• Title/Summary/Keyword: purchasing power

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An Analysis of the Imported Consumer Goods Distribution Sector of Korea: From a Vertical Structure Viewpoint (수입소비재(輸入消費財) 유통구조(流通構造)의 효율화(效率化) 방안(方案))

  • Nam, Il-chong
    • KDI Journal of Economic Policy
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    • v.13 no.1
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    • pp.3-33
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    • 1991
  • Since the early 1980's, the Korean government has gradually been widening the Korean market to foreign consumer goods. This, combined with the increased purchasing power of the Korean consumers resulting from the continued economic growth of the country, has sparked a spectacular influx of foreign consumer goods into Korea, ranging from BMW's to chopsticks. Import of foreign consumer goods amounted to more than 6 billion dollars in 1989 and is continuing to grow at a rapid rate. The increased import of foreign consumer goods doubtlessly improved the overall welfare of the Korean consumers by providing them with a wider range of options to choose from, by lowering the prices of some of the consumer goods domestically produced, and also by forcing the producers of some Korean goods to face competition with better foreign goods, thus giving them an incentive to raise the quality of their products. However, it is agreed by most economists that this increase in general welfare has been much smaller than what they had expected at the outset. Consumer prices of most imported consumer goods are easily double the import price, and in some cases, more than treble the import prices. Further, there has not been a noticeable drop in the prices of domestically produced consumer goods. Much of the blame has been attributed to the distribution sector of Korea. The objective of this paper is to analyze the imported consumer goods distribution sector of Korea, focusing on the possible sources of the poor performance of that sector, and to make policy suggestions that could potentially increase the welfare. This paper differs from all the previous research by others on this subject in that it analyzes the imported consumer goods distribution sector of Korea as a vertical structure. The distribution sector of an imported consumer good is a vertical structure since it consists of an international market, an import stage, and domestic wholesale and retail markets, in that order vertically. Our study naturally includes the analysis of the vertical restraints as well as the analysis of the industrial organization of each horizontal stage in the vertical structure. Each horizontal component of the imported consumer goods distribution sector is basically a monopolistically competitive market differentiated by characteristics of goods and by the locations and the services of firms. Further, restrictive dealership and resale price maintenance are found to be widely in use. Our main findings are the follwing; First, most consumer goods are imported monopolistically or oligopolistically through restrictive dealership contracts between foreign producers and domestic importers. Such restrictive dealership gives importers market power in the domestic market and explains many of the large discrepancies betwen the consumer prices and the import prices of many goods. Korean anti - trust law does not cover the issues arising from the market power of an importer resulting from a restrictive dealership contract. Second, some major producers of Korean goods are also importers of foreign goods that are substitutes of their products. The import of substitutes by major domestic producers is anti - competitive because it tends to raise the prices of both domestic goods and foreign goods, and also because it reduces the incentive of the domestic producers to raise the quality of their products. Third, wholesalers and retailers widely use resale price maintenance as a price fixing mechanism, and while this is against the anti- trust law, it seldom gets noticed. Fourth, the high level of rents of real estate for commercial use works as an entry barrier to the distribution sector and results in reduced competition by the firms in that sector. Finally, there are information problems. Consumers have inferior information to firms about the quality of a foreign consumer good that they have not tried before. Such information asymmetry often enables firms to raise prices. In addition, information asymmetry between importers frequently delays the import of cheaper substitutes. In order to alleviate the problems indentified above, we suggest the following policy changes. The government should strengthen the anti - trust law and its enforcement to regulate restrictive import contracts, import of competing goods by major domestic producers, and RPM by wholesalers and retailers that is aimed at price fixing. In addition, the government should loosen its tight real estate policy to encourage investment in the distribution sector. Finally, we suggest that the import price revelation policy that has been in use for some items since 1990 be expanded to most imported consumer goods that are introduced for the first time to give consumer better information and be used only for the period of time needed to inform sufficient number of consumers.

