• Title/Summary/Keyword: Product dimensions

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A Comparative Study on the Influences that 3 Faces of Intellect of Guilford Interact to Mathematics Teaching Patterns of 5 Categories of Higgins in a Viewpoint of Constructivism (Guilford의 지능 이론이 Higgins의 수업 형식에 미치는 영향에 대한 구성주의적 비교 연구)

  • Seo Sung Bo;Park Gyeong Suk
    • Journal of Elementary Mathematics Education in Korea
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    • v.3 no.1
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    • pp.1-20
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    • 1999
  • What do our mathematics teachers now do in the classroom? What does it actually mean to teach mathematics? Every preparatory mathematics teacher is confronted with these questions since they have studied to become a teacher. Almost all in-service teachers are faced by of questions, too, as they evaluate their teaching in the light of that of their colleagues. In this sense, Jon L. Higgins has proposed mathematics teaching patterns of five categories, i. e., exploring, modeling, underlining, challenging, and practicing, for the sake of our all teachers. Next, J. P. Guilford has suggested three faces of intellect presented by a single solid model, which we call the 'structure of intellect' Each dimension represents one of the modes of variation of the factors. It is found that the various kinds of operations are in one of the dimensions, the various kinds of products are in another, and the various kinds of contents are in the other one. In order to provide a better basis for understanding this model and regarding it as a picture of human intellect, I've explored it systematically and shown some concrete examples for its tests. Each cell in the model stands for a certain kind of ability that can be described in terms of operation, content, and product, for each cell is at the intersection uniquely combined with kinds of ope- ration, content, and product. In conclusion, how could we use the teaching patterns of five categories, that is, exploring, modeling, underlining, challenging, and practicing, according to the given mathematics learning substances? And also, how could children constitute the learning sub- stances well in their mind with a viewpoint of constructivism if teachers would connect the mathematics teaching patterns of five categories with any factors among the three faces of intellect? I've made progress this study focusing on such problems.

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A Comparative Analysis of Customer Choice and Satisfaction Factors among Three Types of Coffee Shops (커피 전문점 선택요인과 만족도에 관한 비교 연구)

  • Lee, Yang-Kyu;Park, Sang-Youn;Hwang, Il-Young
    • Journal of Distribution Science
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    • v.12 no.2
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    • pp.49-57
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    • 2014
  • Purpose - Theorists and researchers in the area of customer satisfaction generally agree that product satisfaction intervenes between expectancy disconfirmation and various post-purchase cognitive states including attitude and behavioral intention. Studies in a variety of settings have supported the effect of expectation and its disconfirmation on satisfaction, but only a small number of studies address the cognitive consequences of satisfaction decisions and none report data on choice processes such as brand selection. This study examines the influence of satisfaction and its determinants on behavioral intention and product preference in eight coffee shops across the country. Generally it was found in both overall and summed attribute analyses that satisfaction was a function of expectation and disconfirmation, that intention was a function of satisfaction, and that preference was influenced by satisfaction and disconfirmation, the latter having the greater effect. Research design, data, and methodology - The main objective of this study was to assess the dimensions of consumer selection and satisfaction in choosing a coffee shop. In order to achieve this objective, a study of coffee shops across the country was conducted. This study comprised in-depth questionnaires distributed to coffee shop customers. A survey was conducted from September 1, 2011 to September 30, 2011, involving franchise coffee shop, independently owned coffee shop, and roastery coffee shop customers. Results - Hypothesis 1-1, which states that coffee shop choice attributes differ based on the type of coffee shop, is accepted. It has a significance level of 0.05, according to choosing properties of coffee shop by convenience of transportation, varieties of beans, residence of the owner (manager), information, and relationships. Hypothesis 1-2, which states that satisfaction with the choice factor differs depending on the type of coffee shops, is accepted. The P-values for cleanliness and varieties of beans were 0.04 and 0.00, respectively, and have a significance level of 0.05, according to the satisfaction with the chosen coffee shop. Hypothesis 2-1, which states that the importance of the choice attributes in coffee shop selections differs based on the demographic characteristics of the customers, is accepted. According to the t-test result, convenience of parking and residence of the owner (manager) are significant. Hypothesis 2-2, which states that satisfaction with the choice factor will differ depending of the type of coffee shop, is accepted. According to the t-test result, convenience of parking and residence of the owner (manager) are significant. Conclusions - This study has shown that intention to revisit a certain shop is most likely correlated to satisfaction in all cases. In order to offer subsequent developments for coffee shops, this study also identifies relations between customer satisfaction and selection by finding significant factors. In order to maximize customers' satisfaction, coffee shops should analyze and satisfy customers' needs and wants in terms of coffee service. While the findings do not generalize beyond the mall sampling procedure used here, we have hopefully identified a close approximation of the process of satisfaction decisions used by consumers generally.

