• Journal of the Korean Society for Aviation and Aeronautics
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• v.26 no.4
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• pp.20-26
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• 2018

This study analyzes the economic effect of introducing the arrival duty - free shop at Incheon International Airport. Based on the estimated sales of KRW 127 billion for the duty-free shop at the port of entry, the international balance of payments was estimated at KRW 55.5 billion. Job creation was estimated at 530, including direct and indirect workforce. With the admission of arrival duty-free shops, duty-free shops in the airline are likely to see a decline in sales, helping to improve monopoly structure on the market structure side. It is expected that the rental income generated through the operation of the arrival duty-free shop will be used as a resource for social contribution activities, creating additional social economic effects.

• Journal of Distribution Science
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• v.14 no.10
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• pp.47-57
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• 2016

Purpose - This study's purpose is to investigate the market structure of the Korean duty free shop industry that has received recent attention from researchers and practitioners. By raising the question of whether or not the Korean duty free shop industry is unequivocally monopolistic, a wider viewpoint is provided. The study seeks to offer insights and managerial implications for marketers and policy makers who are in charge of regulating major Korean duty free shops. Research design, data, and methodology - The authors use secondary data from various sources, including Korea Customs Service and the Moodie Report, to investigate the structure of the duty free shop industry of Korea. Based on several theories, they present various criteria and statistical evidence such as K-firm concentration ratio, HHI, consumer substitutability, excess profit, and marketing costs. Results - In terms of consumer substitutability, it is difficult to confirm whether or not the Korean duty free shop industry is monopolistic. Notwithstanding monopoly characteristics in terms of market share, neither the company Lotte nor Shilla appear to have market dominating power. It is not easy for either of them to control prices or to achieve a much lower operational profit ratio due to a dominant bargaining power. Moreover, the license is not an economic rent. In this situation, it is not easy for these companies to obtain an excessive profit. Conclusions - Considering that most global duty free shops are trying to go upscale to improve bargaining power, it does not seem likely that rigid regulations are needed in the industry. Even though the Korean duty free industry ostensibly has a monopolistic structure, government and policy-makers should look beyond the surface. They should take global and other reasonable criteria into consideration when they establish or change regulation policies. Thorough understanding and appropriate support are needed for the Korean duty free shop industry. Additionally, duty free shops should position themselves as global companies struggling against unlimited international competition, rather than Korean domestic companies. At the same time, they need to give customers appropriate information about the benefits they provide.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.24 no.1
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• pp.16-24
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• 2016

Despite rapid growing in domestic duty free industry, weight of income from airport duty free area is relatively decreasing because of rapid progress in downtown duty free area. The purpose of this research was investigating the relationship between airport duty free servicescape and its effects on customer satisfaction and image for duty free shop, in order to maintain own competitive advantages. In pursuing above, previous studies related to servicescape, service value, customer satisfaction, and image were examined for literature review. Based on this previous studies, research model were constructed. Hypothesis was verified by effect. Data from 305 samples was employed for final survey. The main results show that functionality, attraction and convenience were meaningful factors to effect perceived servicescape. On the other hand, cleanness and comfort had few or no influence on servicescape. The perceived servicescape affected on service value and customer satisfaction. Service value had positive effects on customer satisfaction which was discovered to affected on image for duty free shop.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.26 no.2
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• pp.123-131
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• 2018

Air transport industry tries to enhance punctuality, stability and amenity for customer's satisfaction. Especially airlines and airports do make an effort as the distance between these two stakeholders and passengers are close. This research has empirically discussed the relationship between duty free shop purchase of passengers and the number of flights and hours of schedule delay at the airport. According to the result, the total sales of duty free shop sales have meaningful influence on the number of flights and hours of delay. In order to decrease such an impact, close cooperation between airports and duty free shops required.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.30 no.4
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• pp.76-91
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• 2022

면세점 판매 채널이 다양화되고 스마트 여객 증대 등 쇼핑 성향의 변화로 인해 인천공항 면세점 객단가는 하락하고 있다. 면세점 매출액 감소에 따라 사업 다각화 및 고도화 등 대응 노력이 필요하다. 따라서 인천공항 면세점 이용객의 쇼핑 행태 및 면세점 트렌드 변화에 적기 대응을 위한 기초자료 및 마케팅 강화 방안을 제시하는 데 궁극적인 목적이 있다. 본 연구는 인천공항 면세점 내·외국인 구매자/비구매자, 환승객을 대상으로 쇼핑실태를 심층 조사하여 행동 특성을 분석하였으며, 그 결과 내국인과 외국인, 환승객별로 인구통계학 특성, 여행 특성, 쇼핑 특성에서 차이가 나타났다. 인천공항 면세점 이용객별 중요하게 인지하는 요소와 만족하는 요소를 파악하고 개선할 부분을 파악하였다. 이로써 인천공항 면세점 운영정책 수립 및 기본방향 설정을 위한 기초자료로 활용할 수 있고, 인천공항 면세점 마케팅 강화 및 활성화를 위한 전략 방안을 제시하는 데 의의가 있다.