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Current Status and Prospects of Community Nutrition in Korea (한국 지역사회영양의 현황과 전망)

  • 채범석;한정호
    • Korean Journal of Community Nutrition
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    • v.1 no.1
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    • pp.9-27
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    • 1996
  • The nutritional status is strictly related with flood production, flood processing, and distribution along with habits, education and technological achievement, adapted and adjusted to socio-economic conditions. All these factors are independently affecting the nutritional status of populations. In addition to the above mentioned factors launch of it is useful to consider two points ; unification of the South and the North Korea and WTO. The present study gives and overview of basic knowledge about nutritional status of Korean by using availab1e data in relation to nutrition. The basic characteristics of Korean diet with proportions high in carbohydrate and low in fat, have been relatively constant for the past two decades. The average daily flood intake in terms of weight of flood per person is relatively constant throughout the years. Although the proportion of animal food intake tends to increase recently, the Korean diet is still insufficient in meat, eggs, milk, and fish. Moreover because milk has not been accustomed flood with the general population and not much used in traditional flood preparation in Korea, milk consumption was especially low in comparison with western countries. The total energy intake was relatively constant throughout the years from 1969 to 1993. However, changes in the composition have occurred in the past two decades. The amount and proportions of fat have been s1ightly increasing while the total amount of carbohydrate has been decreasing. The nutrition preblems of Korea have changed over the past severa1 decades. The general adequacy of protein and energy existing after Korean War(1950) was resolved now. Since then the average diet appears to be nearly desirable in terms of rapid rates of growth during childhood and attainment of progressively stature and body weight at maturity. The dietary habits of some young people in these days seem to be taking a more western style diets. This trends if established by habit may lead to a marked change in the traditional diet and health. I think Korean nutritional experiences have potential values for tole other countries in Asia and in western countries. Korean diet illustrates a high level of nutritional status and health attainable will a largely vegetable diet : high in complex carbohydrates, and dietary fibre, and low in tat, and reasonable amount of total protein. This is significant for developing and developed countries that must select specific goals fir adequate nutrition for the people. Compared to the western countries, Koreas different incidence of coronary heart disease and malignancy demonstrates the significance of environment and probably the prominent role of diet in the development of these diseases. The changes occurring in the Korean diet of fir the unusual opportunity to assess the effect of diet upon chronic degenerative disease. In the future, the Korean diet might be continue to change significantly These changes are being influenced by socioeconomic factors that have been emerging and growing stronger since mid-l980 and that probably continue to be potent. The expanded purchasing power of the consumer results in increased discretionary purchases. In the case of foodstuffs, the consumer demands appear to be directed toward items of higher protein content, which, being primarily animal products, are inevitably accompanied by an increased consumption of fat. The continued availability of these more expensive flood items depends upon the balance of foreign trade favouring their importation and domestic production. A regression of foreign trade could result in a decreased supply for the consumer, whereas continued growth of trade iou]d provide freedom for increasing availability to the consumer. In this latter situation the exact choice of foodstuffs is depending upon comsumer tastes and the pressures that may influence it.

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Shelf-life of Prepacked Kimbab and Sandwiches Marketed in Convenience Stores at Refrigerated Condition (편의점에서 판매되는 김밥 및 샌드위치의 냉장조건에서의 유통기한)

  • Koo, Min-Seon;Kim, Yoon-Sook;Shin, Dong-Bin;Oh, Se-Wook;Chun, Hyang-Sook
    • Journal of Food Hygiene and Safety
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    • v.22 no.4
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    • pp.323-331
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    • 2007
  • This study was designed to estimate self-life of Kimbab and sandwiches marketed in convenience store. While the 12 different type of Kimbab (n=6) and sandwiches (n=6) were kept at $10^{\circ}C$ for 72 hours, quality changes including volatile basic nitrogen, aerobic plate count, pathogens detection and sensorial property was monitored, and effective quality indicators were selected. Volatile basic nitrogen, indicator for protein deterioration was slightly increased during storage periods in all samples. E. coli, Staphylococcus aureus, Salmonella spp. and Vibrio parahaemolyticus were not detected from any of samples. Change of aerobic plate count of Kimbab and sandwiches were increased moderately but increased dramatically after 48 hours of storage. Overall acceptability were maintained over 5, purchasing power limit, for 40 hours in 4 general Kimbab, 48 hours in 2 samgak Kimbab and 42 hours in 2 sandwiches. Shelf-life of each item was calculated from regression equation between reference limit from effective quality indicators, aerobic plate count and sensory property, and storage period. Estimated shelf-lives of general Kimbab were $15{\sim}33$ hours, samgak Kimbab were 32 hours and sandwiches were $27{\sim}30$ hours at $10^{\circ}C$ refrigerated condition.

