• Journal of Distribution Science
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• v.7 no.4
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• pp.15-26
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• 2009

The internet has dramatically changed a way of business management and competition in the business environment. Especially, it stimulated not only to evolve online floral distribution service but also to change a phase of competition among floral retail stores in industry. And that also led to keen competition among IT service providers as well. This study is to examine how floral retail stores have been evolved and competed with the radical situation of the floral distribution industry through IT service in the aspect of business and information technology. In addition, the Typhoon Positioning Strategy(TPS), a strategy for the IT service positioning, is introduced from IT service provider's perspective. For IT service providers to create high business value and continuous service providing, IT service should be positioned on the customers' "core business" and developed to the level of "solution." The Typhoon Positioning Strategy(TPS) is a strategy for the IT service positioning, indicating that IT service should be positioned according to a Business Process-Service model with the consideration of business development direction, IT service trend, and user's IT capability. That is, IT service providers should find out customers' "core business" area first to provide a right IT service to the company, and the IT service provided should meet to the level of business solution. The capability of the IT solution users is also an important factor to be considered for the advanced IT service. There are four principles of the Typhoon Positioning Strategy(TPS). Principle 1) IT service provided should be an IT solution Map suitable for customer business processes. Principle 2) IT service provided should be able to support customer core business. Principle 3) IT service provided should be a business solution. Principle. 4) IT service provided should be applied differently according to the level of customer's IT capability.

• Journal of Distribution Science
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• v.12 no.8
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• pp.5-15
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• 2014

Purpose - The method of TV home shopping is a kind of retail method that provides the viewer with information about products and, further, sells the products to consumers through the media of television. The domestic home-shopping industry has been expanding since 1995, and there are six companies in this arena as of 2012. In this study, we evaluate the management efficiency of TV home-shopping companies and provide suggestions for improving efficiency, using the DEA (data envelopment analysis) model. Hence, we expect to contribute to the progress of the companies' efficiency and the development of the TV home-shopping industry, where deepening competition is inevitable because it is experiencing the maturing market stage in its life cycle. Research design, data, and methodology - Efficiency is the ratio of the quantity of input to the quantity of output of a product or service. It is necessary to estimate aggregate inputs and aggregate outputs, which are calculated by applying a weighting to a number of input and output factors, to measure the efficiency. The DEA model is divided into the CCR model and the BCC model. The CCR model is a basic model that assumed constant returns to scale (CRS), and the BCC model extends the CCR model to accommodate technologies exhibiting variable returns to scale (VRS), and concerns only the technical efficiency without considering the efficiency of returns to scale. In this study, we consider six companies each year from 2008 to 2012 as a DMU (Decision Making Unit) and analyze the differences in efficiency for each company in each year. Furthermore, we evaluate the operating characteristics of TV home-shopping companies, using three models, in accordance with the overall performance, profitability, and marketability of the business. Results - The result of the analysis, using DEA models, shows that Hyundai Home Shopping (2009, 2010, 2011), GS Home Shopping (2011), NS Home Shopping (2011) and CJ O Shopping (2012) possess MPSS (most productive scale size), with a score 1.0 in CCR, BCC, and scale efficiency. Particularly, Hyundai Home Shopping is shown to be the most efficient in terms of overall business performance, marketability, and profitability. The overall efficiency of the home shopping industry has displayed an increasing trend since 2008, even though it decreased marginally in 2012; further, we can observe that home shopping companies operate with increasing efficiency with the passage of time. Conclusions - Home shopping companies have focused on market expansion rather than profits, as they displayed better efficiency in marketability than increase in profitability during the period 2008-2012. In addition, the main reason for the increased efficiency in the home shopping industry is the market expansion through the revenue increase of each home shopping company. This study can be used as a reference when home shopping companies attempt to devise future strategies, as it suggests efficiency benchmarks and development levels for each home shopping company.