A study of Double Sheet Multi-forming Equipment (2겹 판재 멀티포밍 장치에 관한 연구)

  • Yun, Jae-Woong;Son, Ok-Jong
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.18 no.3
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    • pp.49-55
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    • 2017
  • Most motor cases adopt deep drawing products, which are excellent in waterproof functions, concentricity, right angle, and quality. In addition, the blower motor and seat motor, which are installed in the car interior and do not require waterproof function, adopts a multi-forming manufacturing method. The deep drawing process requires an expensive transfer press that can digest approximately 12 processes, such as drawing, trimming and piercing. On the other hand, products can be produced with low investment because the multi-forming method is composed of one multi-forming machine or one multi-forming machine and one press. The multi-forming machine is a high-priced facility that is mostly imported and a bending / shearing process multi-foaming machine, which was developed by domestic small and medium-sized enterprises, is not enough to reduce the production cost. An integral multi - forming machine is used as a limited working method for thin material and small products. A large product and thick material has a high shear load. A large product and thick material has a high shear load and uses a single crank press. After blanking, the worker manually feeds the material to a multi-forming machine. When the bending operation is performed in the multi-forming machine, it is transferred to the press again to calibrate the dimensions. This variance in work processes has resulted in lower cost competitiveness due to the lower productivity, quality issues, and excessive operator input. The aim of this study was to establish a stable and cost - effective production system through bending / shearing process separation and facility automation.

Production and Consumption of Goat Milk Products in Korea (한국의 산양유제품 생산 및 소비 현황)

  • Park, Seung-Yong
    • Journal of Dairy Science and Biotechnology
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    • v.24 no.2
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    • pp.39-45
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    • 2006
  • There has been a successful re-entry in the form of infant foods and as a product concept of "well-being" milk by feeding goat natural medicinal plants in high mountain lands and goats eating natural feeds. Typical composition of cow's milk and goat's milk are not significantly differ in major nutritional constituents. However, the noticeable differences between milks of the bovine and caprine species concern in the dimensions of the micelles, in casein composition, in size of the micelles and in the mineral charge of the micelle, but the ratio Ca/Pi in the micelle is very close for the two species The potential market in Korea could be expected to expand by keeping its freshness and nutritional benefits. The supply of goat milk products all year around is also an important to the consumers. In order to increase its market scale of goat milk, product manufacturers need extensive advertising promotion. Domestically, goat milk is currently manufactured at small scale dairy goat milk companies and consumed mainly in the form of fresh or fermented goat milk, while imported goat milk powder is used to produce infant goat milk formula by major dairy companies. Decreasing the unpleasant goaty flavour for the Korean consumers would be essential for the researchers who work for dairy science and technology.

