• Journal of Distribution Science
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• v.13 no.11
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• pp.101-109
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• 2015

Purpose - A traditional retail market is a place that offers economic opportunity to employees and employers alike it also is a place where the community can meet. The Korean government has invested three trillion won to improve physical and non-physical aspects in traditional retail markets since 2004. However, little research on this has been conducted. We explore this research gap that could lead to theory extension. We analyze consumption behavior with respect to traditional retail markets through an empirical analysis, thus overcoming limits in previous research. We empirically analyze policy effects of traditional retail market projects supported by the Korean government. Research design, data, and methodology - We propose a traditional retail market improvement plan via the relation between cause and effect resulting from the analysis. More specifically, logit analysis was carried out with 1,754 consumers in 16 cities nationwide. In order to analyze consumer consumption behaviors nationwide, the probability was analyzed using a logit model. This research analyzes the link between support and non-support by the Korean government using binary values. The dependent variable is whether Korean government support is implemented; the binomial logistic regression is used as the statistical estimation technique. The object variables are:1 (support) or 0 (nonsupport), and the prediction value is between 1 and 0. As a result of the factor analysis of questions related to attributes of service quality, four factors were extracted: convenience, product, facilities, and service. Results - The results indicate that convenience, product, and facilities have a significant influence on consumer satisfaction in accordance with the government's traditional retail market support. Additionally, the results reveal that convenience, product, facilities, and service all have a significant influence on consumer satisfaction in a traditional retail market's service quality and consumer satisfaction. Finally, the analysis indicates that the highly satisfied traditional retail market customer has a significant influence on revisit intention. Moreover, the results reveal that the highly satisfied traditional retail market customer has a significant influence on recommendation intention. Conclusions - This research focused on consumers nationwide to measure policy effects of traditional retail markets compared to previous research that focused on one traditional retail market or a specific area. We verified the relationship of service quality and customer satisfaction and consumer behavior based on service quality theory. The results indicate that consumer satisfaction of traditional retail markets supported by service quality factors has a significant impact. In a concrete form, the results indicate that these effects are from facility modernization projects and marketing support projects of the Korean government. The results also imply that these facility and management support effects from the Korean government have been consistent. We realize that the Korean government has to selectively support traditional retail markets in major cities and small and medium-sized cities. To that end, the Korean government needs to select a concentration strategy for the revitalization of traditional retail markets.

• Journal of Distribution Science
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• v.14 no.6
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• pp.17-26
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• 2016

Purpose - The purpose of this study is to measure the effect on the attributes for store selection and Korean government regulations for large retailers on consumption emotion. Research Design, Data, and Methodology - Using SPSS ver.22, factor analysis & Cronbach's alpha, correlation, and regression test were performed. The total of 287 questionnaires were used for the analysis Result - Familiarity, perceived price, and perceived image have a positive effect on consumption emotion, but perceived quality & service did not. The Consumption emotion had a positive effect on traditional market revisit intentions. Retail regulation preference has a mediate effect between consumption emotion and familiarity & perceived price. Retail regulation preference also has a mediate effect between consumption emotion and traditional market revisit intension. Conclusion - Relationship marketing with sincerity is very important to keep familiarity, perceived price and image. People's consumption trend was changed due to dual career couple and heavy traffic jam in big cities. Therefore, a retail regulation cannot be a right solution for revitalizing traditional markets. So we need to find out an actual situation and design a win-win strategy between large retailers and traditional market.

• Journal of Distribution Science
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• v.10 no.11
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• pp.21-30
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• 2012

Purpose - This study aimed to analyze the strategy of late domestic entrants into the Chinese retail market, focusing on the case of Lotte-Mart, given that there are few studies on market entry strategies of domestic retail companies in China. Research Design, data, methodology - The methodology of this paper is a case study approach, focusing on literature reviews and a few interviews. We conducted a survey by disseminating questionnaires and conducting interviews focusing on the Chinese retail market, and analyzed Lotte-Mart's market entry strategy in China. Results - Lotte-Mart chose M&A as the mode of entry, pursuing quick market entry and rapid expansion. It chose small to medium size cities with relatively less competition. Subsequently, Lotte-Mart devoted significant effort towards localization, attempting to organize stores and assorting products to fit the Chinese consumers' preferences. It operated CSR programs to increase its brand awareness and to create a favorable brand image. Conclusions - Lotte-Mart now needs to devise alternative corporate strategies for business expansion and growth. An understanding of the Chinese retail market and the case study analysis of Lotte-Mart's market entry strategy offers significant insights for domestic retail companies looking to expand into China.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.717-725
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• 2020

