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Study on the Relationships Among Perceived Shopping Values, Brand Equity, and Store Loyalty of Korean and Chinese Consumers: A Case of Large Discount Store (한국과 중국 소비자의 쇼핑 경험가치 지각과 브랜드자산 및 점포충성도의 관계에 관한 비교 연구: 대형 할인점을 중심으로)

  • Hwang, Soonho;Oh, Jongchul;Yoon, Sungjoon
    • Asia Marketing Journal
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    • v.14 no.2
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    • pp.209-237
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    • 2012
  • 1. Research Purpose Consumers rely on various clues to evaluate their decision to patronize a retail store, and store brand is one of them (Dodds 1991; Grewal et al. 1998). As consumers find ever increasing variety of contact points connecting them to specific store, the value of experiential shopping as a means of increasing store's brand equity warrants greater attention from scholars of retail management. Retail shopping values are credited for creating not only cognitive experiences like brand knowledge but also emotional experiences such as shopping pleasure and pride (Schmitt 1999). This may be because today's consumers place emphasis on emotional values associated with shopping pleasure, lifestyle brought to life, brand relationship, and store atmosphere more than utilitarian values such as product quality and price. Many previous literature found this to be true (Ahn and Lee 2011; Mathwick et al. 2001). This brings forth important research issues and questions regarding the roles of shopping experiential values and brand equity with regard to consumer's retail patronage choice. However, despite this importance, research on this area remains quite inadequate (Hwang 2010). For this reason, this study aims to verify the relationships among experiential shopping values, retail store brand equity and tries to link that with customer loyalty by surveying large-scale discount store shoppers in Korea and China. 2. Research Contents In order to carry out the research objective, this study conducted comprehensive literature survey on previous literature by discussing major findings and implications with regard to shopping values and retail brand equity and store loyalty. For data collection, researcher employed survey-based research method where data were collected in two major cities of Korea (Seoul) and China (Bejing) and sampling frame was based on patrons of large discount stores in both countries. Specific research questions raised in this study are as follows; RQ1: How do Korean and Chinese consumers differently perceive of shopping values regarding shopping at large-sclae discount stores? RQ2: Are there differences in consumers' emotional consumption propensities? RQ3: Do Korean and Chinese consumers display different perceptions of brand equity towards large-scale discount stores? RQ4: Are there differences in relationships between shopping values and brand equity for Korean and Chinese consumers? For statistical analysis, SPSS17.0, AMOS17.0 and SmartPLS were employed. 3. Research Results The data collected through face-to-face survey conducted in Seoul and Bejing revealed appropriate data validity and reliability as a result of exploratory/confirmatory factor analysis and reliability tests, andh SEM model yielding satisfactory model fitness. The result of the study may be summarized by three main points. First, as a result of testing differences in consumption dispositions, Chinese consumers showed higher scores in aesthetic and symbolic dispositions, whereas Korean consumers scored higher in hedonic disposition. Second, testing on perceptions toward brand equity of large discount stores showed that Korean consumers exhibited more positive perceptions of brand awareness and brand image than Chinese counterparts. Third, the result of exploratory factor analysis on the experiential shopping values revealed different factors for each country. On Korean side, consumer interest value, aesthetic value, and hedonic value were prominent, whereas on Chinese side, hedonic value, aesthetic value, consumer interest value, and service excellence value were found salient. 4. Research Implications While many previous studies on inter-country differences in retailing area mainly focused on cultural dispositions or orientations to explain the differences, this study sets itself apart by specifically targeting individual consumer's shopping values from an experiential viewpoint. The study result provides important theoretical as well as practical implications for large-scale discount store, especially the impotance of fully exploring the linkage between shopping values and brand equity, which has significant influence on loyalty. Therefore, the specific implications deriving from the result shed some important insights upon the consumption values based on shopping experiences and brand equity. The differences found in store shoppers between the two countries may also provide useful insights for Korean and Chinese retailers who plan to expand their operations globally. Related strategic implications derived from this study is the importance of localizing retail strategy which is based on the differences found in experiential shopping values between the two country groups. Especially the finding that Chinese consumers value consumer interest and service excellence, whereas Koreans place importance on hedonic or aesthetic values indicates the need to differentiate the consumer's psychographical profiles when it comes to expanding retail operations globally. Particularly important will be to pursue price-orienated strategy in China in consideration of the high emphasis on consumer interests and service excellence, but to emphasize the symbolic aspects of brand equity in Korea by maximizing the brand equity associated with aesthetic values and hedonic orientations. 5. Recommendations This study focused on generic retail branded discount stores in both countries, thus making it difficult to tease out store-specific strategies based on specific retail brands. Future studies may benefit fro employing actual brand names in survey questionnaire to verify relationship between shopping values and brand-based store strategy. As with other studies of this nature, this study needs to strengthen the result's generalizability by selecting respondents from a wider spectrum of respondents.

