
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    • pp.69-80
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    • 2020
  • Recently, luxury brands are selling their products to consumers using their own direct online channels. In the online channel, marketing strategy through storytelling is needed because consumers do not have enough product experience. Therefore, luxury brands are actively utilizing social media and delivering stories includes their birth and growth. Unlike mass media, social media communicates with consumers more quickly and frequently and delivers the story of brand naturally. This study classifies luxury brands into four groups based on story recognition of luxury brands and self-esteem, and analyzes and materializes each group of the propensities of luxury brand consumption. It also tries to draw strategic implications for effective SNS advertising by analyzing narrative transportation on SNS advertising, interests in videos, and the interests in story based on these typified groups of luxury consumption. The result of the analysis shows that there is a difference in consumption propensity among consumers who were classified into four groups according to story cognition of luxury brands and self-esteem. There is also a difference in the response to narrative images through SNSs, such as narrative transportation, interests in videos, and interests in brand stories.

Trust Building of Buyers who perceive Quality Risk High in Online Used Car Transactions: A Dyadic Trust Relationship (온라인 중고차 거래에서 품질위험을 높게 지각한 구매자의 신뢰형성: 구매자와 대리인 양자간 신뢰)

  • Lee, Seung-chang
    • Journal of Distribution Science
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    • v.7 no.3
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    • pp.49-69
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    • 2009
  • With the proliferation of electronic commerce, online transactions have become a norm. Its enormous potential, however, can be truly realized if consumers feel comfortable facing invisible sellers over the Internet, a virtual business channel. Trust has been identified as a key component in many e-Commerce studies. The purpose of this study is to find out which factors play a major role in building buyer trust and how the build-up trust affects buyer's purchase intention in online used car transactions. Based on the information asymmetry, TAM (Technology Acceptance Model), and the trust theory, our research model includes factors such as a buyer's propensity-to-trust, institutional characteristics (inspection and warranty policy), word-of-mouth referral, perceived size, and perceived benefits as independent variables. The model also includes trust as a mediate variable, purchase intention as a dependent variable, and perceived quality risk as a moderate variable. The research model is tested by analyzing 448 sample data gathered from used car websites. The result shows that the trust has significant effects on the online purchase intention, and institutional characteristics have been identified as one of the most significant factors for trust building in used car websites. For those who perceive quality risk high, actual purchasing behavior occurs only when they have trust on the used car websites, indicating that trust plays a vital role as a mediate variable. This study suggests that buyer trust on the used car websites is important to increase buyer's online purchase behavior.

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Price Comparison between Online and Offline Distribution Channel: Differences of Store type, Product Category and Price type (온라인과 오프라인 유통경로의 가격비교에 관한 연구: 점포, 제품, 가격유형에 따른 차이를 중심으로)

  • Park, Cheol;Kim, Dong-Tak
    • Journal of Distribution Research
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    • v.11 no.1
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    • pp.99-124
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    • 2006
  • The purposes of the study are two-folds. First, it analyzes how factors other than price(e.g. delivery service, saving point policies, free gifts) impact total price for various products and different types of stores. Second, it analyzes how to increase market efficiencies through price level, price differences, and the frequency of price changes for different shops, various products and different types of transactions. By analyzing the price level within different types of stores, there found that prices at on-line store were lower than off-line shops. It also found price differences between pure on-line, hybrid, and off-line store. Comparing prices by product size, there found that pure on-line shops have a lower price compared to others. The results showed that on-line store had lower price variation compared to off-line shops. When comparing pure on-line store to hybrid store, hybrid store had lower price variation. In terms of the frequency of price changes, hybrid stores had higher price fluctuations. In terms of total price differences for delivery distances, pure on-line store had great price fluctuation, excluding cosmetic goods. In conclusion, if we consider price level and price fluctuations, on-line store had more efficiencies and was superior in terms of price effectiveness. Hybrid shops, on the other hand, had greater advantages for seasonal goods and dominant products. Therefore, market entry strategies should differ based on order quantity, type of store(pure on-line, hybrid, off-line), product characteristics(seasonality, product life), etc.

