• The Journal of Industrial Distribution & Business
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• v.9 no.2
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• pp.73-80
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• 2018

Purpose - The purpose of this study is to clarify the difference of store attributes of Korean consumers and to analyze it's influence on consumer satisfaction in duty free stores which gain ground inch by inch in the distribution chanel. And it is to find discriminative result as compared with foreign consumer. Research design, data, and methodology - Subjects for the quantitative study, quota sampling was adopted in the Lotte, Shilla downtown and airport duty free stores from the first to 15^th December 2016 and 177 questionnaires from Koreans who had purchasing experience in off line duty free store were analyzed. The data was analyzed by using factor and reliability analysis, descriptive statistics analysis, the independent sample t-test and multiple regression analysis. To test consistency, Cronbach's alpha was used. Results - The result were as follows; 1. Korean consumers consider the importance of store attributes in duty free stores in order Product, Economic Feasibility, Convenience, Promotion, and Accessibility. 2. The meaningful impactive factors of duty free store attributes on consumer satisfaction turned out Product and Promotion. 3. These results show meaningful distinction between Koreans and foreigners in terms of consumer satisfaction in duty free stores. Conclusions - A marketer who is working for duty free store consider now that price benefit can not give strong impact to Korean consumers more and should concentrate on various brand assortment even including private brand. In terms of promotion, most duty free shops put special stress on foreign consumer's wants now as highly increasing of Chinese travelers but Korean consumer's sales portion and number of visitor also are steadily increasing. Therefore, a duty free marketer should prepare the Korean-oriented services with more enhanced promotion strategies for individual and group travellers, for example, a mileage service, VIP room and social network system to satisfy Korean consumers. In order to get satisfaction from Korean consumers, it makes effort on product and promotion than accessibility, price and convenience. Due to high level influence, further study is needed to enlarge to on-line market and to develop private brands for duty free stores.

• Journal of Distribution Science
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• v.14 no.10
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• pp.47-57
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• 2016

Purpose - This study's purpose is to investigate the market structure of the Korean duty free shop industry that has received recent attention from researchers and practitioners. By raising the question of whether or not the Korean duty free shop industry is unequivocally monopolistic, a wider viewpoint is provided. The study seeks to offer insights and managerial implications for marketers and policy makers who are in charge of regulating major Korean duty free shops. Research design, data, and methodology - The authors use secondary data from various sources, including Korea Customs Service and the Moodie Report, to investigate the structure of the duty free shop industry of Korea. Based on several theories, they present various criteria and statistical evidence such as K-firm concentration ratio, HHI, consumer substitutability, excess profit, and marketing costs. Results - In terms of consumer substitutability, it is difficult to confirm whether or not the Korean duty free shop industry is monopolistic. Notwithstanding monopoly characteristics in terms of market share, neither the company Lotte nor Shilla appear to have market dominating power. It is not easy for either of them to control prices or to achieve a much lower operational profit ratio due to a dominant bargaining power. Moreover, the license is not an economic rent. In this situation, it is not easy for these companies to obtain an excessive profit. Conclusions - Considering that most global duty free shops are trying to go upscale to improve bargaining power, it does not seem likely that rigid regulations are needed in the industry. Even though the Korean duty free industry ostensibly has a monopolistic structure, government and policy-makers should look beyond the surface. They should take global and other reasonable criteria into consideration when they establish or change regulation policies. Thorough understanding and appropriate support are needed for the Korean duty free shop industry. Additionally, duty free shops should position themselves as global companies struggling against unlimited international competition, rather than Korean domestic companies. At the same time, they need to give customers appropriate information about the benefits they provide.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.26 no.4
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• pp.20-26
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• 2018

This study analyzes the economic effect of introducing the arrival duty - free shop at Incheon International Airport. Based on the estimated sales of KRW 127 billion for the duty-free shop at the port of entry, the international balance of payments was estimated at KRW 55.5 billion. Job creation was estimated at 530, including direct and indirect workforce. With the admission of arrival duty-free shops, duty-free shops in the airline are likely to see a decline in sales, helping to improve monopoly structure on the market structure side. It is expected that the rental income generated through the operation of the arrival duty-free shop will be used as a resource for social contribution activities, creating additional social economic effects.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.2
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• pp.103-114
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• 2020

On-arrival duty free will prevent Korean outbound passengers from keeping the duty free items they purchased at the departure during their travel. Most Korean tourists have requested the airport authority to install on-arrival duty free since the grand-opening of Incheon int'l airport. Considering the fierce hub airport competition in the North East Asian region, the Korean government's decision to install on-arrival duty free is regarded as a well-timed intervention. The purpose of the research was to analyze sales correlation based on a comparison of sales of both departure and on-arrival duty free and to propose an administrative implication. Compared to business conglomerates running departure duty free, on-arrival duty free operators, who are small or medium companies, have weakness in product composition, marketing, and merchandising capabilities. According to the analysis, outbound passengers, who purchased fashion accessories and leather products at the departure duty free, tended to purchase cosmetics/perfume or liquor on the arrival duty free. Such complementary purchasing behavior of passengers showed there is barely a negative correlation between departure and on-arrival duty free.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.24 no.1
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• pp.16-24
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• 2016

