• Asia pacific journal of information systems
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• 제15권3호
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• pp.1-7
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• 2005

This paper examines strategic competition model between offline and online retailers and draws strategic implications. Research on the price competition between conventional offline retailers and online retailers has been done through empirical approaches, however, the results are conflicting. This paper reconciles the existing conflicting empirical findings on price levels between offline and online retailers through theoretical approach. This paper analyzes how the internet market has effect on equilibrium prices of both offline and online retailers and discusses the possible reasons why there exist price differences between offline and online retailers in business to consumer electronic commerce.

• 유통과학연구
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• 제12권2호
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• pp.73-79
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• 2014

Purpose - The Korean government has revised the distribution industry development law to regulate large-scale retailer operations to protecting medium- and small-scale retailers and traditional markets. According to the revised law, large-scale retailers must follow regulations on operating hours and compulsory store closures two days per month. Based on the revised distribution industry development law, most local governments regulate operation hours and they have adopted compulsory closure programs for large-scale retail stores. However, it is argued that fresh food producers suffer from a decrease in sales based on the compulsory closure of stores operated by large-scale retailers. Large-scale retailers reduce their fresh food orders from agricultural and fishery producers because of the compulsory store closures. Fresh food producers also suffer from a decrease in prices because reduced orders lead to a decrease in auction prices based on the availability of excess goods in wholesale markets. This paper investigates the effects of operation regulations for large-scale retailers on agricultural producers by surveying agricultural and fishery producer organizations. Research design, data, methodology - A survey was conducted on 117 producer organizations of fruits and vegetables, cereals, fisheries, and livestock products from September 10 to October 4, 2012. Survey items are annual sales, shares of sales accounted for by large-scale retailers, reduction of orders and prices from large-scale retailers, methods to deal with the sales reduction, unfair trade practices of large-scale retailers, opinion of the large-scale retailer regulations, and so on. The average sales of the sampled producer organizations are 13.7 billion won and the average share of sales accounted for by large-scale retailers is 35.4%. Results - Survey results show that the sample producer organizations' sales decreased 10.1% because of the compulsory closures of stores operated by large-scale retailers. It is estimated that the total sales of producer organizations decreased 371.2 billion won because of the regulations on the operation of large-scale retailers. In addition to the direct effect of a sales decrease due to order reduction, agricultural and fishery producer organizations suffered from the secondary effect of price reduction in wholesale markets. When orders from large-scale retailers decreased, most agricultural and fishery producer organizations shipped redundant products to wholesale markets, decreasing auction prices. It was estimated that the price received decreased 21.9% when sold in other marketing channels. As producer organization sales decreased, it was reported that the labor force employed by producer organizations also decreased by 15.1%. Therefore, we can conclude that the regulations for large-scale retailer operations resulted in negative impacts on agricultural producers. Conclusions - Although the sales reduction due to the regulations for large-scale retailer operations are not great, the cumulative effects due to the continued compulsory closure of stores operated by large-scale retailers could be great. This paper suggests governmental programs that could help agricultural producer organizations to find new and effective marketing channels such as direct marketing, farmers' markets, exports, Internet shopping, and so on.

• 지식경영연구
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• 제12권3호
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• pp.73-96
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• 2011

Recent market saturation makes the local retailers consider an attempt to innovate the market with the retailer's brand. This is the retailers' efforts to expand the market control through the enhancement of private brands. As the competition among manufacturers extends to the competition between manufacturers and retailers, the marketing knowledges of manufacturers need to be diversified to the ones that can be applied to the manufacturers and retailers due to their bilateral competition. This research concentrates on the customer acquisition strategy (attack strategy) and customer retention strategy (defense strategy) in the place of both sides of manufacturers and retailers. Also this research targets to develop the differential marketing strategies for target market's National Brand(NB)/Private Brand(PB) purchase by analyzing individual customer's purchase probability on repurchase and switch-purchase of NB and PB. This study is based on the data of frequently consumed product, tomato ketchup on scanner panel from the ERIM data of University of Chicago, USA. This study compares and analyzes the NB and PB repurchases and switch-purchase of 4 types. The comparisons provide the informations that which factors should be managed for the attack strategy, the defense strategy, and the differential marketing strategies both for manufacturers and retailers. This research is expected to contribute on cumulating the industrial knowledges of retailers' and manufacturers' survival strategy, expecially focusing on the effect of marketing factors and consumer-characteristic factors.

