• Title/Summary/Keyword: Purchasing decisions

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Development of a New Direct Marketing Channel in the Chinese Rural Market: The Case of Hongfu Fertilizer Company

  • Li, Dao-sheng;Hong, Jinhwan
    • Asia Marketing Journal
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    • v.15 no.2
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    • pp.29-47
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    • 2013
  • Distribution channel decisions involve long-term commitments with other firms that are very difficult to change or replace. In particular, marketing channel decisions in emerging markets are much more complicated due to unfamiliar conditions and problems such as lack of market data and distribution systems. Therefore, when a company considers changing or introducing a marketing channel in an area, it is much more difficult to judge its effectiveness in an emerging market than in a developed market. In this study, we investigate the development process of a new direct marketing channel of Hongfu Fertilizer Company (hereafter Hongfu), a medium-sized Chinese fertilizer manufacturer, and propose an approach to test the feasibility of this new marketing channel in the Chinese rural market. We measure the effectiveness of Hongfu's new marketing channel from two perspectives: i) from customers' perspective through direct responses of farmers, which showed that a new channel can increase the convenience and lower the purchasing costs for the farmers, and ii) from the company's perspective, by calculating the incremental profit of the company using the expansion factor (T/Q) method, which suggested that the execution of Hongfu's strategy to expand a new marketing channel will result in an increase in profits. The results of this study contribute to the development of a methodology to test the feasibility of a new direct marketing channel in the emerging markets such as the Chinese rural market. Traditional and indirect distribution channels in emerging markets are generally not very efficient and difficult to change. Especially, in emerging markets, like the Chinese rural market, the methods of testing channel feasibility must be different from that of developed markets. Considering market situations, market experiments can be more effective then systematic market surveys in testing channel feasibility in emerging markets. This study implies that managers must learn to cope with a transition from the traditional marketing channels in emerging markets. With the development in farmers' understanding of marketing concept, the transition from traditional marketing channel is unavoidable for all firms. Farmers in China are generally very conservative, however, their buying behaviors are changing. Therefore, fertilizer companies should try to adjust in accordance with farmers' demand characteristics that the efforts to meet the economic needs of farmers with new marketing channels as well as trust building are critical in the near future.

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A Structual Analysis of the Relationship between Brand Image and Country Image of Global Product (글로벌 제품의 브랜드 이미지와 국가 이미지에 관한 구조적 관계 분석)

  • Bong-Soo Lee
    • Korea Trade Review
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    • v.46 no.6
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    • pp.55-71
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    • 2021
  • The purpose of this study was to establish the causal structural model among brand image and country image associated with consumers' purchase decision of products. The specific objectives were 1) to analyze the effects of brand image on consumers' purchase decision of products, 2) to analyze the effects of country image on consumers' purchase decision of products, 3) to analyze the effects of brand image on country image, 4) to analyze the mediating effects of country image between brand image and consumers' purchase decision of products. The conclusions of this study are as follows: First, companies must have an advantage strategy for brand image along with country image. To this end, a strategy to promote the brand image through various media is effective. Second, it is necessary to find new transformation through the establishment of brand identity at the corporate level so that consumers can have a good impression on the brand image. Third, it is important for companies to make efforts at the level of brand image and country image to provide consumers with information that can increase expectations and actual satisfaction and to build product reputation. In addition, it is necessary to embody brand images and country images into global marketing mix strategies. Fourth, if companies build a brand image that symbolizes a differentiated culture, the brand image can have a positive effect on consumer purchase decisions. Along with this, companies can further increase their positive effects by developing representative brand image contents. Fifth, this study confirmed that the higher the image level of the manufacturing country in a situation where consumers' preferences are diversifying, the more the brand image leads to consumers' purchasing decisions. Therefore, brand managers are required to build a country image suitable for the existing brand image when advertising at the time of product introduction.