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The Cyber Transformation of Marketing Mix Model : An Empirical Study of Korean On-line Shopping Malls (마케팅 믹스 모델의 사이버 전환에 관한 실증적 연구)

  • 이영순;서봉철
    • Journal of Distribution Research
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    • v.7 no.1
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    • pp.105-127
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    • 2002
  • This paper presents an analysis of how the business models of organizations are getting transformed in the Marketspace created by the Internet. We use a research model comprising the transformation scores of four Ps(Product, Price, Promotion, and Place) as dependent variables and three dimensions, Demographics, Technology, and Community elements on the Websites, as explaining variables about the Cyber Transformation of the 4Ps. While most existing literatures have focused on Website's technology, our research model includes 22 five-point-scale items; 10 Demographics /Technology items and 12 Community items. To measure the 4P's transformation scores, the authors selected 14 workable items from the Marketspace Model by Dutta, Kwan, & Segev(1997). A sample of 123 shopping mall Websites comprising three categories(grocery, jewelry/accessory, and cosmetics) from the 100hot.co.kr list are evaluated and the data is analyzed by SPSSWIN 8.0 version. The result shows that there are five significant factors, Technology, Interaction, Connectedness, Business Features, and Domain, while the average transformation scores of 4Ps are at very low level. The factor scores are used in regression analysis for each P. Two factors, Technology and Interaction are influencing all four Ps; Connectedness is influencing only two, Product and Place. Organizations must not simply take their existing business models. They have to adopt the Technology items(navigation, logo, e-mail, guide, graphics) and to facilitate the Interaction items(consulting, number/quality of bulletin boards, participation, offline events) and Connectedness(club activation, contents, partner/site link, entertainment contents) in order to get transformed in the Marketspace successfully in the near future.

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The Effect of Franchise Entrepreneurial Passion on Corporate Trust, Identification, and Loyalty (프랜차이즈 기업가 열정이 기업신뢰, 일체감, 그리고 충성도에 미치는 영향)

  • Park, Heung-Jin;Han, Sang-Ho;Kim, Eun-Jung
    • The Korean Journal of Franchise Management
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    • v.8 no.3
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    • pp.17-27
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    • 2017
  • Purpose - In align with the increasing competition in both online and offline franchise markets caused by the increasing impact of social networking service, entrepreneurial passion(EP) of the franchise owners has crucial impact on the stakeholders. This study proposed the customer among stakeholders has the critical influence firm's success and examined the structural relationship between entrepreneurial passion(EP) and trust, identification, and loyalty from the customer's perspective. Research design, data, and methodology - This study examines the structural relationship between entrepreneurial passion(EP), trust, identification, and loyalty from the customer's perspective. More specifically, the EP were measured using three sub-dimensions such as EP-inventing(Perceived passion for inventing), EP-founding(Perceived passion for foundting), and EP-developing(Perceived passion for developing). In order to verify the research purposes, research model and hypotheses were developed. All constructs were measured with multiple items developed and tested in the previous studies. Each item was measured on a 7 point Likert-scale anchored by '1 = strongly disagree, 7 = strongly agree'. The data were collected from 449 franchise consumers through online survey and were analyzed using SPSS 21.0 and Smart PLS 3.0. statistical program. Result - The results of this study are as follows. First, EP-inventing and EP-developing have significant impacts on corporate trust. Second, EP-founding does not have significant impact on corporate trust. Third, EP-inventing and EP-founding have significant impacts on consumer identification. Fourth, EP-developing does not have impact on identification directly, but does indirectly through corporate trust as a mediator. Fifth, corporate trust and identification have significant impacts on loyalty. Conclusions - This indicates that the foodservice franchise CEOs should continuously develop new menus and service to fulfill customer needs. EP-inventing of the food franchise CEOs may enhance customer trust for higher quality of product or service, and EP-developing can also be a driving force for customer trust as it embeds belief in customers that the franchise is sustainably developing. Also, food franchise CEOs should first clarify the support process for the existing brands before developing new ones. Customers tend to lead the trend by using brands that satisfy new trends in the foodservice franchise market, and it could have identification with the trend-setting franchise. Customers do not accept if a company is different from their personal image or norms. So the franchise CEOs must create identification with customers by building corporate trust. Corporate trust influences consumer behavior and emotion, thus the franchises need to secure trust by improving product or service continuously.

