• Title/Summary/Keyword: Retailer Distribution

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Slotting Allowances: Antecedents and Consequences (신제품 입점지원비 : 선행요인과 결과)

  • Lim, Chae-Un;Ji, Seong-Goo;Park, Eun-Byul
    • Journal of Distribution Research
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    • v.10 no.4
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    • pp.41-67
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    • 2005
  • At this paper, we investigate two factors of market aspects, such as market power perspective and market efficiency perspective, as influential factors on size of slotting allowances of new products. Also, our research might examine the effects of slotting allowances of new products on both performance of new products and consumer prices. For the empirical research, we analysis 128 domestic manufacturers. In result, there is a positive relationship between retailers' brand equity and the size of slotting allowances. However, there is a negative relationship between retailer replaceability and the size of slotting allowances. Also, the effect of transaction period is negative direction and the effect of the environment uncertainty is positive direction. And the effect of the scale of the slotting allowance of new products is positive direction on the performance of the manufacturers and the price of new products. And, the theoretical and practical implications of this result and future research were suggested.

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Information Search and Purchase Behavior Across In-Home Shopping Channels (가정 내 유통채널 간 소비자 정보탐색과 구매행동과의 관계에 대한 연구)

  • Joo, Young-Hyuck;Yang, Suk-Joon
    • Journal of Distribution Research
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    • v.13 no.3
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    • pp.27-54
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    • 2008
  • This study explored the relationship between information search and purchasing behavior across in-home shopping channels to give multi-channel retailer an implication of multichannel customer management. We analyzed the relationship between consumer's information search and purchase behavior (choice, frequency, and expenditure) with a view to channel lock-in and cross-channel synergy. This study was carried out using survey data about in-home shopping behavior of housewives. Results of the study showed that (1) there was channel lock-in between information search and purchase behavior across in-home shopping channels, (2) catalog channel and the Internet channel were a alternative channels of TV home shopping channel and (3) catalog channel and the Internet channel were an complementary channels. This results can provide meaningful implication for multi-channel retailers.

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The Effect of Consumers' Choice Overload and Avoidance of Similarity on Innovativeness and Use Compatibility in Online Recommendation Service (소비자의 선택 과부하와 유사성 회피 성향이 온라인 추천 서비스의 혁신성과 사용 적합성 지각에 미치는 영향)

  • Yoon, Namhee;Lee, Ha Kyung;Jang, Seyoon
    • Fashion & Textile Research Journal
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    • v.21 no.2
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    • pp.141-150
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    • 2019
  • Online recommendation services help people search for an appropriate product among a huge assortment in stores that also minimize consumers' choice overload. People with a need for uniqueness are likely to prefer this online recommendation service based on individual needs and tastes. This study verifies the effect of consumers' choice overload and similarity avoidance in consumers' evaluation towards an online recommendation service with a focus on innovativeness and use comparability. Two-hundred consumers participated in this study and data were collected through an online survey firm. A mock retailer's webpage was created and showed six types of sneakers, which was presented as a result of product recommendation based on consumers' personal information. Data was analyzed using confirmatory factor analysis (CFA), analysis of variance (ANOVA), and regression analysis. The results show that people with a high similarity avoidance perceive an online recommendation service as an innovative and compatible service. They also perceive a high level of use compatibility for an online recommendation service, especially when it is difficult to choose a product under choice overload. Innovativeness and use compatibility of an online recommendation service increase behavioral intention. The results of this study can contribute to strategies to start online recommendation services from online retailers' websites that identify circumstances in which consumers can adopt innovative services in a positive manner.

