• Title/Summary/Keyword: Promotional Effort

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Lessons from Haitai Distribution Inc's experience in Korea

  • Cho, Young-Sang
    • Journal of Distribution Science
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    • v.9 no.3
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    • pp.25-36
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    • 2011
  • Owing to the rapid growth of hypermarket/discount store formats since 1996, Korean retailing has suddenly attracted the significant attention from researchers. Before the emergence of large scale retailers such as E-Mart, Lotte Mart and Tesco Korea, there were the two retail formats who led the Korean retailing in the modern retailing history: department store and supermarket formats. Nevertheless, there has been little literature concerned about the two retail formats as a case study, while some authors have paid their attention to hypermarket/discount store formats. In addition, when mentioning the development process of retailing history, it is less likely that authors have made an effort to illustrate supermarket retailing history. In order to regard supermarket retailing as part of the Korean retailing, it is interesting to look at a representative supermarket retailer, Haitai, who was one of the subsidiaries of Haitai chaebol. Based on supermarket retailing, the company which was established as a joint venture in 1974 led a supermarket retailing in the Korean modernised retailing history. Before analysing whether Haitai failed or not, the definition of failure should be illustrated. With regard to the term, failure, in the academic world, authors have interchangeably used the following terms: failure, divestment, closure, organisational restructuring, and exit. To collect research data as a case study, the author adopted an in-depth interview method. The research is based on research interviews with 13 ex-staff who left after Haitai went bankruptcy, from store management department to merchandise department. By investigating Haitai's experiences through field interviews, the research found that Haitai restructured organisational decision-making process at the early stage when companies started to modernise organisational charts, benchmarking sophisticated retailing knowledge through the strategic alliance with a Japanese retailer. In respect of buying system, the company established firmly buying functions by adopting central buying system, and further, outstandingly allocated considerable marketing resources to the development of retailer brands with the dedicated team of retailer brand development. In the grocery retailing, abandoning a 'no-frill' packaging concept, the introduction of retailer brand packaging equal to, or better than national brand packaging design, encouraged other retailers to change their retailer brand development strategies. In product sourcing ways, Haitai organised for the first time the overseas sourcing team with the aim of improving the profit margins of foreign products and providing exotic products for customers, followed by other retailers. Regarding distribution system, the company introduced the innovative idea which delivered products ordered by stores directly to each store withboth its own vehicles and its own warehouse in which could deal with dry foods, chilly foods, frozen food, and non-foods, and even, process produce. In addition, Haitai developed many promotional methods to attract more customers like 'the guarantee of the lowest price', and expanded its own business to US in 1996, although withdrew, because of bankruptcy in 1997. Together with POS introduction in 1994, Haitai made a significant contribution to the development of the Korean retailing, influencing other retailers in many aspects. As a case study, the study has provided a number of lessons from Haitai's experiences for academicians and practitioners, suggesting that its history should be involved in the Korean modernised retailing.

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A Study on the Factors Affecting User Behavior of Internet Medical Apps (인터넷 의료 애플리케이션 사용 행위에 영향을 미치는 요소에 관한 연구)

  • Han, Xiao;Lee, Hong;Kim, Hyeong-woo
    • Smart Media Journal
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    • v.9 no.4
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    • pp.81-90
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    • 2020
  • Due to the recent economic development and the improvement of income level in China, the desire for quality medical services is increasing compared to the past. As an alternative to satisfy these needs, various applications using smart phones and the like are being developed. The new corona that occurred in December 2019 began to show great interest in non-face-to-face telemedicine services using smart phones due to the worldwide spread of the coronavirus. Therefore, in this study, a total of 200 people were surveyed on the top three mobile medical applications in China, and the data of 120 people who actually used medical applications were analyzed based on Venkatesh's UTAUT2 theory. A study was conducted on the intent to use and the factors affecting the in-law behavior. First, it has become clear that the interactive characteristics, expectations for effort, price value, interest in privacy, habits, and promotional conditions have a positive impact on the user's use. Second, it was investigated that the user's intention to use influences the behavior of use, and among the intentions of use, it was found that the mobilization characteristic expectation, hedonistic motivation, price value, habits, and promotion conditions affect the use behavior. Third, a study result was derived that the controlling variables such as gender, age, school age, and annual income do not affect the user's intention to use mobile medical applications as a controlling variable. Finally, due to the nature of mobile devices that use the Internet, various security vulnerabilities exist, and this can cause great damage or personal and social impact. Therefore, for the development of mobile medical services in China, it is necessary to re-establish a research model through comprehensive and in-depth considerations to supplement these problems in the future.

An Exploratory Study on Tie-in Promotion (제휴 프로모션에 관한 탐색적 연구)

  • Lee, Eun Mi;Park, Hyun Hee;Jeon, Jung Ok
    • Asia Marketing Journal
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    • v.13 no.1
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    • pp.27-50
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    • 2011
  • In today's market scenario, consumers are bombarded with similar promotional messages. It means that managers have to pay attention to promotion strategy to create strong effect as well as to break through the monotony. In this context, although there are strong needs concerning tie-in promotion, research investigating tie-in promotion is limited. Therefore, we extracted tie-in promotion tools and defined the concept of each tie-in promotion tool by analyzing various tie-in promotion cases which are executed in current market. In addition, consumer's recognition of tie-in promotion was investigated through the in-depth interview. The results of case analysis of tie-in promotion and in-depth interview are summarized as follows. First, 9 tie-in promotion tools were extracted: tie-in price reductions, tie-in coupons, tie-in membership, tie-in contests, tie-in premiums (tangibility, intangibility), tie-in payment terms, tie-in sample, tie-in event(culture event, charity event, experience event) and tie-in fund·rebate. Second, 3 categories of the recognition of the consumer for tie-in promotion were extracted: features of preferred tie-in promotion, expectation benefit of tie-in promotion, and risk factors of tie-in promotion. Especially, at the aspect of features of preferred tie-in promotion, fit between consumer pursuit benefit and tie-in promotion was found to be interesting. Moreover, the recognition of the consumer for tie-in promotion were divided with positive(preferred tie-in promotion features, expectation benefit of tie-in promotion) and negative(risk factors of tie-in promotion) factors. In conclusion, the company's effort will be necessary to lower the perceived risk level occurring from the process of accomplishing the tie-in promotion strategy since consumers recognize both positive and negative effects of tie-in promotion.

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