1. Introduction
Despite the economic downturn from 2005 to 2012, Korea’s outdoor-wear market size has continued to grow from 25 to 36%, and reached a market size of 7 trillion won according to KOTRA Trade Report (2018). However, the growth rate has decreased to 10% in 2013 and showed a lower growth rate of 9.4% in 2014. The outdoor-wear as a product for climbers and professional hikers began in early 1970s, and the demand for the outdoor-wear has increased in the form of outdoor activities such as camping, gained popularity due to the spread of well-being culture in the 2000s. Moreover, the design and product functional quality of the outdoor-wear has also recently boosted up the popularity of outdoor-wear. However, the recent Korea’s outdoor-wear market is faced with some difficulties resulting from the change of consumers’ behavior in association with the recent economic recession and the spill-over effect of COVID-19 in 2020. Thus, it is necessary for Korea’s outdoor-wear industry to devise new strategies to overcome the difficulties.
According to the survey by the Ministry of Culture, Sports and Tourism (2019), which surveyed 10,498 men and women over the age of 15 in 17 different districts in Korea, compared to 2016, the tourism activities, relaxation activities and sports activities have been decreased, while sports viewing activities, cultural art activities, cultural art viewing activities, entertainment activities and social and other activities have increased. In 2016, the relaxation activity was the most influential activity but in 2018, the entertainment activity has been found to be the most influential activity of the respondents. The survey shows explicitly that the most popular entertainment activities were watching TV (71.8%), internet surfing (36.7%), and shopping and dining (32.5%), respectively. Thus, Korea’s outdoor-wear market has become a major domestic fashion market with an explosive growth since the late 2000s. However, Korea’s outdoor-wear industry is recently confronted with a new challenge as the consumers spend more time inside, consequently assigning more time on non-outdoor activities.
In conjunction with the downward trend of the Korean sports activities in particular, which has been previously mentioned in the survey by the Ministry of Culture, Sports and Tourism (2019), it is worth noting the policy recommendation of Kim & Kim (2020). They have recently suggested policies for life sport development on local level in an attempt to improve community welfare (Lyson & Welsh, 2005; Shin & Toohey, 2003; Tomazos & Butler, 2009), as follows: 1) it is needed to pursue institutional changes to secure diversity in the age group which participates in sports for all; 2) The Korean government should develop the sports program in connection with public sports facilities built for the interest of community members so that the connectivity in public sports facilities should be reinforced; 3) the relevant club advisors should be educated with well organized-manual and reeducated to rebuild their capacity in an attempt to develop the sports programs; and 4) it should be needed to develop a profitgenerating project designed to develop a target marketing strategy designed to enhance economic sustainability.
Moreover, as the new outdoor-wear brands have been recently launched along with the slow-down consumption due to the global economic recession, competition among the relevant companies has been keenly intensified. Therefore, the strategies for securing a competitive advantage are required for survival and prosperity.
The recent researches related to outdoor-wear industry have been highly used. Most of the recent researches have examined the outdoor-wear industry in the three aspects: (1) marketing (Chahal, 2009), (2) product design (Hong, 2007), and (3) product development (Bowden, 2013). In general, most of the recent researches related to the outdoor-wear industry have investigated fashion and design. However, it seems that they have not paid much attention to the study on the consumers’ behavior in the outdoor-wear market..
When the consumers purchase outdoor-wear products, they consider not only the basic functions of the products but also additional functions such as materials, washing methods, and unique functionalities. Furthermore, the brand image also serves as an important role in consumers’ purchasing decisions. The consumers who purchase outdoor-wear products tend to check product information more carefully. And they are experiencing some difficulties in collecting product information since each outdoor-wear product has a different and unique functionality and characteristics of a given product. From the perspective of manufacturers, they are also faced with some difficulties in setting up the strategies for market segmentation. When the consumers search for product information, the reputation of the product brands plays an important role in making their purchasing decision. In addition to the reputation of the product brand, the product information that influences the consumers’ purchasing decision is the product information expressed on the label attached to a given product. Since the information on a given product label can be easily obtained and provides fundamental information on a given product, it also plays an important role in consumers' purchasing decisions. Therefore, the consumers can evaluate the product’s qualities by referring to the information expressed on its label.
