• Journal of Distribution Research
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• v.16 no.3
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• pp.1-32
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• 2011

I. Introduction: In Chinese electronics industry, the local wholesalers are still dominant but power is rapidly swifting from wholesalers to retailers because in recent foreign big retailers and local mass merchandisers are growing fast. During such transient period, conflicts among channel members emerge important issues. For example, when wholesalers who have more power exercise influence strategies to maintain status, conflicts among manufacturer, wholesaler, and retailer will be intensified. Korean electronics companies in China need differentiated channel strategies by dealing with wholesalers and retailers simultaneously to sell more Korean products in competition with foreign firms. For example, Korean electronics firms should utilize 'guanxi' or relational quality to form long-term relationships with whloesalers instead of power and conflict issues. The major purpose of this study is to investigate the impact of conflict, dependency, and influence strategies between local Korean-products-selling retailers and wholesalers on performance in Chinese electronics distribution channels. In particular, this paper proposes effective distribution strategies for Korean electronics companies in China by analyzing moderating effects of 'Guanxi'. II. Literature Review and Hypotheses: The specific purposes of this study are as follows. First, causes of conflicts between local Korean-products-selling retailers and wholesalers are examined from the perspectives of goal incongruence and role ambiguity and then effects of these causes are found out on perceived conflicts of local retailers. Second, the effects of dependency of local retailers upon wholesalers are investigated on local retailers' perceived conflicts. Third, the effects of non-coercive influence strategies such as information exchange and recommendation and coercive strategies such as threats and legalistic pleas exercised by wholesalers are explored on perceived conflicts by local retailers. Fourth, the effects of level of conflicts perceived by local retailers are verified on local retailers' financial performance and satisfaction. Fifth, moderating effects of relational qualities, say, 'quanxi' between wholesalers and retailers are analyzed on the impact of wholesalers' influence strategies on retailers' performances. Finally, moderating effects of relational qualities are examined on the relationship between conflicts and performance. To accomplish above-mentioned research objectives, Figure 1 and the following research hypotheses are proposed and verified. III. Measurement and Data Analysis: To verify the proposed research model and hypotheses, data were collected from 97 retailers who are selling Korean electronic products located around Central and Southern regions in China. Covariance analysis and moderated regression analysis were employed to validate hypotheses. IV. Conclusion: The following results were drawn using structural equation modeling and hierarchical moderated regression. First, goal incongruence perceived by local retailers significantly affected conflict but role ambiguity did not. Second, consistent with conflict spiral theory, the level of conflict decreased when retailers' dependency increased toward wholesalers. Third, noncoercive influence strategies such as information exchange and recommendation implemented by wholesalers had significant effects on retailers' performance such as sales and satisfaction without conflict. On the other hand, coercive influence strategies such as threat and legalistic plea had insignificant effects on performance in spite of increasing the level of conflict. Fourth, 'guanxi', namely, relational quality between local retailers and wholesalers showed unique effects on performance. In case of noncoercive influence strategies, 'guanxi' did not play a role of moderator. Rather, relational quality and noncoercive influence strategies can serve as independent variables to enhance performance. On the other hand, when 'guanxi' was well built due to mutual trust and commitment, relational quality as a moderator can positively function to improve performance even though hostile, coercive influence strategies were implemented. Fifth, 'guanxi' significantly moderated the effects of conflict on performance. Even if conflict arises, local retailers who form solid relational quality can increase performance by dealing with dysfunctional conflict synergistically compared with low 'quanxi' retailers. In conclusion, this study verified the importance of relational quality via 'quanxi' between local retailers and wholesalers in Chinese electronic industry because relational quality could cross out the adverse effects of coercive influence strategies and conflict on performance.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.26 no.1
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• pp.85-94
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• 2003

In this paper, a mathematical model is developed for economic design of multi-stage distribution system that consists of factory, central distribution centers, local distribution centers and retailers. The retailers are supplied products from different stage suppliers according to order size. The retailers are supplied products from factory if demand amount is large, central distribution center if medium, local distribution center if small. The economic design is to determine the economic size of facility factors that consist of distribution system. The cost factors are transportation cost from supply places to demand places, handling cost at distribution centers and inventory holding cost at retailers. It is to determine the transportation route of each retailer, the size and number of the vehicle at factory and distribution centers, the handling amount at distribution centers in order to minimize the total costs. The mathematical model is represented, the solution procedure is developed, and a numerical example is shown.

