• Journal of Global Scholars of Marketing Science
• /
• v.19 no.3
• /
• pp.17-27
• /
• 2009

Price promotion typically reduces the price for a given quantity or increases the quantity available at the same price, thereby enhancing value and creating an economic incentive to purchase. It often is used to encourage product or service trial among nonusers of products or services. Thus, it is important to understand the effects of price promotions on quality perception made by consumer who do not have prior experience with the promoted brand. However, if consumers associate a price promotion itself with inferior brand quality, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. More specifically, low qualitative perception through price promotion will undercut the economic and psychological incentives and reduce the likelihood of purchase. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. Previous literatures on the effects of price promotions on quality perception reveal inconsistent explanations. Some focused on the unfavorable effect of price promotion on consumer's perception. But others showed that price promotions didn't raise unfavorable perception on the brand. Prior researches found these inconsistent results related to the timing of the price promotion's exposure and quality evaluation relative to trial. And, whether the consumer has been experienced with the product promotions in the past or not may moderate the effects. A few studies considered differences among product categories as fundamental factors. The purpose of this research is to investigate the effect of price promotional informations on consumer's unfavorable quality perception under the different conditions. The author controlled the timing of the promotional exposure and varied past promotional patterns and information presenting patterns. Unlike previous researches, the author examined the effects of price promotions setting limit to pretrial situation by controlling potentially moderating effects of prior personal experience with the brand. This manipulations enable to resolve possible controversies in relation to this issue. And this manipulation is meaningful for the work sector. Price promotion is not only used to target existing consumers but also to encourage product or service trial among nonusers of products or services. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. If consumers associate a price promotion itself with inferior quality about unused brand, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. In addition, if the price promotion ends, the consumer that have purchased that certain brand will likely to display sharply decreased repurchasing behavior. Through a literature review, hypothesis 1 was set as follows to investigate the adjustive effect of past price promotion on quality perception made by consumers; The influence that price promotion of unused brand have on quality perception made by consumers will be adjusted by past price promotion activity of the brand. In other words, a price promotion of an unused brand that have not done a price promotion in the past will have a unfavorable effect on quality perception made by consumer. Hypothesis 2-1 was set as follows : When an unused brand undertakes price promotion for the first time, the information presenting pattern of price promotion will have an effect on the consumer's attribution for the cause of the price promotion. Hypothesis 2-2 was set as follows : The more consumer dispositionally attribute the cause of price promotion, the more unfavorable the quality perception made by consumer will be. Through test 1, the subjects were given a brief explanation of the product and the brand before they were provided with a $2{\times}2$ factorial design that has 4 patterns of price promotion (presence or absence of past price promotion * presence or absence of current price promotion) and the explanation describing the price promotion pattern of each cell. Then the perceived quality of imaginary brand WAVEX was evaluated in the scale of 7. The reason tennis racket was chosen is because the selected product group must have had almost no past price promotions to eliminate the influence of average frequency of promotion on the value of price promotional information as Raghubir and Corfman (1999) pointed out. Test 2 was also carried out on students of the same management faculty of test 1 with tennis racket as the product group. As with test 1, subjects with average familiarity for the product group and low familiarity for the brand was selected. Each subjects were assigned to one of the two cells representing two different information presenting patterns of price promotion of WAVEX (case where the reason behind price promotion was provided/case where the reason behind price promotion was not provided). Subjects looked at each promotional information before evaluating the perceived quality of the brand WAVEX in the scale of 7. The effect of price promotion for unfamiliar pretrial brand on consumer's perceived quality was proved to be moderated with the presence or absence of past price promotion. The consistency with past promotional behavior is important variable that makes unfavorable effect on brand evaluations get worse. If the price promotion for the brand has never been carried out before, price promotion activity may have more unfavorable effects on consumer's quality perception. Second, when the price promotion of unfamiliar pretrial brand was executed for the first time, presenting method of informations has impact on consumer's attribution for the cause of firm's promotion. And the unfavorable effect of quality perception is higher when the consumer does dispositional attribution comparing with situational attribution. Unlike the previous studies where the main focus was the absence or presence of favorable or unfavorable motivation from situational/dispositional attribution, the focus of this study was exaus ing the fact that a situational attribution can be inferred even if the consumer employs a dispositional attribution on the price promotional behavior, if the company provides a persuasive reason. Such approach, in academic perspectih sis a large significance in that it explained the anchoring and adjng ch approcedures by applying it to a non-mathematical problem unlike the previous studies where it wis ionaly explained by applying it to a mathematical problem. In other wordn, there is a highrspedency tmatispositionally attribute other's behaviors according to the fuedach aal attribution errors and when this is applied to the situation of price promotions, we can infer that consumers are likely tmatispositionally attribute the company's price promotion behaviors. Ha ever, even ueder these circumstances, the company can adjng the consumer's anchoring tmareduce the po wibiliute thdispositional attribution. Furthermore, unlike majority of previous researches on short/long-term effects of price promotion that only considered the effect of price promotions on consumer's purchasing behaviors, this research measured the effect on perceived quality, one of man elements that affects the purchasing behavior of consumers. These results carry useful implications for the work sector. A guideline of effectively providing promotional informations for a new brand can be suggested through the outcomes of this research. If the brand is to avoid false implications such as inferior quality while implementing a price promotion strategy, it must provide a clear and acceptable reasons behind the promotion. Especially it is more important for the company with no past price promotion to provide a clear reason. An inconsistent behavior can be the cause of consumer's distrust and anxiety. This is also one of the most important factor of risk of endless price wars. Price promotions without prior notice can buy doubt from consumers not market share.