Under the previously described research background, first, this study empirically estimates the effects of the product label information on the consumers’ evaluation of a given product by classifying the information expressed on the product label. Secondly, this study examines how consumers evaluate a given product by utilizing the information expressed on a given product label. Thirdly, this study empirically estimates the effects of the product information on the consumers’ evaluation based on the types of information expressed on a given product label.
The following part of the paper is organized in order: Section 2 discusses about theoretical backgrounds and hypothesis developments; Section 3 describes the research design; Section 4 presents the empirical results; and Section 5 concludes the paper.
2. Theoretical Backgrounds and the Hypotheses
2.1. Some Concepts and Market Trend of the Korean Outdoor-Wear Market
‘Outdoor’ is hence defined as clothing worn outdoors, or clothing designed to be worn outside other garments, as opposed to underwear. Also, ‘outdoor’ is defined as all activities outside, or ‘in the open air’ and ‘outside the house’. Outdoor sports include sports activities such as camping, glamping, tracking, climbing, and mountain biking. Hong (2007) has defined ‘outdoor-wear’ as a sport-clothing designed explicitly for outdoor activities and leisure activities. This study follows the definition provided by Hong (2007).
Although the Korean outdoor-wear market showed a rapid growth until 2012, despite the global economic slowdown, the growth rate of the market size began to decrease from 2013. The existing Korean companies which entered the outdoor-wear market without adequate preparation for the future prospect or started with poor market adaptation are currently experiencing great difficulties or withdrawing (Park and Park, 2016).
As a result, the Korean outdoor-wear market is expected to be shrunk further, and it is also expected that more fashion-related companies may abandon their outdoor-wear brands. In an attempt to boost up Korean outdoor-wear market in the context of global market beyond the local market, it is worth noting that Pike & Beames (2013) identified how a successful commercial model could be ‘scaled up’ by branding a product that was of a predictable quality wherever the consumers bought it. The commercial model seems to be a good example of the process of globalization for the Korean outdoor-wear industry in the sense that the international trend of the outdoor-wear industry has increasingly brought about the integration of markets, ideas and worldviews.
2.2. Information on the Product Label
According to the Cambridge Dictionary, ‘label’ is defined as a piece of paper or other materials that provide the relevant information about a certain object to which it is attached. In general, most of the products have their own labels which demonstrate their own characteristics, brands, and instructions for using the given products. It was empirically estimated that the product labels provide consumers with an important information for consumers’ purchasing decisions since they generally believe that the information on the product labels accurately reflect its content (Tootelian & Ross, 2000).
The U.S. National consumer-retailer council (NCRC) defined labels as the product information which provided the product’s structure and properties which are available for the consumers to evaluate the quality of a given product. More specifically, a given product label was useful for the consumers which allowed them to compare the quality of products, by providing some relevant information on ‘What product does,’ ‘how the product is used,’ and ‘how the product is handled’ (Tootelian & Ross, 2000).
Hence, ‘labeling’ is defined as the process of attaching descriptive word or phrase which provides information on the concerned products or services. The purpose of the product labeling is to provide the consumers with useful information for their purchasing decision. From the consumers’ point of view, the label information expressed on a certain product is one of the channels for consumers to obtain useful information on a given product whereas the sellers use a label as a means of product differentiation. In other words, the information on the product label is used as a standard for the consumers’ evaluation about the quality of a given product..
While price information and brand image have been empirically estimated to be a major determinants of product quality perception, the potency of the two information above had never been empirically compared before the study of Jacoby et al. (1971). Their empirical results can be summarized as follows: 1) price information was found to be an indicant of product quality when it was the only available information, but not when embedded in a multiinformation setting; 2) brand image was found to be a stronger effect upon product quality perception, particularly for brands with a strong positive brand image; and 3) neither price information nor brand image had statistically significant effects on the perceived quality expectations when product composition characteristics were allowed to vary from the product samples.
Meanwhile, it was also empirically estimated that the information on the product label plays an important role not only for the consumers’ product evaluation but also for the consumers’ purchasing decisions (Dodd et al., 1996).