• The Journal of Industrial Distribution & Business
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• v.9 no.2
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• pp.7-16
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• 2018

Purpose - This research addresses the question of how an international retailer like Costco can succeed in a foreign mature market and satisfy the local consumers. Our study aims to promote our understanding of how foreign retailers influence local consumers in a mature market with differentiated business models. Research design, data, and methodology - Our study uses company publications, secondary sources of information and the results of a questionnaire survey consisting of 106 participants. Consumer responses were solicited through a questionnaire survey conducted in the city of Kobe in December of 2013. Results - Product differentiation from local retailers in a mature market like Japan gave Costco a competitive edge. Compared with local supermarkets, Costco was preferred by Japanese consumers for its variety of goods that it carries, as well as in-store promotion large package of selling units, in-store amenities, and customer services. Conclusions - First, a theoretical framework is proposed in this study that can aid in developing localization strategies in a mature market such as Japan. Second, it reveals that an international retailer can succeed in a foreign market by stimulating local consumers to change their purchasing behavior, without having to alter the prevailing format of operation.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.2
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• pp.686-693
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• 2011

Small-to-medium retailers in local neighborhood have been managing to survive without outside influence. However rapid change in business environment including consumer needs for goods and the quality of life has brought turbulence into retail business. Petty retailers are facing a crisis as large-sized discount stores owned by big enterprises are entering into traditional markets. To protect small-to-medium retailers from such threats and revive the traditional commercial markets the government is taking on the policy of subsidizing small-to-medium businesses. However, recent emergence of SSM (an industrialized supermarket in forms of direct management and affiliation) in local commercial areas has brought about conflicts and frictions between large companies and local merchants. Under this background this study attempted to make an analysis of vulnerable factors of small-to-medium retailers coping with SSM and probe for the alternatives to SSM business restructuring.

• Knowledge Management Research
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• v.12 no.3
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• pp.73-96
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• 2011

Recent market saturation makes the local retailers consider an attempt to innovate the market with the retailer's brand. This is the retailers' efforts to expand the market control through the enhancement of private brands. As the competition among manufacturers extends to the competition between manufacturers and retailers, the marketing knowledges of manufacturers need to be diversified to the ones that can be applied to the manufacturers and retailers due to their bilateral competition. This research concentrates on the customer acquisition strategy (attack strategy) and customer retention strategy (defense strategy) in the place of both sides of manufacturers and retailers. Also this research targets to develop the differential marketing strategies for target market's National Brand(NB)/Private Brand(PB) purchase by analyzing individual customer's purchase probability on repurchase and switch-purchase of NB and PB. This study is based on the data of frequently consumed product, tomato ketchup on scanner panel from the ERIM data of University of Chicago, USA. This study compares and analyzes the NB and PB repurchases and switch-purchase of 4 types. The comparisons provide the informations that which factors should be managed for the attack strategy, the defense strategy, and the differential marketing strategies both for manufacturers and retailers. This research is expected to contribute on cumulating the industrial knowledges of retailers' and manufacturers' survival strategy, expecially focusing on the effect of marketing factors and consumer-characteristic factors.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.38 no.5
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• pp.771-782
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• 2018

The purpose of this study is to empirically analyze local retailers' recognition of commercial power altered by urban regeneration. For the purpose of this study, analysis is performed on pilot urban regeneration priority projects implemented in the city of Changwon. Although regeneration of commercial districts directly affect the local retailers therein, little research has been carried out to examine how they recognize such changes. This study, therefore, identifies those factors that have influence on the recognition of local retailers who would be aware of the alteration of their commercial power more immediately than others do. Using an ordered logit model, empirical analysis on two pilot projects for Odong-dong and Chang-dong indicates that retailers in Odong-dong are more likely to have a negative recognition toward the altered business areas. For the both districts, recognition of business area alterations is affected with statistical significance by how long they have run their shops, how many employees they hire, and whether they believe that the urban regeneration has resulted in gentrification. For each of the mentioned district, recognition in Odong-dong is significantly impacted by the number of employees and recognized rent changes, while in Chang-dong, the age of retailers and the perceived presence of gentrification have statistically significant influence. Issues found by this study need to be addressed prior to the upcoming 'Urban Regeneration New Deal Project', which then will bring satisfaction to each and every local residents including those retailers.