A Study on the Competition Strategy for Private Super Market against Super Super Market (슈퍼슈퍼마켓(SSM)에 대한 개인 슈퍼마켓의 경쟁전략에 관한 연구)

  • Yoo, Seung-Woo;Lee, Sang-Youn
    • The Journal of Industrial Distribution & Business
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    • v.2 no.2
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    • pp.39-45
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    • 2011
  • The Korean distribution industry is gearing up for an endless competition. Greeting low growth era, less competitive parties will be challanged seriously for their survival. But for large discount stores, they have shown steady annual growth for years. However, because of the saturation for numbers of stores, the difficulty of gaining new sites, and the changes in the consumer's consumption behavior caused by the recession, now they are seeking for a new customers-based business formats. Accordingly, a large corporate comopanies made supermarkets which are belonged to affiliated companies of large corporate comopanies. They based on the strong buying power, focused on SSM(Super Super Market) ave been aggressively develop nationwide multi-stores. The point is that these stores are threatening at small and medium-sized, community-based private supermarkets. Private supermarkets and retailers, who are using existing old operation systems and their dilapidated facilities, are losing a competitive edge in business. Recent the social effects of large series of corporate supermarkets for traditional markets has been very controversial, and commercial media, academia, and industry associated with it have been held many seminars and public hearings. This may slow down the speed in accordance with the regulations, but will not be the crucial alternative. The reason for this recent surge of enterprise-class SSM up, one of the reasons is a stagnation in their offline discount mart, so they are finding new growth areas. Already in the form of large supermarkets across the country got most of the geographical centre point and is saturated with stages. Targeting small businesses that do not cover discount Mart, in order to expand business in the form of SSM is urgent. By contrast, private supermarkets are going to lose their competitiveness. The vulnerability of individual supermarkets, one of the vulnerabilities is price which economies of scale can not be realized so they are purchasing a small amount of products and difficult to get a quantity discount. The lack of organization and collaboration, and education which is not practical, caused the absencer of service-oriented situations. As a first solution, making specialty shops which are handling agricultures, fruits and vegetables and manufactured goods is recommended. Second, private supermarkets franchisees join the organization for the organization and collaboration is recomaned. It can be meet the scale of economy and can be formed a alternative business formats to a government. Third, the education is needed as a good service will get consumer's awareness. In addition, a psychological stores operating is also one way to stimulate consumer sentiment as SSM can't operate. Japan already has a better conditions of their lives through small chain expression. This study includes the vulnerabilities of private supermarkets, and suggests a competitiveness reinforcement strategies.

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Larch Pellets Fabricated with Coffee Waste and the Commercializing Potential of the Pellets (커피박과 낙엽송 목분을 이용한 펠릿 제조 및 이에 대한 상용화 검토)