The purpose of this paper is to highlight the impact of the performance of private wealth management (PWM) on the growth of retail banking in Indonesia. The variables used are bank's competitiveness, risk management, performance of private wealth management, and growth of retail banking business. The data were collected from 60 respondents from 32 banks over five months, from October 2018 to March 2019. Using partial least square path modeling, the analysis shows that the performance of private wealth management has an impact on the growth of retail banking sector in Indonesia. Bank competitiveness and risk management affect the performance of personal wealth management and have an impact on the growth of the retail banking business. Bank competitiveness is the variable that most influences the performance of private wealth management in Indonesia. This research found that market share is the most significant indicator of bank competitiveness. For risk management, significant indicators are the level of bank confidence, increased bank competitiveness, and the creation of new products. In the performance of the private wealth management variable, the most significant indicator is the revenue fee-based income. For the growth of retail banking business, a clear indicator is profit growth.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.571-580
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• 2021

The study explores the factors affecting the brand selection behavior of retail chains in Vietnam and to what extent they have an impact on the customer's choice intention. This research employs a combination of both qualitative and quantitative mixed methods with the help of SPSS version 22.0 in data analysis. Expert interviews are used to design the questionnaire for the survey conducted on 700 consumers. Research results show that the eight factors of store image (1-to-3 split factor of store image including the display of goods and services), price perception, risk perception, brand attitude, brand awareness, and brand familiarity were determined. They all influence the intention to choose the retail chain brand. With a positive β coefficient, the more store image, price perception, brand attitude, and brand awareness are enhanced, the more likely the intention to choose the retail chain brand. The factor of risk perception has negative ��, resulting in an inverse impact on choosing a retail chain brand name. Price perception and risk perception have the strongest impact on retail chain decision behavior while commodity display factors the least. Based on these important results, the study proposes implications for retailers and manufacturers.

• Journal of Distribution Science
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• v.12 no.10
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• pp.75-84
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• 2014

Purpose - This article aims to examine whether the stock issuance of firms in the retail industry follows Myers' (1984) pecking order theory, which is based on information asymmetry. According to the pecking order model, firms have a sequence of financing decisions, of which the first choice is to use retained earnings, the second one is to get into safe debt, the next involves risky debt, and the last involves finance with outside equity. Since the 2000s, the polarization of the LEs (Large enterprises) and SMEs (Small and Medium Enterprises) arose in the retail industry. The LEs exhibited an improvement in growth and profitability, whereas SMEs had a tendency to degenerate. This study contributes to corroborating the features of financing decisions in the retail industry distinguished from the other industries. Research design, data, and methodology - This study considers the stocks listed on the KOSPI and KOSDAQ markets from 1991 to 2013, and is more concentrated on the stocks in the retail industry. The data were collected from the financial information company, WISEfn. The empirical analysis is conducted by employing two measures of net equity issues (and), which were introduced in Fama and French (2005), and can be calculated from firms' accounting information. All variables are generated as the aggregate value of the numerator divided by aggregate assets, which, in effect, treats the entire sample as a single firm. Substantially, the financing decisions of the firms were analyzed by examining how often and under what circumstances firms issue and repurchase equity. Then, this study compares the features of the retail industry with those of the other industries. Results - The proportion of sample firms that show annual net stock issues reaching the level of the year's average was 54.33% for the 1990s, and fell to 39.93% per year for the 2000s. In detail, the fraction of the small firms actually increases from 45.08% to 51.04%, whereas that of large firms shows a dramatic decline from 58.94% to 24.76%. Considering the fact that the large firms' rapid increase in growth after the 2000s may lead to an increase in equity issues, this result is rather surprising. Meanwhile, net stock repurchases of assets are considerably disproportionate between the large (-50.11%) and the small firms (-15.66%) for the 2000s. Conclusions - Stock issuance of retail firms is not in line with the traditional seasoned equity offering based on information asymmetry. The net stock issuance of the small firms in the retail industry can be interpreted as part of an effort to reorganize business and solicit new investment to resolve degenerating business performance. For large firms, on the other hand, the net repurchase can be regarded as part of an effort to rearrange business for efficiency and amplifying synergy across business sections through spin-off. These results can help the government establish a support policy on retail industry according to size.

• Journal of Distribution Science
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• v.22 no.9
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• pp.97-106
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• 2024

Purpose: In view of increased social awareness of today's consumers, it is very important to understand how retail customers perceive their sense of social responsibility. This study aims to explore the decision processes of university students that affect the patronage of social enterprises in retail sector. Research design, data and methodology: This study proposes and tests whether and how social network traits, firm's image, and perceived trustworthiness serve as predictors of value co-creation behavior specific to two different industries (social enterprises and regular firms) operating in retail sector of South Korea. This study incorporated theoretical premise of value co-creation to verify the structural relationships among the predictors of value co-creation. Results: The result demonstrates that social network and firm's image both significantly influence consumers' value co-creation behavior. The study further found that the firm's image is overall more effective for eliciting consumers' value co-creation behavior than social network traits. Conclusions: As the result of comparing the industry type (social enterprises vs. regular firms), the study confirmed a meaningful difference such that consumers indicated greater impact of firm's image on value co-creation for social enterprises than for regular firms. The findings are expected to provide useful industrial insights for the management of social enterprises.

