• Journal of Distribution Research
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• v.15 no.5
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• pp.37-60
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• 2010

Department Stores have been in place as typical large-scale retailer in Korean retail market. After Asian financial crisis in 1997, the market share of major three department stores has been increased and they have had a dominant position in relationship with vendors or manufacturers. Thus, they are able to control sales commission. Sales commission is defined as things that department stores which contribute to products sales instead of manufacturers take some portion of price as their revenue. In other words, vendors or manufacturers pay some amount of money from their sales by contracted ratio to department stores. The problem is that vendors or manufacturers think that sales commission is high. However, department stores have a different opinion that sales commission is not high because they generate new value from gathering customers and doing marketing activity on behalf of vendors or manufacturers. Because department stores have operated with business model of renting sales space to vendors or manufacturers instead of buying goods directly from them, this situation has been taken place. The revenue of department stores depend on sales commission. Thus, they want to get a dominant power to control sales commission in relationship with vendors or manufacturers. So, they have tried to increase their size and brand power. The considered policies related in sales commission of department stores are as following: preventing monopoly or oligopoly of department store, being strength of monitoring for department stores' unfair trade, strict enforcement of law for large-scale retailer's unfair trade, and inducing win-win strategy doing voluntarily by department stores.

• Journal of Distribution Science
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• v.13 no.11
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• pp.47-58
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• 2015

Purpose - This study aims to seek determinants of department store sales commission rates under consignment contracts based on transaction cost theory, the power-dependence view, and the resource-based view. A consignment contract is a unique contract where the retailer, over a given period, takes possession of goods owned by a supplier, promotes the sales of these goods, and receives a profit share from their sales. Under this contract, the supplier owns the goods until they are sold. In department stores in South Korea, over 70% of overall sales comes through consignment contracts. In other words, this is the most popular contract agreement between large retailers and vendors in South Korea. Consignment contracts yield high profits to department stores with minimal sales uncertainty, stock cost, and marketing investment. Many suppliers believe the consignment contract commission rates are too high. However, department stores disagree. They state that the commissions are not high as they generate new value for the suppliers by accumulating up-to-date merchandise and supporting various marketing programs on their behalf. Recently, consignment contracts have been critically examined and scrutinized by politicians, mass media, and the public of Korea. This study further intends to derive implications reflecting both buyer and seller perspectives as well as offer insights to policy makers in making appropriate decisions. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 164 suppliers, which currently have relationships with department stores. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. The data were analyzed using SPSS 18.0 and AMOS structural equation modeling program Results - For the transaction cost theory and the power-dependence view, the results indicated that product diversity and demand volatility had a positive impact on the sales dependence on a department store. Dependence in turn had a positive effect on the sales commission under the consignment contract. Based on the resource-based view, the department store's marketing capability, the supplier's perception toward merchandising, and supporting activities could enhance the department store's channel leadership in the buyer-seller relationship. Subsequently, the channel leadership had a positive effect on the sales commission. However, product complexity had no relationship with department store dependence. Conclusions - This is the first empirical research that investigates the determinants of sales commissions under consignment contracts in the domestic retail industry. This study reveals several theoretical and practical implications for both marketing scholars and marketers. In terms of theoretical implication, this study integrated and enlarged certain theoretical background, such as transaction cost theory, the power-dependence view, and the resource-based view, to explain the determinants of sales commissions under consignment contracts that include sales revenue. From a business management viewpoint, this research offers useful insights for policy makers by applying two different perspectives, both the manufacturer and the retailer, in terms of the sales commission issue under a consignment contract.

• Asia Marketing Journal
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• v.25 no.1
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• pp.26-36
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• 2023

This study examines the effects of disclosing sales commissions pertaining to an influencer discount code on perceived sincerity of an influencer and attitude toward using the discount code. In Study 1, consumers participated in a two-cell (commission disclosure: absent vs. present) between-subjects experimental design. In Study 2, consumers participated in a two (commission disclosure: absent vs. present) by two (discount level: low vs. high) between-subjects experimental design. The findings of Study 1 demonstrate that the sales commission disclosure pertaining to discount codes results in a higher perceived sincerity of the influencer. The results of Study 1 also reveal that the perceived sincerity of the influencer mediates the effect of the disclosure (vs. no disclosure) on attitude toward using the discount code. Further, the findings of Study 2 demonstrate the robustness of these disclosure effects regardless of whether the discount level is low or high.