The Effect of Perceived Risk, Scarcity Message in the CATV Homeshopping Ad, and Purchasing Experience on CATV Homeshopping Consumers Response (케이블 TV홈쇼핑 프로그램에서 지각된 위험과 희소성 메시지가 이용경험이 다른 소비자의 반응에 미치는 영향에 관한 연구)

  • Lee, Kyu-Wan;Koo, Ja-Eun
    • Korean journal of communication and information
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    • v.32
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    • pp.209-245
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    • 2006
  • This study examines primarily the effects of perceived risk and scarcity massage on consumers in CATV homeshopping. For consumers, the perceived risk is the cause of delaying purchase decision in CATV Homeshopping while scarcity message in the Ad facilitate purchasing intention in the CATV homeshopping. And another important characteristic of consumer which exerts impact on the response of consumer to the Ad and the product is the frequency of purchasing experience. Thus the purpose of this study is to test the effect of 3 factors on consumer's response to homeshopping Ad and product: one is perceived risk, another is scarcity message and the third is consumer's difference in purchasing. And these are defined as independent variables. The responses of the consumer, the dependent variables of this test are measured in three dimensions; 1) the purchasing intention of the product, 2) the attitude toward the Ad, and 3) the attitude toward product of the consumer. 110 housewives are sampled and assigned to 4 experimental groups. All the groups first watched a video-taped homeshopping Ad messages, and then filled up their responses on the administered questionnaire. The results of this study shows as follows: 1) Perceived risk has negative effect to consumer response. 2) Scarcity message has positive effect to consumers response. 3) But especially perceived risk has negative effect to high frequency purchasing experience group. 4) Scarcity message has also negative effect to high frequency purchasing experience group. 5) The interaction effect of perceived risk and scarcity message is most prominent to the consumers of high frequent purchasing experience.

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The Impacts of Need for Cognitive Closure, Psychological Wellbeing, and Social Factors on Impulse Purchasing (인지폐합수요(认知闭合需要), 심리건강화사회인소대충동구매적영향(心理健康和社会因素对冲动购买的影响))