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A Survey of Korean Consumers' Awareness on Animal Welfare of Laying Hens (산란계 동물복지에 대한 국내 소비자의 인지도 조사)

  • Hong, Eui-Chul;Kang, Hwan-Ku;Park, Ki-Tae;Jeon, Jin-Joo;Kim, Hyun-Soo;Kim, Chan-Ho;Kim, Sang-Ho
    • Korean Journal of Poultry Science
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    • v.45 no.3
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    • pp.219-228
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    • 2018
  • This study was conducted twice to investigate egg purchase behavior and perception on animal welfare of Korean consumers. This study included women, who were the main decision makers and caretakers in the household, and men with one-person household. This survey was conducted with by the Computer Assisted Web Interview and Gang Survey methods. On the key considerations factor, the highest response rate was considered to be 'price', and the response rate of considering 'packing date' increased in the second survey. At a reasonable price based on 10 eggs, the response rate was the highest at 53.8% and 42.9% in both the first and second surveys and the appropriate price averages were 2,482 won and 2,132 won, respectively. The highest rate of purchase of egg consumers from 'Large Mart' followed by 'Medium sized supermarket' and 'Chain supermarket'. As for the awareness about animal welfare, the recognition ratio (73.5%) was higher in the result of the second survey than the first. The cognitive period of animal welfare was 59.0% before the insecticide egg crisis and 41.0% thereafter. Regarding whether or not they have ever seen an animal welfare certification mark and an animal welfare animal farm certification mark, 59.6% of respondents said that they saw it for the first time and 37.6% answered that they knew the animal welfare certification mark. On the animal welfare system, the 'free-range' response rate was the highest at 85.8%. The 'free-range' fit response decreased by 34.2%p, while the 'barn' and 'European type' fit response increased by 13.2%p and 24.1%p, respectively. The number of 'I have never seen' and 'I have ever eaten' responses to the recognition and eating experience of animal welfare certified eggs decreased while the number of those who answered 'Have ever seen' and 'Have eaten' increased. The answer of purchasing animal welfare certified eggs at department stores, organic farming cooperatives, and internet shopping malls was higher than that of buying conventional eggs. Of the total respondents, 92.0% were willing to purchase an animal welfare egg before the price was offered, but after offering the prices of animal welfare eggs, the intention to purchase was 62.7%, which was about 30%p lower than before. The reason for purchasing an animal welfare certified egg was the highest score of 71.0% for 'I think it is likely to be high in food safety', and 38.1% for 'I think the price is high' for lack of intention to purchase. In the sensory evaluation of animal welfare eggs, egg color and skin texture of conventional eggs were significantly higher than those of certified welfare eggs (P<0.05), and boiled eggs showed that egg whites of animal welfare certified eggs were more (P<0.05). As a result, the results of this study will contribute to the activation of the animal welfare certification system for laying hens by providing basic data on consumer awareness to animal welfare certified farmers.

