• Title/Summary/Keyword: Consumer Related Marketing

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Analyzing Brand Community Members' Desired Value : Focusing on Case of BTS and ARMY (브랜드 커뮤니티 구성원의 추구가치 분석 : 방탄소년단과 아미 사례를 중심으로)

  • Lee, Min-ha
    • Journal of Korea Entertainment Industry Association
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    • v.15 no.3
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    • pp.89-99
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    • 2021
  • A brand community refers to a group of people who have a passion and loyalty for the brand, and is attracting attention as an effective marketing strategy to increase brand equity because it actively tends to support and promote the brand without expecting compensation. The objective of this study is to identify factors that are needed for sustainable brand community management. Existing studies on brand community management have mainly been conducted by quantitative methods measuring consumer satisfaction and dissatisfaction towards brand community activities, however, this study applied qualitative methods using means-end chains and laddering approaches in order to deeply identify a consumer's desired value on brand community activities. An in-depth interview of 41 members of BTS ARMY, a representative example of brand community, has been conducted and analyzed. The result of this study is as follows. In order to encourage active brand community activities, it is important to provide brand community members with a variety of high-quality brand-related content for a unique aesthetic experience, and a forum where all members can interact and exchange information and ideas to enhance brand value and experience. Finally, to nurture a strong brand community as a partner to co-create brand equity, rather than just a fan community, it is needed to build an environment that fosters opportunities for brand community members to increase self-respect and fulfillment through their brand community activities.

Big data analysis on NAVER Smart Store and Proposal for Sustainable Growth Plan for Small Business Online Shopping Mall (네이버 스마트스토어에 대한 빅데이터 분석 및 소상공인 온라인쇼핑몰 지속성장 방안 제안)

  • Hyeon-Moon Chang;Seon-Ju Kim;Chae-Woon Kim;Ji-Il Seo;Kyung-Ho Lee
    • The Journal of Bigdata
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    • v.7 no.2
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    • pp.153-172
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    • 2022
  • Online shopping has transformed and rapidly grown the entire market at the forefront of wholesale and retail services as an effective solution to issues such as digital transformation and social distancing policy (COVID-19 pandemic). Small business owners, who form the majority at the center of the online shopping industry, are constantly collecting policy changes and market trend information to overcome these problems and use them for marketing and other sales activities in order to overcome these problems and continue to grow. Objective and refined information that is more closely related to the business is also needed. Therefore, in this paper, through the collection and analysis of big data information, which is the core technology of digital transformation, key variables are set in product classification, sales trends, consumer preferences, and review information of online shopping malls, and a method of using them for competitor comparison analysis and business sustainability evaluation has been prepared and we would like to propose it as a service. If small and medium-sized businesses can benchmark competitors or excellent businesses based on big data and identify market trends and consumer tendencies, they will clearly recognize their level and position in business and voluntarily strive to secure higher competitiveness. In addition, if the sustainable growth of the online shopping mall operator can be confirmed as an indicator, more efficient policy establishment and risk management can be expected because it has an improved measurement method.

A Study on Perceived Quality affecting the Service Personal Value in the On-off line Channel - Focusing on the moderate effect of the need for cognition - (온.오프라인 채널에서 지각된 품질이 서비스의 개인가치에 미치는 영향에 관한 연구 -인지욕구의 조정효과를 중심으로-)