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A Study on Consumer Characteristics According to Social Media Use Clusters When Purchasing Agri-food Online (온라인 농식품 구매시 소셜미디어 이용 군집에 따른 소비자특성에 대한 연구)

  • Lee, Myoung-Kwan;Park, Sang-Hyeok;Kim, Yeon-Jong
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.16 no.4
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    • pp.195-209
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    • 2021
  • According to the 2019-2020 social media usage survey conducted by the Seoul e-commerce center, 5 out of 10 consumers have experienced shopping through social media. The cost of traditional advertising media has been reduced and advertising spending on social media has risen by 74%, indicating that social media is becoming a more important marketing element. While the number of users of social media has increased and corporate marketing activities have increased accordingly, research has been conducted in various aspects of marketing such as user motivation for social media, satisfaction, and purchase intention. There was no subdivided study on the differences in the social media usage frequency of consumers in actual purchasing behavior. This study attempted to identify differences in consumer characteristics by cluster in the agrifood purchase situation by grouping them by type according to the frequency of use of social media for consumers who purchase agri-food online. Product involvement, product need, and online purchase channel Consumer characteristics such as demographic distribution, perceived risk, and eating and lifestyle in each cluster were checked for the three agrifood purchase situations including choice, and types for each cluster were presented. To this end, questionnaire data on the frequency of social media use and online agrifood purchase behavior were collected from 245 consumers, and the validity of the measurement variables was secured through factor analysis and reliability analysis. As a result of cluster analysis according to the frequency of social media use, it was divided into three clusters. The first cluster was a group that mainly used open social media, and the second cluster was a group that used both open and closed social media and online shopping malls; The third cluster was a group with low online media usage overall, and the characteristics of each cluster appeared. Through regression analysis, the effect on product involvement, product need, and purchase channel selection when purchasing agri-food online through each of the three clusters was confirmed through regression analysis. As a result of the regression analysis, the characteristic of cluster 1 in the situation of purchasing agri-food online is a male in his 30s living in a rural area who has no reluctance to purchase agri-food on social media or online shopping malls. The characteristics of cluster 2 are mainly consumers who are interested in purchasing health food, and the consumer characteristics are represented. In the case of cluster 3, when purchasing products online, they purchase after considering quality and price a lot, and the consumer characteristics are represented as people who are more confident in purchasing offline than online. Through this study, it is judged that by identifying the differences in consumer characteristics that appear in the agri-food purchase situation according to the frequency of social media use, it can be helpful in strategic judgments in marketing practice on social media customer targeting and customer segmentation.

Channel Innovation through Online Transaction processing System in Floral Wholesale Distribution: FLOMARKET Case (화훼도매 온라인 거래처리 시스템을 통한 유통경로 개선방안 연구: (주)플로마켓 사례)

  • Lee, Seungchang;Ahn, Sunghyuck
    • Journal of Distribution Science
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    • v.8 no.1
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    • pp.21-33
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    • 2010
  • The ICT(information & communication technology) led to a dramatic change of floral distribution service, a phase of competition between wholesales and retail stores, and distribution channels in floral industry. It was expected that a role of the intermediaries in this industry would have reduced due to the improvement of transaction process by ICT. However, the ICT made to overcome a regional limit of the floral retail distribution service leading to an increase in sales and enlargement of the stores. And even it made possible to bring out another type of intermediaries such as private associations. This case study focuses on what kinds of efforts the floral wholesale distributors have made to enable a distribution process more smoothly between the wholesale distributors and retail stores through the information system, and what the failure factors in adopting the information system have been. This paper is also to examine how the wholesale distributors have changed themselves to gain dominant positions in distribution channels. As a result of the study, it was found that the intermediaries mostly failed in successfully achieving the distribution channel innovation through the information system because of several main reasons. FLOMARKET Inc. tried to innovate a distribution channel to obtain high quality goods through consolidating a wholesale distribution market in that segregated both floral joint market from free markets. after implementing the information system with consideration of the failure factors, FLOMARKET Inc. was able to minimize goods in stock and make a major purchase of various goods. In addition, it made a possible pre-ordering process and an exact calculation of purchasing goods so they could provide their products with market price in real time, which helped for the company to gain credits from their customers. Also, FLOMARKET Inc. established the information system which well suited to its business stage in order to deal with a rapidly changing distribution environment. It's so obvious that the transaction processing system of FLOMARKET Inc. definitely helped to share information among traders more seamlessly and smoothly in realtime, standardize goods, and make a transaction process clearer. Besides, the transaction information helped the wholesale distributors and retail stores to make more strategic decisions in their business because through the system they enabled to gather the marketing intelligence information more easily and convenient. If we understand that the floral distribution market is characterized by the low IT- based industry, it's worth to examine a case study proving that the information system actually increases the productivity of the transaction process in the floral industry.