The Market Segmentation of Coffee Shops and the Difference Analysis of Consumer Behavior: A Case based on Caffe Bene (커피전문점의 시장세분화와 소비자행동 차이 분석 : 카페베네 사례를 중심으로)

  • Yu, Jong-Pil;Yoon, Nam-Soo
    • Journal of Distribution Science
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    • v.9 no.4
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    • pp.5-13
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    • 2011
  • This study provides analysis of the effectiveness of domestic marketing strategies of the Korean coffee shop "Caffe Bene". It bases its evaluation on statistical outputs of 'choice attributes,' "market segmentation," demographic characteristics," and "satisfaction differences." The results are summarized in four points. First, five choice attributes were extracted from factor analysis: price, atmosphere, comfort, taste, and location; these are related to coffee shop selection behavior. Based on these five factors, cluster analysis was conducted, with statistical results classifying customers into three major groups: atmosphere oriented; comfort oriented; and taste oriented. Second, discriminant analysis tested cluster analysis and showed two discriminant functions: location and atmosphere. Third, cross-tabulation analysis based on demographic characteristics showed distinctive demographic characteristics within the three groups. Atmosphere oriented group, early-20s, as women of all ages was found to be 'walking down the street 'and 'through acquaintances' in many cases, as the cognitive path, and mostly found the store through 'outdoor advertising', and 'introduction'. Comfort oriented group was mainly women who are students in their early twenties or professionals, and appeared as a group to be very loyal because of high recommendation to other customers compared to other groups. Taste oriented group, unlike the other group, was mainly late-20s' college graduates, and was confirmed, as low loyalty, with lower recommendation activity. Fourth, to analyze satisfaction differences, one-way ANOVA was conducted. It shows that groups which show high satisfaction in the five main factors also show high menu satisfaction and high overall satisfaction. This results show that segmented marketing strategies are necessary because customers are considering price, atmosphere, comfort, taste, location when they choose coffee shop and demographics show different attributes based on segmented groups. For example, atmosphere oriented group is satisfied with shop interior and comfort while dissatisfied with price because most of the customers in this group are early 20s and do not have great financial capability. Thus, price discounting marketing strategies based on individual situations through CRM system is critical. Comfort oriented group shows high satisfaction level about location and shop comfort. Also, in this group, there are many early 20s female customers, students, and self-employed people. This group customers show high word of mouth tendency, hence providing positive brand image to the customers would be important. In case of taste oriented group, while the scores of taste and location are high, word of mouth score is low. This group is mainly composed of educated and professional many late 20s customers, therefore, menu differentiation, increasing quality of coffee taste and price discrimination is critical to increase customers' satisfaction. However, it is hard to generalize the results of study to other coffee shop brand, because this study have researched only one domestic coffee shop, Caffe Bene. Thus if future study expand the scope of locations, brands, and occupations, the results of the study would provide more generalizable results. Finally, research of customer satisfactions of menu, trust, loyalty, and switching cost would be critical in the future study.

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The Research on Online Game Hedonic Experience - Focusing on Moderate Effect of Perceived Complexity - (온라인 게임에서의 쾌락적 경험에 관한 연구 - 지각된 복잡성의 조절효과를 중심으로 -)

