• Knowledge Management Research
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• v.16 no.4
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• pp.109-132
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• 2015

We examine offline and online channel sales of experience goods, and compare and contrast the sales patterns of existing products and new products between channels. To this end, we obtain the channel-specific time-series sales data from the leading company selling beauty products, both offline and online. By applying the Vector Autoregressive Model, we empirically find out how the relationship between existing products and new products changes between the shopping channels. Our empirical findings are as follows. First, the sales effects from existing products to new products are significantly positive at both offline and online channels, and this positive effect is greater in the offline channel than in the online channel. Second, the influence of new products on existing products is more positive in the offline channel than in the online channel. Third, the impact of existing products sales on new products sales is greater than that of new products on existing products. Lastly, the inertia effect, the effect within the same shopping channel and the same selling product, is significantly positive in the offline channel but not in the online channel, and this asymmetric inertia effect emerges as we focus on experience goods. Moreover, the impulse response function analysis provides the three important implications. First, companies should pay attention to the same channel but different types of products. Second, the offline channel is more vulnerable to market shock than the online channel. Third, new products sales vary by existing products sales to the greater extent, compared to the opposite relationship. We believe our study contributes theoretically and practically to the fields of marketing and knowledge management.

• Knowledge Management Research
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• v.17 no.3
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• pp.45-64
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• 2016

As the digital retail environement becomes prevalent, consumers are given greater opportunities to make purchases across physical and digital boundaries. Prior research emphasizes that the attractiveness of the digital or online channel is relatively determined by spatial specifics of physical locations. The overall market trend combined with prior research suggests that understanding spatial specifics becomes a key to managing both offline and online sales performance together. In this study, we focus on geographic variation in sales performance through offline and online channels and aim to investigate the channel-level sales difference between central and subsidiary areas. To this end, we obtain sales data of skincare and makeup products from a leading cosmetic company. Next, we examine spatial autocorrelations in data and then employ the spatial error models to study the effects of spatial specifics. The empirical findings are as follows. First, there are significant differences in category-specific and channel-level sales between central and subsidiary areas. Second, Moran's I statistics demonstrate the spatial autocorrelations of each variable. Third, spatial error models outperform simple regression models with lower AIC values. Finally, spatial specifics play a greater role in understanding online sales in subsidiary areas whereas they exert greater influence on offline sales in central areas. We believe our study advances the related theory and knowledge of multi-channel retailing and also contributes practically to location-dependent multi-channel strategies and sales data analytics.

• Journal of Distribution Research
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• v.2 no.1
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• pp.59-85
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• 1997

The automobile industry in Korea has grown to the fifth in the world in terms of production capacity. In spite of the production growth, the marketing aspects such as distribution and customer service in the auto industry are still behind the world-class. Thus, the major purposes of this paper are as follows. The first is to analyze competitive structure of the industry and to compare distribution strategies of the major auto firms(Hyundai, Daewoo, and Kia). The second is to theoretically explain the transition from the vertical marketing system to the dealer system using transaction cost analysis. The third is to compare auto distribution channels in Korea with those in the U.S. and Japan. Finally, an optimal channel stucture in the auto industry is suggested after reviewing five alternative channel structures such as corporate-owned VMS, sales-specializing firm, multiplex system(VMS+limited dealer system), dual sales channel, and advanced dealer system. In the short-run, sales-specilizing firm was suggested as an optimal channel system to enhance customer satisfaction by integrating sales and customer service. In the long-run, advanced dealer system through regional differentiation was desirable for an optimal channel structure by organically integrating new car sales, used car sales, and after service to provide total marketing service to customers.

• Journal of Distribution Science
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• v.18 no.1
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• pp.5-13
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• 2020

Purpose: The purpose of this study is to examine the growth and change process of Korean cosmetic market that has grown more than three times since 2000. It also examined how the growth and decline of the cosmetics brands are related to the change of the cosmetic distribution structure. Research methodology: This study tried to classify the change of the Korean cosmetics market into four stages based on the market sales information. It analyzed the sales information of Korean cosmetic companies and the relationship with the sales of the brands by distribution channel. Results: One-brand store channel had played a leading role in the market growth, and multi-brand stores have grown and a number of brands also grew through that channel since 2013. Since 2016, multi-brand stores have continued to grow and have dominated the market beyond one-brand store channel. Conclusions: The changes in sales of domestic cosmetics companies have been classified based on the distribution channel type in four stages: the emergence of one-brand store, the growth of one-brand store channel, the growth of multi-brand store channel, and the decline of one-brand store channel. In conclusion, multi-brand store channels have recently grown in the Korean cosmetics market, and this trend is expected to continue.

