• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.3
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• pp.47-55
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• 2016

The proliferation of the Internet and related technologies has led to a new form of distribution channels, namely online retailers. The conventional offline and the new online retailers have different transaction costs perceived by the consumers in the following perspectives: the accessibility to the product information, the traffic cost and the opportunity cost for the time to visit the store, the delivery time and the possibility of 'touch and feel' to test the quality of the product. In particular, the online retailers have lower distribution cost structure in that they do not have physical stores, which results in lower selling price. Thus they continuously offer price competition against offline retailers using the lower selling cost as competitive weapon. Moreover the emergence of the social commerce is likely to intensify the competition between the online and offline retailers. To survive in this fierce competition, the offline retailers are trying to defend their business interests by sticking to offline transaction in anticipation of increased customer loyalty, customer's preference for 'touch and feel' style shopping, and others. Despite of these efforts, customers who touch and feel a product in an offline store but purchase the product through an online retailer are increasing. To protect such customers, recently, some of the offline retailers began to provide the mobile discount service (MDS) which enables the offline customers to purchase a product at a discounted price through the mobile applications. In business competitions, the price discount strategy is usually considered to secure more market share at the cost of lower profit. In this study, however, we analyze the effect of MDS as a weapon for securing more profit. To do this, we set up a game model between the online and offline retailers which incorporates the effect of the MDS. By numerically analyzing the Nash equilibrium of the game, some managerial implications for using the MDS for more profit are discussed.

• Journal of Distribution Science
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• v.15 no.4
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• pp.69-78
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• 2017

Purpose - The study was AI as exploratory study on artificial intelligence (AI) shopping information services, to explore the possibility of a new business of the distribution industry. For research, we compare to IBM of consumer awareness surveys an AI shopping information service for retailing channel and target goods group. Finally, we present to service scenario for distribution service using AI. Research design, data, and methodology - First, to identify possible the success of the information service shopping using AI, AI technology for the consumer is very important for the acceptance of judgement. Therefore, we explored the possibility of AI information service for business as a shopping. The experimental data were used to interpret the meaning of the relevant literature and the IBM Institute of Business Value (IBV) Report 2015. This research is based on the use of a technical acceptance model (TAM) to determine whether the consumer would adopt the 'AI shopping information service' technology. Step 1 of the process assumes that the consumer adopts AI technology. In step 2, consumers find their preference channels and goods targeted at them as per their preferences. Finally Step 3, we present scenario for 'AI shopping information service' based on the results of Step 1 and 2. Results - Consumers have expressed their high interests in the new shopping information services, especially the on/off line distribution channels can use shopping information to increase the efficiency in provision of goods. Digital channel (such as SNS, online shopping etc.) is especially high value goods such as cars, furniture, and home appliances by displaying it to an appropriate product group. Conclusions - The study reveals the potential for the use of new business models such as 'AI shopping information service' by the distribution industry. We present seven scenario related AI application refer from IBM suggestion, and the findings would enable the distribution industry to approach target consumers with their products, especially high value goods. 'Shopping advisor' is considered to the most effective. In order to apply to the other field of the distribution industry business, which utilizes AI technology, it should be accompanied by additional empirical data analysis should be undertaken.

• Electronics and Telecommunications Trends
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• v.37 no.3
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• pp.74-84
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• 2022

The Korean mobile service market has persistently grown with the number of subscribers and volume of mobile traffic. It shows the slow diffusion of 5G subscribers, and rapid growth of both the MVNO(Mobile Virtual Network Operator) market and unlocked mobile phones. Therefore, this study derives the direction of telcos' strategies and policy implications by empirically analyzing the usage and attitude of LTE and 5G subscribers. Our major findings are as follows: First, our current mobile service subscription market constitutes most long-term customers for their incumbent carriers only by device change from lock-in with bundle services. Mobile tariffs, data speed, and benefits of bundle services are important factors affecting choices and customers' satisfaction with a provider and intentions of churning to another. Second, demand and satisfaction for using 5G are less because speeds and service tariffs act as pain points for 5G services. Third, the users' high preferences for MVNOs and unlocked mobile phones are linked to their subscription to MVNOs' low-cost plans with unlocked mobile phones on online channels. These streams lead to a big change in the market competition that MNO(Mobile Network Operator)s' market shares are expected to decrease and MVNOs' shares will be increased by two times, in the near future. Therefore, MNOs need to change their distribution strategies from offline to online channels and try to resolve the stereotype, "mobile tariffs are expensive," by enhancing their service values. Finally, as consumers prefer one-stop service in the same channel regardless of the distribution channel, policies should focus on the consumers' needs for convenience rather than on the channel separation for perfectly unlocked mobile phones.