• Journal of Distribution Science
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• v.14 no.6
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• pp.65-73
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• 2016

Purpose - Recently, the management conditions of small independent retailers are getting worse everyday as large-scale marts and franchised convenience stores are increasing. The objective of this research is to find out the antecedents and consequences of cooperation in voluntary chain in order to enhance small independent retailer's competitiveness. Voluntary chains, also called affiliation or symbol groups, or allied group represent a high market shared in some European countries like Italy, France, and Germany. Nevertheless, there are still limitations in this research from academic fields. Drawing from network theory, the author investigates the relationship between antecedent factors in voluntary chain cooperation, such as participation benefits, justice of compensation, and autonomy in voluntary chain, and relationship specific asset. The author also attempts to examine the relationship between the relationship specific asset and cooperation of voluntary chain member shop and cooperation and consequence factors of voluntary chain cooperation, such as efficiency, group cohesiveness, and long-term relationship. Research design, data, and methodology - The author presented conceptual framework integrating the major antecedents and consequences of voluntary chain cooperation. The data were collected from 174 independent small retailers who joined K-voluntary chain. K-voluntary chain consists of small independent retailers. In accordance with their status, each entrepreneur associated with the voluntary group can own one or more outlets and can be a part of the life and the decision-making process of the group. This participation is not based on company turnover or on the number of outlets, but based on a one member, one vote system. To verify the research model and test hypotheses, the author carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. The data were analyzed by using SPSS 18.0 and AMOS structural equation modeling program. Results - The results of this study are as follows. First, as antecedent variables, participation benefits and justice of compensation have positive effect on the relationship specific assets of voluntary chain members. Second, voluntary chain members' relationship specific asset also directly related to the level of its cooperation to chain headquarter. Third, cooperation of voluntary chain member shop facilitates efficiency, group cohesiveness, and long-term relationship. Unexpectedly, there are no effect autonomy in voluntary chain to relationship specific asset. Conclusions - This research shows several theoretical and practical implications to both marketing scholars and marketers. In terms of theoretical implications, this study applies to network theory and network theory variables to explain the antecedent and consequence factors of cooperation in voluntary chain. From the point of view from business management, most of all, this study shows the way how to reinforce competitiveness of voluntary chain. Specifically, it is necessary for voluntary chain headquarter to give higher level of participation benefit and justice of compensation to its members. Second, the results also indicate what the consequence factors of cooperation in voluntary chain. In other words, to increase the level of marketing efficiency, group cohesiveness, long-term orientation in retail voluntary chain, and chain headquarter need to facilitate participants' cooperation.

• Journal of Distribution Research
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• v.15 no.4
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• pp.21-60
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• 2010

In recent retail environments, multichannel customer management increasingly has been considered a key element of successful CRM. Although customer's multichannel usage is believed to be potential cause of customer loyalty, the theoretical explanation about this causal relationship still remains unexamined and unanswered. In this paper, the authors present a systematic framework to test the postulated "multichannel usage-shopping experience-customer satisfaction" chain. To this end, we examine that the two core components of shopping experience(convenience and enjoyment) is a mediator of the direct causality of multichannel usage(based on both information search and product purchase stage) on customer satisfaction. Moreover, the authors examine that two types of customer-firm relationship characteristics(relationship age and purchase frequency) is a moderator of the multichannel usage-shopping experience relationship. Using integrating data with survey and customer database of multichannel retail company, the authors empirically test and substantiate shopping experience's mediating role in the multichannel usage-customer satisfaction relationship and customer-firm relationship characteristics' moderating role in the multichannel usage-customer experience relationship. These results suggest that multichannel retailers should deliver favorable shopping experience for building customer satisfaction and differentiate shopping experience according to customer-firm relationship characteristics.

• Journal of Distribution Science
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• v.14 no.12
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• pp.89-97
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• 2016

Purpose - In the major global markets, such as US and China, consumer ethnocentrism has been strengtened and there is a growing need for related study. This research aims to investigate the effects of national pride and national attachment on consumer ethnocentrism, using a nationally representative dataset from 2013 Korean General Social Survey. Based on the reviews of literature in social and political sciences, two dimensions of national pride were considered: national society pride which is based on positive evaluations on the nation's democracy condition or social security system, and national achievement pride which is based on positive evaluations regarding the country's achievements in the areas of technology, art, sports, and so on. Research design, data, and methodology - The authors developed a structural model in which two types of national pride, national society and achievement pride, are proposed to affect national attachment, thus influencing consumer ethnocentrism. 1,294 surveys were used for empirical analysis. The hypotheses were tested by utilizing SPSS 22.0 and AMOS 21.0. The unidimensionality of each construct and the nomological validity were supported from the results of factor analyses and correlation analysis. Results - It was found that both national society pride and national achievement pride have significant and positive effects on national attachment. Consumers who show stronger pride on the social systems or the global achievements of Korea are more likely to remain being a citizen of the country and support the country even in wrong. Also, there was a significant and positive relationship between national attachment and consumer ethnocentrism. Korean consumers who have stronger attachment to Korea tend to express higher ethnocentrism to protect Korean labor market and to promote economic development of the country. Conclusions - The findings of this study showed that companies and government need to emphasize the country's advanced social environments or global competitiveness in technology, sports, art, and so on, to boost national attachment. With a deeper understanding on the relationships among national pride, national attachment, and consumer ethnocentrism, the authors expect that both local and foreign companies in Korea will be able to develop more effective marketing strategies and to achieve sustainable competitive advantage.