Domestic Restrictions on the Opening of Retail Stores

  • Yoon, Myoung-kil;Kim, Yoo-oh;Lee, Min-kweon;Nam, Kung-sok
    • Journal of Distribution Science
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    • v.4 no.1
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    • pp.121-140
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    • 2006
  • This study has explored a number of problems arising from distribution restrictions and the ways to improve efficiency. As matters stand, since the cooperation between larger stores and local retailers is limited due to the nature of the market, the current situations call for bottom up restrictions such as the active promotion of smaller merchants and traditional marketplaces, the enhancement of the competitiveness of smaller merchants and manufacturers through the establishment of a customized consulting support program for individual shops, and the continual support for traditional marketplaces with facilities and management modernization. The government should maintain the optimal balance between the efficiency and effectiveness of the distribution industry through such bottom up restrictions as shown above, rather than the top down restrictions primarily relying on the hurdles to the establishment of stores. The problems raised in this study include: (i) the decline of traditional marketplaces and the alleged over saturation of stores; (ii) the possible abuse of indiscreet restrictive measures; (iii) the harmful effects of the monopoly or oligopoly by larger distributors; and (iv) the lack of systematic programs to promote development. The ways to improve efficiency are: (i) the establishment of the policies to specialize and nurture traditional marketplaces; (ii) the effort to prevent the injury arising from monopoly; (iii) the two tire strategies for the coexistence of larger and smaller businesses; and (iv) the administration of joint sales promotion and training.

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Korean Customer Attitudes Towards SNS Shopping

  • Cho, Young-Sang;Heo, Jeong-Yoon;Youn, Myoung-Kil
    • Journal of Distribution Science
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    • v.10 no.8
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    • pp.7-14
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    • 2012
  • As a new format of retailing, social shopping on SNS has rapidly grown in recent. Although there is much literature associated with customer behaviours in the academic world, little attention has been paid to identifying the shopping patterns of SNS shoppers. This paper will, thus, identify how perceived value has an impact on the buying intention of SNS shoppers, after illustrating what kind of factor influences the formation process of perceived value in the Korean marketplace. Given that SNS shoppers are for the most part 20s as well as 30s, the authors handed out questionnaires to them. Furthermore, based on literature review results, the conceptualised research model was developed. Despite lack of literature, the authors developed five constructs like price reduction, quantity- and time-limited message, product ranges, information-sharing, and required number of shoppers. The researchers made a considerable effort to identify the relationship between research concepts and each variable, based on a few research analysis methods such as frequency analysis, the Varimax rotation technique used orthogonal rotation, Cronbach's Alpha, PCA (Principle Component Analysis), and the like. Amongst the 5 variables used to measure the degree of influences on the perceived value as a social shopping characteristic, it has been evident that price cut, required minimum shoppers, product variety, and information-sharing have a positive impact on the perceived value formation processes of SNS customers. Also, this research implies that SNS retailers can differentiate themselves from other retailers by differently using the above factors. From a practitioner's point of view, these factors should be strategically used to increase the social shopping opportunities of SNS users. It is, furthermore, evident that the perceived value formed by the above 4 factors have played an important role in the buying decision process of SNS customers. In a sense, whether customers are aware of higher price cut rates, information-sharing, required minimum shoppers, and product variety has a positive impact on making buying decisions. From a retailer's point of view, online shopping mall operators are able to use blog as well as twitter to improve the buying intention as a marketing tool of social network, because the business activities provided by social shopping retailers, like the rapid, accurate responses to customer requirements, the provision of a variety of information, and the communications between customers are closely related to buying intentions. There are a few research limitations to conduct this empirical research. It was not easy to review prior papers, due to its lack. In spite of the increasing number of SNS shoppers in Korea, little research attention has been paid to this kind of research topic by academicians, because buying products or services through SNS is in its infancy. With regard to research populations, it would be difficult to generalise the research findings in Korea, owing to unbalanced respondent distribution. Considering the above research limitations as well as the growth of social shopping, many authors should pay considerable attention to SNS-related issues in the future, and develop the more sophisticated criteria to measure the characteristics of SNS shoppers.