• Journal of Distribution Science
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• v.21 no.3
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• pp.83-92
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• 2023

Purpose: An omnichannel strategy creates a consistent brand image and customer experience across all channels, making it easier for customers to interact with a business and share information. This research aimed to investigated the relationship between consumers' information-sharing intention and their omnichannel experiences. Research design, data, and methodology: Through an online survey conducted in Vietnam, the study obtained 915 responses. The study used Partial Least Square Structural Equation Modeling (PLS-SEM) to analyze research data and confirm proposed research hypotheses. Results: Research results indicated that information-sharing intention is affected by both online and offline customer experience, and at the same time, the study also confirmed that omnichannel's three characteristics (integration, individualization, interaction) positively impact on customer experience. Conclusions: From the research result, businesses may boost consumer trust and loyalty with the help of an omnichannel approach, which in turn increases customers' propensity to provide personally identifying information to the firm. One way to do this is to facilitate information exchange by delivering customized and relevant offers. Furthermore, companies show consumers the benefit of providing their data by utilizing it to enhance the customer experience.

• Journal of Distribution Science
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• v.21 no.1
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• pp.119-128
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• 2023

Purpose: Due to COVID-19, the rapidly changing untact culture from offline to online has spread rapidly, increasing the utilization of omni-channel. However, among the studies on consumers in the online market, there are not many studies that analyze Shopping Values and attitudes toward omnichannel Acceptance. Research design, data, and methodology: This study investigated through empirical analysis how Shopping Values and innovation propensity of consumers using omni channels affect omni channel Acceptance attitudes. The analysis results based on a total of 268 questionnaires using SPSS v.23 and AMOS v.23 statistical programs are as follows. Results: First, it was found that the perceived Value of omnichannel use had a positive effect on the innovation tendency, and the pleasure Value had a greater effect than the actual Value. Second, it was found that the practical and hedonic Value of the omnichannel had a positive effect on the attitude of service Acceptance. Third, it was found that Omni Channel's consumer innovation tendency had a positive effect on service Acceptance attitude. Conclusion: This study proved that Shopping Value perception and individual innovation propensity for omnichannel services have a positive effect on Acceptance attitude, and it is of academic significance in that it expanded understanding of what factors are needed to increase Acceptance attitude of Omni Channel services.

• Journal of Distribution Research
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• v.9 no.1
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• pp.25-45
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• 2004

As electronic commerce establishes itself as a viable and competitive channel, this research compares the attractiveness of online and offline purchase from a transaction cost perspective. In the process, we propose a framework that integrates transaction cost with purchase decision process and product type. Specifically, the paper proposes and tests hypotheses regarding the difference between online and offline channels with respect to the transaction costs incurred in each stage of the purchase decision process. These differences are further compared across different product types categorized according to the FCB Grid. A total of 24 hypotheses were tested by conducting a questionnaire survey on university students. The results showed that 19 out of 24 hypotheses were supported. Following a detailed presentation of the analysis results, the paper concludes by discussing the academic and managerial implications of the findings.