  • Sung, Hyung-Suk
    • Journal of Distribution Research
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    • v.15 no.3
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    • pp.111-137
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    • 2010
  • The basic purpose of this study is to investigate perceived quality and service personal value affecting the result of long-term relationship between service buyers and suppliers. This research presented a constructive model(perceived quality affecting the service personal value and the moderate effect of NFC) in the on off line and then propose the research model base on prior researches and studies about relationships among components of service. Data were gathered from respondents who visit at the education service market. For this study, Data were analyzed by AMOS 7.0. We integrate the literature on services marketing with researches on personal values and perceived quality. The SERPVAL scale presented here allows for the creation of a common ground for assessing service personal values, giving a clear understanding of the key value dimensions behind service choice and usage. It will lead to a focus of future research in services marketing, extending knowledge in the field and stimulating further empirical research on service personal values. At the managerial level, as a tool the SERPVAL scale should allow practitioners to evaluate and improve the value of a service, and consequently, to define strategies and actions to address services for customers based on their fundamental personal values. Through qualitative and empirical research, we find that the service quality construct conforms to the structure of a second-order factor model that ties service quality perceptions to distinct and actionable dimensions: outcome, interaction, and environmental quality. In turn, each has two subdimensions that define the basis of service quality perceptions. The authors further suggest that for each of these subdimensions to contribute to improved service quality perceptions, the quality received by consumers must be perceived to be reliable, responsive, and empathetic. Although the service personal value may be found in researches that explore individual values and their consequences for consumer behavior, there is no established operationalization of a SERPVAL scale. The inexistence of an established scale, duly adapted in order to understand and analyze personal values behind services usage, exposes the need of a measurement scale with such a purpose. This need has to be rooted, however, in a conceptualization of the construct being scaled. Service personal values can be defined as a customer's overall assessment of the use of a service based on the perception of what is achieved in terms of his own personal values. As consumer behaviors serve to show an individual's values, the use of a service can also be a way to fulfill and demonstrate consumers'personal values. In this sense, a service can provide more to the customer than its concrete and abstract attributes at both the attribute and the quality levels, and more than its functional consequences at the value level. Both values and services literatures agree, that personal value is the highest-level concept, followed by instrumental values, attitudes and finally by product attributes. Purchasing behaviors are agreed to be the end result of these concepts' interaction, with personal values taking a major role in the final decision process. From both consumers' and practitioners' perspectives, values are extremely relevant, as they are desirable goals that serve as guiding principles in people's lives. While building on previous research, we propose to assess service personal values through three broad groups of individual dimensions; at the self-oriented level, we use (1) service value to peaceful life (SVPL) and, at the social-oriented level, we use (2) service value to social recognition (SVSR), and (3) service value to social integration (SVSI). Service value to peaceful life is our first dimension. This dimension emerged as a combination of values coming from the RVS scale, a scale built specifically to assess general individual values. If a service promotes a pleasurable life, brings or improves tranquility, safety and harmony, then its user recognizes the value of this service. Generally, this service can improve the user's pleasure of life, since it protects or defends the consumer from threats to life or pressures on it. While building upon both the LOV scale, a scale built specifically to assess consumer values, and the RVS scale for individual values, we develop the other two dimensions: SVSR and SVSI. The roles of social recognition and social integration to improve service personal value have been seriously neglected. Social recognition derives its outcome utility from its predictive utility. When applying this underlying belief to our second dimension, SVSR, we assume that people use a service while taking into consideration the content of what is delivered. Individuals consider whether the service aids in gaining respect from others, social recognition and status, as well as whether it allows achieving a more fulfilled and stimulating life, which might then be revealed to others. People also tend to engage in behavior that receives social recognition and to avoid behavior that leads to social disapproval, and this contributes to an individual's social integration. This leads us to the third dimension, SVSI, which is based on the fact that if the consumer perceives that a service strengthens friendships, provides the possibility of becoming more integrated in the group, or promotes better relationships at the social, professional or family levels, then the service will contribute to social integration, and naturally the individual will recognize personal value in the service. Most of the research in business values deals with individual values. However, to our knowledge, no study has dealt with assessing overall personal values as well as their dimensions in a service context. Our final results show that the scales adapted from the Schwartz list were excluded. A possible explanation is that although Schwartz builds on Rokeach work in order to explore individual values, its dimensions might be especially focused on analyzing societal values. As we are looking for individual dimensions, this might explain why the values inspired by the Schwartz list were excluded from the model. The hierarchical structure of the final scale presented in this paper also presents theoretical implications. Although we cannot claim to definitively capture the dimensions of service personal values, we believe that we come close to capturing these overall evaluations because the second-order factor extracts the underlying commonality among dimensions. In addition to obtaining respondents' evaluations of the dimensions, the second-order factor model captures the common variance among these dimensions, reflecting the respondents' overall assessment of service personal values. Towards this fact, we expect that the service personal values conceptualization and measurement scale presented here contributes to both business values literature and the service marketing field, allowing for the delineation of strategies for adding value to services. This new scale also presents managerial implications. The SERPVAL dimensions give some guidance on how to better pursue a highly service-oriented business strategy. Indeed, the SERPVAL scale can be used for benchmarking purposes, as this scale can be used to identify whether or not a firms' marketing strategies are consistent with consumers' expectations. Managerial assessment of the personal values of a service might be extremely important because it allows managers to better understand what customers want or value. Thus, this scale allows us to identify what services are really valuable to the final consumer; providing knowledge for making choices regarding which services to include. Traditional approaches have focused their attention on service attributes (as quality) and service consequences(as service value), but personal values may be an important set of variables to be considered in understanding what attracts consumers to a certain service. By using the SERPVAL scale to assess the personal values associated with a services usage, managers may better understand the reasons behind services' usage, so that they may handle them more efficiently. While testing nomological validity, our empirical findings demonstrate that the three SERPVAL dimensions are positively and significantly associated with satisfaction. Additionally, while service value to social integration is related only with loyalty, service value to peaceful life is associated with both loyalty and repurchase intent. It is also interesting and surprising that service value to social recognition appears not to be significantly linked with loyalty and repurchase intent. A possible explanation is that no mobile service provider has yet emerged in the market as a luxury provider. All of the Portuguese providers are still trying to capture market share by means of low-end pricing. This research has implications for consumers as well. As more companies seek to build relationships with their customers, consumers are easily able to examine whether these relationships provide real value or not to their own lives. The selection of a strategy for a particular service depends on its customers' personal values. Being highly customer-oriented means having a strong commitment to customers, trying to create customer value and understanding customer needs. Enhancing service distinctiveness in order to provide a peaceful life, increase social recognition and gain a better social integration are all possible strategies that companies may pursue, but the one to pursue depends on the outstanding personal values held by the service customers. Data were gathered from 284 respondents in the korean discount store and online shopping mall market. This research proposed 3 hypotheses on 6 latent variables and tested through structural equation modeling. 6 alternative measurements were compared through statistical significance test of the 6 paths of research model and the overall fitting level of structural equation model. and the result was successful. and Perceived quality more positively influences service personal value when NFC is high than when no NFC is low in the off-line market. The results of the study indicate that service quality is properly modeled as an antecedent of service personal value. We consider the research and managerial implications of the study and its limitations. In sum, by knowing the dimensions a consumer takes into account when choosing a service, a better understanding of purchasing behaviors may be realized, guiding managers toward customers expectations. By defining strategies and actions that address potential problems with the service personal values, managers might ultimately influence their firm's performance. we expect to contribute to both business values and service marketing literatures through the development of the service personal value. At a time when marketing researchers are challenged to provide research with practical implications, it is also believed that this framework may be used by managers to pursue service-oriented business strategies while taking into consideration what customers value.