• Journal of Distribution Science
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• v.11 no.12
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• pp.5-11
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• 2013

Purpose - The purpose of this study was to construct a turnover estimation model by investigating research by Park et al. (2006) on the market area of domestic distribution. The study investigated distribution by using a new tool for the turnover estimation technique. This study developed and discussed the turnover estimation technique of Park et al. (2006), applying it to a large-scale retailer in "D"city that was suitable for on-the-spot distribution. It constructed the new model in accordance with test procedures keeping to this retail business location, to apply its procedures to a specific situation and improve the turn over estimation process. Further, it investigated the analysis and procedures of existing turnover estimation cases to provide problems and alternatives for turnover estimation for a large-scale retailer in "D"city. Finally, it also discussed problems and scope for further research. Research design, data, and methodology - This study was conducted on the basis of "virtue" studies. In other words, it took into account the special quality of the structure of Korea's trade zones. The researcher sought to verify a sale estimate model for use in a distribution industry's location. The main purpose was to enable the sale estimate model (that is, the individual model's presentation) to be practically used in real situations in Korea by supplementing processes and variables. Results - The sale estimate model is constructed, first, by conducting a data survey of the general trading area. Second, staying within the city's census of company operating areas, the city's total consumption expenditure is derived by applying the large-scale store index. Third, the probability of shopping is investigated. Fourth, the scale of sales is estimated using the process of singularity. The correct details need to be verified for the model construction and the new model will need to be a distinct sale estimate model, with this being a special quality for business conditions. This will need to be a subsequent research task. Conclusions - The study investigated, tested, and supplemented the turnover estimation model of Park et al. (2006) in a market area in South Korea. Supplementation of some procedures and variables could provide a turnover estimation model in South Korea that would be an independent model. The turnover estimation model is applied, first, by undertaking an investigation of the market area. Second, a census of the intercity market area is carried out to estimate the total consumption of the specific city. Consumption is estimated by applying indexes of large-scale retailers. Third, an investigation is undertaken on the probability of shopping. Fourth, the scale of turnover is estimated. Further studies should investigate each department as well as direct and indirect variables. The turnover estimation model should be tested to construct new models depending on the type of region and business. In-depth and careful discussion by researchers is also needed. An upgraded turnover estimation model could be developed for Korea's on-the-spot distribution.

• Journal of Distribution Research
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• v.17 no.5
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• pp.129-146
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• 2012

Recently, Korea became the 7th country in the world which has got into the 20-50 clubs that means the population is 50 million and per capital income is $20,000. From the view point of the retail industry, it suggests that Korea should have its own self-sufficient market by itself. With abundant labor and increased disposable income, it made the consumer's needs change. Responding to the change, retail and F&B oriented retail malls are now starting to add culture, art and entertainment facilities in the configurations. Such complexity and variety of the shopping malls became trendy and many shopping complexes are scheduled to open in the near future across the country. Due to above reasons, it became the common trend to develop shopping complex all over the cities now. However, the history of the shopping mall in Korea is much shorter than developed countries such as America and Japan. Thereby, a lot of problems, trial and error have occurred in the process of developing and operating them. If development of shopping complex failed, it would return lots of damages to the stakeholder. Therefore, the corporations should develop the mall properly and government might support positively. In this study, we would like to propose on how all the mall should be developed and well managed and what are the ways for the vitalizing factors of the shopping complex after benchmarking other shopping mall cases. Through the case study, we realized that the most crucial factors for vitalizing shopping complex were interior design, merchandising and how well they operate the mall. In case of the failed shopping mall, developers sell each store to individual proprietors and never take care of them after they get the profit, which make it hard to have integrated marketing strategies. That causes the overall slump of the mall. Corporations developing the mall should operate it as well, so that it could be possible to make the mall consistently well managed and promoted. There is a certificate for the shopping mall expert in The States and Japan. However, we do not have this kind of certificate. In fact, if we judge the capability of a person who is involved in the shopping mall industry, we usually measure how many years they stick to the same industries and that is not equally the same as their competence. Therefore it is necessary to organize "Shopping Mall Associate" and introduce shopping mall license for the mall expert. Due to retail trends, we can easily see a lot of shopping facilities all over the cities but not every mall is able to be successful. We think it's essential that the government should certify the malls which are qualified for the design, merchandising and proficiency of the operation. For the qualified mall, the government could confer a benefit on the company such as reducing corporation taxes. In multi-complex shopping mall it is possible to make convenient for customers. However, if a mall failed to succeed, it would be disaster. To build a shopping complex, developers should invest huge money even take out loan so that many people would be connected to the project, which may affect their whole financial conditions. In addition, only qualified corporation should develop and operate shopping complex and the government must support and aid the developers in order to make a better shopping environment in which customers might be happy during their shopping experience.