  • Yang, In;Han, Gyu Seong;Oh, Seung Won
    • Journal of the Korean Wood Science and Technology
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    • v.46 no.1
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    • pp.48-59
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    • 2018
  • This study was conducted to suggest the effective management and recycling processes of coffee waste, which can be easily obtained from coffee shops and coffee-related products industries. Prior to the fabrication of pellets, the potential of coffee waste as a raw material of pellet was investigated through the examination of its chemical compositions and fuel characteristics. Major gradient included in coffee waste was holocellulose, followed by fat/oil and protein. Coffee waste contained a small quantity of ash (0.7%), such as calcium, sodium, potassium and magnesium. Interestingly, coffee waste was easily dried probably due to its porous structure. Pellets fabricated with coffee waste and larch sawdust showed good fuel characteristics, such as moisture content, ash content, density and durability. The pellets exceed greatly the minimum requirements of $1^{st}$-grade wood pellet standard designated by National Institute of Forest Science (NIFOS). Particularly, the high calorific value of coffee waste showed the potential as a raw material of pellet. However, owing to high nitrogen and sulfur contents, coffee waste is like to be used as a raw material of wood pellet for combined heat and power plants equipped with a reduction system of $NO_x$ and $SO_x$ gases. On the other hand, 91 wt% larch sawdust and 9 wt% coffee waste are required to fabricate the $1^{st}$-grade wood pellets designated by NIFOS. Pellets fabricated with the conditions are estimated to have nitrogen content of 0.298% and sulfur content of 0.03%. Lastly, if amounts of coffee waste and sawdust in the production of wood pellets are adequately adjusted according to its purchasing price, the manufacturing cost of pellet can effectively be reduced. In addition, it is expected tp prepare the effective recycling process of waste and to relieve the environmental burden with the reduction of waste from the commercialization of coffee waste/larch pellets.

Consumer Perceptions and Attitudes towards Reducing Sugar Intake (당류 저감화에 대한 소비자 인식 및 태도)

  • Kim, Eunmi;Ahn, Jee Ahe;Jang, Jong Keun;Lee, Min A;Seo, Sang Hee;Lee, Eun-Jung
    • Journal of the Korean Society of Food Science and Nutrition
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    • v.44 no.12
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    • pp.1865-1872
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    • 2015
  • This study attempted to investigate consumer perceptions and attitudes towards reducing sugar intake by providing data to develop guidelines for the government and food-related industries to encourage Korean consumers to maintain appropriate levels of sugar intake. A survey was conducted on 238 adult consumers regarding their purchasing power for products with high sugar content in Seoul and Bundang, Gyeonggi area from September 1~30, 2013. Nutritional information on sugary products had a greater impact than media and others' recommendations on consumer awareness regarding need to reduce sugar intake. External factors such as health and weight control were stronger reasons for consuming reduced amounts of sugar or sugar-free products than internal factors such as sweetness. However, internal factors-such as taste-did not have a greater effect on consuming reduced amounts of sugar or sugar-free products than environmental factors-such as absence of purchase channels. Consumers indicated higher acceptance for 50% reduction in sweetness of existing commercial products. Regarding methods of lowering sugar intake, sugar replacement and reducing sugar consumption both generally and at home were preferred. In addition, consumers were likely to pay 10~14% more for sugar-reduced products than for existing products. Overall, consumers expressed positive attitudes towards reducing sugar intake in the future, although those in their twenties tended to be more passive than other age groups.

A Study on the Locational Decision Factors of Discount Stores : The Case of Cheonan (종합슈퍼마켓의 입지 결정 요인에 관한 연구 : 천안상권을 중심으로)

  • So, Jang-Hoon;Hwang, Hee-Joong
    • Journal of Distribution Science
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    • v.10 no.5
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    • pp.37-44
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    • 2012
  • In this paper, we investigate several factors that affect the locational decision of discount stores by using previous studies on the marketing area and the location of commercial facilities. We selected 21 primary variables that are expected to influence the decision of store location and, by factor analysis, grouped them into five underlying factors. Among these, the demographic factor, which shows the potential purchasing power level, had the greatest impact on the locational decision for the store. However, we found individual stores positioned according to unique locational characteristics in addition to the demographic factor. It means that we have to additionally consider if the vicinity of the market is based on any physical properties. Many previous studies proposed four decision factors for store location: the economic factor, the demographic factor, the land utilization factor, and traffic factor. However, the fivefold factors-our distinctive contribution-are more concrete and persuasive according to Korean reality. We show that location preference is based on the following criteria: (1) the area is densely populated, (2) houses stand close together, (3) residents have a high income level, (4) road traffic is developed and easy to access, and (5) public transportation is well developed. The demographic factor has the greatest impact on the location of a discount store. The number of households has a greater relevance to the demographic factor than does the individual consumer. Second, discount stores relatively prefer places where houses are located close together because such places offer easy access to the market. Third, a place whose residents have a high income level will be preferred, with its large cars and excellent traffic conditions. Fourth, a location would be highly rated if the roads around commercial facilities are well developed and their accessibility is good. Finally, discount stores must be located close to bus stops because female consumers, including housewives-the most important customers-evaluate stores based on distance. In this research, the variable of consumer attitude and preference was excluded, and the location factors of discount stores were analyzed according to a microscopic view through physical spatial data. In the future, the opening of new discount stores based on the five factors indicated above will require a comparatively shorter time from the first project feasibility analysis. In addition, the result of our study can be applied to the field of public policy for constructing and attracting large-scale distribution facilities.