• Journal of Distribution Science
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• v.20 no.4
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• pp.111-119
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• 2022

Purpose: This study seeks to address the omission through examining the manner in which demographic similarity affects the responses of employees in the retail sector towards horizontal pay dispersion. Through doing so the study will be effective in bolstering the recent efforts of more careful exploration of conditions. Research design, data, and methodology: Scant past studies are available to guide for practitioners in retail sector which compensation strategy might lead adequate job performance for retail sales workers. To suggest possible solution, the present authors used variables of pay dispersion and obtained 317 US retail sale workers in distribution channels to measure the association between pay dispersion and employee job performance. Results: The statistical findings indicated both first and second hypothesis could be acceptable with favorable Beta and T values, resulting high degree of pay dispersion leads a low level of job performance, while a low degree of pay dispersion can motivate retail sales workers to improve their performance. Conclusions: The findings of this study raises an argument that processes of social comparison work in a more vigorous manner. This is thus a representation of the propensity of a retail sales worker to voluntarily resign from an organization when dispersion rates are higher.

• Archives of design research
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• v.21
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• pp.67-74
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• 1997

Marketing communication is becoming a critical element in today's competive retail environment. Consumers are better educated and discriminating in their choices. Especially, now in the totally opened Korean market situation, establishing proper retail marketing strategy faces many challenge and require special attention. In this study, various promotion media application strategies are mentioned in order to help retailers who need to develop their own promotion plan. Among the media mix, xisual merchandising is becoming effective communication system for retail promotion. Because of its complex development process, retailers and professionals both need to understand the theoretical background of VMD and application method. As a guide in developing systems for each use, it might have some limitations due to the method of research and data related to researcher's choice. In spite of above mentioned limitations, this study will serve as a practical guide for the retailers who wishes to achieve marketing goals in order to survive in this competitive retail situation.

• Journal of Distribution Science
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• v.9 no.1
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• pp.29-38
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• 2011

Since a distribution market was opened in 1993 after the conclusion of the Uruguay Round (UR), various new businesses emerged in the Korean retail industry, such as convenience shops, supermarkets, specialty stores, non-store marketing methods, and cyber shopping malls, in addition to traditional markets and department stores. Competition among these retail businesses has intensified. According to the National Statistical Office (NSO), the growth rate of the total retail industry has shown a 32% increase in the past 5 years. While department stores, supermarkets, specialty stores, and other non-store retailing venues have shown signs of stagnation at a growth rate of 20-30%, which is similar to the growth rate of the entire retail industry, convenience shops and non-store marketing have shown 60-70% growth over the same period. By comparison, the growth rate of cyber shopping malls has nearly tripled. When applying development aspects of retail businesses through the competition to the retail life cycle, mom-and-pop stores and traditional markets have already entered the decline phase as specialty stores reach their maturity phase and demonstrate their limit of growth. Department stores are now in the latter part of the growth phase, which is still considered to have some growth potential. Big super markets are still in the early part of their growth stage although they were introduced 20 years ago. Meanwhile, retail businesses such as convenience stores, supermarkets, mail order houses, and warehouse stores are entering the middle growth phase and are expected to continue with their quantitative growth. At a time when most retail businesses in Korea are in a state of development or in the full growth stage, what kind of new innovative retailing will appear and develop? Moreover, what growth engine will drive it? This study analyzes the appearance of innovative retailing and its development process by establishing a discussable consumer's choice model through the interlocking mutual behavior of differentiated competitiveness and consumers' choice based on an awareness of this issue. The analysis of the results of this study can be summarized as follows. First, if a new vacuum zone emerges at the retail market level, innovative retailing such as low price/low service or high price/high service will emerge simultaneously. Second, if the number of new businesses in the vacuum zone increases, this will create competitiveness among the businesses, and each retailer will develop raising of level. Third, if a new business that raises the level develops, competition between the new and the existing retailer will occur, and an assimilation process between the existing retailing and the new retailing will be unfolded. Fourth, each retailing will promote distribution innovations in order to break the frontier of the existing distribution technology, and other retailing will follow the innovator. On the basis of an analysis of the abovementioned results, this study presents the following three suggestions. First, responding to the consumer's decision-making process on the attributes of retail shops that promote differentiation in strategies, this study established a consumer's choice model that can be discussed in relation to changes in market share. Second, this study provided an analysis of the emerging and developmental processes of innovative retail businesses using a more precise logical structure on the basis of the consumer's choice model described in this study. Third, the development process of retail businesses discussed in this study presented retailing solutions regarding management aspects on how to compose a strong retail mix that can help retail businesses gain competitive advantages in the market.