  • Lee, Myong-Han;Schellhase, Ralf;Koo, Dong-Mo;Lee, Mi-Jeong
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.4
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    • pp.44-56
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    • 2009
  • Impulse purchasing is defined as an immediate purchase with no pre-shopping intentions. Previous studies of impulse buying have focused primarily on factors linked to marketing mix variables, situational factors, and consumer demographics and traits. In previous studies, marketing mix variables such as product category, product type, and atmospheric factors including advertising, coupons, sales events, promotional stimuli at the point of sale, and media format have been used to evaluate product information. Some authors have also focused on situational factors surrounding the consumer. Factors such as the availability of credit card usage, time available, transportability of the products, and the presence and number of shopping companions were found to have a positive impact on impulse buying and/or impulse tendency. Research has also been conducted to evaluate the effects of individual characteristics such as the age, gender, and educational level of the consumer, as well as perceived crowding, stimulation, and the need for touch, on impulse purchasing. In summary, previous studies have found that all products can be purchased impulsively (Vohs and Faber, 2007), that situational factors affect and/or at least facilitate impulse purchasing behavior, and that various individual traits are closely linked to impulse buying. The recent introduction of new distribution channels such as home shopping channels, discount stores, and Internet stores that are open 24 hours a day increases the probability of impulse purchasing. However, previous literature has focused predominantly on situational and marketing variables and thus studies that consider critical consumer characteristics are still lacking. To fill this gap in the literature, the present study builds on this third tradition of research and focuses on individual trait variables, which have rarely been studied. More specifically, the current study investigates whether impulse buying tendency has a positive impact on impulse buying behavior, and evaluates how consumer characteristics such as the need for cognitive closure (NFCC), psychological wellbeing, and susceptibility to interpersonal influences affect the tendency of consumers towards impulse buying. The survey results reveal that while consumer affective impulsivity has a strong positive impact on impulse buying behavior, cognitive impulsivity has no impact on impulse buying behavior. Furthermore, affective impulse buying tendency is driven by sub-components of NFCC such as decisiveness and discomfort with ambiguity, psychological wellbeing constructs such as environmental control and purpose in life, and by normative and informational influences. In addition, cognitive impulse tendency is driven by sub-components of NFCC such as decisiveness, discomfort with ambiguity, and close-mindedness, and the psychological wellbeing constructs of environmental control, as well as normative and informational influences. The present study has significant theoretical implications. First, affective impulsivity has a strong impact on impulse purchase behavior. Previous studies based on affectivity and flow theories proposed that low to moderate levels of impulsivity are driven by reduced self-control or a failure of self-regulatory mechanisms. The present study confirms the above proposition. Second, the present study also contributes to the literature by confirming that impulse buying tendency can be viewed as a two-dimensional concept with both affective and cognitive dimensions, and illustrates that impulse purchase behavior is explained mainly by affective impulsivity, not by cognitive impulsivity. Third, the current study accommodates new constructs such as psychological wellbeing and NFCC as potential influencing factors in the research model, thereby contributing to the existing literature. Fourth, by incorporating multi-dimensional concepts such as psychological wellbeing and NFCC, more diverse aspects of consumer information processing can be evaluated. Fifth, the current study also extends the existing literature by confirming the two competing routes of normative and informational influences. Normative influence occurs when individuals conform to the expectations of others or to enhance his/her self-image. Whereas informational influence occurs when individuals search for information from knowledgeable others or making inferences based upon observations of the behavior of others. The present study shows that these two competing routes of social influence can be attributed to different sources of influence power. The current study also has many practical implications. First, it suggests that people with affective impulsivity may be primary targets to whom companies should pay closer attention. Cultivating a more amenable and mood-elevating shopping environment will appeal to this segment. Second, the present results demonstrate that NFCC is closely related to the cognitive dimension of impulsivity. These people are driven by careless thoughts, not by feelings or excitement. Rational advertising at the point of purchase will attract these customers. Third, people susceptible to normative influences are another potential target market. Retailers and manufacturers could appeal to this segment by advertising their products and/or services as products that can be used to identify with or conform to the expectations of others in the aspiration group. However, retailers should avoid targeting people susceptible to informational influences as a segment market. These people are engaged in an extensive information search relevant to their purchase, and therefore more elaborate, long-term rational advertising messages, which can be internalized into these consumers' thought processes, will appeal to this segment. The current findings should be interpreted with caution for several reasons. The study used a small convenience sample, and only investigated behavior in two dimensions. Accordingly, future studies should incorporate a sample with more diverse characteristics and measure different aspects of behavior. Future studies should also investigate personality traits closely related to affectivity theories. Trait variables such as sensory curiosity, interpersonal curiosity, and atmospheric responsiveness are interesting areas for future investigation.

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The Effect of Perceived Shopping Value Dimensions on Attitude toward Store, Emotional Response to Store Shopping, and Store Loyalty (지각된 쇼핑가치차원이 점포태도, 쇼핑과정에서의 정서적 경험, 점포충성도에 미치는 영향에 관한 연구)