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Attribution of Goal Achievement to Efforts and Traits according to Pride Types and Lay Theory (목적성취에 대한 프라이드 유형별 노력과 자질의 귀인과 사고의 틀)

  • Choi, Nak-Hwan
    • Journal of Distribution Science
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    • v.14 no.2
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    • pp.57-63
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    • 2016
  • Purpose - The present study aimed to investigate the difference between entity theorists and incremental theorists in the extent of attributing efforts and traits of consumers for the realization of pursued goals. Furthermore, the present study was conducted to determine the difference depending on circumstances. In this regard, the circumstances where consumers felt pride were divided into those in which important goals and ordinary life goals were achieved. Research design, data, and methodology - An empirical study was performed, which was divided into group 1 and 2. Group 1 is the experimental group concerned with the important goal achievement, and group 2 is the control group related to daily ordinary goal achievement. 80 college students were assigned to each group, respectively. The empirical study for each of the two groups was performed respectively by means of questionnaire survey. In the experimental group, t-test was used to verify the hypotheses for the empirical study. In the circumstances of the control group, t-test was also used to examine whether the results were same as those shown from the analysis of experimental group data or not. Results - According to the group 1 and 2, the t-test of the empirical study showed that entity theorists tended to attribute the achievements of goals to their traits more than incremental theorists did, whereas the incremental theorists tended to attribute achievements of goals to their efforts more than entity theorists did in the important goals-achieved circumstance. In the circumstance of daily life goals-achieved, additional questionnaire survey and analysis were conducted, however, there was no difference between incremental and entity theorists in regard to attributing realization of goals to their efforts, and it leads to assess the difference in the meaning of invested efforts between important goal and ordinary goal achievement. Conclusions - Considering that the feeling of consumers has been regarded as one of the significant factors in marketing mix management, the results of this study are considered as significant implications for management. The implications can be said that when incremental consumers feel authentic pride in the important goals-achieved circumstance, marketers are requested to emphasize the fact that the efforts of consumers have contributed to realization of the important goals. By contrast, when consumers feel hubristic pride in both circumstances, marketers are requested to approach to entity-oriented consumers by way of trait. Authentic and hubristic pride are pervasive and engendered by important events or daily routines, and they could have effect on delaying making decisions. Therefore, it is necessary for future research to examine the unexplored difference of effect between incidental authentic and hubristic pride on consumer's self-control. In particular, future researches are related to the extent of difference in attributing efforts and traits. The consumers'realization for the previously pursued goals between entity theorists and incremental theorists affects their present or long distant decisions in self-control dilemmas. The consumers are faced with choosing one between virtuous long term- related option and vice immediate option.