• Asia Marketing Journal
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• v.21 no.2
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• pp.73-98
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• 2019

As information and communication technology continue its remarkable development, the exchange of information online becomes as prevalent and frequent as face-to-face communication in daily life. Therefore, the management and application of WOM (word of mouth) practices will become more important than ever to companies. Currently, there are various types of communication channels for online WOM, and each channel has its own unique traits. Most of the previous research studies online WOM by examining the information inside a single communication channel, but this research chooses two different communication channels and analyzes the effects of online WOM with each channel's unique characteristics. More specifically, this research focuses on the expectation that the effects of information from Twitter and blogs on product sales may differ because Twitter and blogs, two different communication channels for online WOM, have their own unique traits. Our particular aim is to perform an in-depth examination on the effects of communication channel's volume and valence on product sales, two important attributes of online WOM. Furthermore, while most of the empirical research focuses on online WOM and analyzes its effect on markets of temporary experience goods, such as movies and books, this research highlights focuses on the automobile market, a durable goods market. The results of our analysis are as follows: First, regarding blogs, a positive valence significantly and positively affects the sales of products, and this result indicates that consumers are influenced more by the emotional aspect of a product presented in a post than by the number of blog posts. Second, regarding Twitter, the volume of online WOM significantly and positively affects sales, an indication that as the number of posts increase, the sales increase. Through this research, we suggest that even those firms that sell durable goods can increase sales through the management and application of online WOM. Moreover, according to the characteristics of communication channels, the effects of online WOM on sales differ. As a practical implication of this research, we suggest that companies can and should create marketing strategies appropriate to their targeted communication channels.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.5
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• pp.205-216
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• 2020

This study seeks to empirically analyze the effects of core self-evaluation and adaptive selling behavior on sales performance for female salespersons engaged in door-to-door sales through the face-to-face channel in the wellness industry. This study seeks to examine the importance of adaptive selling, through, salespeople derive appropriate strategies in response to market changes. For female salespeople who use face-to-face channels, this study empirically investigated the relationship between core self-evaluation and adaptive selling, and effects on sales performance. A 31-item survey was constructed, based on prior research. We selected six door-to-door sales companies in South Korea and conducted one-to-one interviews with female salespeople in the Seoul metropolitan area and analyzed 208 pieces of significant data. Results demonstrated that among the core self-evaluation factors for female salespeople, self-esteem, self-efficacy, and neuroticism had an effect on adaptive selling factors, while locus of control did not. These factors were found to affect sales performance through the mediating role of adaptive selling. Improvements in the adaptive selling capabilities of female salespeople in charge of face-to-face channels positively affected sales performance. Management efforts are required to enhance self-esteem, self-efficacy, or neuroticism. These results suggest that companies should support enhancing individual adaptive selling capabilities of their salespeople.

• Journal of the Korean Society of Clothing and Textiles
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• v.25 no.6
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• pp.1122-1130
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• 2001

Recently the importance of distribution channel design has been focused on due to a turbulent environment. The channel design strategy involves the choice of an optimal channel arrangement including channel width, channel depth, the types of intermediaries to be used, and the specific responsibilities of each channel member. The purpose of this paper is to investigate changes of distribution intensity in the infant & children's wear brand from 1997 to 1999, when Korea has faced changes before and after IMF intervention that influenced the Korean economy greatly. Thus, this study provides channel managers with some guidelines for establishing and adjusting the infant & children's wear channel strategies. The data is collected by the Korean Fashion Brand Annual published by Apparel News Co., from 1997 to 1999. infant & children's wear brands are selected and analyzed with Pearson correlation. Statistic analysis has shown different results in the type of brands in terms of distribution intensity. The type of brands between infant's wear and those for children differ in price and launching period. In the case of infant's wear brands, the launching period and total sales should be considered in designing channel distributions, while for children's brands total sales are significant. As the price increases, children's wear brands are significantly linked to their distribution intensity only in certain times at the starting point of IMF intervention. IMF intervention do not seem to influence the distribution intensity of infant's wear brands much as it did children's wear brands. It seems that the infant's wear industry is more stable than the children s wear industry. As a result, the marketer who plans distribution intensity for the infant's and children's wear brands should consider total sales, the launching period and the price according to the type of brands he deals with.

• Journal of Distribution Research
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• v.17 no.4
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• pp.29-53
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• 2012