• Journal of Distribution Science
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• v.20 no.4
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• pp.95-100
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• 2022

Purpose: This study aimed to investigate whether distribution and service companies maintained their accounting information quality and provided reliable information despite the economic changes occurring after the outbreak of the COVID-19 pandemic in Korea. The distribution industry has enjoyed increased demand as many companies expanded their untact distribution channels, including to online sales. However, as the pandemic drags on, their future prospects remain uncertain. Research design, data, and methodology: In this study, we define 2018-2019 as the "pre COVID-19 period" and 2020 as the "post COVID-19 period." An empirical analysis was performed using a regression model that includes POST, the independent variable, indicating the post COVID-19 period, and discretionary accruals(DA), a proxy for earnings management, as a dependent variable. Results: The analysis shows that the coefficient of POST is significantly positive (+) for the dependent variable DA. This finding suggests that distribution and service companies engaged in more earnings management during the post COVID-19 period than during the pre COVID-19 period, indicating their awareness of the uncertainty of future business performance as the pandemic persists. An additional analysis confirmed that smaller companies with fewer stakeholders and higher information asymmetry tend to engage more in earnings management than larger companies.

• The Journal of the Korea Contents Association
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• v.13 no.12
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• pp.931-944
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• 2013

With the expansion of EC and the development of culture industry, Web-site shopping of cultural products have become recognized as one of the major purchasing channels for customers, as well as one of the competitive distribution channels for film distributors or theater group. The research is to investigate the impact of information quality and user interface quality on information service satisfaction and online purchasing intention of cultural products. The results of this study are as follows: 1) Both information quality and interface quality have meaningful influence on information service satisfaction and purchase intention. 2) Information service satisfaction gives significant impact on online purchasing intention irrespective of the level of customer involvement. 3) Information quality has a meaningful influence on online purchasing intention in case of high level of customer involvement, while interface quality gives strong impact on online purchasing intention in case of low level of consumer involvement. In conclusion, there is a need to consider the level of customer involvement for building a successful marketing strategy of online purchase sites of cultural products.

• Journal of Distribution Science
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• v.19 no.10
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• pp.17-22
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• 2021

Purpose: Covid-19 has caused an unprecedented situation for the tourism industry with slumping demand during the outbreak and many uncertainties about tourist behavior in the post-pandemic. This study is aimed to discover the distribution in the behavior of tourists in Vietnam, whose government has taken serious and early actions towards the health crisis and among the earliest to reopen the economy. Research design, data, and methodology: We adopted a mixed-method approach - combining qualitative interviews with quantitative research using a questionnaire survey. Through the form of the online survey through social networking channels: Facebook, Gmail. The study received 261 valid responses for analysis. Multivariate analysis techniques were used: descriptive statistics, exploratory factor analysis (EFA). Results: From the data and result of EFA, the result showed that the distribution of tourist behavior could be grouped into four main factors, including (1) the general impacts, (2) travel-related behaviors; (3) attitudes and preferences regarding modes of tours and destinations; (4) awareness of safety and hygiene. Conclusions: These results highlighted the importance of the theory of perceived risks in explaining the travelers' prudent decisions. In addition, this study provides practical implications for policymakers and various stakeholders of Vietnam's tourism industry in formulating the recovery strategy.

• Journal of Distribution Science
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• v.21 no.5
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• pp.1-9
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• 2023

Purpose: Marketing and especially distribution channels has proved challenging for small and medium-sized enterprises (SMEs) worldwide due to its exorbitant cost. The objective of this study is to access the role and impact of digital marketing as a new distribution channel in companies located in Kosovo. Research design, data and methodology: To achieve the objective of the research, data was collected from 64 respondents/participants working in different organizations and sectors. Results: The result of the data collected showed that digital marketing plays a huge role and an effective medium in distribution of products and services, and helps in boosting sales of companies. The results showed that this form of marketing helps with retention of customers and cost effectiveness. Conclusions: The managerial implication of this study is that it is believed that customers in the topical conversation region are impacted by Kosovo businesses and their online marketing initiatives. The results of this study suggest that marketers and managers should take advantage of social media in order to accomplish the study's main objective. However, for enhanced productivity and high-level effectiveness of Digital marketing in Kosovo, there should be proper sensitization on the available digital marketing options and how it can be done.