Analyzing Changes in Consumers' Interest Areas Related to Skin under the Pandemic: Focusing on Structural Topic Modeling (팬데믹에 따른 소비자의 피부 관련 관심 영역 변화 분석: 구조적 토픽모델링을 중심으로)

  • Nakyung Kim;Jiwon Park;HyungBin Moon
    • Knowledge Management Research
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    • v.25 no.1
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    • pp.173-192
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    • 2024
  • This study aims to understand the changes in the beauty industry due to the pandemic from the consumer's perspective based on consumers' opinions about their skin online before and after the pandemic. Furthermore, this study tries to derive strategies for companies and governments to support sustainable growth and innovation in the beauty industry. To this end, posts on social media from 2017 to 2022 that contained the keyword 'skin concerns' are collected, and after data preprocessing, 96,908 posts are used for the structural topic model. To examine whether consumers' interest areas related to skin change according to the pandemic situation, the analysis period is divided into 7 periods, and the variables that distinguish each stage are used as meta-variables for the structural topic model. As a result, it is found that consumers' interests can be divided into 22 topics, which can be categorized into four main categories: beauty manufacturing, beauty services, skin concerns, and other. The results of this study are expected to be utilized in construction of product development and marketing strategies of related companies and the establishment of economic support policies by the government in response to changes in demand in the beauty industry due to the pandemic.

Analysis of Research Trends of 'Word of Mouth (WoM)' through Main Path and Word Co-occurrence Network (주경로 분석과 연관어 네트워크 분석을 통한 '구전(WoM)' 관련 연구동향 분석)

  • Shin, Hyunbo;Kim, Hea-Jin
    • Journal of Intelligence and Information Systems
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    • v.25 no.3
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    • pp.179-200
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    • 2019
  • Word-of-mouth (WoM) is defined by consumer activities that share information concerning consumption. WoM activities have long been recognized as important in corporate marketing processes and have received much attention, especially in the marketing field. Recently, according to the development of the Internet, the way in which people exchange information in online news and online communities has been expanded, and WoM is diversified in terms of word of mouth, score, rating, and liking. Social media makes online users easy access to information and online WoM is considered a key source of information. Although various studies on WoM have been preceded by this phenomenon, there is no meta-analysis study that comprehensively analyzes them. This study proposed a method to extract major researches by applying text mining techniques and to grasp the main issues of researches in order to find the trend of WoM research using scholarly big data. To this end, a total of 4389 documents were collected by the keyword 'Word-of-mouth' from 1941 to 2018 in Scopus (www.scopus.com), a citation database, and the data were refined through preprocessing such as English morphological analysis, stopwords removal, and noun extraction. To carry out this study, we adopted main path analysis (MPA) and word co-occurrence network analysis. MPA detects key researches and is used to track the development trajectory of academic field, and presents the research trend from a macro perspective. For this, we constructed a citation network based on the collected data. The node means a document and the link means a citation relation in citation network. We then detected the key-route main path by applying SPC (Search Path Count) weights. As a result, the main path composed of 30 documents extracted from a citation network. The main path was able to confirm the change of the academic area which was developing along with the change of the times reflecting the industrial change such as various industrial groups. The results of MPA revealed that WoM research was distinguished by five periods: (1) establishment of aspects and critical elements of WoM, (2) relationship analysis between WoM variables, (3) beginning of researches of online WoM, (4) relationship analysis between WoM and purchase, and (5) broadening of topics. It was found that changes within the industry was reflected in the results such as online development and social media. Very recent studies showed that the topics and approaches related WoM were being diversified to circumstantial changes. However, the results showed that even though WoM was used in diverse fields, the main stream of the researches of WoM from the start to the end, was related to marketing and figuring out the influential factors that proliferate WoM. By applying word co-occurrence network analysis, the research trend is presented from a microscopic point of view. Word co-occurrence network was constructed to analyze the relationship between keywords and social network analysis (SNA) was utilized. We divided the data into three periods to investigate the periodic changes and trends in discussion of WoM. SNA showed that Period 1 (1941~2008) consisted of clusters regarding relationship, source, and consumers. Period 2 (2009~2013) contained clusters of satisfaction, community, social networks, review, and internet. Clusters of period 3 (2014~2018) involved satisfaction, medium, review, and interview. The periodic changes of clusters showed transition from offline to online WoM. Media of WoM have become an important factor in spreading the words. This study conducted a quantitative meta-analysis based on scholarly big data regarding WoM. The main contribution of this study is that it provides a micro perspective on the research trend of WoM as well as the macro perspective. The limitation of this study is that the citation network constructed in this study is a network based on the direct citation relation of the collected documents for MPA.