• KDI Journal of Economic Policy
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• v.35 no.2
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• pp.133-166
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• 2013

This study analyzes the relationships between soft dollar(brokerage commission) and characteristics of funds, and between brokerage commission and return on funds, using the data on equity funds of Korea from June 2008 to November 2011. The result confirms a statistically significant negative relationship between management & sales fees and brokerage commission, meaning that rather than raising management & sales fees, which could be easily recognized by investors, it is through brokerage commission, a hidden cost, which asset management firms indirectly compensate for their services. Meanwhile, the analysis on the relationship between brokerage commission and return on funds reveals that higher brokerage commissions lead to lower return on funds, meaning at least in short-term no contribution to increasing returns in the future. These results suggest the need for streamlining the system to alleviate conflicts of interest between investors and management firms in addition to effectively controlling for principal-agent problems.

• 한국벤처창업학회:학술대회논문집
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• 2021.11a
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• pp.113-117
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• 2021

Due to the recent COVID-19 pandemic, SMEs are forced to converge themselves into online business to cope with the rapidly changing business environment. However, due to various difficulties of becoming an online business, most SMEs choose to use services provided by the online sales platform. These platforms offer valuable support such as DSS in return for the high amount of commission fee. We analyze a novel data set from Naver Corporation's 'Smart Store' platform with the quasi-experimental method (propensity score matching technique combined with the difference in differences analysis) to analyze DSS usage and SME's performance empirically. Our results suggest that DSS usage leads to an increase in SME's sales performance in means of sales frequency and sales amount. Additionally, we have found weak support that DSS usage enables SMEs to attract customers better than those not using DSS.

• The Journal of Fisheries Business Administration
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• v.7 no.1
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• pp.27-41
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• 1976

The results analyzed of the actual state of the stow net fisheries based on the cost expended in 1975 areas follows; The total cost of this fisheries will be 1, 672, 238 won; the production cost, 1, 588, 060 won (95%) ; the material cost in proportion to total cost (100%)408, 480won (24.4%);the labour cost, 1, 006, 480 won (60.2%) ; the expenses, 173, 100won(10.4%)and the commission and the interest payment, 84, 178won(5%). As above the commission and the interest payment doesn't need to be paid much, but only production cost should be paid in case of small scale inshore fisheries. The cost per unit of caches (per Kg) becomes 12 won, the ratio cost of sales (83.4%), the ratio of profit, 16.%. According to the adove, in case of the powered vessel; it shows a tendency of spending too much expenses owing to excessive payment of oil. And in case of nonpowered vessels, it shows a tendency of spending less expenses but still get much gains, due to the fact that the commission and the interest payment are less, and none is paid for fuel procurement.

• The Journal of Society for e-Business Studies
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• v.26 no.3
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• pp.55-66
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• 2021

The mobile application (APP) market is growing at an unprecedented speed. Amid such growth, the global platform providers are mandating exclusive in-app payments and charging 30% for platform commission fees. A serious tension has arisen between mobile global platform providers and local content providers. The present study attempts to analyze the domestic mobile game market and in-app payment commission fees. This study estimates the size of the domestic mobile game market and platform commission fees by directly using publicly available financial statements and footnote information of some representative listed mobile game firms. Also, the study analyzes the cost structures of the same sample firms and attempts to draw some implications on sustainable growths of the mobile game ecosystem. We estimated that, in 2019, the domestic mobile game market is around 4.9 trillion Won and the ensuing in-app payment commission fees market was 1.5 trillion Won. High market share firms display a proportional increase in in-app payment commission fees in relation to sales growth. This, in turn, makes the in-app payment commission fees a primary cost item far exceeding employee salaries and R&D expenses. During the same period, low market share firms generated a mere profit or experienced net loss. Analysis of the cost structure reveals that these firms are even more liable to higher in-app payment commission fee cost structure than high market share. Most constituents of the mobile game ecosystem are small business entrepreneurs. By employing a micro-level analysis, the study estimates that, in 2019, a representative median firm generates 530 million Won in sales. At the same time, it spends 190 million Won in employee salaries, 50 Won million in R&D and 190 million Won in in-app payment commission fees, respectively. In the absence of other cost items, these three cost items alone account for 73.8% of sales revenue. The results imply that a sustainable growth of the local mobile game market heavily depends upon the cost structure of such representative median firm, the in-app payment commission fees being the primary cost item of such firm.

