• Journal of Distribution Science
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• v.13 no.8
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• pp.81-90
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• 2015

Purpose - To vitalize a market or develop a new one, companies frequently release new products into the market, often by shortening the time to market, called the release period. This research aims to investigate the purchase intention behavior of consumers in terms of buying new products at the time of product release based on the release speed. Research Design, Data, and Methodology - The research reviews the influence of relative advantage, complexity, and compatibility among innovative attributes of new products, as proposed by Rogers. Moreover, it examines the moderating effect of the innovative new product attributes in terms of speed of obsolescence of old products and how that influences consumer purchase behavior. Additionally, this study tests the research hypotheses using empirical analysis. Results - The analysis demonstrated that the relative predominance (H1) and suitability (H3) of new products had a statistically significant positive influence on new product purchase intention. However, the complexity (H2) of new products had a statistically significant positive influence on new product purchase intention in contrast to its predicted sign (-). The results of the moderating effect of the old product use period were as follows. H4-1 was not supported since the difference between the path coefficients of the group with the low level old product use period and the group with the high level, represented by the relationship of relative predominance and new product purchase intention, was not statistically significant. H5-1 was also not supported since the difference between the path coefficients of the group with the low level of old product use period and the group with the high level, represented by the relationship of complexity and new product purchase intention, was not statistically significant. However, H4-2 was supported since the difference between the path coefficients of the group with the low level of old product use frequency and the group with the high level, represented by the relationship of relative advantage and new product purchase intention was statistically significant. H5-2 was not supported since the difference between the path coefficients of the group with the low level of old product use frequency and the group with the high level, represented by the relationship of complexity and new product purchase intention, was not statistically significant. H6-2 was also not supported since the difference between the path coefficients of the group with the low level of old product use frequency and the group with the high level, represented by the relationship of compatibility and new product purchase intention, was not statistically significant. Conclusion - According to the results, only H4-2 among the hypotheses on the moderating effect of the old product use period and use frequency was statistically significant. Future research should focus on carrying out a detailed review of the hypothesis on the moderating effect of the old product usage period and frequency, find the cause, and connect this to potential new research.

• Journal of Distribution Science
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• v.13 no.5
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• pp.91-102
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• 2015

Purpose - This study aims to build a systematic frame for effective marketing performances by prioritizing product type and pertinent channel that are appropriate for digital channel characteristics. FCB grid model was used to define a product type, and Internet communication satisfaction index was considered as a marketing performance measuring tool for digital channel. Research design, data, and methodology - As systematic understanding for Digital marketing is still unfamiliar to even professional marketer, the hypothesis was established based on preliminary research by conducting a qualitative survey of marketing experts who already experienced digital marketing in the fields as well as existing related study literature. Through a preliminary research, the degree for understanding for digital marketing, current digital marketing (including product/channel mix) execution status, and difficulties for marketers who had experienced digital marketing were figured out. Based on preliminary research, the main part of survey was designed to examine which type of product would be effective for digital marketing and which digital channel would be effective to achieve marketing performance in line with marketing objectives. To collect data, the questionnaire survey was conducted for professional marketers who had experienced digital marketing in 10 different fields including FMCG, cosmetics, distribution industry for one month (July, 10, 2014~Aug, 10, 2014). A total of 90 questionnaire were distributed and 66 questionnaires were used for the analysis, excluding the unanswered and insincere questionnaires. The data were analysed using SPSS ver.18.0. Results - The analysis for product type which is pertinent to digital marketing and prioritization for digital channel per digital marketing performance type could be summarized as followings. First, high involvement buying decision type of product and rational purchasing decision type of product in FCB grid are more effective for digital marketing in terms of marketing performance. Therefore, marketers in field would prioritize considering product type before executing digital marketing. Second, factor for sales increase, potential consumer creation and brand awareness was represented respectively 31.25%, 21.9%, and 20.8% as a result of factor analysis in terms of digital marketing channel performance. Third, effective major digital channel per digital marketing performance factor was differently identified as each digital channel has its own peculiarity. For instance, search engine is more effective for increasing sales while social media such as facebook and Kakaotalk is more effective for encouraging consumer participation. Conclusions - As a result of this study, product type and peculiarity which were pertinently fit to digital marketing were identified by using FCB grid model, and also suggested framework for decision making of digital channel selection in line with marketing objectives for effective marketing performance. It also provided insight to professional marketer which type of product could be effective for digital marketing execution as well as which factors should be measured for digital marketing performance.