Analysis on elements of policy changes in character industry (캐릭터산업의 정책변인연구)

  • Han, Chang-Wan
    • Cartoon and Animation Studies
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    • s.33
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    • pp.597-616
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    • 2013
  • Character industry is not only knowledge-based industry chiefly with copyrights but also motive power for creative economy to take a role functionally over the fields of industries because it has industrial characteristic as complement product to promote sale value in manufacturing industry and service industry and increase profit on sales. Since 2003, the national policy related to character has aimed to maximize effect among connected industries, extend its business abroad, enforce copyrights through the improvement of marketing system, develop industrial infrastructure through raising quality of character products. With the result of this policy, the successful cases of connected contents have been crystallized and domestic character industry has stepped up methodically since 2007. It is needed to reset the scales of character industry and industrial stats because there are more know-how of self industry promotion and more related characters through strategy of market departmentalization starting with cartoon, animation, games, novels, movies and musicals. Especially, The Korea government set our target for 'Global Top Five Character Power' since 2009 and has started to carry out to find global star characters, support to establish network among connected industries, diversify promotion channels, and develop licensing business. Particularly, since 2013, There have been prospered the indoor character theme park with time management just like character experimental marketing or Kids cafes using characters, the demand market of digital character focusing on SNS emoticon, and the performance market for character musical consistently. Moreover, The domestic and foreign illegal black markets on off-line have been enlarged, so we need another policy alternative. To prepare for the era of exploding character demand market and diversifying platform, it is needed to set up a solid strategy that is required the elements of policy changes in character industry to vitalize character industry and support new character design and connected contents. the following shows that the elements of policy changes related to the existing policy, the current position of market. Nowadays, the elements of policy changes in domestic character industry are that variety of consumers in the digital character market according to platform diversification, Convergence contents of character goods for the Korean waves, legalization of the illegal black contents market, and controling the tendency of consumers in departmentalized market. This can help find the policy issue entirely deferent with the existing character powers like US, Japan or Europe. In its final analysis, the alternatives are the promotion of models with contract copyrights of domestic and foreign connected contents, the diversification of profit models of platform economy, the additive development of target market related to enlarging the Korean waves, and the strategy of character market for the age-specific tendency according to developing character demand market.

Study on Korean SMEs' Brand Luxuriousness Building (마케팅 믹스를 활용한 한국 중소기업의 브랜드 명품성 구축에 대한 연구)