2.3. The Effect of Label Information and Product Evaluation
First of all, the literature of which approach is similar with that of the current study has been reviewed as follows:
1) Park & Uhm (2019) reviewed the state of standard labeling compliance and identified the factors which are conducive to the compliance with the Labeling Standards of the Health Functional Foods Act in internet distribution. Based on Labeling Standards of the Act from 100 health functional foods in the internet shopping malls, they checked 9 labels including product name, expiration date, manufacturing date, raw material, ingredient, operative dose, nutritional information, daily intake, and functional effect. The 9 structure & function claims above were statistically estimated and compared with the estimated effects. It was also empirically estimated that the use of standard labeling between domestic and imported products was significantly different (p<.001). The related strength of the two variables showed a relatively ‘effective’ size. Also, the two variables above were statistically estimated to be significantly different between accredited advertising/unaccredited advertising distinction and use of the standard labeling (p<.001). The related strength between the two variables above showed a relatively ‘effective’ size. Based on the empirical results, Park & Uhm (2019) concluded that the Labeling Standards of the Act was related to imports or unauthorized advertising in internet distribution. And the information displayed according to the Labeling Standards of the Act was found to be only about 2 on an average, consequently many of the labels posted were unreadable without arrangement.
2) Jacoby et al. (1971) empirically analyzed the effects of price, composition differences, and brand image cues on the perception of beer quality. Brand image had a stronger effect upon quality perception, particularly for brands along with strong positive images. In addition, it was statistically estimated that neither price nor brand name had significant effects on perceived quality, except when product composition characteristics could vary between product samples.
3) Tran & Le (2020) empirically estimated that, for the direct path, product quality showed a significantly positive influence on consumers’ satisfaction and their behavioral intentions. Also, the perceived value directly influenced consumers’ satisfaction and behavioral intentions. For the indirect path, service quality was empirically estimated to be a significantly positive effect on consumers’ behavioral intentions through the consumers’ satisfaction. They concluded that service quality easily attracted more consumers, especially the young consumers; product quality improvement was essential; all products and service must have their clear originality; and all products and services needed to be diversified to attract more consumers.
4) Potluri & Johnson (2020) concluded that the UAE consumers’ purchasing decisions have been mainly influenced by the country of origin of the given products and services. And the demographic variables such as age, education, country of origin of the given products and services have not significantly affected the UAE consumers’ purchasing decisions.
5) Finally, Park & Park (2016) empirically estimated the effect of 'Gifts', among the non-price promotion events, on the consumers’ evaluation.
However, the current study examines the effects of different types of labeling information on the consumers’ product evaluation (not on the consumers’ satisfaction in the previous literature), with a focus on the effects of product characteristics and brand image (excluding the price effect and the country of origin of a given product) on the functional quality (neither on the product quality in general nor on the service quality). Of course, different subject lead to different design of research along with different variables even if it was the same analytical methodology was used.
Finally, by introducing the product's information, both internal and external, Park & Uhm (2019) have empirically estimated that the product's internal information has a significantly positive effect on consumers’ quality evaluation, both expressed and functional, whereas the external information of the product has a significantly positive effect only on the consumers’ evaluation about the expressed quality of products.
Under the previously-described theoretical background and the empirical results above that the products' information, both internal and external, has a significantly positive effect on the consumers’ purchase decision, the perceived quality of a given product and the consumers’ evaluation with brands, the current study sets the hypotheses as follows:
H1: The information on the product's label has a positive (+) effect on the consumers’ evaluation about the functional quality of the relevant products.
H2: The information on the product's label has a positive (+) effect on the consumers’ evaluation about the expressed quality of the relevant products.
H3: The information on the product's label has a positive (+) effect on the consumers’ evaluation about the perceived quality of the relevant products.
3. The Design of the Research
3.1. The Research Method
In the current study, the statistical population is limited to women respondents and as a result of the recent situation, it is difficult to collect the questionnaires due to the ‘Social distance’ guideline provided by the Korean government caused by COVID-19. The sampling for the current study has been conducted by using a convenience sampling method with the women respondents living in Suwon and Hwaseong in Gyeonggi province. The questionnaires have been collected for 40 days during the time period of April 20th through May 30th, 2020. The 160 surveys have been appropriately distributed among the relevant respondents. Excluding 28 questionnaires which have inadequate and inappropriate responses. This study selects a total of 142 surveys questionnaires. SPSS Win version 23.0 has been used for regression analysis, reliability analysis, frequency analysis, and factor analysis.