• Culinary science and hospitality research
• /
• v.20 no.6
• /
• pp.175-189
• /
• 2014

This study was intended to provide fundamental data concerning franchising companies' characteristics and performance in foodservice business by employing financial data from the firms' IDS(Information Disclosure Statements). Multiple regression analysis method was used to identify any correlations among franchising size, marketing competency, operational characteristics, and performance according to technique based upon 169 IDS data as of 2013. In terms of franchisor size and performance, the number of company-operated stores had statistically significant corelation with sales, net income, the total number of stores, and the number of franchisees. With respect to marketing competency and performance, advertising expenses showed statistically significant correlation with sales, the total number of stores, promotion expenses with sales, net income, and the total number of stores. On the other hand, there was no statistically significant correlation with current year's net income. At last, present study found significant correlations among business years, sales, current year's net income, and the total number of stores by regarding operational characteristics and performance, but there was no significant correlation between brands and performance. This study is cross-sectional study which is a limitation to be overcome in further studies. In addition, it is required to review the possibility for franchise management style to contribute to expanding the Korean traditional foods.

• Journal of Korean Society of Rural Planning
• /
• v.19 no.3
• /
• pp.13-24
• /
• 2013

With the increase of visitors to rural tourism villages, the direct selling at sites is getting vitalized. Accordingly, their display stores is getting more important. Therefore, this study has selected 30 domestic rural tourism villages as study objects for the attitude survey of 200 farming suppliers and the site examination for the designs of those display stores in order to analyze their status and classify the types of necessity. Such operation status as sale item, sale method, method of supply and demand, major customer, sales scale, manager, opening hour, and operation cost were examined, to identity and for design factors the pattern, material quality and color were investigated. For the attitude of farming suppliers, the tactics of sales, the reason for being positive or negative, the functionality and the features of display stores were examined through brainstorming. IBM SPSS Statistics 20 Program was employed for Frequency, which indicated that village chiefs and store managers with the sales scale of 1 to 20 million won are dealing with female customers in their 40's and 50's and that those stores are open at the time of experience or year round without any operation expense. Permanent type and Fixed type were found to be the design factors of the display-case type with the material and the color of wood and orange respectively. The result of investigation analysis of farming suppliers' attitude showed the followings: the need of display stores is quite high, structure type and permanent type have high fitness and from the viewpoint of display-on-table type as a standard moving type was very convenient. The analysis of significant items at the characteristics of those display stores revealed that their locations, quality conservation, sanitation, users' convenience, designs and promotion are very important. The result of status analysis revealed that though there is a correlation among the types of display stores depending on the visiting season of tourists their installing is not desirable. Three types have been analyzed: Type 1 is a structure type only in the villages with continuous visitors, Type 2 a moving-table type only in the villages with temporary visitors and Type 3 is a fixed display-case type.