  • Koh, InKo
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.13 no.6
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    • pp.1-14
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    • 2018
  • As interest and consumption of luxury goods have become more popular, luxury goods market is growing rapidly. Consumers can acquire psychological satisfaction with material abundance by purchasing and using luxury goods. Also, from the view of corporations, luxury goods have price inelastic characteristics, so they can enjoy price premium and it is good to produce good performance. That is the reason why they should pay much attention to securing luxuriousness. This study examined the establishment of brands luxuriousness in Korean SMEs. First, it examined the world market of luxury goods industry and the present condition of Korean market. Then it identified the constituents of luxuriousness by examining the prior studies and related literatures, and designed a research model based on the theoretical grounds to suggest the methods of brand luxuriousness building of Korean SMEs. Luxuriousness can be defined as the attribute of product that distinguishes luxury goods from other products by consumers' perceptions, and the factor that provides situational benefits that motivate consumers' purchasing behavior. In this study, I identified the sub-dimensions of luxuriousness according to whether there are product related attributes and consumers' benefit in consideration of the problems of existing studies. Product related luxuriousness are classified into superiority(functional benefit) and scarcity(experiential benefit), while non-product related luxuriousness are classified into differentiation(symbolic benefit) and traditionality(exclusive benefit). The following are the ways to build brand luxuriousness. First, company can use product factors. High quality, excellent design, high recognized brand with strong, favorable and unique images can enhance the luxuriousness of brand. Second, company can use price factors. Consumers tend to perceive luxury goods as high-priced items, so lowering the price of product can undermine the luxuriousness of product. Third, company can use distribution factors. It is effective for making consumers to perceive the differentiation and scarcity of luxuriousness through limited distribution channel. In addition, store atmosphere suitable for luxury brands should be created. Fourth, company can use promotion factors. The more consumers are exposed to advertisements, the more positive attitudes toward luxury brands are made, and consumers recognize luxuriousness higher. Price promotion negatively affects consumers' perception of luxuriousness. Fifth, company can use corporate factors. Consumer evaluations of products are influenced not only by the product attributes but also by the corporate association and corporate image surrounding the product. Considering the existing researches, it is possible to enhance the brand luxuriousness through high corporate competence and good corporate reputation. In order to increase the competence of the enterprise, it is useful to approach multidimensionally in relation with the knowledge creation capability. In corporate reputation, the external stakeholders' reputation is important, but the internal members' reputation is also important. Korean SMEs will be able to build brand luxuriousness by establishing marketing strategies as above and/or mix(integrate) them according to the situation.

A Study on the Effects of Lifestyle and Self-Expression Desire on Vegan Cosmetics Purchase Intention: Focusing on the Mediating Effect of Social Value (라이프스타일 유형과 자기표현욕구가 비건화장품 구매의도에미치는 영향에 관한 연구: 사회적가치의 매개효과 중심으로)

  • Kim, Jung-In;Chul-Moo Heo
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.18 no.5
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    • pp.217-240
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    • 2023
  • For a while, Functional cosmetics, Cosmeceutical cosmetics, and Derma cosmetics have gained trust and become popular due to the consumers' strong interest in ingredients & efficacy. It's remarkable that Clean or Vegan brands are growing fast because they are emphasizing on different values from the other cosmetic brands. It's needed to attempt to analyze the influence relationship between consumer lifestyle and social value in these changes, and to find out whether the consumption of vegan cosmetics is related to satisfying the need for self-expression in a social atmosphere where ESG is emphasized on. This study analyzed the effect of lifestyle types and self-expression needs on the purchase intention of vegan cosmetics by mediating social values for cosmetics consumers. Lifestyle types were classified into appearance-oriented, health-oriented, and fashion-oriented. For empirical analysis, 321 questionnaires collected from cosmetics consumers living across the country were used. SPSS v26.0 and PROCESS macro v4.2 were used to analyze based on a single mediating model as a single mediator. As a result of the analysis, first, lifestyle types and self-expression needs, excluding appearance-oriented types, were found to have a positive (+) effect on social values. Second, it was found that social value had a positive (+) significant effect on the purchase intention of vegan cosmetics. Third, appearance-oriented, health-oriented, trend-seeking lifestyle types and self-expression needs were all found to have a positive (+) effect on the purchase intention of vegan cosmetics. Fourth, social values were found to mediate lifestyle types, self-expression needs, and purchase intentions, except for appearance-oriented types. Appearance-oriented consumers do not directly affect social values but affect purchase intentions, suggesting that appearance-oriented consumers may not be significantly affected by product-related social values. In a comparison of the relative influence size using standardization coefficients, self-expression needs had the greatest impact on the purchase intention of vegan cosmetics when mediating social values, and health-oriented ones had the least impact. The academic implications of this study include contributing to consumer behavior research by providing insights, mediation mechanisms, and consideration of the niche consumer sector, and directing further research into the cosmetics industry beyond forming marketing strategies and sustainable business practices.