  • Lee, Jong-Ho;Jung, Yun-Hee
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.2
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    • pp.147-187
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    • 2008
  • Online game researchers focus on the flow and factors influencing flow. Flow is conceptualized as an optimal experience state and useful explaining game experience in online. Many game studies focused on the customer loyalty and flow in playing online game, In showing specific game experience, however, it doesn't examine multidimensional experience process. Flow is not construct which show absorbing process, but construct which show absorbing result. Hence, Flow is not adequate to examine multidimensional experience of games. Online game is included in hedonic consumption. Hedonic consumption is a relatively new field of study in consumer research and it explores the consumption experience as a experiential view(Hirschman and Holbrook 1982). Hedonic consumption explores the consumption experience not as an information processing event but from a phenomenological of experiential view, which is a primarily subjective state. It includes various playful leisure activities, sensory pleasures, daydreams, esthetic enjoyment, and emotional responses. In online game experience, therefore, it is right to access through a experiential view of hedonic consumption. The objective of this paper was to make up for lacks in our understanding of online game experience by developing a framework for better insight into the hedonic experience of online game. We developed this framework by integrating and extending existing research in marketing, online game and hedonic responses. We then discussed several expectations for this framework. We concluded by discussing the results of this study, providing general recommendation and directions for future research. In hedonic response research, Lacher's research(1994)and Jongho lee and Yunhee Jung' research (2005;2006) has served as a fundamental starting point of our research. A common element in this extended research is the repeated identification of the four hedonic responses: sensory response, imaginal response, emotional response, analytic response. The validity of these four constructs finds in research of music(Lacher 1994) and movie(Jongho lee and Yunhee Jung' research 2005;2006). But, previous research on hedonic response didn't show that constructs of hedonic response have cause-effect relation. Also, although hedonic response enable to different by stimulus properties. effects of stimulus properties is not showed. To fill this gap, while largely based on Lacher(1994)' research and Jongho Lee and Yunhee Jung(2005, 2006)' research, we made several important adaptation with the primary goal of bringing the model into online game and compensating lacks of previous research. We maintained the same construct proposed by Lacher et al.(1994), with four constructs of hedonic response:sensory response, imaginal response, emotional response, analytical response. In this study, the sensory response is typified by some physical movement(Yingling 1962), the imaginal response is typified by images, memories, or situations that game evokes(Myers 1914), and the emotional response represents the feelings one experiences when playing game, such as pleasure, arousal, dominance, finally, the analytical response is that game player engaged in cognition seeking while playing game(Myers 1912). However, this paper has several important differences. We attempted to suggest multi-dimensional experience process in online game and cause-effect relation among hedonic responses. Also, We investigated moderate effects of perceived complexity. Previous studies about hedonic responses didn't show influences of stimulus properties. According to Berlyne's theory(1960, 1974) of aesthetic response, perceived complexity is a important construct because it effects pleasure. Pleasure in response to an object will increase with increased complexity, to an optimal level. After that, with increased complexity, pleasure begins with a linearly increasing line for complexity. Therefore, We expected this perceived complexity will influence hedonic response in game experience. We discussed the rationale for these suggested changes, the assumptions of the resulting framework, and developed some expectations based on its application in Online game context. In the first stage of methodology, questions were developed to measure the constructs. We constructed a survey measuring our theoretical constructs based on a combination of sources, including Yingling(1962), Hargreaves(1962), Lacher (1994), Jongho Lee and Yunhee Jung(2005, 2006), Mehrabian and Russell(1974), Pucely et al(1987). Based on comments received in the pretest, we made several revisions to arrive at our final survey. We investigated the proposed framework through a convenience sample, where participation in a self-report survey was solicited from various respondents having different knowledges. All respondents participated to different degrees, in these habitually practiced activities and received no compensation for their participation. Questionnaires were distributed to graduates and we used 381 completed questionnaires to analysis. The sample consisted of more men(n=225) than women(n=156). In measure, the study used multi-item scales based previous study. We analyze the data using structural equation modeling(LISREL-VIII; Joreskog and Sorbom 1993). First, we used the entire sample(n=381) to refine the measures and test their convergent and discriminant validity. The evidence from both the factor analysis and the analysis of reliability provides support that the scales exhibit internal consistency and construct validity. Second, we test the hypothesized structural model. And, we divided the sample into two different complexity group and analyze the hypothesized structural model of each group. The analysis suggest that hedonic response plays different roles from hypothesized in our study. The results indicate that hedonic response-sensory response, imaginal response, emotional response, analytical response- are related positively to respondents' level of game satisfaction. And game satisfaction is related to higher levels of game loyalty. Additionally, we found that perceived complexity is important to online game experience. Our results suggest that importance of each hedonic response different by perceived game complexity. Understanding the role of perceived complexity in hedonic response enables to have a better understanding of underlying mechanisms at game experience. If game has high complexity, analytical response become important response. So game producers or marketers have to consider more cognitive stimulus. Controversy, if game has low complexity, sensorial response respectively become important. Finally, we discussed several limitations of our study and suggested directions for future research. we concluded with a discussion of managerial implications. Our study provides managers with a basis for game strategies.