Consumer Trends on Dietary and Food Purchasing Behaviors and Perception for the Convenience Foods (한국형 건강 편의식 개발 방향 도출을 위한 소비자의 식행동 및 인식 조사)

  • Yoon, Sun;Sohn, Kyung-Hee;Kwak, Tong-Kyung;Kim, Jung-Soo;Kwon, Dae-Joong
    • Journal of the Korean Society of Food Culture
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    • v.13 no.3
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    • pp.197-206
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    • 1998
  • This study was attempted to identify emerging consumer trends on dietary and food purchasing behaviors and perception for the convenience foods. Self completed questionnaires were collected from 710 housewives in Seoul and Kyunggi province and analyzed statistically. A questionnaire consisted of 3 parts including demographic backgrounds, dietary and food purchasing behaviors, perception for the convenience foods. Among demographic variables age, occupation and lifestyle were the significant factors affecting consumers' behaviors and perception of dietary lives. Over half of housewives, who are the primary persons responsible for home meal preparation, confessed that they do not enjoy meal planning and preparation any more. An attitude toward in home food preparation was significantly different among age groups, working or non-working women and lifestyles. Most of the respondents go shopping for foods whenever they need to or 2-3 times a week. They also did not plan before going foods shopping and purchase decisions were made in-store. They considered quality of foods more important than price. Consumers were not willing to purchase pre-cut packaged vegetables or pre-cooked foods on the market. However, they showed strong desire and demand for the development of convenience korean foods coupled with high quality.

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Analyzing Factors Influencing Purchasing Behavior of PB Eggs: Focusing on Eggs from Large Distribution Companies (계란식품PB 구매에 미치는 소비자 요인 분석:대형유통업체 계란상품을)

  • Kim, Jong-Jin;Shim, Kyu-Yeol;Kim, Mi-Song;Youn, Myoung-Kil
    • Journal of Distribution Science
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    • v.11 no.10
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    • pp.107-116
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    • 2013
  • Purpose - Eggs are nutritionally complete and one of the most popular natural foods. Moreover, the poultry industry is one of the important food industries. However, early industrialization of the poultry industry on its own did not lead to further development compared to other livestock industries. In this study, we investigate what factors influence consumers' behavior and how consumers' understanding of retail business affects their propensity to consume. This study is different from other studies as it analyzes how the brand names of manufacturers and distribution companies affect the purchasing characteristics or actual purchase behavior of consumers in order to suggest how these manufacturers and distribution companies can increase their competitiveness. Research design, data, methodology - This study conducted a survey of 250 randomly selected egg purchasers in discount stores from January to April 2013. Consumers' purchase tendencies were calculated through frequency analysis. This result was then utilized using cluster analysis to draw a conclusion about which purchase tendency influenced consumers buying three different brands of eggs or whether this tendency really affected consumers. As a result, the outcomes of Hypotheses 2 and 3 were not clear so we drew a conclusion with our analysis of Hypothesis 1. Results - While the outcomes of Hypotheses 2 and 3 did not clearly indicate whether purchasing tendencies affected consumers when buying eggs, our analysis of Hypothesis 1 indicated that consumers were affected by the quality of the eggs rather than exterior factors such as the brand name. Thus, we concluded that it is important to promote the excellence of the quality of the eggs. Usually firms buy eggs from farms and repackage them in order to sell them. In this sense, if consumers were aware of this egg production process, and eggs were fairly distributed to retailers, large retail PB businesses would also be able to enhance their competitiveness. Conclusions - The brand, packaging, retail outlet, and other external features influenced the purchase of eggs to a certain degree, while shelf life, grade of the eggs, cleanliness, and other intrinsic characteristics had more influence. In particular, shelf life was the most important factor influencing purchase. Consumers were influenced not only by intrinsic characteristics of the eggs but also by large-scale producers' brands. Consumers relied upon the brand despite reduced competition because they found it difficult to identify shelf life and/or cleanliness. Small businesses and/or large-scale retailers can remain competitive by maintaining the freshness and cleanliness of the eggs. Further studies need to investigate areas in which consumers' cognition of the product is poor and/or the purchase inclination with regard to less developed industries such as eggs. In this study, the greatest problem was that consumers did not consume in accordance with the current situation as consumers have preferred fresh and clean eggs for a long time compared to purchase decisions based on external brands and/or packaging.