• The Korean Journal of Franchise Management
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• v.2 no.2
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• pp.70-83
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• 2011

The number of agricultural products due to open in response to international competitiveness of the farming press and the need for structural adjustment in agriculture and in agricultural crops receive a fair market price, fair trade, such as improving efficiency sidaejeo appropriate response to the request of the government must have. For this purpose, compared to the communist bojaphan agricultural water efficiently changing the structure of the distribution, agricultural products originating from the acquisition phase choice of shipping a stable product supply and plans to expand production system to induce a smooth supply of agricultural products, expand processing capacity and sales control should be. Also, in the distribution process by eliminating various immoral conduct commerce retail establishment and enforcement of policies for efficient and accurate distribution statistics, information is needed. The ultimate goal of agricultural restructuring and ensure fair price for producers sangpuui and improvement of production facilities for maximizing and affordable for consumers, according to your preferences to receive the best offer will be Foo. Therefore, management increases the efficiency of just distribution costs, or margins, lowering the improvement is not practical to restructure the distribution structure of costs for the best product and must supply the next country of agricultural products, strengthen the consumer's purchase desire to meet will be.

• Journal of Distribution Research
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• v.12 no.4
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• pp.49-77
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• 2007

The purpose of this study is to examine a relationship between the headquarters and the sales offices of a car manufacturing company by comparing their channel types. It examines how the level of communication and commitment of sales offices on their headquarters differently affects some mediating effects between participation and relationship performance. It also tries to find out what kind of mechanisms are needed in order to improve the relationship. Through the data analysis of a total of 200 sales offices which are directly managed stores and agency stores by a domestic car manufacturing company, the following conclusions were reached: Participation, one of the variables in bureaucratic structuring, influences all dimensions of communication. Also, it has found that communication dimensions influence commitment dimensions differently by the type of channels, and commitment dimensions influence relationship performance by the type of channels. Recently, import car makers are accelerating their moves in the domestic market, and the importance of a customer-oriented retail innovation and a relationship management in an auto manufacturing industry is increasing. This study will give an useful suggestion on how to improve a long term relationship of distributors through an enhancement of communication and commitment.

• The Journal of the Convergence on Culture Technology
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• v.8 no.2
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• pp.37-46
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• 2022

Recently, our society and environment has changed rapidly due to the pandemic caused by the COVID-19 virus. In this rapidly changing environment, companies fulfill their social responsibilities and require non-financial elements of transparent management activities. ESG has become one of the non-financial factors, and interest of ESG management is increasing worldwide. In this paper, we examine the importance of ESG concept and ESG management performance and the correlation with companies, and examine the necessity of ESG management for companies in the future. The literature reviews are conducted on CU which is currently best practicing ESG management through various secondary data. Also, we used interview articles so that reflect the rich voice of the distribution industry. In addition, after examining ESG characteristics through examples of global companies, we looked at BGF Retail's CU convenience store ESG activities, which is a leader in ESG management, in distribution industry. CU was divided into all sectors of E, S, and G, and all sectors were actively engaged in activities and flexibly coping with changing environments and social needs. In particular, it was confirmed that CU's environmental management, which focuses the most, achieved successful results due to the increase in actual consumption of customers. ESG management activities at CU convenience stores are currently ongoing and future tasks. As a leading company in ESG management in the current industry, it is meaningful to understand the process of growing into a company that shares concerns, efforts, and practical activities and fulfills social responsibility. Through this study, the changes and growth of CU and domestic companies to ESG and sustainable management are expected in the futures.