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Individual Thinking Style leads its Emotional Perception: Development of Web-style Design Evaluation Model and Recommendation Algorithm Depending on Consumer Regulatory Focus (사고가 시각을 바꾼다: 조절 초점에 따른 소비자 감성 기반 웹 스타일 평가 모형 및 추천 알고리즘 개발)

  • Kim, Keon-Woo;Park, Do-Hyung
    • Journal of Intelligence and Information Systems
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    • v.24 no.4
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    • pp.171-196
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    • 2018
  • With the development of the web, two-way communication and evaluation became possible and marketing paradigms shifted. In order to meet the needs of consumers, web design trends are continuously responding to consumer feedback. As the web becomes more and more important, both academics and businesses are studying consumer emotions and satisfaction on the web. However, some consumer characteristics are not well considered. Demographic characteristics such as age and sex have been studied extensively, but few studies consider psychological characteristics such as regulatory focus (i.e., emotional regulation). In this study, we analyze the effect of web style on consumer emotion. Many studies analyze the relationship between the web and regulatory focus, but most concentrate on the purpose of web use, particularly motivation and information search, rather than on web style and design. The web communicates with users through visual elements. Because the human brain is influenced by all five senses, both design factors and emotional responses are important in the web environment. Therefore, in this study, we examine the relationship between consumer emotion and satisfaction and web style and design. Previous studies have considered the effects of web layout, structure, and color on emotions. In this study, however, we excluded these web components, in contrast to earlier studies, and analyzed the relationship between consumer satisfaction and emotional indexes of web-style only. To perform this analysis, we collected consumer surveys presenting 40 web style themes to 204 consumers. Each consumer evaluated four themes. The emotional adjectives evaluated by consumers were composed of 18 contrast pairs, and the upper emotional indexes were extracted through factor analysis. The emotional indexes were 'softness,' 'modernity,' 'clearness,' and 'jam.' Hypotheses were established based on the assumption that emotional indexes have different effects on consumer satisfaction. After the analysis, hypotheses 1, 2, and 3 were accepted and hypothesis 4 was rejected. While hypothesis 4 was rejected, its effect on consumer satisfaction was negative, not positive. This means that emotional indexes such as 'softness,' 'modernity,' and 'clearness' have a positive effect on consumer satisfaction. In other words, consumers prefer emotions that are soft, emotional, natural, rounded, dynamic, modern, elaborate, unique, bright, pure, and clear. 'Jam' has a negative effect on consumer satisfaction. It means, consumer prefer the emotion which is empty, plain, and simple. Regulatory focus shows differences in motivation and propensity in various domains. It is important to consider organizational behavior and decision making according to the regulatory focus tendency, and it affects not only political, cultural, ethical judgments and behavior but also broad psychological problems. Regulatory focus also differs from emotional response. Promotion focus responds more strongly to positive emotional responses. On the other hand, prevention focus has a strong response to negative emotions. Web style is a type of service, and consumer satisfaction is affected not only by cognitive evaluation but also by emotion. This emotional response depends on whether the consumer will benefit or harm himself. Therefore, it is necessary to confirm the difference of the consumer's emotional response according to the regulatory focus which is one of the characteristics and viewpoint of the consumers about the web style. After MMR analysis result, hypothesis 5.3 was accepted, and hypothesis 5.4 was rejected. But hypothesis 5.4 supported in the opposite direction to the hypothesis. After validation, we confirmed the mechanism of emotional response according to the tendency of regulatory focus. Using the results, we developed the structure of web-style recommendation system and recommend methods through regulatory focus. We classified the regulatory focus group in to three categories that promotion, grey, prevention. Then, we suggest web-style recommend method along the group. If we further develop this study, we expect that the existing regulatory focus theory can be extended not only to the motivational part but also to the emotional behavioral response according to the regulatory focus tendency. Moreover, we believe that it is possible to recommend web-style according to regulatory focus and emotional desire which consumers most prefer.

