• 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.

• Journal of Distribution Research
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• v.8 no.1
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• pp.1-19
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• 2003

Given the recent trend in business markets to seek and conscientiously develop long-term relationships, it has become increasingly important to understand why such long-term relationships are developed and how they are maintained. Despite their obvious importance, the antecedent conditions and processes of long-term relationships between industrial buyers and suppliers have not been systematically studied. In this research, I report a study of the antecedents of industrial buyer-seller relationships and the relational performance. What kinds of factors contribute to the development of long-term relationships\ulcorner How do these factors influence the corporate performance in the business markets\ulcorner The primary motivation of this study was drawn from an interest in answering these research questions. Managerial implications of the study results are also discussed.

• Journal of Distribution Research
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• v.16 no.3
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• pp.77-104
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• 2011

As business marketers placed greater emphasis on building long-term relationships, trust has assumed a central role in the development of marketing theory(Dwyer, Schurr, and Oh 1987; Mogan and Hung 1994) and practice(Dertouzos, Lester, and Solow 1989). Marketing research on trust primarily focuses on two targets of trust: supplier firms and their salesperson. Trust of firm and trust of salesperson, though related, represent different concepts(Doney and Cannon 1997). Also, the definition of trust proposed by Ganesan(1994) reflects two distinct components: (1) credibility, which is based on the extent to which the buyer believes that the seller has the required expertise to perform the job effectively and reliably and (2) benevolence, which is based on the extent to which the buyer believes that the seller has intentions and motives beneficial to the buyer when new conditions arise, conditions for which a commitment was not made. The existing marketing research focuses on how trust of a firm and its salesperson has a differential effects on loyalty. However, these extant research pays little attention to the moderating effects that explicitly examine how two trust dimensions of salesperson(credibility and benevolence) affects loyalty of firm. The purpose of this study is to provide new insight into boundary conditions(individualism and industry type) that credibility and benevolence influences loyalty.

• International Commerce and Information Review
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• v.7 no.3
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• pp.195-212
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• 2005

International trade has been changed from traditional trade to e-trade due to the fast expanding of information technology like e-marketplace, EDI (Electronic data interchange) using Internet since mid of 1990's. e-Trade, as a new trade method, could handle every trade procedure such as market research, contract, customs clearance, logistics and payment using IT like internet without restriction of time and space. The evolution of transaction-based business model is upon us. The business models of many e-Marketplace in their early stages have typically been based on transaction fees. Many e-Marketplaces have even called out transaction revenues as a core element of their business plans. The transaction business represents the most simple of business models, but it does not provide a long-term sustain able advantage. For buyer's convenience, wide selection and test price hold appeal. For suppliers, the extended global market reach and direct access to customers and consortiums of customers is powerful. To maximize leverage of these new e-marketplace, you must from both a buyer perspective as well as a supplier perspective. Also required is a strategy that takes in account all of the various e-Marketplace transaction standards and one that allows the easy accomodation to new e-marketplace as the market change. These new e-marketplace will need to be factored into the sales channel strategies. To be successful, integration with these e-marketplaces should occur at a complete business process level. This study would suggest on the role of buyers and sellers for e-trade which could maximize effect of e-trade in order to cope with rapid changing IT environment and global trade environment. Therefore, this study suggests top priority tasks for implementing on the specialization strategy of e-trade process.

• The Journal of Society for e-Business Studies
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• v.19 no.1
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• pp.43-61
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• 2014

This research is an application of game theory to developing the supplier selection and demand allocation mechanism, which are the essential and major research areas of supply chain planning and operation. In this research, the most popular and widely accepted mechanism, the progressive reverse auction is analyzed and compared with the other game theoretic approach, Kalai-Smorodinsky Bargaining Solution in the viewpoint of holistic efficiency of supply chain operation. To logically and exquisitely compare the efficiencies, a heuristic algorithm based on Genetic Algorithm is devised to find the other optimal demand allocation plan. A well known metric, profit-cost ratio, as well as profit functions for both suppliers and buyer has been designed for evaluating the overall profitability of supply chain. The experimental results with synthesis data and supply chain model which were made to mimic practical supply chain are illustrated and analyzed to show how the proposed approach can enhance the profitability of supply chain planning. Based on the result, it can be said that the proposed mechanism using bargainging solution mayguarantee the better profitability for the whole supply chin including both suppliers and buyer, even though quite small portion of buyer's profitability should be sacrified.