• Journal of Distribution Science
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• v.12 no.9
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• pp.101-112
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• 2014

Purpose - Recently, although corporate social responsibility activities have been increasing in size, they do not have to achieve qualitative improvements and can be passive and cost consuming. Therefore, companies should make quantitative as well as qualitative improvements in their efforts in corporate social responsibility activities. In this study, the classification of social responsibility activities in a variety of studies was analyzed through a more specific path than in previous studies. Corporate behavior image, social behavior image, and corporate contributions image were analyzed through a more detailed analysis of performance. This study suggests that more detailed and concentrated social responsibility activities be pursued by forming companies. Research design, data, and methodology - The purpose of study is to gauge the corporate need for a more intensive, specific area of CSR activities. For this purpose, the sample of consumers that were targeted for CSR activities, recognized as 261 persons, have been investigated. Through a theoretical discussion on previous research, nine hypotheses were established on corporate image, the influence of corporate performance on CSR, and the CSV regulation effect. In order to test the hypothesis, a survey was conducted on 261 male and female consumers who were targeted for CSR, being persons in their 20s to 40s. PASW Statistics 18.0 and AMOS 18.0 were used for statistical analysis. Results - Corporate behavior image was formed through legal responsibility activities and economic responsibility activities. In addition to economic responsibilities, ethical responsibilities and environmental responsibilities were confirmed to have influence on social behavior image. Corporate social responsibility and philanthropic responsibility were confirmed to have influence on economic contribution image. Corporate image has positive effects on brand attitude, corporate reputation, and corporate competition. In addition, when CSV awareness is high, consumers perceive corporate image only through economic responsibility. However, when CSV awareness is low, economic responsibility as well as legal responsibility through charitable activities form the corporate image that influences the brand attitude and corporate reputation, as well as corporate competitiveness. It would appear that the area of corporate social responsibility needs more intensive management for corporate image and corporate competitive advantage. Conclusion - First, the findings of this study show that each CSR activity has a different effect on corporate image and thus, the corporate image influences corporate performance in distinct ways, depending on the CSR activity. This implies that reactive strategies should be tailored to the required image. Second, there is a difference in CSV awareness between groups. When the CSV awareness is low, we can confirm that legal responsibility activities have an especially significant effect on corporate image, implying that corporations should pursue their economic objectives within legal regulations and need to invest significant time and effort for this. This study has limited generalization potential because the result of the model fit has insufficient reference value. In future research, we need to approach various dimensions of corporate performance.

• Journal of Distribution Science
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• v.11 no.10
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• pp.17-25
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• 2013