• Journal of Distribution Science
• /
• v.14 no.12
• /
• pp.71-78
• /
• 2016

Purpose - This paper is for the Analysis on the Hindrance Factors and Activation Scheme by the Type of Distribution Channel in Direct transaction of Agricultural Products. As the distribution structure of agricultural products has become changable, farmers seem to use the type of direct distribution in order to enhance the receiving price. This study aims to explore the hindrance factors and income variation rate in direct transaction of agricultural produces, specifically focusing on the 167 farmers. Research design, data, and methodology - To ascertain the hindrance factors exactly by the type of distribution channel, the managements were classified by four subcategories, that is high sales percentage with shopping malls, SNS, shopping malls and SNS, and off-line direct transaction. Results - As a result of the hypothesis test, hinderance factors in online direct deal activation were found to be in the order of the difficulty in continuous content production, the difficulty in shopping mall operation and maintenance, and the difficulty in card commission problems, and in the order of the difficulties in continuous content production, the difficulty in continuous content production, the difficulty in shopping mall operation and maintenance, and the difficulty in branding for the SNS group. Thus, it can be seen that the difficulty in continuous content production, shopping mall operation and maintenance were found to be the biggest obstacles. In addition, hindering factors in online direct deal activation were found to be in the order of the difficulty in credit card settlement, the difficulty in publicity, and the difficulty in dealing with unsold goods. The group with high sales rate in shopping mall was found to be increased by 23.9% in the gross income compared to the previous year, the group with high SNS sales ratio increased by 56.5%, the group with direct offline transaction increased by 37.1%, among which the group with the highest increase rate of SNS sales ratio was found to be the highest from the rate of increase/decrease of the income, which was statistically significant. Conclusions - It can be suggested that government and local government may provide agricultural management with supporting plan which in turn can activate direct transaction in any possible ways.

• Knowledge Management Research
• /
• v.24 no.2
• /
• pp.87-115
• /
• 2023

This study aims to examine the causal relationships between sales and employment for public technology-based startups. Although there is a limit to statistical generalization due to the poor understanding of the actual conditions of public technology start-up companies, these companies were analyzed by classifying them into high-growth companise, potential growth companies, and other companies. In order to understand the causal relationship, and to estimate the time required to be effective, panel vector autoregression was applied. As a result, the performance creation mechanism was identified as government supoort and private investment was mutually causal with employment, sales did not cause employment, and employment caused sales. In other words, it was found that employment plays an mediator role in public technology based startups' performance mechanism. In addition, private investment had the effect of improving employment and sales in the short time than governments support, and showed that firms with high employment can attract government support and private investment. This study are academically meaningful in that they empirically revealed the process of performance creation, whereas previous studies had only shown whether there was an effect on performance. It also has a policy contribution by suggesting the need for effective policy promotion by considering the 'employment' factor, such as human resource support, as more important.

• Journal of Distribution Research
• /
• v.16 no.1
• /
• pp.117-140
• /
• 2011

The sales promotion strategy can be classified into two categories: cost-down and value-added promotions. Although many studies have been performed on sales promotion in the past, little attention has been given on cost-down promotion, and in particular on its strategy. Also there has been a renewed interest on value-added promotion strategy as means of attracting more customers and delivering value by providing a greater benefit. This study examines the effect of value-added promotion on the evaluation of promotional products. The topic is important because the value-added promotions are not always perceived as a benefit by consumers and they depend on the situational factors. We postulate three hypotheses on the basis of related literature. We conduct two studies: one employing experiment (study 1) and the other, quasi-experiment (study 2) to investigate the effect of two situational factors, namely the promotional package type and retailer uncertainty on the valuation of promotional products. Study 1 employs 2 promotional package types (bundled with freebie type vs. one-plus-one type) by 3 evaluation targets (overall package, a focal product and freebie) in experimental design. Also it is found that consumers devaluate the promotional product when the level of retailer uncertainty is high (t=-4.70, p=.000) as shown in Table 2. As depicted in Figure 2, the interaction effect of retailer uncertainty and package types on the evaluation of promotional product as a whole does not appear to be significant. However, when the level of retailer uncertainty is high, the focal product suffers from lower valuation if it is included in a bundle with freebie type package. The purpose of Study 2 is to cross-check the results of Study 1. The results of Study 2 also show that the consumers devaluate the promotional products as a whole when the level of retailer uncertainty is high. Furthermore, Study2 examines the consumers' willingness to purchase. The willingness to purchase of 2 different consumer groups divided by their reservation prices before and after exposure to a promotional stimuli shows no significant differences(t=1.911, p=.057). The results suggest that the consumers' reservation prices before the exposure to the promotion can be a reference prices of their's. But after the promotional events, the promotional price would become their reference prices. Furthermore, when the level of retailer uncertainty is high, consumers devaluate the promotional product as a whole. Because the promotional offerings activate the persuasion knowledge of consumers and make them incorporate negative inference about the firm's motives into their valuation and consequently, consumers tend to hesitate to purchase.