3.2. The Construction of the Survey
The questionnaires used for the empirical study are shown in Table 1. Hence, the questionnaires are modified in conjunction with the preceding literatures including Park & Uhm (2019) and Potluri & Johnson (2020) for the survey.
Table 1: The Construction of the Survey
4. The Empirical Analysis
4.1. Description of the Sample Data
The samples for the current study are limited to the women respondents living in Suwon and Hwaseong in Gyeonggi province and they are classified in terms of age, marital status, education level, living circumstance, number of households and income level.
The sample data show that the number of the respondents with the age of 50s is estimated to be the highest (N=76, 53.5%), followed by 40s (N=47, 33.1%) and 60s (N=15. 10.6%) in that order. There are no respondents with the age of the 70s or 80s. Also, the sample data show that 97.9% (N=139) of the respondents are married, and 2.1% (N=3) indicated ‘other.’ There are no respondents who are single in the marital status.
Regarding the education level of the respondents, the sample data show that 38.7% (N=55) have a bachelor’s degree, and 36.6% (N=52) are graduated from the community college. Also, 21.1% (N=30) of the respondents are high school graduates, and 2.1% (N=3) indicate that they are undergraduate students and 1.4% (N=2) have a graduate school degree.
Regarding the living circumstances, the sample data show that 57% (N=81) of the respondents live in an apartment, and 15.5% (N=22) live in a detached house. Also, 19.7% (N=28) live in a villa, and 7% (N=10) indicate they live in mixed-use apartment buildings.
Regarding the number of households, 47.2% (N=67) of the respondents have three persons, 35.2% (N=50) have four persons, 6.3% (N=9) have only one person, 7.7% (N=11) have two persons, and 3.5% (N=5) have more than five persons in their households.
Lastly 55.6% (N=79) of the respondents earn monthly income which ranges from 2 to 3 million won, 19.7% (N=28) earn monthly income of 1.5 million to 2 million won, 18.3% (N=26) earn monthly income of 3 to 5 million won, and 1.4% (N=2) earn monthly income of less than 1.5 million won.
In general, the education level of the respondents is high, as shown by the survey that more than half of the respondents graduated from either undergraduate school or community college, and most of the respondents are the people with age between 40 to 50, who have 4-5 persons in their households, earn monthly income of 2-3 million won, and live in an apartment.
4.2. Validity and Reliability of Variables
4.2.1. Information on the Product Label
The Cronbach's α for the information on the product label is statistically estimated to be higher than 0.7, indicating that the above variable is statistically reliable. Its validity is estimated to be determined with the eigen value which is estimated to be higher than 1. As shown in Table 2, the information on product characteristics is determined by adding scores of three questionnaires related to the product characteristics, and the information on the brand image is determined by adding scores of four questionnaires related to the brand image, excluding the question that ‘I can identify the manufacturing country from the information on the label’.
Table 2: Factor and Reliability Analysis for Information on the Product Label
Consequently, the information on a given product label is composed of three questionnaires related to the product characteristics and four questionnaires associated with the brand image.
4.2.2. Consumers’ Evaluation about the Product Quality
Since the reliability analysis shows that the Cronbach's α for the consumers’ evaluation about the product quality is statistically estimated to be higher than 0.7, the consumers’ product evaluation is statistically reliable. As shown in Table 3, the consumers’ functional quality evaluation is measured by adding the scores of the three questionnaires related to the functions of a given product, excluding the question that ‘The product I purchased can be used for a long period of time’. The expressed quality evaluation is determined by adding the scores of the three questionnaires related to the expressed quality of the products, excluding the questionnaires that ‘The product I purchased is easily matched with other outdoor-wear’. In terms of the consumers’ evaluation about the perceived quality, the scores of four questionnaires excluding the questionnaires that ‘The product I purchased will have the best quality among the same type of products’ are added together.