Purpose - This study analyzes the effect of customers' perceived service innovativeness of service centers for electronic goods, on repurchase intentions of customers, using behavior intentions of service centers as a mediator variable. In customer management and customer relationship marketing, service centers can be the most representative customer relationship management departments because they are most closely placed at the interface with customers. In addition, this study intends to investigate if continuous relationship with customers during one-time product-selling can affect their repurchase intentions. Specifically, this research aims to investigate if the expansion of the saturated physical market of the manufacturing business, to intangible service markets, can be competitive enough to satisfy customer needs. Research design, data, and methodology - This study targets college students, and especially those who have computers, digital cameras, or cell-phones, and often use electronic products and services. In order to investigate our hypothesis, we analyzed dates through SEM (structural equation modeling) using SPSS for Windows 18.0 and AMOS 18.0. In addition, we measured Cronbach's α coefficient using SPSS for Windows 18.0 in order to measure reliability. Further, using AMOS 18.0, this research statistically measured convergent validity as well as discriminant validity, and examined mediation models and path models in which service innovativeness leads to customers' repurchase intentions of electronic products. Results - As a result, this research shows that customers' perceived service innovativeness of service centers for electronic goods has significant positive influence on customers' behavior intentions of service centers. In addition, service innovativeness of electronic goods' service centers also has significant positive influence on repurchase intentions of customers. Conclusion - This study investigates the effect of customers' positive relation with the innovativeness of electronic service center on their behavior intention and product repurchase. The more concrete, important results of the study are as follows. Through the mediating effect, the findings of the study suggest that customers' behavior intentions of service centers partially mediate the effect of customers'perceived service innovativeness of service centers for electronic goods on customers' repurchase intentions. This research also provides an insight that the importance of service innovativeness and innovative approaches in managing customers should be recognized in the process of repurchase and service roles of manufacturing business as a way for customer management. As a result, the relationship between customer satisfaction and service quality of service centers for the electronic products is very sensitive. Although previous studies focus on certain aspects of the case for enhancing service innovation (Kim, 2012), this research recommends that the service centers need to understand the customers'desire first and try to adapt to achieve customer satisfaction by being innovative. This innovativeness of service centers would make customers visit them consistently, which in the long run, will also influence their repurchase decisions.

• Journal of Distribution Science
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• v.11 no.10
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• pp.37-45
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• 2013

Purpose - Appropriate response to the fast changing economic environment determines SMEs' competiveness in the era of globalization and open market and, therefore, government policies to strengthen SME's competitiveness will be very important in the future. It is time to investigate the element of strategic orientation that is necessary for strengthening the competitiveness of SMEs, and its effect on the success of a business start-up. This study analyzes the network orientation in addition to existing strategic orientation, and focuses on price and quality management capability as mediators for strategic orientation and outcomes of business start-ups. Research design/data/methodology - The orientations of technology-based business founders were classified into market, technology, network, and entrepreneurial orientation. We then investigated the effect of these orientations on product price and quality management capability, as well as the influence of price and quality management capability on the outcome of a business start-up. This study is based on the nation-wide survey of the founders and members of technology-based business establishments. The survey was administered to 300 selected companies via email for a period of one month, at the end of which 175 companies replied with valid answers. Further, for effective and objective research, we used SPSS 14.0 and Amos 7.0 for structural equation modeling assumptions and hypothesis verification. Results - Except for entrepreneurial orientation, the other three orientations, namely, technology, market, and network orientations, affect the price management capability according to our results. The price management capability relates significantly with the sales and customer satisfaction. Especially, technology orientation is the core competency of start-ups that affects price and quality management capabilities. However, technology and entrepreneurial orientation do not influence the outcome of business start-ups, but affect their quality management capabilities. Conclusions - This study confirms that the strategic orientation affects product price as well as quality management capabilities, to introduce new products and achieve successful outcomes. In conclusion, new business founders face the dilemma of trade-off between price and quality in the planning stage of new product development. In particular, price management capability directly affects the outcome. Therefore, price management is more important for a successful start-up than quality management. Especially, during the initial stages of starting up a new business, price management capability entails following the market-leading company, or price penetration strategy. In this stage, price management is dependent on the information from outside rather than on the founder's decision, and it directly affects sales performance and customer satisfaction. In contrast, quality management capability is directly related to the technology capability and market experience of founders. In this case, subjective and proactive decision making is required for differentiation and development of demand in the niche market, which does not directly influence the sales performance and customer satisfaction.