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A study on the O2O Commerce Business Process with Business Model Canvas

  • PARK, Hyun-Sung
    • Journal of Distribution Science
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    • v.18 no.5
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    • pp.89-98
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    • 2020
  • Purpose: The growth of online commerce is now becoming a major threat and a new opportunity for retailers. Existing offline retailers struggle to cope with new online retailers' threats by utilizing offline infrastructure. Besides, online retailers expand their online strengths to offline sales by opening their offline stores. Many retailers are paying close attention to the O2O business and the resulting changes. Thus, this research focuses on the O2O business model and process that retailers can adopt. Research design, data and methodology: Considering the features of products that retailers sell, this paper divides O2O business process with the following criteria: delivery lead-time and delivery area. And This research uses the business model canvas to define the features of O2O commerce business process. This paper also uses nine key elements in the business model canvas for analyzing the structure of O2O commerce business. Results: This paper suggests the delivery model of retailers respond to offline customer orders and summarizes the following results. (1) Considering characteristics such as logistics process, delivery area, and product type, we define the features of O2O business models: wide-area (warehouse) based O2O business model, regional area (store) based O2O business model and time-separated O2O business model. (2) This study checks the availability of the business model through the business cases of O2O business models. (3) This study also analyzes the O2O business model of domestic retail companies by the factors defined in the business model canvas. Conclusions: Retailers can adopt the O2O business process to fit their business requirements and strategy. The online retailers who deal with normal consumer products mainly have the wide-area based O2O business model. The wide-area based O2O business model can be suitable for retailers who manage inventory centrally. The time-separated O2O business model can be a good solution for fresh food retailers to operate the logistics process efficiently. And to shorten the delivery lead-time of fresh foods, the regional area based O2O business model can be fit to the retailer that utilizes its offline logistics or sales infrastructure. It may be much more important for retailers to share the inventory information with other branches and to change the role of offline stores.

The Effect of Environment-friendly Certifications on Agricultural Producer Organizations (친환경·GAP·HACCP이 농업 생산자조직에 미치는 영향)

  • Kim, Chang-Hwan;Park, Seong-Ho
    • Journal of Distribution Science
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    • v.13 no.6
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    • pp.97-104
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    • 2015
  • Purpose - The distribution of agricultural products is changing due to recent shifts in environmental free trade. Specifically, the competitiveness of domestic agricultural products has weakened as a result of the Korea-China Financial Trade Agreement. Agricultural producers are faced with increasing difficulties and organized production centers are growing in importance daily. To overcome this crisis, agricultural producer organizations are vying for environment-friendly agricultural certifications, Good Agriculture Practices (GAP) and Hazard Analysis and Critical Control Point (HACCP). In particular, as consumer demand for higher safety grows, farmers are increasing their certification rates. Therefore, this certification system is expected to help strengthen the competitiveness of agricultural producer organizations. Research design/data/methodology - Organized production centers are classified by certification. A survey was conducted with 91 organizations using factor analysis and logistic regression analysis for the examination. The factor analysis results are as follows. Raw material procurement, education·specialization, marketing, joint business, organizing ability, business management, effectiveness, certification, and larger organizations were classified as the nine types of factors. These factors affect the organized production centers and are used in the logistic regression analysis. The purpose of such research and analysis is to suggest a direction for future production center policies. Results - The basic statistical results are as follows: analysis of the producer organizations of 91 sites, average number of members per site of 1,624, and average sales of 25,961 million won. Additionally, the average income per farmer is 175 million won, and the pooling system rate is 53.5%. The factor analysis results are as follows. Factor 1 consists of contract cultivation, ongoing shipment, selection subdivision, traceability, and major retailer management. Factor 2 consists of manual cultivation, specialty selection, education program, and R&D. Factor 3 consists of advertising, various dealers, various sales strategies, and a unified sales counter. Factor 4 consists of agricultural materials co-purchase, policy support, co-shipment, and incentives. Factor 5 consists of the co-selection and pooling system. Factor 6 consists of co-branding and operating by the organization's article. Factor 7 consists of the buy-sell ratio and rate of operation of the agriculture promotion center. Factor 8 consists of bargaining power in volume and participation rate of farmer certification. Factor 9 consists of increasing new subscribers. The logistic regression analysis results are as follows. Considering the results by type of certification, the environment-friendly agricultural certification type and the GAP certification type have a (+) influence. GAP and HACCP certification types affecting the education·specialization factor have a (+) influence. Considering the results for each type of certification, the environment-friendly agricultural certification types on the effectiveness factor have (-) influence; the HACCP certification types on the organizing ability and effectiveness factor have a (-) influence. Conclusions - Agricultural producer organizations should develop plans as follows: The organizations need to secure education for agricultural production; increase the pooling system ratio for sustainable organizational development; and, finally, expand the number of agricultural producer organizations.