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Key Success Factors of the Internet Shopping Mall of Marine Products : Linkages Between Traceability Information and Perceived Quality (수산물 전문 쇼핑몰 핵심성공요인 : 생산이력추적정보와 지각된 품질의 연계)

  • Park, Sang-Cheol;Kim, Jong-Uk;Pak, Myong-Sop
    • Korean Management Science Review
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    • v.23 no.3
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    • pp.95-118
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    • 2006
  • This study developed the traceability information for tracing fishery products from the production step to the consumption step in the distribution channel of fishery products. Based on it, we further presented the theoretical linkage between traceability information and perceived qualities of internet shopping malls, and then investigated how traceability information affected trust and perceived usefulness in the internet shopping mall to find the key success factors of internet shopping malls of fishery products. We collected 194 responses from internet consumers who had prior experience on purchasing fishery products. This survey data was used to empirically test the ten research model hypotheses by using PLS. The PLS results indicated that traceability information had significant impact on trust and perceived usefulness. Finally, trust, perceived usefulness and perceived ease of use were found to be related to online consumers' intention to purchase fishery products.

Fashion Omni-Channel Service Acceptance Based on Consumer's Technology Readiness (소비자의 기술 준비도에 따른 패션 옴니채널 서비스 수용태도)

  • Lee, Ha Kyung;Kwon, Ki Yong;Choi, Ara;Choo, Ho Jung
    • Journal of the Korean Society of Clothing and Textiles
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    • v.40 no.6
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    • pp.1045-1061
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    • 2016
  • This study clarifies differences in attitudes toward the Omni-Channel service (Pintech service, Beacon service, and Click and Collect service) and fashion consumption behavior among four clusters grouped by level of technology readiness. An online survey was conducted; 572 individuals between 20 and 30 years of age were collected, but only 539 were used. Factor analysis, cluster analysis, descriptive statistics, ANOVA, and frequency analysis were adopted to analyze data using SPSS 20.0. The results are as follows. Technology readiness was divided into four factors: optimism, innovativeness, discomfort, and insecurity. Participants were divided into four groups according to four sub-factors of technology readiness: brave adopters, optimistic laggards, indifferent adopters, and critical adopters. These groups showed significant differences in attitudes toward the Omni-Channel service and fashion consumption behavior. Critical adopters and brave adopters recognized the value of the Omni-Channel service and had more positive attitudes toward it than other groups. Critical adopters also better perceived the risk of service with new technology that showed higher fashion innovativeness and monthly consumption of fashion products than other groups. We inferred that the indifferent adopters did not use the Omni-Channel service or services offered by fashion retailers as much as other groups because indifferent adopters were less interested in both the Omni-Channel service and fashion consumption behavior than other groups. Optimistic laggards viewed the Omni-Channel service optimistically, despite perceptions of high risks to accompanying it and a low intent to use it. The results of this study assisted in the formation of a theoretical framework of consumer behavior associated with the Omni-Channel, which is an emerging issue in research related to distribution. The results can help fashion industries that operate consumer-oriented marketing based on Omni-Channel strategies.

