• Title/Summary/Keyword: Brand Choice

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The Effect of Construal Level on Variety Seeking across Subcategories

  • Suh, Jiyeon;Won, Eugene J.S.
    • Asia Marketing Journal
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    • v.21 no.3
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    • pp.1-20
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    • 2019
  • The present study investigates how consumers' construal level affects their variety seeking behavior when choosing multiple items simultaneously. Especially the authors focus on the perceptual level at which variety seeking takes place and propose that variety seeking can take place not only at brand level but also at category or subcategory level. Categorical variety seeking refers to diversification of one's choices over multiple brands not within the same category but across multiple categories. Building on construal level theory, the authors expected that people engaging in higher-level construals tend to subcategorize the choice set and distribute their choices across more subcategories and designed four experiments to test the related hypotheses. The experimental results showed that consumers' construal level can affect the level at which variety seeking takes place and those with higher construal level tend to choose options seemingly more dissimilar to each other.

The Effect of Price Discount Rate According to Brand Loyalty on Consumer's Acquisition Value and Transaction Value (브랜드애호도에 따른 가격할인율의 차이가 소비자의 획득가치와 거래가치에 미치는 영향)

  • Kim, Young-Ei;Kim, Jae-Yeong;Shin, Chang-Nag
    • Journal of Global Scholars of Marketing Science
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    • v.17 no.4
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    • pp.247-269
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    • 2007
  • In recent years, one of the major reasons for the fierce competition amongst firms is that they strive to increase their own market shares and customer acquisition rate in the same market with similar and apparently undifferentiated products in terms of quality and perceived benefit. Because of this change in recent marketing environment, the differentiated after-sales service and diversified promotion strategies have become more important to gain competitive advantage. Price promotion is the favorite strategy that most retailers use to achieve short-term sales increase, induce consumer's brand switch, in troduce new product into market, and so forth. However, if marketers apply or copy an identical price promotion strategy without considering the characteristic differences in product and consumer preference, it will cause serious problems because discounted price itself could make people skeptical about product quality, and the changes of perceived value might appear differently depending on other factors such as consumer involvement or brand attitude. Previous studies showed that price promotion would certainly increase sales, and the discounted price compared to regular price would enhance the consumer's perceived values. On the other hand, discounted price itself could make people depreciate or skeptical about product quality, and reduce the consumers' positivity bias because consumers might be unsure whether the current price promotion is the retailer's best price offer. Moreover, we cannot say that discounted price absolutely enhances the consumer's perceived values regardless of product category and purchase situations. That is, the factors that affect consumers' value perceptions and buying behavior are so diverse in reality that the results of studies on the same dependent variable come out differently depending on what variable was used or how experiment conditions were designed. Majority of previous researches on the effect of price-comparison advertising have used consumers' buying behavior as dependent variable. In order to figure out consumers' buying behavior theoretically, analysis of value perceptions which influence buying intentions is needed. In addition, they did not combined the independent variables such as brand loyalty and price discount rate together. For this reason, this paper tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception. And we provided with theoretical and managerial implications that marketers need to consider such variables as product attributes, brand loyalty, and consumer involvement at the same time, and then establish a differentiated pricing strategy case by case in order to enhance consumer's perceived values properl. Three research concepts were used in our study and each concept based on past researches was defined. The perceived acquisition value in this study was defined as the perceived net gains associated with the products or services acquired. That is, the perceived acquisition value of the product will be positively influenced by the benefits buyers believe they are getting by acquiring and using the product, and negatively influenced by the money given up to acquire the product. And the perceived transaction value was defined as the perception of psychological satisfaction or pleasure obtained from taking advantage of the financial terms of the price deal. Lastly, the brand loyalty was defined as favorable attitude towards a purchased product. Thus, a consumer loyal to a brand has an emotional attachment to the brand or firm. Repeat purchasers continue to buy the same brand even though they do not have an emotional attachment to it. We assumed that if the degree of brand loyalty is high, the perceived acquisition value and the perceived transaction value will increase when higher discount rate is provided. But we found that there are no significant differences in values between two different discount rates as a result of empirical analysis. It means that price reduction did not affect consumer's brand choice significantly because the perceived sacrifice decreased only a little, and customers are satisfied with product's benefits when brand loyalty is high. From the result, we confirmed that consumers with high degree of brand loyalty to a specific product are less sensitive to price change. Thus, using price promotion strategy to merely expect sale increase is not recommendable. Instead of discounting price, marketers need to strengthen consumers' brand loyalty and maintain the skimming strategy. On the contrary, when the degree of brand loyalty is low, the perceived acquisition value and the perceived transaction value decreased significantly when higher discount rate is provided. Generally brands that are considered inferior might be able to draw attention away from the quality of the product by making consumers focus more on the sacrifice component of price. But considering the fact that consumers with low degree of brand loyalty are known to be unsatisfied with product's benefits and have relatively negative brand attitude, bigger price reduction offered in experiment condition of this paper made consumers depreciate product's quality and benefit more and more, and consumer's psychological perceived sacrifice increased while perceived values decreased accordingly. We infer that, in the case of inferior brand, a drastic price-cut or frequent price promotion may increase consumers' uncertainty about overall components of product. Therefore, it appears that reinforcing the augmented product such as after-sale service, delivery and giving credit which is one of the levels consisting of product would be more effective in reality. This will be better rather than competing with product that holds high brand loyalty by reducing sale price. Although this study tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception, there are several limitations. This study was conducted in controlled conditions where the high involvement product and two different levels of discount rate were applied. Given the presence of low involvement product, when both pieces of information are available, it is likely that the results we have reported here may have been different. Thus, this research results explain only the specific situation. Second, the sample selected in this study was university students in their twenties, so we cannot say that the results are firmly effective to all generations. Future research that manipulates the level of discount along with the consumer involvement might lead to a more robust understanding of the effects various discount rate. And, we used a cellular phone as a product stimulus, so it would be very interesting to analyze the result when the product stimulus is an intangible product such as service. It could be also valuable to analyze whether the change of perceived value affects consumers' final buying behavior positively or negatively.