Brand Equity and Purchase Intention: The Fashion Market in China (상표자산이 구매의도에 미치는 영향: 중국패션시장에서)

  • Lee, Dong-Hae;Choi, Young-Ro
    • Journal of Distribution Science
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    • v.13 no.7
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    • pp.85-90
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    • 2015
  • Purpose - Global trends play a part to change the structure of the fashion industry. In particular, companies attempting to conduct innovative marketing centering on such products as SPA brands are growing into global companies. SPA stands for "Specialty Store Retailer of Private Label Apparel", meaning its activities are fully integrated from manufacturing through sales, including material procurement design, product, distribution, inventory management, and final sales. For this reason, more understanding of individual corporate profitability is very sensitive to consumer's attitudinal changes. The effects that corporate marketing activities on customer lifetime value through brand attitude were analyzed based on a structural equation model. Rust suggested value equity, brand equity, and relationship equity as customer equity driver. The study examines Chinese consumer because China is the fastest growing fashion market in the world. Research design, data, and methodology - The survey targeted Chinese college student age 20s. Only respondents who had purchased SPA brands in the past year were included for this research. A total of 303, except for 47 missing data of 350 distributed questionnaires were included in this research. The questionnaire is consists of six part to measure value, brand, relationship equity, attitude toward brand, purchase intention and demographic characteristics. This research conducted exploratory factor analysis and reliability test. To verify research hypotheses, structural equation model test was conducted. As for customer equity, diversified models in consideration of the scope of acquisition data, a method of collection of data, influencing factor, and predictability were suggested based on a net present value model. However, the history of customer equity study is relatively short, and sufficient empirical analyses have not been conducted, so more integrated analysis is required. In this study, the concept of driver suggested by Rust was applied to figure out the effects that consumer's attitude has on customer equity. The customer equity driver suggested by them consists of brand equity, value equity, and relationship equity. Results - This study reveals that value equity and brand equity have a positive influence on relationship equity. And, relationship equity has a positive influence on purchase intention through brand attitude. However, value equity and brand equity do not influence on brand attitude. Conclusion - The results of this research generated following implications. First, SPA brands need to take advantage of their value equity such as perceived low price and up-to-date fashion style to attract Chinese young consumer. Second, strong brand equity promises dominants position in the competitive market. As Chinese fashion market grows rapidly, SPA brands can consider branding strategy such as flagship store and celebrity marketing enhancing brand image. Third, the core concept of customer equity strategy is to maintain a relationship with their expecting and existing customers. The relationship equity is built by brand equity and value equity. When SPA brands serves product and service meet with individual customers, customers have intimacy to the brands.

A study on the Regulatory Environment of the French Distribution Industry and the Intermarche's Management strategies