  • Ahn Kwang Ho;Lee Ha Neol
    • Asia Marketing Journal
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    • v.12 no.4
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    • pp.137-164
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    • 2011
  • In the past, retailers secured customer loyalty by offering convenient locations, unique assortments of goods, better services than competitors, and good credit policy. All this has changed. Goods assortments among stores have become more alike as national-brand manufacturers place their goods in more and more retail stores. Service differentiation also has eroded. Many department stores have trimmed services, and many discount stores have increased theirs. Customers have become smarter shoppers. They don't pay more for identical brands, especially when service differences have diminished. In the face of increased competition from discount storess and specialty stores, department stores are waging a comeback war. Growth of intertype competition, competition between store-based and non-store-based retailing and growing investment in technology are changing the way consumers shop and retailers sell. Different types of stores-discount stores, catalog showrooms, department stores-all compete for the same consumers by carrying the same type of merchandise. The biggest winners are retailers that have helped shoppers to be economically cautious, simplified their increasingly busy and complicated lives, and provided an emotional connection. The growth of e-retailers has forced traditional brick-and-mortar retailers to respond. Basically brick-and-mortar retailers utilize their natural advantages, such as products that shoppers can actually see, touch, and test, real-life customer service, and no delivery lag time for small-sized purchases. They also provide a shopping experience as a strong differentiator. They are adopting practices as calling each shopper a "guest". The store atmosphere should match the basic motivations of the shopper. If target consumers are more likely to be in a task-oriented and functional mindset, then a simpler, more restrained in-store environment may be better. Consistent with this reasoning, some retailers of experiential products are creating in-store entertainment to attract customers who want fun and excitement. The retail experience must deliver value to turn a one-time visitor into a loyal customer. Retailers need a tool that measures the full range of components that define experience-based value. This study uses an experiential value scale(EVS) developed by Mathwick, Malhotra and Rigdon(2001) which reflects the benefits derived from perceptions of playfulness, aesthetics, customer "return on investment" and service excellence. EVS is useful to predict differences in shopping preferences and patronage behavior of customers. EVS consists of items measuring efficiency, economic value, visual appeal, entertainment value, service excellence, escapism, and intrinsic enjoyment, which are subscales of experiencial value. Efficiency, economic value, service excellence are linked to the utilitarian shopping value. And visual appeal, entertainment value, escapism and intrinsic enjoyment are linked to hedonic shopping value. It has been found that consumers value hedonic experiences activated from escapism and attractiveness of shopping environment as much as the product quality, price, and the convenient location. As a result, many department stores, discount stores, and other retailers are introducing differential marketing strategy based on emotional/hedonic values. Many researches suggest that consumers go shopping not only for buying products but also for various shopping experiences. In other words, they seek the practical, rational value as well as social, recreational values in the shopping process(Babin et al, 1994; Bloch et al, 1994). Retailers may enhance buyer's loyalty to store by providing excellent emotional/hedonic value such as the excitement from shopping, not just the practical value of buying good products efficiently. We investigate the effect of perceived shopping values on the emotional experience and store loyalty based on the EVS(Experiential Value Scales) developed by Holbrook(1994), Mathwick, Malhotra and Rigdon(2001). This study assumes that the relative effect of shopping value dimensions on the responses of shoppers will differ according to types of stores and analyzes the moderating effect of store type(department store VS. discount store) on the causal relationship between shopping value dimensions and store loyalty. Emprical results show that utilitarian values of shopping experience and hedonic value of shipping experience give the positive effect on the emotional response of consumers and store loyalty. We also found the moderating effect of store types. The effect of utilitarian shopping values on the attitude toward discount store is higher than the effect of utilitarian shopping values on the attitude toword department store. And the effect of hedonic shopping value on the emotional response to discount store is higher than on the emotional response to department store. The empirical results reflect on the recent trend that discount stores try to fulfill the hedonic needs of consumers as well as utilitarian needs(i.e, low price) that discount stores traditionally have focused on

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The Impact of the Internet Channel Introduction Depending on the Ownership of the Internet Channel (도입주체에 따른 인터넷경로의 도입효과)