Despite rapid growing in domestic duty free industry, weight of income from airport duty free area is relatively decreasing because of rapid progress in downtown duty free area. The purpose of this research was investigating the relationship between airport duty free servicescape and its effects on customer satisfaction and image for duty free shop, in order to maintain own competitive advantages. In pursuing above, previous studies related to servicescape, service value, customer satisfaction, and image were examined for literature review. Based on this previous studies, research model were constructed. Hypothesis was verified by effect. Data from 305 samples was employed for final survey. The main results show that functionality, attraction and convenience were meaningful factors to effect perceived servicescape. On the other hand, cleanness and comfort had few or no influence on servicescape. The perceived servicescape affected on service value and customer satisfaction. Service value had positive effects on customer satisfaction which was discovered to affected on image for duty free shop.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.21 no.2
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• pp.47-61
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• 2013

A concession business at Incheon Int'l airport has achieved a huge success since its grand opening of 2001. However the duty-free market became matured due to downtown duty free stores and on-line stores. Thus this paper tried to research and suggest strategic planning of VMD at Incheon airport's duty-free after analyzing the relationship among the components of duty-free store's VMD, brand awareness, brand image and customer's loyalty. Components of VMD are constructed in harmony, attractiveness, trendiness and Trust, which are independent variables. In addition, brand awareness and brand image are chosen as control variables. Customer loyalty is also designated as a dependant variable. Focusing those variables, this paper tried to find out the effect of VMD components to brand and consumer loyalty. According to the research result, it is proven attractiveness and harmony have a significant positive impact on brand awareness and brand image. It is also found out brand awareness and image have a positive impact on passenger's loyalty on duty-free stores at Incheon airport.

• Journal of Distribution Science
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• v.16 no.8
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• pp.39-50
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• 2018

Purpose - The ultimate purpose of this research is to analyze the influence of personal disposition on shopping value and behavioral intention by expanding the theory of planned behavior (TPB). Research design, data, and methodology - An attempt was made to examine the effects of personal disposition (reflecting duty-free shop characteristics) on three selective actions of consumers - compulsive buying, variety seeking, and price sensitivity. We conducted a questionnaire survey with the users of airport duty-free shops, downtown duty-free shops (offline), and online duty-free shops. In total, 410 copies of the questionnaire were analyzed using a structural equation model. Results - According to the results, compulsive buying, variety seeking, and price sensitivity significantly affected shopping value. Shopping value and subjective norms both had significant effects on attitude, the major variable in the TPB, and attitude had the greatest effect on behavioral intention, followed by subjective norms and perceived behavioral control in descending order. Conclusions - This study has academic implications in that it extends the existing theories of planned behavior and applies it to consumer characteristics and shopping value. It has practical implications as well in that it provides basic data that can be used to establish concrete marketing strategies for duty-free shop owners targeting segmented markets by closely examining customer desires.

• Journal of Digital Convergence
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• v.18 no.8
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• pp.1-9
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• 2020

This study aims to find new attributes by analyzing Korea and China duty free store online reviews and examine the influence of these attributes on star ratings(satisfaction)of duty free store. For study, we used Dazhong Dianping that largest online review site in China. Using R, we analyzed 5,659 reviews of Korea duty free store and 4,051 reviews of China duty free store. According to the analysis, Sale, Food and Membership attributes had a positive effect on star rating of Korea duty free store. Sale, Product, Airport, Food and Membership had a positive effect on star rating of China duty free store. This study has identified new factors such as food that showed the importance of providing space of restaurants while shopping at duty free store. This study has contributed to the existing literature by finding new attribute such as food. Practically, this finding will help to duty free industry workers better understand the impact of providing space of restaurants on duty free store.

• The Journal of the Convergence on Culture Technology
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• v.10 no.1
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• pp.143-152
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• 2024

Due to COVID-19, domestic Duty-free shops have been severely impacted, and with the expansion of the untact market, the proportion of mobile shopping has increased. So far, mobile duty-free shop AR shopping is not active, and related research is scarce. Therefore, we aims to enhance Duty-free Shopping APPs with AR technology by researching the needs of foreign users. First, in the mobile duty-free shop app, the AR shopping interface must be in a prominent position to be open and easy to use. Second, there should be an explanation or help for location and function so that all users can easily recognize the AR shopping interface. Third, when wearing duty-free items in the AR shopping interface or adding them to the storage and shopping cart of interest, the interface must be simple and flexible, making it convenient to use and operate. Fourth, technical improvements must be made to prevent errors. We expect that the research will help develop AR shopping technology and domestic duty-free shop AR shopping technology and revitalize online and offline duty-free shops.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.26 no.2
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• pp.123-131
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• 2018

Air transport industry tries to enhance punctuality, stability and amenity for customer's satisfaction. Especially airlines and airports do make an effort as the distance between these two stakeholders and passengers are close. This research has empirically discussed the relationship between duty free shop purchase of passengers and the number of flights and hours of schedule delay at the airport. According to the result, the total sales of duty free shop sales have meaningful influence on the number of flights and hours of delay. In order to decrease such an impact, close cooperation between airports and duty free shops required.