• Asia-Pacific Journal of Business
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• v.12 no.1
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• pp.87-100
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• 2021

Purpose - This study aims to examine the antecedents of willingness to pay in the domain of duty free shop. Design/methodology/approach - This study chooses willingness to pay as explained variable. The candidates of explanatory variables are price fairness, brand awareness, employee service, product diversity, and crowding. This study uses survey to explore the linear relation between variables. This research collected data using online panel data collection service. The number of valid observation is 265. The research targe is Lotte duty free store. Statistical analysis was for statistical inference. To attain the information of survey respondents, frequency analysis is employed. Next, this study implemented exploratory factor analysis and reliability to ensure both validity and reliability of measurement items. This study executed multiple regression analysis to test research hypotheses Findings - Regrading results, brand awareness, employee service, and product diversity are positively associated with willingness to pay of duty free shop product. Moreover, the results of regression analysis suggest the inverted-U shape association between crowding and willingness to pay. However, price fairness appeared as non-significant variable to account for willingness to pay in the multiple regression analysis. Originality - This study contributes to the literature by examining duty free shop customers more.

• Journal of Distribution Science
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• v.15 no.4
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• pp.41-57
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• 2017

Purpose - With the growth of the duty free shop field and an increase in the executive interest in it, it becomes necessary to examine if PBZ (1988) SERVQUAL could be applied to duty free shop service reflecting on this increased interest and the importance of marketing strategy alternative managing multinational customers. Therefore, the present research focused on the comparison of Korean and Chinese consumers. We examined how service quality would affect relationship quality and customer loyalty. Research design, data, and methodology - Surveys were distributed to 235 Korean and 220 Chinese consumers who have visited a Korean duty free shop. We analyzed frequency analysis, mean difference analysis, and reliability analysis, exploratory factor analysis, confirmatory factor analysis, structural equation model analysis, and multi-group analysis. Results - First, perceived tangibles, responsiveness, empathy, assurance, price benefits, product diversity, and IT convenience of duty free shop service all appeared to be positive effect on customer satisfaction; at the same time, only tangibles, responsiveness, empathy, assurance, and price benefits positively affected customer trust. Secondly, customer satisfaction and trust that are the components of the relationship quality appeared to be positive effect on customer loyalty. Thirdly, customers' satisfaction was found to play a full mediating role effect among all of the service quality factors with customer loyalty; however, customer trust was found to have the mediating effects only with tangibles, empathy, assurance, and price benefits. Fourthly, we found a difference between how service quality influences relationship quality and how service quality influences customer loyalty as a function of different nationality. As a result, it appeared that price benefits and IT convenience affected customer satisfaction more among Koreans than among Chinese. Finally, it appeared that customer satisfaction and trust affected customer loyalty more among Chinese than among Koreans. Conclusions - The results of this study contribute to the theoretical knowledge, but also provide strategic alternatives to enhance differentiation, international competence of enterprises led by duty free shop and service quality improvement and customer loyalty of enterprises are drawn as a foundation for constructing international customer relationship in future global era.

• Korea Trade Review
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• v.45 no.5
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• pp.201-222
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• 2020

This paper examines that determinants of BAOMAI, (i.e., behavior of Chinese tourist bulk purchase in duty free shop) with analytical framework and empirical tests. The results of applying the structural equation modeling to 196 samples suggest that Chinese tourist consumption orientations (conspicuous/compulsive/unplanned consumption) have a positive effect on BAOMAI decision value chain (perceived value and loyalty). The marketing mix of duty free shop as control variables in research framework also have a positive effect on BAOMAI perceived values (functional/social/emotional value). This paper has a contribution to prior literatures: the first empirical analysis on BAOMAI determinants with exploring scholarly definition.

• Journal of Distribution Science
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• v.16 no.8
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• pp.39-50
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• 2018

Purpose - The ultimate purpose of this research is to analyze the influence of personal disposition on shopping value and behavioral intention by expanding the theory of planned behavior (TPB). Research design, data, and methodology - An attempt was made to examine the effects of personal disposition (reflecting duty-free shop characteristics) on three selective actions of consumers - compulsive buying, variety seeking, and price sensitivity. We conducted a questionnaire survey with the users of airport duty-free shops, downtown duty-free shops (offline), and online duty-free shops. In total, 410 copies of the questionnaire were analyzed using a structural equation model. Results - According to the results, compulsive buying, variety seeking, and price sensitivity significantly affected shopping value. Shopping value and subjective norms both had significant effects on attitude, the major variable in the TPB, and attitude had the greatest effect on behavioral intention, followed by subjective norms and perceived behavioral control in descending order. Conclusions - This study has academic implications in that it extends the existing theories of planned behavior and applies it to consumer characteristics and shopping value. It has practical implications as well in that it provides basic data that can be used to establish concrete marketing strategies for duty-free shop owners targeting segmented markets by closely examining customer desires.

• Journal of Korea Society of Industrial Information Systems
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• v.21 no.4
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• pp.95-110
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• 2016

The purpose of this study is to design a service encounter of a duty free shop using a blueprinting method. This case study analyzed differences between city-based and airport-based duty free shop and proposed a flow chart based on administration blueprinting of the duty free shop in South Korea. The paper presented process criteria based on administrative procedures of customers in city-based and airport-based duty free shop. The results of the study provided the cause of failure with waiting point of customer and customer service and suggested management plan to solve failure. Also, the study addressed more customer-oriented service delivery processes to improve service quality and customer satisfaction through waiting and failure points.