  • Yoo, Weon-Sang
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.1
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    • pp.37-46
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    • 2009
  • The Census Bureau of the Department of Commerce announced in May 2008 that U.S. retail e-commerce sales for 2006 reached $ 107 billion, up from $ 87 billion in 2005 - an increase of 22 percent. From 2001 to 2006, retail e-sales increased at an average annual growth rate of 25.4 percent. The explosive growth of E-Commerce has caused profound changes in marketing channel relationships and structures in many industries. Despite the great potential implications for both academicians and practitioners, there still exists a great deal of uncertainty about the impact of the Internet channel introduction on distribution channel management. The purpose of this study is to investigate how the ownership of the new Internet channel affects the existing channel members and consumers. To explore the above research questions, this study conducts well-controlled mathematical experiments to isolate the impact of the Internet channel by comparing before and after the Internet channel entry. The model consists of a monopolist manufacturer selling its product through a channel system including one independent physical store before the entry of an Internet store. The addition of the Internet store to this channel system results in a mixed channel comprised of two different types of channels. The new Internet store can be launched by the independent physical store such as Bestbuy. In this case, the physical retailer coordinates the two types of stores to maximize the joint profits from the two stores. The Internet store also can be introduced by an independent Internet retailer such as Amazon. In this case, a retail level competition occurs between the two types of stores. Although the manufacturer sells only one product, consumers view each product-outlet pair as a unique offering. Thus, the introduction of the Internet channel provides two product offerings for consumers. The channel structures analyzed in this study are illustrated in Fig.1. It is assumed that the manufacturer plays as a Stackelberg leader maximizing its own profits with the foresight of the independent retailer's optimal responses as typically assumed in previous analytical channel studies. As a Stackelberg follower, the independent physical retailer or independent Internet retailer maximizes its own profits, conditional on the manufacturer's wholesale price. The price competition between two the independent retailers is assumed to be a Bertrand Nash game. For simplicity, the marginal cost is set at zero, as typically assumed in this type of study. In order to explore the research questions above, this study develops a game theoretic model that possesses the following three key characteristics. First, the model explicitly captures the fact that an Internet channel and a physical store exist in two independent dimensions (one in physical space and the other in cyber space). This enables this model to demonstrate that the effect of adding an Internet store is different from that of adding another physical store. Second, the model reflects the fact that consumers are heterogeneous in their preferences for using a physical store and for using an Internet channel. Third, the model captures the vertical strategic interactions between an upstream manufacturer and a downstream retailer, making it possible to analyze the channel structure issues discussed in this paper. Although numerous previous models capture this vertical dimension of marketing channels, none simultaneously incorporates the three characteristics reflected in this model. The analysis results are summarized in Table 1. When the new Internet channel is introduced by the existing physical retailer and the retailer coordinates both types of stores to maximize the joint profits from the both stores, retail prices increase due to a combination of the coordination of the retail prices and the wider market coverage. The quantity sold does not significantly increase despite the wider market coverage, because the excessively high retail prices alleviate the market coverage effect to a degree. Interestingly, the coordinated total retail profits are lower than the combined retail profits of two competing independent retailers. This implies that when a physical retailer opens an Internet channel, the retailers could be better off managing the two channels separately rather than coordinating them, unless they have the foresight of the manufacturer's pricing behavior. It is also found that the introduction of an Internet channel affects the power balance of the channel. The retail competition is strong when an independent Internet store joins a channel with an independent physical retailer. This implies that each retailer in this structure has weak channel power. Due to intense retail competition, the manufacturer uses its channel power to increase its wholesale price to extract more profits from the total channel profit. However, the retailers cannot increase retail prices accordingly because of the intense retail level competition, leading to lower channel power. In this case, consumer welfare increases due to the wider market coverage and lower retail prices caused by the retail competition. The model employed for this study is not designed to capture all the characteristics of the Internet channel. The theoretical model in this study can also be applied for any stores that are not geographically constrained such as TV home shopping or catalog sales via mail. The reasons the model in this study is names as "Internet" are as follows: first, the most representative example of the stores that are not geographically constrained is the Internet. Second, catalog sales usually determine the target markets using the pre-specified mailing lists. In this aspect, the model used in this study is closer to the Internet than catalog sales. However, it would be a desirable future research direction to mathematically and theoretically distinguish the core differences among the stores that are not geographically constrained. The model is simplified by a set of assumptions to obtain mathematical traceability. First, this study assumes the price is the only strategic tool for competition. In the real world, however, various marketing variables can be used for competition. Therefore, a more realistic model can be designed if a model incorporates other various marketing variables such as service levels or operation costs. Second, this study assumes the market with one monopoly manufacturer. Therefore, the results from this study should be carefully interpreted considering this limitation. Future research could extend this limitation by introducing manufacturer level competition. Finally, some of the results are drawn from the assumption that the monopoly manufacturer is the Stackelberg leader. Although this is a standard assumption among game theoretic studies of this kind, we could gain deeper understanding and generalize our findings beyond this assumption if the model is analyzed by different game rules.

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