• Journal of applied mathematics & informatics
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• 제19권1_2호
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• pp.397-414
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• 2005

In the existing literature, most of the purchasing models were developed only for retailers problem ignoring the constraint of storage capacity of retailers shop/showroom. In this paper, we have developed a deterministic model of wholesaler-retailers' problem of single product. The storage capacity of wholesaler's warehouse/showroom and retailers' showroom/shop are assumed to be finite. The items are transported from wholesaler's warehouse to retailers' Own Warehouse (OW) in a lot. The customer's demand is assumed to be displayed inventory level dependent. Demands are met from OW and that spaces of OW will immediately be filled by shifting the same amount from the Rented Warehouse (RW) till the RW is empty. The time duration between selling from OW and filling up its space by new ones from RW is negligible. According to relative size of the retailers' existing (own) warehouse capacity and the demand factors, different scenarios are identified. Our objectives are to optimize the cost functions of wholesaler and two retailers separately. To solve this problem, a real coded Genetic Algorithm (GA) with roulette wheel selection/reproduction, whole arithmetic crossover and non-uniform mutation is developed. Finally a numerical example is presented to illustrate the results for different scenarios. To compare the results of GA, Generalised Reduced Gradient Method has been used for the problem. Also, a sensitivity analysis has been performed to study the variations of the optimal average cost with respect to the different parameters.

• 유통과학연구
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• 제16권9호
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• pp.5-11
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• 2018

Purpose - In recent, Japanese retailers have expanded their business into Korea, although Korean customers have anti-Japan sentiment in their mind, It is, thus, necessary to investigate how Korean customers react to Japanese retailers, when selecting a shopping place. Research design, data, and methodology - The authors have developed a research model with five hypotheses, based on the literature review process, and used confirmative factor analysis(CFA) as well as a structural equation model(SEM) as a research technique, in order to verify hypotheses. Results - All of hypotheses are accepted. Anti-Japan sentiment significantly influences consumer ethnocentrism and animosity. Interestingly, consumer ethnocentricity affects the formation process of animosity. Rather than ethnocentrism, animosity relatively influences customer attitudes towards Japanese retailers, when Korean customers choose a retailer. Conclusions - The authors found that anti-Japan sentiment has significantly affected Korean customer attitudes. In order for Japanese retailers to increase their market shares in the Korean market, they have to make a significant effort to alleviate the degree of anti-Japan sentiment, together with Japanese government. In contrast with research findings, Japanese retailers have done their business very well in Korea. Considering that Japanese retailers target younger customers in Korea, demographic elements should be involved in the future research.

• 융합경영연구
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• 제9권6호
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• pp.25-38
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• 2021

Purpose: This study is aiming at providing researchers and practitioners with new insights to analyse how retailers have made a contribution to the growth of HMR market in Japan and UK. Research design: The second section will look at the definition of HMR, and then, introduce each county's case, while analysing how retailers have developed the HMR market and illustrating some implications. Finally, the authors will draw a conclusion. Results: Retailers have established the retailer brand development department with the sophisticated retail information system which has made a considerable contribution to the growth of the HMR market. Also, it enables retailers to accumulate retail knowledge associated with ready-to-eat meals and train top-level experts, whilst helping them to build the trustworthy supply chain relationships by sharing the POS data with food manufacturers. Consequently, the cooperation with food manufacturers has enhanced in the HMR market in both Japan and UK, on the basis of sophisticated delivery system as well as the concept of innovation into the HMR sector. Conclusions: Retailers have to benchmark Japanese and British retailers' Knowledge to grow ready meal market in Korea and invest their marketing resources in developing various HMR foods, on the basis of innovative thinking.