• Industry Promotion Research
• /
• v.5 no.3
• /
• pp.1-10
• /
• 2020

The purpose of this study is to analyze the working hours of Korean workers in terms of occupation, employment contract period, employment type, final education level based on the first(2006), second(2010), third(2011), fourth(2014) Korean Working Conditions Survey(KWCS) results. Also KWCS was compared to European Working Conditions Survey(EWCS). It is found that weekly working hours were decreasing over the years since mid 2000 but weekly working hours of Korean were still longer than those of Europeans. It is also found that service workers and sales workers worked longer hours than specialists, that private sector worked longer hours than public and non-profit organization, and that the less educated worked longer hours than the more educated.

• Industry Promotion Research
• /
• v.5 no.3
• /
• pp.31-36
• /
• 2020

This study explores the determinants of capital structure of the hospitality industry such as hotels, lodging industry and tourism industry using financial data from 2000 to 2019. Several explanatory variables suggested by related theories and past studies were regressed with the dependent variable, debt ratio for the entire sample period, pre-crisis period and post-crisis period and the regression coefficients of the sales expenses, profitability and firm size were found to be statistically significantly negative. Especially the sign of the coefficient of the firm size was opposite to that of the manufacturing industry, which implies the uniqueness of the hospitality industry.

• Journal of the Korean Society of Clothing and Textiles
• /
• v.42 no.2
• /
• pp.278-297
• /
• 2018

This study examines the concept and type of art marketing used by luxury fashion brands as well as to elucidate the productive outcome of art marketing based on art marketing case studies. The research methods adopted in this study were a literature review and case studies. The scope of the research focused on companies operating luxury fashion brands such as Louis Vuitton S.A., Kering Group, Prada S.p.A., $Herm{\grave{e}}s$ International S.A., Salvatore Ferragamo Group, Giorgio Armani S.p.A. and Compagnie $Financi{\grave{e}}re$ Richemont S.A.. The results showed that luxury brands using art marketing to enhance the competitiveness of the company by combining art and marketing mainly incorporate the following types of art marketing: art foundation and museum, art sponsorship, art collaboration, advertising campaign, exhibition promotion, and flagship stores. In terms of the outcome of art marking by luxury fashion brands, it was found that art marketing facilitates company activities help companies acquire a positive image from revitalizing culture and art, produces increased profits for the companies due to increased product sales as well as expands the marketability of respective companies through company PR and brand promotion, customer satisfaction by providing cultural space, artistic places and new experiences.

• Journal of the Korean Data and Information Science Society
• /
• v.26 no.1
• /
• pp.229-241
• /
• 2015

Nowadays, an open-market which provides sellers and consumers a cyber place for making a transaction over the Internet has emerged as a prevalent sales channel because of convenience and relatively low price it provides. However, there are few studies about CRM strategies based on VIP consumers for an open-market even though understanding VIP consumers' behaviors in open-markets is important to increase its revenue. Therefore, we propose CRM strategies targeted on VIP customers, obtained by analyzing the transaction data of VIP customers from an open-market using data mining techniques. To that end, we first defined the VIP customers in terms of recency, frequency and monetary (RFM) values. Then, we used data mining techniques to develop a model which best classifies and identifies infiluential factors customers into VIPs or non-VIPs. We also validate each of promotion types in the aspect of effectiveness and identify association rules among the types. Then, based on the findings from these experiments, we propose strategies from the perspectives of CRM dimensions for the open-market to thrive.