• Asia pacific journal of information systems
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• v.15 no.4
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• pp.135-152
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• 2005

As the most widely used media of BtoB e-business, the e-Marketplace can be a way of BtoB e-buisness continuously in the age of c-Commerce with the functional collaborative integration between the e-Marketplace and corporate systems. Moreover, collaborative operations like QR, VMI and so on have shown a great efficiency in the area of BtoB supply chain management. However, some critical considerations are discussed in the selection of trade partners between the e-Marketplace and the SCM. In e-Marketplaces, the intermediation to select partnersusually focuses on the competitive process for lower price. However, in the SCM, the relationship with strategic alliance is more importantly addressed for efficiency. Considering the trend to c-Commerce in Internet commerce, the approach to the collaborative relationship in BtoB commerce has important meanings. In this paper, we proposed and appraised an architecture where the e-Marketplace can be an elelctronic functional method for the relationship based BtoB e-business from the viewpoint of SCM and c-Commerce.

• Journal of Korean Society for Quality Management
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• v.40 no.2
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• pp.156-165
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• 2012

The objective of this study is to identify the critical dimensions of comprehensive quality and to prioritize them for improvement of the quality competitive advantage. The critical dimensions, sub-dimensions and measurement items of comprehensive quality were abstracted from literature of quality, and constructed a model of hierarchical structure. 115 experts in four groups(supplier, buyer, consultant, and professor) were participated in pair-wise comparison of quality dimensions, but some of these responses were removed because the overall consistency of evaluator judgements exceed the acceptable ratio of 0.10. The priorities of quality dimensions for industrial and consumption goods were calculated respectively using the analytic hierarchy process(AHP) approach. As a result, product quality had the highest weight of 0.65, followed by support quality(0.18) and service quality(0.17) for industrial goods while product quality also had the highest weight of 0.62, but service quality(0.22) was preferred over support quality(0.16) for consumption goods.

• Proceedings of the CALSEC Conference
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• 2003.09a
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• pp.172-177
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• 2003

As the electronic commerce in industry is spreading rapidly, the invitation and investment of e-marketplace is becoming a necessary condition for the industry's competition power insurance and existence. The successful conditions of e-marketplace are many supplier, many buyer, a globalism through the association and cooperation of a foreign marketplace. For that, the connection action inter industries and marketplaces is very necessary, In a condition of the study about the systematic connection type's classification is not exist, the paper aims at classifying the connection type that influences of e-marketplace playing a leading role. So, the connection type classifies into the list offering type, the trade mediation type, the supplementation type, the collaboration type, the information linking type. When we go ahead with a e-marketplace's plan, the paper will guide how to approach and analyze it.

• Journal of Korean Institute of Industrial Engineers
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• v.30 no.1
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• pp.1-10
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• 2004

Advance in Internet technology has changed traditional production planning and control methods. In particular, collaborations between participants in supply chains are being increasingly addressed in industry for enhancing chain-wide productivity. A representative paradigm that emphasizes collaboration in production planning and control is CPFR(Collaborative Planning, Forecasting and Replenishment). In this paper, we present a multi-agent system architecture that supports the collaborations specified in CPFR. The multi-agent system architecture consists of event manager, data view agent, business rule agent, and collaboration agent. The collaboration agent systematically controls negotiation between supplier and buyer with the aid of collaboration protocol and blackboard. The multi-agent system has been implemented with EJB(Enterprise Java Beans).

• The Journal of Information Systems
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• v.23 no.2
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• pp.25-47
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• 2014

Based on the levels of inter-organizational information flow and the degrees of suppliers' power, this study aims to develop a framework useful for classifying four types of the buyer's e-commerce strategies in manufacturing firms: e-marketplace, e-partnership, e-procurement and supplier's e-marketplace (e-distribution). We adopted a multi-methodological approach by mixing both qualitative and quantitative methods. After developing a framework, through the cases of Cisco, JAL, Toyota Motor, KIST, AMP, and 3M, this paper aims to confirm the actual existence of the four forms of e-commerce. The results from the cases supported the four types of e-commerce strategies in manufacturing firms. With the empirical data, we also demonstrated the configuration of the framework and the four types of e-commerce strategies, and identified the characteristics (i.e., size, age, actual adoption rate of the each type of e-commerce, and supply-chain performance) of the organizations employing each strategy.