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Problems Analysis Related to Nutrition and the Development of Nutrition Education Programs for High School Students(II) - A Study Centered on the Development of Nutrition Education Programs for High School Students - (고등학생의 영양 관련 문제점 분석 및 영양 교육 프로그램 개발 ( II ) - 고등학생 대상 영양 교육 프로그램 개발 -)

  • Lee, Eun-Ju;Soh, Hye-Kyung;Choi, Bong-Soon
    • Journal of the East Asian Society of Dietary Life
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    • v.17 no.3
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    • pp.351-363
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    • 2007
  • Previously, we analyzed for nutrition knowledge and the use of nutrition knowledge in the everyday lives of students in order to develop nutrition education programs that focus on desirable behavior change. From this, we found that female students desired to participate in nutrition education more than male students, and regarding their concerns for nutrition education, 73.2% of the females and 50.0% of the males displayed interest in 'obesity and the regulation of body weight'. Therefore, this study showed female students give more attention to the obesity and the regulation of body weight than male students(p=.000<.001). In addition, female students had higher interests($8.63{\pm}1.67$) than male students ($7.45{\pm}2.03$) in nutrition knowledge(p=.000<.001). By investigating the use of nutrition knowledge in everyday life, our research indicated that the actual use of nutrition knowledge was less. To encourage students to persue dietary lives addressing the concerns confirmed above, the following needed to occur. 1) Provide them nutrition information for the main processed foodstuffs encountered when dining out(breads, cakes, cookies, and carbonated beverage). 2) Teach them to read food nutrition labels. 3) Help them find a lifestyle connection through lasting self-management methods and the generation of social support. Accordingly, this required developing effective and practical nutrition education programs that considered regional characteristics and gender differences. The most important factors considered during nutrition education program development were the need for motivation and ongoing education by stage of change, rather than temporal education through specific problem analysis, in order that those being educated may bring about a change of behavior by themselves. Therefore, from this study, we have suggested the use of multilateral operating strategies for successful nutrition education. In addition the phase model of behavior change should be applied. Our programs were aimed at self owned nutritional management so that students could master their own methods for acquiring skills and enjoying dietary life. The research may be summed up as follows. First, the purpose of education at the recognition stage of change was to attempt motivation for nutrition improvement, by analyzing the problems such as food buying habit and the main purchasing viewpoints when dining out. Second, the purpose of education at the action stage of change was to help students acquire of concrete methods for behavior modification by linking the program to their home as well as to teachers with various activities that suited the situation at school. This was done by analyzing the processes and decisions pertaining to dining out the main processed foodstuffs and principal components, etc. through data and experimental practice. Third, the purpose of education for changing of habits and values, or the maintenance stage, was to investigate the various reasons that undesirable behaviors were induced, and then determine a lasting self-management method as well as how to generate social support. If the nutrition education program developed in this study is utilized on site, someone in the primary role as the nutrition educator and trained specifically in nutrition, can help induce the health promotion in the community as well as lasting dietary management, by executing a link with families in parallel with educating teaching staff and students' parents. In addition, this program can playa role in the government policies related to the health promotion for our youth who are the foundation of our nation and who can enhance our national competitive power.