• Journal of Distribution Science
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• v.11 no.4
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• pp.73-80
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• 2013

Purpose - As the smart-phone market adds new technologies and introduces new marketing trends, competition among companies is getting fierce. Now, smart-phone companies need to pay attention not only to attaining new customers but also to retaining customers, which means managing relationships to prevent customer defection. Therefore, how to satisfy customer needs and maintain long-term relations are both important to make consistent progress in the rapidly changing smart-phone market. To illustrate this point, the study focuses on analyzing the effects of consumption value on relational factors and buying intentions among smart-phone users. First, consumption value was divided into functional, economic, and emotional values. After that, the effects of these values on satisfaction and brand trust were confirmed. Additionally, effects of satisfaction and brand trust on repurchase intention were analyzed. Research design, data, and methodology - The data was collected in a self-administered survey among 270 undergraduate students, using smart-phones between June 4th-12th, 2012. A total of 257 questionnaires were collected and used for the data analysis. A path analysis based on Lisrel 8.54 was used for the hypothesis test. Consumption value was divided into functional, economic, and emotional values. Subsequently, the effects of these values on satisfaction and trust in the brand were confirmed. Additionally, the effects of satisfaction and trust in the brand on repurchase intention were analyzed. Results - First, functional value, economic value, and emotional value - especially emotional value - were revealed to have positive effects on satisfaction. Second, emotional value was shown to have positive effects on brand trust, while functional and economic values did not. Third, satisfaction had positive effects on brand trust. In considering the relative influence on brand trust, satisfaction was the most crucial factor. It is clear that in the evaluation of the direct experience, using the product or the service plays an important role in building brand trust. Fourth, satisfaction and brand trust positively influenced repurchase intention. This indicates that both factors must be achieved to induce the repurchase Intention among customers. Conclusions - One can see that the enjoyable emotions consumers feel while using smart-phones is the most important factor in increasing levels of satisfaction. Moreover, this indicates that consumers pursue economic desires along with convenient functions in order to reduce opportunity costs. Additionally, consumers are affected by psychological and emotional messages in building trust, rather than practical and rational ones. Thus, in order to appeal to young clients as an attractive brand in the smart-phone market, approaching customers with an emotional value is recommended. In addition, in order for the brand to gain trust, the overall experience the consumer feels while using smart phones should be maximized. After all, one must fulfill the consumers' desire for a new experience and show a willingness to faithfully accomplish the responsibility of the brand to strengthen relationships with customers in the smart-phone market.

• Journal of Distribution Science
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• v.11 no.10
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• pp.47-53
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• 2013

Purpose - Six months have passed since the amendment of the SSM regulation law; however, as yet, there is no confirmed research or report on the effects of this amendment, which are indefinite. Further, there have been no attempts to study the effects of the SSM regulation law from the consumers' viewpoint, which is important because consumers are the main agents that are greatly influenced by the amendment law. Therefore, this study aims to investigate the consumers' attitude toward the SSM regulation law as well as the effects of the SSM regulation law on the changes in purchase behavior. Research design, data, and methodology - This study was initiated from four research problems that are linked to consumer reaction to the SSM regulation law. Research problem 1: What is the consumers' reaction (perception, attitude, and perceived fairness) to the SSM regulation law? Research problem 2: How do the consumers' reactions to the SSM regulation law differ by consumers' characteristics? Research problem 3: Could the SSM regulation law change a consumer's purchase behavior? Research problem 4: Is it necessary to amend the SSM regulation law? This study collected the data through the interview and survey of housewives for the purpose of solving the research problems. The interview was conducted as a pilot study for the field survey. We interviewed three housewives, who were: an employed housewife, a full-time homemaker, and a manager of a housewife club, respectively. We then conducted a field survey of 232 housewives who were housewife club members or elementary school parents in Chunghcheong-do. Results - We verified the reliability and validity of the data, and analyzed it to solve the research problems. The main findings of this study were as follows. First, consumers still have a positive attitude toward large discount chains and SSM, which has been the case since the law was introduced. Second, perceived risk of consumers associated with traditional markets and small neighborhood shops was low. Third, consumers think that amendments of the SSM regulation law are important, and they positively assess the satisfaction, necessity, and propriety of the law. Fourth, although the SSM regulation law caused inconvenience to consumers, this law did not have any influence on the usage frequency and the use-behavior of large discount chains. Finally, consumers reacted very negatively to the toughening up of the SSM regulation law. Conclusions - In short, consumers still have a positive attitude toward the SSM regulation law. However, this act did not have any influence on the use-behavior of large discount chains (General Super Market). Thus, policy making authorities require active communication and promotions to enhance the effect of the SSM regulation law. This study was of the nature of exploratory research, which did not focus on hypothesis testing, but on finding solutions to the research problems. Therefore, this study is no more than a simple data analysis. Future studies should attempt to investigate the actual effects of the SSM regulation law, on the basis of sufficient literature review and real sales data.