• Journal of Distribution Science
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• v.16 no.7
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• pp.25-33
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• 2018

Purpose - This research is to examine how different Korean retailers are from Japanese ones, in terms of taking a social responsibility for product scandals. Through a comparative analysis, the authors will provide some implications for retailers in Korea. Research design, data, and methodology - Based on the existing literature studied how retailers as well as manufacturers responded to food poisoning and product scandals, the authors compared Korea with Japan, in terms of taking a social responsibility. Results - As soon as food safety scandals occurred in Japan, a local government quickly ordered Snow Brand to recall and stop producing problematic milk products. In addition, retailers have stopped displaying them on their store shelves to minimize the number of victims. By stopping selling them, Japanese retailers took a social responsibility for product scandals. Conclusions - The authors found that retailers play a very important role in protecting customer rights. Moreover, customers have become more and more aware of the roles of retailers taking a social responsibility for social issues. The research proposes that a government has to develop the laws to protect customers from food poisoning and product safety issues effectively and that boycott campaigns should be legally protected by a government and promoted by customers.

• Journal of the Korean Society of Clothing and Textiles
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• v.32 no.6
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• pp.968-979
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• 2008

Since community growth and vitality frequently depend on local businesses and community inhabitants depend on local retailers for their daily necessities, studying small businesses in rural areas is important to community sustainability. The purpose of our research was to investigate what marketing, merchandising, customer service, or business operation strategies were being implemented by successful independent rural retailers(i.e., clothing, jewelry, floral, hardware etc.), in competition with large discount stores in the U.S.. In addition, social capital as indicated by community involvement was examined for its use as a business strategy that contributes to the success of small retailers. In-depth interviews were conducted with 27 rural retailers representing three communities within a Midwestern state. Data were content analyzed. Participants were following several of the recommended business strategies but opportunities existed to implement changes. Results are discussed in terms of key practices followed by these successful small business owners.

• Journal of Distribution Science
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• v.12 no.7
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• pp.77-88
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• 2014

Purpose - Based on the existing retail policy literature, this study aims to compare Korea with foreign countries, to propose better ideas for the Korean retail market. Research design, data, and methodology - It is necessary to analyze the existing retail regulations after categorizing them into several groups, depending on why governments have regulated retailers and the background for the retail policy. Results - Given that Korean retail regulations have focused on protecting conventional markets, comparing the retail policy objectives of South Korea and foreign countries is difficult. Conclusions - It is necessary examine how to protect independent stores, irrespective of store locations across the country. Rather than limiting the distance between traditional markets and the projected locations suggested by large retailers, various factors such as store size limit, opening and closing times, below-cost selling, land use planning, and competition tests are needed to protect small stores. Further, centralized authority for store operations should be delegated to local governments, to tackle the aggressive expansion of retail giants. To protect independent stores, political background is among the most important factors.

• The Journal of Economics, Marketing and Management
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• v.8 no.4
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• pp.13-25
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• 2020

Purpose - This study is aiming to provide policy makers with new insights to promote the consumption of locally-grown produces in the HMR industry by exploring what kinds of policies Japan, UK and Italy have developed. Research design - After introduction, the research starts to review the existing literature related to the promotion of local produce consumption, and then, compares the policies introduced by the above countries. Finally, the authors draw conclusions on the basis of research findings. Results - Firstly, central government has to collaborate with local authorities to promote local food consumption in the HMR industry. Secondly, countries have strengthened food label system to enhance local food consumption, in terms of country of origin. Thirdly, all of nations has highlighted food safety to protect customers. Fourthly, the government has created the business environment forcing HMR operators and retailers to follow the government's policy. Fifthly, it is necessary to support the social communities to enhance their social responsibility, from the government's point of view. Lastly, the social responsibility and the ethical administration of retailers should be sustainably strengthened by social atmosphere. Conclusions - In line with the growth of HMR products, governments have to make a considerable effort to develop innovative methods to promote local food consumption in the HMR industry.