• 유통과학연구
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• 제18권5호
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• pp.89-98
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• 2020

Purpose: The growth of online commerce is now becoming a major threat and a new opportunity for retailers. Existing offline retailers struggle to cope with new online retailers' threats by utilizing offline infrastructure. Besides, online retailers expand their online strengths to offline sales by opening their offline stores. Many retailers are paying close attention to the O2O business and the resulting changes. Thus, this research focuses on the O2O business model and process that retailers can adopt. Research design, data and methodology: Considering the features of products that retailers sell, this paper divides O2O business process with the following criteria: delivery lead-time and delivery area. And This research uses the business model canvas to define the features of O2O commerce business process. This paper also uses nine key elements in the business model canvas for analyzing the structure of O2O commerce business. Results: This paper suggests the delivery model of retailers respond to offline customer orders and summarizes the following results. (1) Considering characteristics such as logistics process, delivery area, and product type, we define the features of O2O business models: wide-area (warehouse) based O2O business model, regional area (store) based O2O business model and time-separated O2O business model. (2) This study checks the availability of the business model through the business cases of O2O business models. (3) This study also analyzes the O2O business model of domestic retail companies by the factors defined in the business model canvas. Conclusions: Retailers can adopt the O2O business process to fit their business requirements and strategy. The online retailers who deal with normal consumer products mainly have the wide-area based O2O business model. The wide-area based O2O business model can be suitable for retailers who manage inventory centrally. The time-separated O2O business model can be a good solution for fresh food retailers to operate the logistics process efficiently. And to shorten the delivery lead-time of fresh foods, the regional area based O2O business model can be fit to the retailer that utilizes its offline logistics or sales infrastructure. It may be much more important for retailers to share the inventory information with other branches and to change the role of offline stores.

• 산업경영시스템학회지
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• 제27권2호
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• pp.102-113
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• 2004

This paper addresses the transportation planning that is based on genetic algorithm for determining transportation time and transportation amount of minimizing cost of distribution system. The vehicle routing of minimizing the transportation distance of vehicle is determined. A distribution system is consisted of a distribution center and many retailers. The model is assumed that the time horizon is discrete and finite, and the demand of retailers is dynamic and deterministic. Products are transported from distribution center to retailers according to transportation planning. Cost factors are the transportation cost and the inventory cost, which transportation cost is proportional to transportation distance of vehicle when products are transported from distribution center to retailers, and inventory cost is proportional to inventory amounts of retailers. Transportation time to retailers is represented as a genetic string. The encoding of the solutions into binary strings is presented, as well as the genetic operators used by the algorithm. A mathematical model is developed. Genetic algorithm procedure is suggested, and a illustrative example is shown to explain the procedure.

• 한국경영과학회지
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• 제37권3호
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• pp.95-116
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• 2012

The purpose of this paper is to show the effect of information sharing strategy on the supply chain performances. While traditional information sharing models assumed centralized stock information, recent supply chain practices often implement fully shared stock information, where real-time stock information is accessible on retailers. When retailers are competing with each other, this fully shared stock information may incur retailers' strategic order behaviors. Thus, this paper analyzes a simple two-level supply chain consisting of one warehouse and two identical competing retailers where the real time stock information is fully shared. The warehouse uses the traditional echelon stock policy. Under this environment the retailers' reorder decisions are derived using the order risk concept and the retailer competition mechanism is analyzed. Computational results show that the supply chain performace degradation in the fully shared stock information is quite significant, implying the importance of designing information sharing strategies in the supply chain design phase.

• 산업경영시스템학회지
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• 제39권3호
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• pp.47-55
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• 2016

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