A Study on the Necessity of Making Online Marketplace for the Korean Animation Industry (국내 애니메이션 산업의 온라인 마켓플레이스 구축 필요성 연구)

  • Han, Sang-Gyun
    • Cartoon and Animation Studies
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    • s.24
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    • pp.223-246
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    • 2011
  • Today, cultural content industry could be defined to service business rather than manufacturing business because of its own trait. Also, it has the realistic restriction that it can't hold the dominant position in the market competition when it can't provide consumers satisfaction regardless of its quality or degree of completion. In other word, it can only expect great success when the business plan and the activities get the perfect balance with its best quality and perfect of completion. As the result, it emphasizes the importance of business competition in the global market. In briefly, there is no doubt that the creativeness of content is very important in the cultural content industry but in the future, making system to maintain the distribution process and share the profits fairly will be taken more important role. Especially, animation genre has the feature, which compares to other genres, such as film or TV drama, would be free from cultural barriers, and it is a great advantage. So to speak, animation can get little influence from cultural discount. However, Korean animation can't use the advantage properly for the foreign distribution because of its poor infrastructure and short of professional human resources. For those reasons, it has been needed to set up the realistic and specific action plan to overcome the situation. Therefore, considering those needs and the situations of Korean animation facing, making B2B online marketplace could be a great solution. The online marketplace stands for taking more efficient and broad distribution channel instead of the passive way, which we have now. If we have the B2B online marketplace, we can share all the information about the Korean animation with the potential customers whom live outside of Korea at real time. It also could be use to the windows of multiple distribution, which can make additional profits and activate the optional markets for the Korean animation. Through the method, Korean animation would be expected to get the higher international competitiveness, and it would be developed in quality and quantity of the business. Finally, it would be a great chance to Korean animation, which can get the unique brand power by improving the backward distribution circumstances.

Factors Influencing Consumer's Purchase Intention on Beauty Products in Youtube

  • ROSARA, Nadia Annisa;LUTHFIA, Amia
    • Journal of Distribution Science
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    • v.18 no.6
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    • pp.37-46
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    • 2020
  • Purpose: This research aims to explain the influence of social media influencer (SMI), electronic word of mouth (EWOM), and perceived quality (PQ) on purchase intention (PI) of beauty products on YouTube. Youtube as the number 1 social media in Indonesia, has an important role as a promotional strategy media for beauty products. Research design, data and methodology: This study used the online survey to 210 female respondents aged 17-30 years who became a subscriber of an Indonesian beauty influencer. Simple regression and multiple regressions were performed to analyze the independent variables towards the dependent variable. Results: The results show that social media influencer, electronic word of mouth, and perceived quality simultaneously have a significant influence on purchase intention. Nevertheless, only two variables individually have a significant influence on purchase intention, which is social media influencer and perceived quality. Conclusions: Perceived quality and social media influencer could be the best strategies to increase consumers when promoting through the influencer's Youtube channel by utilizing a subscriber. While e-WOM can be influential on other social media platforms rather than on the Youtube platform. Therefore, suggested that digital marketer must use multiple social media platforms to increase consumers' purchase intention.

A Study on the Copyright Protection Liability of Online Service Provider and Filtering Measure (온라인서비스제공자(OSP)의 저작권보호 책임과 필터링)

  • Oh, Yeong-Woo;Jang, Gye-Hyun;Kwon, Hun-Yeong;Lim, Jong-In
    • Journal of the Korea Institute of Information Security & Cryptology
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    • v.20 no.6
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    • pp.97-109
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    • 2010
  • Although the primary liability for online copyright infringement may fall on the individual who illegally copies, transfers, and/or distributes the copyrighted content, the issue of indirect liability for Online Service Providers (OSPS) that provide a channel for the distribution of illegal content has recently come under the spotlight. Currently, in an effort to avoid liability for indirect copyright infringement and improve their reputation, most OSPs have voluntarily applied filtering technology. Under the Copyright Act of Korea, special types of OSPS including P2P and Web-based Hard Drive (WebHard) are required to incorporate filtering technology, and may be charged with penalties if found without one. However, despite the clear need for filtering mechanisms, several arguments have been set forth that question the efficacy and appropriateness of the system. As such, this paper discusses the liability theory adopted in the US. -a leader in internet technology development-and analyzes the scope of liability and filtering related regulations in our copyright law. In addition, this paper considers the current applications of filtering as well as limits of the applied filtering technology in OSPS today. Finally, we make four suggestions to improve filtering in Korea, addressing issues such as clarifying the limits and responsibilities of OSPS, searching for cooperative solutions between copyright holders and OSPS, standardizing the filtering technology to enable compatibility among different filtering techniques, and others.