Influence of Country-of-Origin Image, Brand Attitude and Corporate Social Responsibility on Chinese Consumers' Perceived Quality and Purchase Intention (원산지 이미지, 브랜드 태도, 기업의 사회적 책임이 중국 소비자의 지각된 품질과 구매의도에 미치는 영향)

  • Kim, Bo-Young;Lee, Ga-Young;Song, Ni-Eun
    • Management & Information Systems Review
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    • v.36 no.3
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    • pp.1-16
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    • 2017
  • As purchasing power of Chinese consumers has increased and their purchase channels have become more various, Chinese consumers are paying more attention to foreign products and purchasing more of them as well as the domestic goods. With great expectations, many companies in different nations are scrambling into the Chinese market. In this situation, Chinese consumers have a wider range of choices when selecting and purchasing goods, thereby trying to take several factors into account in order to choose the best one in a limited time. This study is about how much country-of-origin image, brand attitude and corporate social responsibility influence Chinese consumers' quality perception and their purchase decisions. The study result shows that country-of-origin image, brand attitude and corporate social responsibility all have a positive effect on perceived quality of the consumers, and among those three, the brand attitude is found to be the most influential factor. It also shows that perceived quality brings a positive effect on purchase intention. Also, in terms of difference in product categories, the influence of corporate social responsibility on perceived quality and the influence of perceived quality on purchase intention are shown greater in dairy products than in PC. This study has academic significance as it has investigated consumer behavior, considering each different factor above. Also it has practical significance since it offers an implication on the marketing strategies of the companies that are planning to advance into the Chinese market in the future.

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A Study on the Determinants of Purchasing Decision Making for Effective Branding Strategy: Focusing the Medicine Treatment in Infantile Obesity (효과적인 브랜딩 전략을 위한 소비자 구매의사 결정 요인 분석: 소아비만 치료제 유통시장을 중심으로)

  • Park, Mun-Seo;Kim, Hyung-Joon;Lee, Sang-Youn
    • Journal of Distribution Science
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    • v.9 no.3
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    • pp.55-64
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    • 2011
  • This study is important in its focus to find key clues in the marketing strategy, consumer behavior, and communication processes that define the infantile obesity market. The study, the first of its kind, surveyed a target audience, purchasing group, and housewives in their quest to determine purchasing decisions and effective branding strategy planning for the infantile obesity market. Another key component of the study was to focus on the key direct and/or indirect distribution channels for the subject market. Recently, obesity has emerged as a major social concern; some studies show that the onslaught of an adverse eating culture in Korea emanates from the prevalence of fast-food dining establishments. Obesity among children leads to adult obesity, especially if the young people's parents are overweight; notably, if either one or both of the parents are obese, the percentage of young people eventually being obese is approximately 80 to 85 percent. Because obesity is the cause of many major health concerns later in life, the struggle for a healthy life is considerably adversely affected by parents' consumer behavior. Infantile obesity, resulting in adult obesity, is also an important national economic and social issue. The sizable direct and indirect economic costs, as well as the tremendous social costs of obesity, cannot be overstated. Effective food branding and advertising centered on food preferences and dietary behaviors, especially to children, creates an effective marketing effort that, ultimately, leads to positive results. Thus, the purpose of this study is to demonstrate that the treatment of childhood obesity in Korea, through the activation of a brand and retail market, can effectively solve social and economic problems that result from infantile and childhood obesity. In this study, obesity markets and distribution channels in the purchase decision-making factors determining factor based on it effective inspection and branding strategies and brand marketing communications strategy proposed measures contribute to the obesity drug market and further enable the childhood obesity problem is intended to assist in solving.

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The Influence Relationship among Consumers' Characteristics, Information Search, and Purchase Decision in On/Offline Retailing Environment (온/오프라인 유통환경에서 소비자특성, 정보탐색, 구매결정 간 영향관계에 관한 연구)

  • Chae, Jin Mie
    • Fashion & Textile Research Journal
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    • v.22 no.3
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    • pp.323-334
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    • 2020
  • This study analyzed the effects of consumers' characteristic variables on information search and purchase decisions in a decision-making process that validated the path model in purchasing apparel products. In constructing a structural equation model using AMOS 19.0., the variables including enjoyment pursuit, price pursuit, product involvement and product risk were selected as consumers' characteristic variables affecting the stage of information search. A questionnaire was distributed to consumers over 20 years old who purchased apparel products using offline and online channels within one year; consequently, we were able to analyze 468 effective data. The results were as follows. First, the path model of this research proved to be the appropriate model explaining the effects of consumers' characteristic variables on the stage of purchase decision-making. Second, enjoyment pursuit had a significant positive influence on offline information search; in addition, price pursuit and product risk affected the online information search significantly. Product involvement affected online information search as well as offline information search. Third, the offline information search affected offline purchase and online information search affected online purchase. However, consumer's channel switching behavior between the stage of information search and the stage of purchase decision was not proven. The findings suggest that companies need to develop distribution strategies according to consumers' characteristic factors that effect consumer's purchase decision-making.