The Effects of Perceived Quality Factors on the Customer Loyalty: Focused on the Analysis of Difference between PB and NB (지각된 품질요인이 고객충성도에 미치는 영향: PB와 NB간의 차이분석)

  • Ye, Jong-Suk;Jun, So-Yon
    • Journal of Distribution Research
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    • v.15 no.2
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    • pp.1-34
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    • 2010
  • Introduction As consumers' purchase behavior change into a rational and practical direction, the discount store industry came to have keen competition along with rapid external growth. Therefore as a solution, distribution businesses are concentrating on developing PB(Private Brand) which can realize differentiation and profitability at the same time. And as improvement in customer loyalty beyond customer satisfaction is effective in surviving in an environment with keen competition, PB is being used as a strategic tool to improve customer loyalty. To improve loyalty among PB users, it is necessary to develop PB by examining properties of a customer group, first of all, quality level perceived by consumers should be met to obtain customer satisfaction and customer trust and consequently induce customer loyalty. To provide results of systematic analysis on relations between antecedents influenced perceived quality and variables affecting customer loyalty, this study proposed a research model based on causal relations verified in prior researches and set 16 hypotheses about relations among 9 theoretical variables. Data was collected from 400 adult customers residing in Seoul and the Metropolitan area and using large scale discount stores, among them, 375 copies were analyzed using SPSS 15.0 and Amos 7.0. The findings of the present study followed as; We ascertained that the higher company reputation, brand reputation, product experience and brand familiarity, the higher perceived quality. The study also examined the higher perceived quality, the higher customer satisfaction, customer trust and customer loyalty. The findings showed that the higher customer satisfaction and customer trust, the higher customer loyalty. As for moderating effects between PB and NB in terms of influences of perceived quality factors on perceived quality, we can ascertain that PB was higher than NB in the influences of company reputation on perceived quality while NB was higher than PB in the influences of brand reputation and brand familiarity on perceived quality. These results of empirical analysis will be useful for those concerned to do marketing activities based on a clearer understanding of antecedents and consecutive factors influenced perceived quality. At last, discussions about academical and managerial implications in these results, we suggested the limitations of this study and the future research directions. Research Model and Hypotheses Test After analyzing if antecedent variables having influence on perceived quality shows any difference between PB and NB in terms of their influences on them, the relation between variables that have influence on customer loyalty was determined as Figure 1. We established 16 hypotheses to test and hypotheses are as follows; H1-1: Perceived price has a positive effect on perceived quality. H1-2: It is expected that PB and NB would have different influence in terms of perceived price on perceived quality. H2-1: Company reputation has a positive effect on perceived quality. H2-2: It is expected that PB and NB would have different influence in terms of company reputation on perceived quality. H3-1: Brand reputation has a positive effect on perceived quality. H3-2: It is expected that PB and NB would have different influence in terms of brand reputation on perceived quality. H4-1: Product experience has a positive effect on perceived quality. H4-2: It is expected that PB and NB would have different influence in terms of product experience on perceived quality. H5-1: Brand familiarity has a positive effect on perceived quality. H5-2: It is expected that PB and NB would have different influence in terms of brand familiarity on perceived quality. H6: Perceived quality has a positive effect on customer satisfaction. H7: Perceived quality has a positive effect on customer trust. H8: Perceived quality has a positive effect on customer loyalty. H9: Customer satisfaction has a positive effect on customer trust. H10: Customer satisfaction has a positive effect on customer loyalty. H11: Customer trust has a positive effect on customer loyalty. Results from analyzing main effects of research model is shown as