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The Study of Characteristics of Consumer Purchasing Private Brand Products at Large-Scale Mart (국내 대형마트의 유통업체 브랜드 상품 구매 소비자의 특성 분석에 관한 연구)

  • Hwang, Seong-Huyk;Lee, Jung-Hee;Roh, Eun-Jung
    • Journal of Distribution Research
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    • v.15 no.4
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    • pp.1-19
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    • 2010
  • As having the movement of developing private brand (PB) goods, domestic big retailers are facing up with new problems. Thus, it is required studies of PB products, and how consumers recognize PB products as a consideration commodity set. Also, it is worthy in order that it gives us the important meaning on the marketing strategy with focusing on evaluating the differences between customers buying PB grocery goods with respect to demographic characteristics and purchasing behaviors. PB has some advantages for customers and retailers. However, according to AC Nielson's report (2005), Asian and emerging market has 1/5 sales relatively to Western countries. But we can assume that the emerging market has the most potential growth through this result. As a result from several other studies, it becomes necessary to not only increase the rate of selling composition of PB product temporarily, but also analyze the characteristics of customers using big retailers and segmenting customer groups to make PB product as a consideration commodity set for them. In addition, it is needed to have a variety of acts of marketing. From studies related to PB, there is a prejudice - cheap products have low quality - but, evaluation by customers who have used those products shows neutral stand, and there is a study representing that it is the most important to accumulate the belief between the retailers selling PB products and consumers using those for the accurate evaluation and intention on purchasing. Also, by the result from analyzing the characteristics of customers buying PB products, we could assume that higher income and higher education level, more preference on PB products. Especially, according to TNS's research, the primary targets of PB product are 30's who seeks value for money and planned spending habits, and 40's who have teenager children, and are interested in encouraging themselves. This paper used Probit model to analyze the characteristics of consumers. This model helps us to analyze with the variables representing the demographic characteristics of consumers (gender, age, educational level, occupation, income level, living area), and variables related to purchasing behavior (visiting frequency on big retailers, the average amount that they pay for goods in there, and check-up which brand made those goods). The method we used in this study is by man to man interview and survey on-line with the rate of 89% and 11% in Seoul and Gyunggi Province, respectively, for about one month from the beginning of February, 2008. As a result of this, under the assumption that people buy PB products more as long as they go shopping more, it was not meaningful for target groups which we pointed out as frequently visiting customers to be. Although, we have expected women buy more PB products than men do, gender doesn't mean anything for the result. And, it has inferred that married people buy more PB goods than singles do. It was also meaningless with variables related to occupation. Because housewives are often exposed to any kind of supermarket than workers are, we could not get any relatives. Moreover, we couldn't proof that younger generation prefer big retailers more than older people who 50~60's. Education levels doesn't affect on the purchase of PB product as well. Related to living area, the result is statistically not similar as we expected whether living in Seoul or not. It shows there is no relationship with the preference on retail brands and PB products, and it is similar with the study researched by TNS(2008) that customers tend to buy PB product impulsively no matter which brand it is and where they are even though their shopping place is the big market where customers are often using. Variables on which we had meaningful results are income level and living place. That is, customers who have 3,000,000~6,000,000 WON every month on average are more willing to buy PB products than other customers whose income is over 6,000,000 WON, and residents not living in Seoul prefer PB goods than those who are living in Seoul. To explain more about what we got, if there is only one condition about customer's visiting frequency on big retails, we could come up with this result that more exposed to PB products, more purchasing frequency. Consequently, it brings the important insight that large retailers have to prepare something to make customers visit them often to increase selling rate of PB products. To demonstrate the result of analyzing more, what is more efficient variables are demographically including marital status, income level, and residential area to buy items that affect the PB products and could include the frequency of visiting large markets by the purchase habits. Specifically, then, married couples rather than singles, middle-income customers than high-income customers, and local residents not living in Seoul than customers in Seoul are more likely to purchase PB goods. In addition, as long as a customer visits two times more, then the purchasing rate of PB products is to increase over 5.3%. Therefore, it seems that retailers are better to make a shopping place as fun and comfortable places. With overwhelming the idea that PB products are just cheap, one-time purchase goods, it is needed to increase the loyalty on those goods like NB products, try to make PB products as a consideration products set, and occur to sustainable sales. Especially, as suggested by this paper, it seems like it strongly needs to identify the characteristics of customers who prefer PB, to segment those customers, and to select the main target, and to do positioning with well-planned marketing strategies. Then, it is able to give us a meaningful point on marketing strategy by developing the field of PB study, identifying the difference of life style and shopping habits of customers.

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