• Journal of Distribution Science
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• v.11 no.10
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• pp.81-92
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• 2013

Purpose - This study empirically analyzes the effect of improvements in the quality of service management performance of college education on traders' conscious change of business management innovation and diverse sales expertise for a year. The use of traders' conscious changes and sales expertise as variables for the verification of the effects of parameters related to the active trader's traditional education market is a desirable direction. The method of research reflects the quality of education service, management result, traders' conscious changes, and sales expertise to understand the precise essence and definition of teaching quality at merchant colleges through theoretical consideration. Moreover, its impact on traders' conscious changes and sales expertise in empirical analysis acts as an intermediary. Research design, data, methodology - The hypothesis of this study leverages the SPSS statistical program. To gather actual proof, sample survey for theoretical research examined 262 valid papers of the 300 papers written by 10 merchants who graduated from merchant's university. First, using the SERVQUAL model, Parasuraman et al. (1996) indicated that for quality of education service, the configuration of factors is the same as the sympathetic performance, that is, responsiveness and empathy, and traders are aware of these elements. However, our preliminary investigation revealed that traders' university education has been excluded as a component of quality of service in the earlier studies. Moreover, we found that certainty of knowledge, reliability, and sympathy are influenced by challenges and by the changing intentions of merchant consciousness. In addition, our study confirms that improvements in convincing abilities and sales technique have a positive impact. Second, merchants' and traders' expertise are proven to affect business performance. In other words, university education of traders and merchants affects the consciousness of consumers, and changes patterns of sales. Third, the quality of service management education and change in the consciousness has a considerable impact on the trader, thereby maximizing business performance and acting as an intermediary for verification. Fourth, the quality of service management education affects the trader's sales expertise to maximize business performance. Results - To summarize, the quality of college educational services relates to the improvement of business performance and the role of the resulting virtuous cycle. Consequently, we can look for suggestions in the traditional markets, where the Government pays attention to the exterior environmental factors as well as to the changing business environment. However, the most important aspect is the merchant awareness. That is, a merchant should understand the distribution environment. Several competitor and trend analyses should be conducted to meet customers' expectations positively and proactively cope with any challenges related to changes. Further, expertise in sales and marketing skills need to be acquired to improve customer convincing abilities and develop a customer-oriented mindset. Conclusions - According to the changes in consumption trends of business enterprises, new management techniques are required to survive competition by improving traditional markets, which will necessitate more competitive education programs in merchant universities.

• Journal of Distribution Science
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• v.10 no.11
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• pp.79-88
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• 2012

