• Journal of Distribution Science
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• v.9 no.2
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• pp.31-36
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• 2011

I conducted empirical analyses of what happens when an offline channel expands to an online channel and whether the pre-existing offline channel's competitive assets (e.g. brand reputation and level of service satisfaction) can be linked to online channel preference. I found that an offline channel's brand reputation and level of service satisfaction can have a direct influence on offline channel preference and a second-hand influence on online channel preference. Thus, if the competitiveness of the online channel is strong enough and its customers have a higher preference for the offline channel, they will be committed and loyal to the company. The resultant enhanced competitiveness of the offline channel will present opportunities for both present and future success. The main results are the following. First, the management of the distribution channel service quality is more important than that of the brand reputation. Customers' experiences of service and subjective evaluations are not important only as the leading factors in the long-term brand reputation management but also as influential factors in channel preference. SoThus, given that the service quality of the pre-existing channel is not the customers' main concern, a strategy of improving the level of service satisfaction aimed at present customers is more valuable than a wide brand positioning strategy aimed at general and new customers. Second, when an offline channel company establishes an internet shopping mall on an online channel, it is highly likely that the preference and subjective evaluation of the present customers will influence the online channel. This applies not only to the special case of an expansion from an offline intermediary channel to an online one, but also to an online channel acting as an expansion of the business model of a conventional manufacturing or service company: both cases are vertical integrations of marketing channels in an expansion of the distribution channel. My theory applies to a wide range of contexts. Third and finally, any business strategy can grasp the meaning of 'channel expansion. Fundamentally, it is an expansion of the sales activity channel and marketing activity. However, it is also a way of enhancing marketing and sales competitiveness through an expansion to an online or offline channel. The expansion of an offline company to an online channel could be seen not as improvement but as an innovation of the business process by which two goals are achieved with one technique. The former is expected to increase the sales of the offline company, and the latter is also expected to increase sales while also contributing to cost reduction.

• Journal of Distribution Science
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• v.21 no.2
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• pp.7-20
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• 2023

Purpose: With the unique feature of O2O, consumers are now able to check the profile of the services and products online and then consume them in offline venues or vice versa. This study provides motivation and practical implications about online-to-offline (O2O) distribution channels and investigates the relationship between economic values, service consistency and brand identity attractiveness in the O2O distribution channel. Then identify the impact of brand identity attractiveness on the performance (reputation and reuse intention). Research design, data, and methodology: Structural equation modeling (SEM) has been used to investigate the relationship between economic value and brand identity attractiveness, which affects the reputation and reuse intention of services in O2O. Results: Empirical results show the positive and significant impact of economic value and service consistency on brand identity attractiveness which results the positive and significant impact on performance (reputation and reuse intention) in O2O. Conclusion: In the O2O distribution channel, economic value is an important aspect for the attractive image and brand identity. On the other side, brand identity attractiveness is important for the bright future of O2O services, continuous growth, achieving the distinct goal, keeping good promises with customers, and a better reputation of O2O services in distribution channels.

• The Korean Fashion and Textile Research Journal
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• v.21 no.6
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• pp.743-753
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• 2019

This study investigates differences in demographic characteristics, shopping orientation, perceived risk, and satisfaction after purchase among consumer types. This study classifies consumer types according to their channel transition behaviors between the online and offline channels with a focus on the steps of information research and buying decision in buying decision-making process. The four consumer groups are as follows: off-off type (offline research-offline purchase), on-on type (online research-online purchase), on-off type (online research-offline purchase) and on/off-off type (online and offline research-offline purchase), off-on type (offline research-online purchase) and on/off-on type (online and offline research-online purchase). Data were collected from adults over 20 years old who had bought clothes within one year. The questionnaire was carried out from July, 2019 using a professional internet research panel; in addition, 500 sets of useful data were analyzed by descriptive statistics, factor analysis, reliability analysis, chi-squared test, ANOVA and Duncan-test using SPSS 21.0. The findings showed significant differences among the classified consumer groups for consumer demographics, shopping orientation, perceived risk, and purchase after satisfaction. The results imply that consumers show a variety of channel transition behaviors based on demographic variables, shopping orientation, and perceived risk. Understanding and adapting to consumer purchase behaviors will allow company distribution channels to be effectively managed and eventually increase consumer satisfaction as well as company sales volume.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.37 no.4
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• pp.145-153
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• 2014

In this paper, we study the bargaining strategy of a manufacturer who sells a product through the online and offline distribution channels. To do this, we derive and analyze the equilibrium solutions for both simultaneous and sequential bargaining games. The result shows that the optimal bargaining strategy heavily depends on the size of the online distribution channel's loyal customers and the difference between the retail prices of the online and the offline distribution channels. It is also shown that, in some cases, the online distribution channel has incentive to downsize its loyal customers and its retail price for a better bargaining outcome.

• Journal of Information Technology Services
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• v.18 no.4
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• pp.23-38
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• 2019

With the development of information and communication technology, logistics distribution systems and services have been improved, new types of services have been provided, and consumption patterns in consumer markets have also changed. In the domestic distribution market, the development of ICT technology, the spread of smart devices, and the growth of the e-commerce market have led to Omni-channel, a service that integrates offline channels and online channels. Omni-channel service aims to provide consumers with consistent and convenient service by integrating offline and online domain into one. Consumers can get integrated service on and offline. In this study, consumers' intention to use Omni-channel was examined by Self Determination Theory and SERVQUAL. The survey was conducted on Omni-channel user and the research model was composed of 2^nd order factor model considering the characteristics of Omni-channel which provides integrated service based on the prior literature and PLS-SEM (partial least squares structural equation modeling).