Table 3: Factor and Reliability Analysis for Consumers’ Evaluation about the Product Quality
4.3. Empirical Results
4.3.1. The Result for Hypothesis 1
Table 4 shows the empirical results for the first hypothesis. The R square of the regression analysis is estimated to be 0.138, and the F statistic is estimated to be 12.282. The coefficient for the information on product characteristics is estimated to be 0.134 with a t-value of 1.688, implying that the information on product characteristics shown on the product label does not significantly affect the consumers’ evaluation about the product functional quality. However, the coefficient for the information on the brand image is estimated to be 0.341 with the t-value of 4.298, meaning that the information on the brand image has a significantly positive (+) effect on consumers’ evaluation about the functional quality of a given product.
Table 4: The Effect on the Consumers’ Evaluation about the Product’s Functional Quality
Consequently, the empirical results above statistically supports hypothesis 1, based on the empirical result that the information on the brand image has a significantly positive (+) effect on the consumers’ evaluation about the product’s functional quality, whereas the information on product characteristics has no significant effect on the consumers’ evaluation about the product functional quality.
4.3.2. The Results for Hypothesis 2
Table 5 shows the empirical results for the second hypothesis. The value of R square resulted from the regression analysis for hypothesis 2 is estimated to be 0.038 and F statistics is estimated to be 3.763. The coefficient for the information on product characteristics is estimated to be 0.874 with a t-value of 0.874, and the coefficient for information on the brand image is estimated to be 0.202 with a t-value of 2.410. The empirical results above imply that the product information on the brand image has a significantly positive (+) effect on the expressed quality of a given product.
Table 5: The Effect on the Consumers’ Evaluation about the Product Expressed Quality
Therefore, the empirical result supports hypothesis 2, based on the empirical result that the information on the brand image has a significantly positive (+) effect on the consumers’ evaluation about the product expressed quality.
4.3.3. The Results for Hypothesis 3
Table 6 shows the empirical results for the third hypothesis. The value of R square resulted from the regression analysis for hypothesis 3 is estimated to be 0.029 and F statistics is estimated to be 3.099. The coefficient for the information on the product characteristics is estimated to be 0.192 with a t-value of 2.278. The empirical estimation above indicates that the information on product characteristics has a significantly positive (+) effect on the consumers’ evaluation about the perceived quality. However, it is empirically estimated that the information on the brand image has not significantly affected the perceived quality evaluation, based on the result that coefficient is estimated to be 0.050 with a t-value of 0.595.
Table 6: The Effect on the Consumers’ Evaluation about the Perceived Quality Evaluation
Consequently, the empirical results support the third hypothesis 3, based on the empirical result that information on the brand image has a significantly positive (+) effect on the consumers’ evaluation about the perceived quality.
5. Conclusions
The current study has empirically estimated the effects of the information expressed on a given product label on the consumers’ evaluation about the three product qualities: 1) functional quality, 2) expressed quality, and 3) perceived quality.
Firstly, the empirical results lead to the conclusion that the majority of the respondents earn the age ranging between 40s and 50s along with three to four persons in a given household, they earn a monthly income between 2 to 3 million won, and they belong to the education level of bachelor’s degree or graduated community college.
Secondly, the empirical results lead to the conclusion that only the information on the brand image has a significantly positive effect on the consumers’ evaluation about the product’s functional quality and expressed quality.
Thirdly, the empirical results lead to the conclusion that only the information on product characteristics has a significantly positive effect on the consumers’ perceived quality.
The empirical results above provide us with some useful implications for the Korean outdoor-wear companies, which are available for the following policy recommendations as follows: 1) the Korean outdoor-wear industry should enhance the information on the brand image for the labeling process; 2) the information on product characteristics should be improved to affirmatively influence the consumers’ evaluation about the perceived quality.; and 3) the outdoor-wear industry should consider the information on product characteristics expressed on the label as critical information, in conjunction with the empirical estimation that this variable has a significantly positive effect on the consumers’ evaluation about the perceived quality, which in turn boosts up the consumers’ purchasing decision.
Of course, the current study involves some limitations which may result from the fact that the samples of the current study are limited to the women respondents due to the recent economic recession and the spill-over effect of COVID-19 in 2020. Also, the current study is confined to the empirical results for the case of ‘general’ outdoor-wear products, not covering all products in the same industry. Therefore, some studies in the future may further empirically investigate further the effects of the information on the product label on the consumers’ evaluation or the purchasing decision for the specific product group.
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