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A Study on the Determinants of Demand for Visiting Department Stores Using Big Data (POS) (빅데이터(POS)를 활용한 백화점 방문수요 결정요인에 관한 연구)

  • Shin, Seong Youn;Park, Jung A
    • Land and Housing Review
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    • v.13 no.4
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    • pp.55-71
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    • 2022
  • Recently, the domestic department store industry is growing into a complex shopping cultural space, which is advanced and differentiated by changes in consumption patterns. In addition, competition is intensifying across 70 places operated by five large companies. This study investigates the determinants of the visits to department stores using the big data concept's automatic vehicle access system (pos) and proposes how to strengthen the competitiveness of the department store industry. We use a negative binomial regression test to predict the frequency of visits to 67 branches, except for three branches whose annual sales were incomplete due to the new opening in 2021. The results show that the demand for visiting department stores is positively associated with airport, terminal, and train stations, land areas, parking lots, VIP lounge numbers, luxury store ratio, F&B store numbers, non-commercial areas, and hotels. We suggest four strategies to enhance the competitiveness of domestic department stores. First, department store consumers have a high preference for luxury brands. Therefore, department stores need to form their own overseas buyer teams to discover and attract new luxury brands and attract customers who have a high demand for luxury brands. In addition, to attract consumers with high purchasing power and loyalty, it is necessary to provide more differentiated products and services for VIP customers than before. Second, it is desirable to focus on transportation hub areas such as train stations, airports, and terminals in Gyeonggi and Incheon. Third, department stores should attract tenants who can satisfy customers, given that key tenants are an important component of advanced shopping centers for department stores. Finally, the department store, a top-end shopping center, should be developed as a space with differentiated shopping, culture, dining out, and leisure services, such as "The Hyundai", which opened in 2021, to ensure future growth potential.

Preference and Loyalty Evaluation Using Sentiment Analysis for Promotion and Consumption Expansion of Paprika (감성분석을 이용한 파프리카 소비 확대와 홍보를 위한 선호도와 충성도 평가)

  • Jang, Hye Sook;Lee, Jung Sup;Bang, Ji Wong;Lee, Jae Han
    • Journal of Bio-Environment Control
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    • v.31 no.4
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    • pp.343-355
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    • 2022
  • This study investigated the consumption tendency and awareness of paprika in order to expand and promote the consumption of Capsicum annuum L. The research investigated the relationship of preference and loyalty based on emotional response of paprika according to the semantic differential scale. The survey was conducted from January to February 2022 using a random sampling method targeting 155 general people, and a total of 142 questionnaires were analyzed excluding 13 wrong answers. The nine items on the awareness of paprika showed to be consisted of three factors such as 'Food taste', 'Usability', and 'Economics' by factor analysis. Regarding to the awareness of paprika the positive answer that 'I think paprika is good for health' among the nine questions was the highest at 92.3%. In the preference aspect of shape, blocky type had the highest preference for the shape of paprika, followed by mini and conical types in order of preference (p < 0.001). As for color preference, yellow paprika was the most preferred, followed by orange, red, and green, showing statistical significance. The emotional response of paprika by paprika image showed a statistically significant difference in the four colors. The words such as 'bright', 'clean', and 'spirited' appeared as representative emotional vocabulary for paprika. Multiple regression analysis was performed to examine the effect of paprika on the three factors of awareness, preference, and loyalty due to the quality of life. As a result, the higher the paprika preference and quality of life, and the higher the taste and availability factors, the higher the paprika awareness and loyalty. As the variable that has the most influence on the loyalty of the survey respondents, preference was found to have the highest explanatory power at 43%. From these results, it was judged as a very important factor in the survey on the shape and color preference of paprika. Therefore, the recent increase in awareness that paprika is good for health is thought to act as a positive factor in revitalizing the domestic market and increasing consumption of paprika in the future. Also, among the three types of paprika, the yellow blunt type showed the highest preference. Therefore, in order to produce and promote this type of paprika, it is also important to increase the cultivation to suit the purchasing propensity of consumers.