• International Area Studies Review
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• v.21 no.2
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• pp.121-141
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• 2017

The world whitening cosmetics market is fast being taken in 'complex functional cosmetics' including complex function. And highly functional cosmetics market that call cosmeceutical market is growing up with highly functional cosmetics market. In addition, natural cosmetics market including whitening function is growing up in the world in complex functional cosmetics. Distribution channel of the world functional cosmetics is digital communication through beauty and digital. Global companies are adding relationship in new space between customer and brand. So worldwide change phenomenon of whitening cosmetics distribution channel will suggest importance that it should be able to communication with customer in non-traditional space. Domestic whitening cosmetics market is decreasing to reference compound annual growth rate -3.61%. While complex type market is increasing to annual growth rate 33.28%. Since 2008, domestic whitening cosmetics market was changed in distribution channel of center of traditional door-to-door sales. Especially, online channel is about 1/6 level of offline, but since 2014, year-on-year increase rate of online showed 27.1%. In the future, it is anticipated that ratio of online sales is above offline. Whitening cosmetics distribution is being changed, and online channel is growing up, so domestic companies will need tragedy targeting new whitening cosmetics distribution channel and traditional offline channel at the same time. If new company go into whitening cosmetics market, the new company will have to consider natural cosmetics in complex functional cosmetics than whitening cosmetics market. To secure domestic competitiveness whitening cosmetics market, securing differentiation of brand or pursuing change of distribution channel, and we need to seek a method that company and customer can forge communication in new space.

• Journal of Information Technology Applications and Management
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• v.23 no.2
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• pp.239-261
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• 2016

Wide use of smart and high performing mobile device makes consumers use diverse distribution channels, composed of online and offline channel. Smart companies are trying to deploy omni channel. In order to successfully integrate these diverse channels, it is necessary to understand consumers' preference of channel choice. Thus, this study was focused on the influencing factors of channel preference such as price sensitivity, consumer innovativeness, time pressure, and need-for-touch. And this study compared these influencing factors between Korea and China, and drew meaningful message for e-commerce companies and offline distribution companies.

• The Korean Fashion and Textile Research Journal
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• v.22 no.3
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• pp.323-334
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• 2020

This study analyzed the effects of consumers' characteristic variables on information search and purchase decisions in a decision-making process that validated the path model in purchasing apparel products. In constructing a structural equation model using AMOS 19.0., the variables including enjoyment pursuit, price pursuit, product involvement and product risk were selected as consumers' characteristic variables affecting the stage of information search. A questionnaire was distributed to consumers over 20 years old who purchased apparel products using offline and online channels within one year; consequently, we were able to analyze 468 effective data. The results were as follows. First, the path model of this research proved to be the appropriate model explaining the effects of consumers' characteristic variables on the stage of purchase decision-making. Second, enjoyment pursuit had a significant positive influence on offline information search; in addition, price pursuit and product risk affected the online information search significantly. Product involvement affected online information search as well as offline information search. Third, the offline information search affected offline purchase and online information search affected online purchase. However, consumer's channel switching behavior between the stage of information search and the stage of purchase decision was not proven. The findings suggest that companies need to develop distribution strategies according to consumers' characteristic factors that effect consumer's purchase decision-making.

• The Journal of Industrial Distribution & Business
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• v.12 no.3
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• pp.7-19
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• 2021

Purpose: This study aims to examine customer experience toward repurchase intention in offline and online stores and discuss customer satisfaction as a mediator variable. Research design, data, and methodology: This study investigates customer experience that consists of product, customer service, staff service, shopping environment and shopping procedure toward customer satisfaction using Regression Linear. This study also measures customer satisfaction as a mediated variable in the relationship between customer experience and repurchase intention using Sobel Test. Results: Almost all of the customer experience hypothesis is significant toward customer satisfaction, shopping process experience in the context of the online channel to customer satisfaction is not significant. We also found that customer satisfaction can be mediated variable in customer experience toward repurchase intention. Conclusions: Retails who want to make customers feel satisfied to have to make sure that have good resources in improving the product, the customer service is easy to contact to find the solution over customer problem in purchasing product, also develop the staff member skill in functional product knowledge, presentations, and communicating with customers online or offline, the retailer has to create enjoyment and pleasurable customer emotion through the shopping environment and also give seamless shopping experience to their customer in two-channel.

• The Research Journal of the Costume Culture
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• v.27 no.2
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• pp.98-108
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• 2019

With the expansion of various distribution channels in online and offline stores, TV, and mobile, consumers now have more information search and retail selection channels to choose from than ever before. Major retailers now use multi- and omni-channel strategies. This study focused on cross-channel consumption, which involves the use of different information search and purchase channels. Using cross-channel consumption, consumers can search for information online and then make purchases offline and vice versa. The purpose of this study was to examine the relationship between channel strategies and other consumer variables, and the study also assessed the effect of product type. To conduct this empirical study, the researchers developed a consumer questionnaire concerning three consumer channel strategies-on-on, cross, and off-off-and four product categories-clothing, cosmetics, books, and electronics. The results indicated that gender and marital status did not influence consumer channel strategies, but that age did have a significant influence. The analysis showed that consumers in their 40s preferred the cross channel strategy, perceiving it to be effective, satisfactory, and rewarding. Compared to other products, clothing products showed higher levels of cross channel strategies. Consumers indicated that they prefer searching for information online and then purchasing clothing offline. Overall, clothing products generated higher levels of channel satisfaction and channel switch intentions. Cross-channel clothing shoppers reported effective information retrieval times but longer delivery times.