  • Choi, In-Sik;Lee, Sang-Youn
    • The Journal of Industrial Distribution & Business
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    • v.3 no.1
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    • pp.7-16
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    • 2012
  • Despite the enforcement of SSM control laws such as 'the Law of Developing the Distribution Industry (LDDI)' and 'the Law of Promoting Mutual Cooperation between Large and Small/medium Enterprises (LPMC)' stipulating the business adjustment system, the number of super-supermarkets (SSMs) has ever been expanding in Korea. In France, however, Super Centers are being regulated most strongly and directly in the whole Europe viewing that there is not a single SSM in Paris, which is emphasized to be the outcome from French government's regulation exerted on the opening of large scale retail stores. In France, the authority to approve store opening is deeply centralized and the store opening regulation is a socio-economic regulation driven by economic laws whereas EU strongly regulates the distribution industry. To control the French distribution industry, such seven laws and regulations as Commission départementale d'urbanisme commercial guidelines (CDLIC) (1969), the Royer Law (1973), the Doubin Law (1990), the Sapin Law (1993), the Raffarin Law (1996), solidarite et renouvellement urbains (SRU) (2000), and Loi de modernisation de l'économie (LME) (2009) have been promulgated one by one since the amendment of the Fontanet guidelines, through which commercial adjustment laws and regulations have been complemented and reinforced while regulatory measures have been taken. Even in the course of forming such strong regulatory laws, InterMarche, the largest supermarket chain in France, has been in existence as a global enterprise specialized in retail distribution with over 4,000 stores in Europe. InterMarche's business can be divided largely into two segments of food and non-food. As a supermarket chain, InterMarche's food segment has 2,300 stores in Europe and as a hard-discounter store chain in France, Netto has 420 stores. Restaumarch is a chain of traditional family restaurants and the steak house restaurant chain of Poivre Rouge has 4 restaurants currently. In addition, there are others like Ecomarche which is a supermarket chain for small and medium cities. In the non-food segment, the DIY and gardening chain of Bricomarche has a total of 620 stores in Europe. And the car-related chain of Roady has a total of 158 stores in Europe. There is the clothing chain of Veti as well. In view of InterMarche's management strategies, since its distribution strategy is to sell goods at cheap prices, buying goods cheap only is not enough. In other words, in order to sell goods cheap, it is all important to buy goods cheap, manage them cheap, systemize them cheap, and transport them cheap. In quality assurance, InterMarche has guaranteed the purchase safety for consumers by providing its own private brand products. InterMarche has 90 private brands of its own, thus being the retailer with the largest number of distributor brands in France. In view of its IT service strategy, InterMarche is utilizing a high performance IT system so as to obtainas much of the market information as possible and also to find out the best locations for opening stores. In its global expansion strategy of international alliance, InterMarche has established the ALDIS group together with the distribution enterprises of both Spain and Germany in order to expand its food purchase, whereas in the non-food segment, it has established the ARENA group in alliance with 11 international distribution enterprises. Such strategies of InterMarche have been intended to find out the consumer needs for both price and quality of goods and to secure the purchase and supply networks which are closely localized. It is necessary to cope promptly with the constantly changing circumstances through being unified with relevant regions and by providing diversified customer services as well. In view of the InterMarche's positive policy for promoting local partnerships as well as the assistance for enhancing the local economic structure, implications are existing for those retail distributors of our country.

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Tracing the breeding farm of domesticated pig using feature selection (Sus scrofa)

  • Kwon, Taehyung;Yoon, Joon;Heo, Jaeyoung;Lee, Wonseok;Kim, Heebal
    • Asian-Australasian Journal of Animal Sciences
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    • v.30 no.11
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    • pp.1540-1549
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    • 2017
  • Objective: Increasing food safety demands in the animal product market have created a need for a system to trace the food distribution process, from the manufacturer to the retailer, and genetic traceability is an effective method to trace the origin of animal products. In this study, we successfully achieved the farm tracing of 6,018 multi-breed pigs, using single nucleotide polymorphism (SNP) markers strictly selected through least absolute shrinkage and selection operator (LASSO) feature selection. Methods: We performed farm tracing of domesticated pig (Sus scrofa) from SNP markers and selected the most relevant features for accurate prediction. Considering multi-breed composition of our data, we performed feature selection using LASSO penalization on 4,002 SNPs that are shared between breeds, which also includes 179 SNPs with small between-breed difference. The 100 highest-scored features were extracted from iterative simulations and then evaluated using machine-leaning based classifiers. Results: We selected 1,341 SNPs from over 45,000 SNPs through iterative LASSO feature selection, to minimize between-breed differences. We subsequently selected 100 highest-scored SNPs from iterative scoring, and observed high statistical measures in classification of breeding farms by cross-validation only using these SNPs. Conclusion: The study represents a successful application of LASSO feature selection on multi-breed pig SNP data to trace the farm information, which provides a valuable method and possibility for further researches on genetic traceability.