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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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The Difference in the Latitude of Price Acceptance between On- and Off-line transaction in Stock Industry (증권업의 온라인과 오프라인간 가격수용범위 (latitude of price acceptance) 차이에 관한 연구)

  • Hong, Jae-Weon;Kwak, Young-Sik
    • Journal of Global Scholars of Marketing Science
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    • v.13
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    • pp.71-88
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    • 2004
  • Although the factors that affect the width of latitude of price acceptance is well documented, the attempt to develop a practice-oriented methodology to calibrate the region of price insensitivity (i.e., a latitude of price acceptance) for a given individual brand has been relatively rare. The researcher aims to try to full this gap by developing a conjoint analysis-based procedure that can be applied to many industries. Furthermore, we examine the difference in the latitude of price acceptance between on- and off-line transaction in stock industry in Korea. The conjoint analysis-based procedure was applied to measure the disaggregate price response curve for individual stock investment both on- and off line transaction channel. The curves from the samples enable us to estimate the individual choice probabilities corresponding to applied price points. Using t-test the differences in mean choice probabilities between the list price and another price point were tested, through which we can get the latitude of price acceptance for a given brand in stock market. These procedures were tested in on- and off-line stock market in South Korea. The results showed that investors on off-line channel have wider latitudes of price acceptance than the investors on on-line transaction system.

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A Study on the Distribution Environment and Consumer Behavior of Smartphone (스마트폰 유통환경과 소비자 행동에 관한 연구)