Purpose - The objective of this paper is to suggest that a company's CRM activities have an effect on customer loyalty in the Korean retail industry. Typically, Korean customers use large local marts with convenience in the absence of any other choice. Therefore, this study aims to shed light on the fact that customers do not break away from their preferred retail stores, either owing to their stringent loyalty (the lie loyalty) or difficulty in turning to alternative choices. Research design, data, methodology - By surveying a sample of 200 hyper-markets through a questionnaire, and excluding dubious and missing responses, I obtained 181 samples to be included in the empirical analysis. The survey was conducted for two weeks during October 2011. AMOS and SPSS18 statistical packages were used for conducting statistical analysis for this study. This paper was developed using the concept of customer equity on CRM, which is known to have a positive impact on customer loyalty through the satisfaction and switching-barrier parameters. The hypothesis of this paper is that customer equity is composed of relationship equity, value equity and brand equity, and that the relationship equity variable has positive effects on the value equity and brand equity amongst other types of customer equity. Moreover, customer equity influences customer loyalty through parameters including customer satisfaction and switching costs in the Korean retail industry. Results - According to the results of the analysis, it was confirmed that relationship value had a positive effect (+) on all variables, including the perceived QoS (Quality of Service), store brand images, economic value, and store convenience. It was also confirmed that the assumption that the perceived QoS (Quality of Service), economic value, and store convenience had a positive effect on customer satisfaction was shown to be statistically significant, with a p-value below 0.05. Only the store brand value variable had an effect on the switching-cost variable with respect to the causal sequence of the variables, including the perceived QoS, store brand value, economic value, and store convenience. The remaining variables did not seem to influence the switching-cost variable. On the other hand, another effect showed that customer satisfaction had a statistically significant influence on the switching-costs variable. Moreover, the customer satisfaction and switching-cost variables also had a statistical influence on customer loyalty. Conclusions - The CRM activities had an influence on various variables (including perceived QoS, perceived economic value, store brand value, and store convenience) pertaining to customer values. Customer satisfaction and switching-cost had some effects on customer loyalty as a parameter. This confirms that stringent loyalty exists with respect to customer loyalty in the retail industry. The fact that the variable had such a statistically significant influence on the switching-cost and store brand equity variables means that consumers react to the reputation of a brand, confidence about the store, and quality confidence. The implications of this study in the retail industry should be further extended to devise strategies for customer retention.

• Asia pacific journal of information systems
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• v.17 no.2
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• pp.1-28
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• 2007

The success of new product development is a key factor for getting competitive advantages. Marketing research has been investigating marketing capability, manufacturing technical capability, cross-functional integration, market knowledge competence, market orientation, and competitive environment as the key success factors of new product development. Recently, the role of IT infrastructure in enhancing new product advantage is assumed in the literature. However, the empirical studies on the role of IT infrastructure are lacking. The purpose of this study is to empirically exam the impacts of IT infrastructure on new product competitive advantage. In this study, IT infrastructure is conceptualized as the flexibility of IT infrastructure. Based on previous research, a conceptual model is established by incorporating the direct impact of IT infrastructure flexibility and its indirect impact through the key success factors on new product development. To empirically test the research model, data are surveyed from a pair of IS department and Marketing department of 92 consumer goods manufacturers. By employing PLS technique, the measurement reliability and reliability of research variables are tested and the path analysis is conducted to do the hypothesis testing. The path analysis shows that IT infrastructure flexibility has no direct effect on new product advantage, However, the indirect effect of IT infrastructure is found, which is mediated by marketing capability, manufacturing technical capability, cross-functional integration, and market orientation respectively. Hence, The flexible IT infrastructure increases cross-functional integration (H1), market orientation (H3), marketing capability (H5), and manufacturing technical capability (H6). All success factors of new product development excepts for competitive environment have a positive association with new product competitive advantages (from H10 to H14). Finally, the path from IT infrastructure flexibility to cross-functional integration, to market orientation, to market knowledge capability, and to new product advantage is found as the strongest path. These results indicate that the flexible IT infrastructure enhances information sharing with multiple departments and collaboration within a distributed innovation environment. The collaboration among departments positively affects the level of customer and competitor intelligence. The ability to obtain knowledge about customers and competitors makes firms to adapt to a changing environment quickly and to respond to customers' demands adequately. The flexible IT infrastructure also enhances the capability of organization to more rapidly respond to the changes in product design resulting in faster product development and reduced costs. In addition to, it enhances marketing capability by the two-way communications with customers and the analyses of various kinds of customer data. In brief, the finding of this study suggests that the flexible IT infrastructure allows many firms to pursue sustained new product competitive advantages. This study advances research on IT infrastructure in two important aspects. First, by Integrating marketing research and IS research, this study develops a conceptual model on the role of IT infrastructure in enhancing new product advantage. Second, it empirically finds the indirect impacts of IT infrastructure on new product advantage, which confirms the potential for the IS field to contribute to new product development research. The limitations of this study are also discussed to provide research directions for future research.