    , and moderating effects is shown as
    . Results This study is designed with 16 research hypotheses, Results from analyzing their main effects show that 9 of 11 hypotheses were supported and other 2 hypotheses were rejected. On the other hand, results from analyzing their moderating effects show that 3 of 5 hypotheses were supported and other 2 hypotheses were rejected. H1-1: (SPC: Standardized Path Coefficient)=-0.04, t-value=-1.04, p>. 05). H1-2: (${\Delta}\chi^2$=1.10, df=1, p> 0.05). H1-1 and H1-2 are rejected, so it is prove that perceived price is not a significant decision variable having influence on perceived quality and there is no significant variable between PB and NB in terms of influence of perceived price on perceived quality. H2-1: (SPC=0.31, t-value=3.74, p<. 001). H2-2: (${\Delta}\chi^2$=3.93, df=1, p< 0.05). H2-1 and H2-2 are supported, so it is proved that company reputation is a significant decision variable having influence on perceived quality and, in terms of influence of company reputation on perceived quality, PB has relatively stronger influence than NB. H3-1: (SPC=0.26, t-value=5.30, p< .001). H3-2: (${\Delta}\chi^2$=16.81, df=1, p< 0.01). H3-1 and H3-2 are supported, so it is proved that brand reputation is a significant decision variable having influence on perceived quality and, in terms of influence of brand reputation on perceived quality, NB has relatively stronger influence than PB. H4-1: (SPC=0.31, t-value=2.65, p< .05). H4-2: (${\Delta}\chi^2$=1.26, df=1, p> 0.05). H4-1 is supported, but H4-2 is rejected, Therefore, it is proved that product experience is a significant decision variable having influence on perceived quality and, on the other hand, there is no significant different between PB and NB in terms of influence of product experience on product quality. H5-1: (SPC=0.24, t-value=3.00, p<. 05). H5-2: (${\Delta}\chi^2$=5.10, df=1, p< 0.05). H5-1 and H5-2 are supported, so it is proved that brand familiarity is a significant decision variable having influence on perceived quality and, in terms of influence of brand familiarity on perceived quality, NB has relatively stronger influence than PB. H6: (SPC=0.91, t-value=19.06, p< .001). H6 is supported, so a fact that customer satisfaction increases as perceived quality increases is proved. H7: (SPC=0.81, t-value=7.44, p<. 001). H7 is supported, so a fact that customer trust increases as perceived quality increases is proved. H8: (SPC=0.57, t-value=7.87, p< .001). H8 is supported, so a fact that customer loyalty increases as perceived quality increases is proved. H9: (SPC=0.08, t-value=0.76, p> .05). H9 is rejected, so it is proved influence of customer satisfaction on customer trust is not significant. H10: (SPC=0.21, t-value=4.34, p< .001). H10 is supported, so a fact that customer loyalty increases as customer satisfaction increases is proved. H11: (SPC=0.40, t-value=5.68, p< .001). H11 is supported, so a fact that customer loyalty increases as customer trust increases is proved. Implications Although most of existing studies have used function, price, brand, design, service, brand name, store name as antecedent variables for perceived quality, this study used different antecedent variables in order to analyze and distinguish purchase group PB and NB through preliminary research. Therefore, this study may be used as preliminary data for a empirical study that is designed to be helpful for practical jobs. Also, this study is made to be easily applied to any practical job because SEM(Structural Equation Modeling), most strongly explaining the relation between observed variable and latent variable, is used for this study. This study suggests a new strategic point that, in order to increase customer loyalty, customer's perceived quality level should satisfied for inducing customer satisfaction, customer trust, and customer loyalty. Therefore, after finding an effective differentiating factors in perceived quality in order to increase customer loyalty through increasing perceived quality, this factor was made to be applied to PB and NB. Because perceived quality factors which is recognized as being important by consumers is different between PB and NB, this study suggests how to efficiently establish marketing strategy by enhancing a factor. Companies have mostly focused on profitability in terms of analyzing customer loyalty, but this study included positive WOM(word of mouth). Hence, this study suggests that it would be helpful for establishing customer loyalty when consumers have cognitive satisfaction and emotional satisfaction together. Limitations This study used variables perceived price, company reputation, brand reputation, product experience, brand familiarity in order to determine whether each constituent factor has different influence on perceived quality between purchase group PB and NB. These characteristic variables are made up on the basis of the preliminary research, but it is expected that more precise research result would be obtained if additional various variables are included in study. This study selected a practical product that is non-durable, low-priced and bestselling product in a discount store through the preliminary research because it can be easily estimated by consumers. Therefore. generalization of study would be more easily obtained if more various product characteristics is included. Regarding a sample used in this study, it was only based on consumers who purchase products in a large-scale discount store located in Seoul and in the capital area. Accordingly, this sample has some geographical limitation, If a study is expanded by including more areas, more representative research results may be produced. Because this study is only designed to analyze consumers who purchase a product in a large-scale discount store, some difference may be found according to characteristics of each business type. In other words, there is certainly some application limitation, so research result from this study may not be applied to other business types. Future research may have fruitful results if it adjusts a variable to each business type.

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