  • Kim, Min-Soo
    • Journal of Distribution Science
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    • v.16 no.4
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    • pp.67-74
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    • 2018
  • Purpose - Most of the amendments to the law on the improvement of the distribution structure of mobile communication terminal equipment, the fully self-sufficient system of terminals, and the separated disclosure system on the terminals are aimed at securing transparency of the distribution structure by eliminating or reducing handset subsidies. This study investigates what items are important for the purchase of mobile phones in various and rapidly changing mobile phone markets from the consumer's point of view and tries to make a strategic suggestion for future mobile distribution strategies. Research design, data, and methodology - The procedure of this study takes place in four steps. In step 1, only the SF type respondents selected for this study were extracted through MBTI analysis. In step 2, they were divided into three hierarchies for the AHP analysis and each element was arranged. In step 3, the AHP analysis was converted to a Fuzzy-AHP number using the trigonometric centroid method. This was to eliminate the ambiguity of the response by converting into a fuzzy number even if data consistency was maintained with CI value below 0.1. In step 4, the number of converted 2-layer and 3-layer was combined to derive the priority when the final handset is selected. Results - First, the highest importance among the four items in the second tier was the terminal function item, followed by brand, price, and design item. Second, in the third tier, the highest importance was level of after-sales service, followed by device price, processing speed, ease of use, usefulness, and rate system. Third, the arithmetic average of the determinant of the fuzzy function showed that processing speed, ease of use and usefulness in the function item, level of after-sales service in the brand item, and device price in the price item were the five most important factors among 16 choice factors. Conclusions - First, there will be a change in the consumption patterns of consumers who have compared distributors and dealers to purchase handsets with more subsidies. Second, it is highly likely that people will purchase new handsets only when they need to change their devices because they can not receive subsidies by switching phone brands any more.

A Study on Clothing Life Style and Clothing Selection Behavior of the New Generation Consumer (신세대의 의생활양식과 의복선택행동에 관한 연구)

  • 김미경;이선재
    • Journal of the Korean Society of Costume
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    • v.24
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    • pp.217-233
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    • 1995
  • The ultimate purpose of this study is to suggest the most effective marketing strategy for the clothing consumer market based on the new generation consumer's clothing selection behavior analysis. In this thesis, it is appempted to make a progress in the new gen-eration consumer's clothing life style types, in clothing purchase behavior analysis among the clothing life style, and also in the marketing strategy for marketers. The subjects selected for the final analysis are 412 the new gerneration women of age 20 thru 34 in seoul and satellite town area. Data were processed the spss package program. As for the analytic method, factor analysis, clustering analysis, XCross-tubulation, F-test with ANOVA, frequency and percentage were applied in the survey. The major findings are as following : life style is classified into four types : The characteristic fashion-directory type(25.7%) ; The reason traditional type(9.0%) ; The sen-sitivity fashion-following type(11.0%) ; The community brand-conscious type(54.3%). 2 Clothing life style types characteristic of the new generation consumer proved that clothing life style types are a significant difference according to the life style, the fashion consciousness and the average monthly spend-ing on clothing. 3. There is an important discrimination according to the clothing life style types in their clothing purchase behavior such as infor-mation usage, clothing choice criterion and brand loyalty. 4. Based on the result of our analysis and the review of literature, the marketing strategy is suggested that characteristic and new design development is efficient way to consumer's purchase need. Therefore apparel industary which pursue an added value must frame marketing strategy on the basis of the target consumer's sensitivity characteristic according to the life style and fashion consciousness.

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The Distribution Intensity for the Infant and Children′s Wear (유.아동복 유통 집약도)

  • 정현주
    • Journal of the Korean Society of Clothing and Textiles
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    • v.25 no.6
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    • pp.1122-1130
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    • 2001
  • Recently the importance of distribution channel design has been focused on due to a turbulent environment. The channel design strategy involves the choice of an optimal channel arrangement including channel width, channel depth, the types of intermediaries to be used, and the specific responsibilities of each channel member. The purpose of this paper is to investigate changes of distribution intensity in the infant & children's wear brand from 1997 to 1999, when Korea has faced changes before and after IMF intervention that influenced the Korean economy greatly. Thus, this study provides channel managers with some guidelines for establishing and adjusting the infant & children's wear channel strategies. The data is collected by the Korean Fashion Brand Annual published by Apparel News Co., from 1997 to 1999. infant & children's wear brands are selected and analyzed with Pearson correlation. Statistic analysis has shown different results in the type of brands in terms of distribution intensity. The type of brands between infant's wear and those for children differ in price and launching period. In the case of infant's wear brands, the launching period and total sales should be considered in designing channel distributions, while for children's brands total sales are significant. As the price increases, children's wear brands are significantly linked to their distribution intensity only in certain times at the starting point of IMF intervention. IMF intervention do not seem to influence the distribution intensity of infant's wear brands much as it did children's wear brands. It seems that the infant's wear industry is more stable than the children s wear industry. As a result, the marketer who plans distribution intensity for the infant's and children's wear brands should consider total sales, the launching period and the price according to the type of brands he deals with.