• Human Ecology Research
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• v.59 no.4
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• pp.449-463
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• 2021

The aim of this study was to analyze the perceptions and entering status of small business online fashion retailers on portal shopping and fashion shopping malls. Case studies were conducted on a total of 10 research samples. The results were as follows: first, regarding the strategic factors of online fashion stores, 'price competitiveness' is important, especially in portal shopping and low-cost brands; 'product assortment' is important but not essential in all platforms; and 'differentiation' is important to continuously secure loyal customers in fashion shopping malls. Customer satisfaction leads to customer loyalty, and customer loyalty affects the sales conversion rate and brand growth of online sales channels. Factors that promoted sales activities in online sales channels were exposure, advertisements, SNS, events, special exhibitions, and events. Hindrance factors were low price competition, overheated competition, and the MD of sales channels. Second, the research samples used multiple online sales channels, including portal shopping malls and fashion shopping malls, in addition to their own malls. The selection factors were platform reputation and commission, branding, and customer inflow through exposure. Portal shopping malls were perceived as providing easy access, advertising/customer communication, exposure/search, price competitiveness, scalability, and intense competition, whereas fashion shopping malls were perceived as providing a brand image and concept, brand promotion, high commissions, difficult entry, and low profits. The factors for success in portal shopping malls were exposure/search, price competitiveness, and brand recognition, whereas the factors for success in fashion shopping malls were differentiation, brand, exposure/advertisement, product assortment, and MD.

• Fashion & Textile Research Journal
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• v.13 no.5
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• pp.705-716
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• 2011

The purpose of this study was to investigate salesperson's perception of fashion company in the middle management system of department store. This study was conducted by a qualitative research method. An in-depth interview was managed to 14 fashion shop managers and salesperson who have three or more years of work experience at the department store. Interview details were classified three categories: relations with fashion company and others, concern with products supply, concern with products sales. First, the positive factors on relations with fashion company are mutual trust, stability of fashion company, coordination and consideration for shop, communication with fashion company, methodical IT system, methodical education, and social gathering support. The negative factors are unilateral breach of contract from fashion company, communication problem, gap between sales status in shop and product design in fashion company, lack of professional education, difficulty of participating in education, and inadequate employee benefits. Second, the positive factor on products supply is priority of products supply. The negative factors are lack of main items, product procurement lacking rapidity, and problem of securing a supply. Third, the positive factors on products sales are brand pride, display and information support about products, and free gift support. The negative factors are unfair selling commission policy, sales pressure, and excessive responsibility.

• The Journal of Economics, Marketing and Management
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• v.5 no.3
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• pp.12-20
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• 2017

The study examined effects of psychological change of distribution environment upon commercial areas to investigate consumers' experience and theory and to suggest power of new management strategy for growth of retailers A The study investigated actual conditions of business transaction of hyper market by blind interview. In April, 2016, the author visited 6 manufacturers to do depth interview. The questionnaire between food manufacturers and hyper market investigated the Association of Food Industries in Korea, NH Nonghyup and large manufacturers in July 2012. Questionnaires of 25 companies were used after excluding questionnaire having poor and inadequate answers. The sales commission with large scaled distribution business decreased (0.3 ~ 0.7) to increase additional expenses such as number of salesmen, interior expenses and economic costs (0.7 ~ 40%). (source: Fair Trade Commission). Fair Trade Commission released types and notice of unfair trade of large scaled retail business based on monopoly regulation and fair trade (hereinafter called 'notice of large scaled retail) to prevent large scaled distribution business from doing unfair trade. The notice controled unfair trade at different position between large scaled distribution business and small vendors.