As so many marketers get to use diverse sales promotion methods, manufacturer and retailer in a channel often use them too. In this context, diverse issues on sales promotion management arise. One of them is the issue of unplanned buying. Consumers' unplanned buying is clearly better off for the retailer but not for manufacturer. This asymmetric influence of unplanned buying should be dealt with prudently because of its possibility of provocation of channel conflict. However, there have been scarce studies on the sales promotion management strategy considering the unplanned buying and its asymmetric effect on retailer and manufacturer. In this paper, we try to find a better way for a manufacturer in a channel to promote performance through the retailer's sales promotion efforts when there is potential of unplanned buying effect. We investigate via game-theoretic modeling what is the optimal cost sharing level between the manufacturer and retailer when there is unplanned buying effect. We investigated following issues about the topic as follows: (1) What structure of cost sharing mechanism should the manufacturer and retailer in a channel choose when unplanned buying effect is strong (or weak)? (2) How much payoff could the manufacturer and retailer in a channel get when unplanned buying effect is strong (or weak)? We focus on the impact of unplanned buying effect on the optimal cost sharing mechanism for sales promotions between a manufacturer and a retailer in a same channel. So we consider two players in the game, a manufacturer and a retailer who are interacting in a same distribution channel. The model is of complete information game type. In the model, the manufacturer is the Stackelberg leader and the retailer is the follower. Variables in the model are as following table. Manufacturer's objective function in the basic game is as follows: ${\Pi}={\Pi}_1+{\Pi}_2$, where, ${\Pi}_1=w_1(1+L-p_1)-{\psi}^2$, ${\Pi}_2=w_2(1-{\epsilon}L-p_2)$. And retailer's is as follows: ${\pi}={\pi}_1+{\pi}_2$, where, ${\pi}_1=(p_1-w_1)(1+L-p_1)-L(L-{\psi})+p_u(b+L-p_u)$, ${\pi}_2=(p_2-w_2)(1-{\epsilon}L-p_2)$. The model is of four stages in two periods. Stages of the game are as follows. (Stage 1) Manufacturer sets wholesale price of the first period($w_1$) and cost sharing level of channel sales promotion(${\Psi}$). (Stage 2) Retailer sets retail price of the focal brand($p_1$), the unplanned buying item($p_u$), and sales promotion level(L). (Stage 3) Manufacturer sets wholesale price of the second period($w_2$). (Stage 4) Retailer sets retail price of the second period($p_2$). Since the model is a kind of dynamic games, we try to find a subgame perfect equilibrium to derive some theoretical and managerial implications. In order to obtain the subgame perfect equilibrium, we use the backward induction method. In using backward induction approach, we solve the problems backward from stage 4 to stage 1. By completely knowing follower's optimal reaction to the leader's potential actions, we can fold the game tree backward. Equilibrium of each variable in the basic game is as following table. We conducted more analysis of additional game about diverse cost level of manufacturer. Manufacturer's objective function in the additional game is same with that of the basic game as follows: ${\Pi}={\Pi}_1+{\Pi}_2$, where, ${\Pi}_1=w_1(1+L-p_1)-{\psi}^2$, ${\Pi}_2=w_2(1-{\epsilon}L-p_2)$. But retailer's objective function is different from that of the basic game as follows: ${\pi}={\pi}_1+{\pi}_2$, where, ${\pi}_1=(p_1-w_1)(1+L-p_1)-L(L-{\psi})+(p_u-c)(b+L-p_u)$, ${\pi}_2=(p_2-w_2)(1-{\epsilon}L-p_2)$. Equilibrium of each variable in this additional game is as following table. Major findings of the current study are as follows: (1) As the unplanned buying effect gets stronger, manufacturer and retailer had better increase the cost for sales promotion. (2) As the unplanned buying effect gets stronger, manufacturer had better decrease the cost sharing portion of total cost for sales promotion. (3) Manufacturer's profit is increasing function of the unplanned buying effect. (4) All results of (1),(2),(3) are alleviated by the increase of retailer's procurement cost to acquire unplanned buying items. The authors discuss the implications of those results for the marketers in manufacturers or retailers. The current study firstly suggests some managerial implications for the manufacturer how to share the sales promotion cost with the retailer in a channel to the high or low level of the consumers' unplanned buying potential.

• Journal of Fashion Business
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• v.22 no.5
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• pp.83-95
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• 2018

As the paradigm of fashion retail industry moves rapidly to the multi-channel, the role of shop master has changed as well. Therefore, the purpose of this study is to examine in-depth the changing role of shop masters in multi-channel retail paradigms. In-depth interviews were conducted, and all interviews were recorded with permission. Seven shop masters participated in in-depth interviews. All of them were sales specialists, with more than 10 years working experience, at department stores. Results of this study are as follow: First, the roles of a multi-channel shop master include store management, management of sales associates, customer relationship management, and management in relation to the headquarters and suppliers. Second, the most important competencies of shop masters are to forecast future demand, establish information networks, communicate well with others, and create a work environment resulting in higher productivity.

• Proceedings of the Korean Information Science Society Conference
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• 2003.04a
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• pp.785-787
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• 2003

오늘날 기업의 판매형태는 Channel Partner를 통한 간접판매가 50%이상을 점유하고 점차 증가 추세에 있다. 이러한 판매형태를 지원하고 기업의 이익 극대화를 위해 Internet 기술을 이용한 가망 수요정보의 효율적 관리가 중요한 이슈로서 대두되고 있다. 본 논문은 Web을 통해 포착된 Sales Leads를 Channel Partner들을 통해 실제 판매로 연결시켜주는 기능을 담당하는 Lead Management 시스템 (LM)의 기능을 Rule기반으로 구축하여 Dynamic Market에 신속하게 대응함으로써 Vendor 와 Partner간의 상호 Win-Win 결과를 얻을 수 있는 방안을 제공하고자 한다.