V2X Technology Trends for Next-Generation Mobility

  • Kim, Young-Hak
    • International Journal of Internet, Broadcasting and Communication
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    • v.12 no.1
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    • pp.7-13
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    • 2020
  • We describes V2X technology, a connectivity-based recognition technology that is attracting attention as a key technology for implementing autonomous driving technology, and autonomous communication modules that implement ADAS technology, a sensor-based recognition technology. It also explains the trends in V2X technology standardization centered on IEEE 802.11p, which is a WAVE technology standard based on Wi-Fi/DSRC. Finally, we will discuss the market growth trend of V2X communication modules in the United States, the leading V2X technology module, and the development of technology development trends of major domestic and international companies that are leading the global technology market related to V2X communication modules. V2X and ADAS technologies will be the biggest influence on automotive purchasing decisions. In recent years, V2I mandates have been promoted beyond V2V, mainly in developed countries such as the United States. The related industry needs to focus on the development of information transmission network technology that can support high frequency high efficiency(transmission rate) and sophisticated positioning accuracy beyond conventional vehicle communication.

Effects of Retail Tensile Pricing Strategy Based on Consumer Self-confidence

  • NUKEZHANOV, Madiyar;CHUNG, Jaekwon
    • Journal of Distribution Science
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    • v.17 no.6
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    • pp.25-32
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    • 2019
  • Purpose - Pricing strategy is a very effective marketing activity and has a significant impact on consumer purchasing decisions. Numerous studies have investigated the effects of various pricing strategies. However, tensile price claims have received little attention in the literature. It is thus necessary to investigate how different forms of tensile price claims affect consumer response. This study uses the consumer self-confidence level as a moderator of consumer behavior. Research Research design, data, and methodology - This study investigates the effect of four different tensile price claims (i.e., maximum discount, minimum discount, average discount, and range discount advertisements) on consumers' perceived savings. A survey was conducted to collect data for testing hypotheses. Results - The results show that consumers with high levels of self-confidence perceive more savings for maximum discount advertisements than minimum discount advertisements, for range discount advertisements than average discount advertisements. On the other hand, consumers with low self-confidence feel more perceived savings for average discount advertisements than range discount advertisement. Conclusions - The results of this study provide a new insight into the effectiveness of tensile pricing based on consumer self-confidence levels, which may provide valuable theoretical and practical applications.

Self-image and Fashion Leadership: Focusing on Clothing Involvement and Consumer Confidence (자기이미지와 패션리더성향: 의복관여와 소비자 자신감을 중심으로)

  • Youn, Song-Yi;Lee, Kyu-Hye
    • Fashion & Textile Research Journal
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    • v.17 no.3
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    • pp.382-391
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    • 2015
  • People are exposed to diverse images and naturally find images to express themselves to others for personalsatisfaction. They present ideal images that they desire to obtain or actual images that they already have. People find differences between ideal images and actual images as well astry to overcome differences by managing appearance or purchasing fashion items. The congruence between real and ideal self-images and perceived body images stimulate clothing involvement or consumer confidence to influence fashion innovativeness and fashion opinion leadership. Fashion leaders are known for confidence when making buying decisions on new fashion products and are more likely to influence other consumers to buy new items. This study useda structural equation model to understand the influence of perceived self and body image on clothing involvement and consumer confidence as well as define how perceived images influence fashion leadership through clothing involvement and consumer confidence. The results of this study indicated that self-image congruence has a positive impact on social body image and personal body image. A positive influence of perceived body image on clothing involvement and consumer confidence was also detected. Fashion opinion leadership could be explained by clothing involvement and consumer confidence; however, fashion innovativeness could only be explained by consumer confidence.