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A Comparative Study on the Interior Design of Korean-Chinese Coffee Shop - Focusing on the Starbucks (한·중 커피전문점의 실내 공간 환경 디자인 비교 연구 - 스타벅스를 중심으로)

  • Zhou, LIng;Cho, joung-hyung
    • Journal of the Korea Convergence Society
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    • v.10 no.1
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    • pp.123-132
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    • 2019
  • As the rapid pace of modern society, people's daily life is becoming tenser and busier. We need a place to relax and to release our pressure. Coffee shops therefor become one of our best choice. With the strengthening of the expansion of the localized Starbucks coffee shop, it becomes extremely urgent for other coffee shops to enhance the space environment design to become outstanding in the coffee shop market. This paper researches and compares the indoor environment design of Starbucks coffee shops in four cities in China, namely Shanghai, Suzhou, Shenzhen and Beijing and four cities in Korea, namely Busan, Seoul, Seoul and Jeju. By comparing the design characteristics and the style of the interior environment of Korea-China coffee shops, we analyze the various elements of space design and summarize the differences in the environmental design of Korea-China Starbucks coffee shops. Moreover, we propose the strategic direction for the future design and the future development of coffee shops. The survey results show that the indoor environment design of Starbucks coffee brand mainly highlights the regional cultural characteristics. Starbucks shops utilize the fashion culture elements based on the local economic and cultural characteristics, aiming at creating a characteristic coffee brand culture and promoting the vigorous development of the coffee market.

Chinese consumers' awareness of Korean mask packs (중국 소비자들의 한국 마스크팩에 대한 인식 분석)

  • Kwon, Hye-Jin
    • Journal of Digital Convergence
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    • v.17 no.3
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    • pp.449-454
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    • 2019
  • This study was designed to present the direction of Korean K-beauty by examining awareness, selection attributes, and satisfaction of the Chinese on Korean brand mask packs, which currently rank among the top 10 mask packs in China's beauty market. As a result, the perception of Korean Wave, especially entertainment / music preference, has a positive (+) effect on Korean mask pack choice attributes. Also, it was found that the influence of the Korean Wave greatly affected both satisfaction and repurchase intention. The increase of Chinese women's consumption and the appearance of the society due to the advancement of the society also affects the appearance. However, the safety and efficacy of the product has yet to be established. If the improvement of these technologies and the countermeasures of domestic cosmetics companies are provided, Korea's K-Beauty industry will be more active in the domestic and overseas markets.

Using Motivation of Short Video Advertising Marketing in China: An Exploratory Study of Douyin

  • Zeng, Nai
    • Journal of the Korea Society of Computer and Information
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    • v.26 no.8
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    • pp.229-237
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    • 2021
  • This paper aims to study the using motivation and influencing factors of Chinese users' participation in live stream shopping through theoretical and empirical analysis, so as to evaluate the change in users' needs and improve marketing strategies. In doing so, I conducted a questionnaire survey for Chinese live stream shopping users and collected the required data. For empirical analysis, I used SPSS and AMOS software to carry out descriptive analysis, reliability and validity analysis and structural equation model analysis (SEM) to test the hypothesis. The results of the analysis showed that core competency and brand personality of the short video industry have a significant impact on user and customer perceived value, thus influencing users' using motivation. That is, users do not blindly follow live stream shopping but make their active choice. Therefore, it is suggested that live stream shopping platform should strengthen the e-commerce attributes and eradicate "the sense of false satisfaction", in order to achieve the effective communication of information. On the other hand, to stimulate the purchase motivation of users, the brand should build up its personality, and enhance user and customer perceived value in cyber marketing.