• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.10 no.4
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• pp.147-155
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• 2015

Home Shopping companies haven't have any possible means of product quality control process in spite of the fact that they are selling average 16,000 different kinds of product every month. Under this condition, increases of return and product liability can have a strong negative influence on customers' trust in a home shopping brand and intentional repurchase through the same home shopping channel. To solve the problems, we applied adjusted selection and assessment system of manufacturers in home shopping industry, and the consequence of system effect was verified that there is a decrease of 10.3% in the number of returns and a decrease of 11.7% in the number of product liability.

• The Journal of Economics, Marketing and Management
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• v.10 no.6
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• pp.47-57
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• 2022

Purpose: This study explored the relationship between product characteristics and customer purchase intention in cross-border online shopping. Research design, data, and methodology: Through literature review, the research model of product characteristics and consumers' purchase intention is constructed, and trust is taken as a medium variable. Based on the survey data of Chinese consumers, empirical analysis and hypothesis verification are conducted. This study used SPSS version 21 to confirm the reliability and validity of the research model. To confirm the media effect of the model in this study, the Sobel Test was used. Results: The results of hypothesis identification of this research model showed that 8 of the 11 hypotheses were adopted and 3 were rejected. Results confirmed the relationship between product characteristics (specification, diversity, reputation, novelty, quality) and customer purchase intention. Conclusions: The result from this study had particular theoretical significance for improving the research on cross-border online shopping systems to improve the safety and satisfaction of customers in cross-border online shopping.

• Journal of the Korean Operations Research and Management Science Society
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• v.42 no.3
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• pp.51-69
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• 2017

TVarious studies in different industries have proven the effectiveness of nanotechnology, which is considered as a representative technology that makes lives faster and more convenient and economical. However, as nanomaterials are tiny, consumers are concerned on whether they can do any physical harm. Therefore, based on the perceived usefulness and ease of use from the generally used Technology Acceptance Model (TAM), this study added additional variables including perceived risk. Moreover, this study introduced three kinds of trust (institution, people, and technology trust) as moderating variables, which can reduce the negative effect of perceived risk. Based on the analysis using the Structural Equation Model, we determined that perceived usefulness and ease of use positively influenced the intention to adopt nanotechnology products. Thus, when consumers regarded nanotechnology products as efficient and convenient, they showed increased intention to adopt the technology. Furthermore, perceived risk negatively affected the intention to adopt nanotechnology products, that is, when customers' perceived risk increased, the adoption intention of nanotechnology product decreases because of the potential risk from nanotechnology. On the one hand, the negative effect of perceived risk on adoption intention decreased when trust in nanotechnology washigh and when consumers highlytrust experts or administrators. On the other hand, trust in government, public institutions, and companies which produce nanotechnology products showed no significant moderating effect. This study is meaningful as it generalized TAM by applying the model to new nanotechnology products and extended existing studies by the addition of perceived risk and various trust factors to the model.

• Journal of Distribution Science
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• v.11 no.12
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• pp.71-81
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• 2013

Purpose - This study investigated the effects of consumers' selection criteria for environment-friendly agricultural products on purchase intention and the effects of consumers' attitudes and the reliability of environment-friendly agricultural products on purchase intention by using the theory of planned behavior. Subjective norms of variables of behavioral intention, attitudes toward behavior and control of the behavior were used to create selection criteria, consumers' attitudes and reliability of environment-friendly agricultural products. The study investigated the effects of consumers' selection criteria, attitudes, and reliability of environment-friendly agricultural products on purchase intention constructing models and hypotheses of mediation and moderation between selection criteria for agricultural products and purchase intention by consumers' attitudes and reliability. Research design, data, and methodology - The findings were as follows: first, consumers' selection criteria for environment-friendly agricultural products had a significantly affirmative influence upon purchase intention. Health was the most important factor of selection criteria convenience was more important than quality and familiarity was next. Consumers' attitudes and trust had a significant influence on purchase intention. Second, testing showed that consumers' attitude and trust partially mediated selection criteria: sub-factors and purchase intention were important in selection criteria. Third, testing showed that consumers' attitude and trust had a significant moderation effect between selection criteria and purchase intention. In the test of the moderation effect between sub-factors of selection criteria and purchase intention, consumers' attitude had a significantly positive influence upon health, convenience, and familiarity, and had no significant influence upon quality and purchase intention. Consumers' trust had no significant influence upon health, convenience, and quality. Results - The study provided several theoretical implications: first, an empirical analysis was undertaken with selection criteria for environmental-friendly agricultural products, consumers' attitude, and trust to investigate subjective norms, attitude toward behavior and control of behavior based on the theory of planned behavior. Second, this study investigated both the mediation effect and moderation effect of consumers' subjective norms on attitudes toward behavior, the mediating effects of perceived behavior control and changes of behavioral intention depending upon size and direction of the variables. This study also provided several practical implications. Conclusions - First, consumption of environment-friendly agricultural products did not increase despite rapid increase of production therefore, promotion of consumption and distribution was needed considering the supply and demand of the products. Second, definite standards for selection criteria were suggested to build up consumers' attitude and trust. Consumers' attitude could be improved by factors including the brand of environment-friendly agricultural products, consistent quality, solving physiological problems caused by adverse effects of environmental problems, supplementary approaches, treatment of adverse effects by eating food, and the development and supply of products in accordance with changes of lifestyle. Finally, consumers' demand for sub-factors of selection criteria could be much higher than health, convenience, and quality of the products. Therefore, a process was needed that could continuously check consumers' needs for the products. Limitations were described at the end of the study.

• Journal of Distribution Science
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• v.15 no.4
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• pp.41-57
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• 2017

Purpose - With the growth of the duty free shop field and an increase in the executive interest in it, it becomes necessary to examine if PBZ (1988) SERVQUAL could be applied to duty free shop service reflecting on this increased interest and the importance of marketing strategy alternative managing multinational customers. Therefore, the present research focused on the comparison of Korean and Chinese consumers. We examined how service quality would affect relationship quality and customer loyalty. Research design, data, and methodology - Surveys were distributed to 235 Korean and 220 Chinese consumers who have visited a Korean duty free shop. We analyzed frequency analysis, mean difference analysis, and reliability analysis, exploratory factor analysis, confirmatory factor analysis, structural equation model analysis, and multi-group analysis. Results - First, perceived tangibles, responsiveness, empathy, assurance, price benefits, product diversity, and IT convenience of duty free shop service all appeared to be positive effect on customer satisfaction; at the same time, only tangibles, responsiveness, empathy, assurance, and price benefits positively affected customer trust. Secondly, customer satisfaction and trust that are the components of the relationship quality appeared to be positive effect on customer loyalty. Thirdly, customers' satisfaction was found to play a full mediating role effect among all of the service quality factors with customer loyalty; however, customer trust was found to have the mediating effects only with tangibles, empathy, assurance, and price benefits. Fourthly, we found a difference between how service quality influences relationship quality and how service quality influences customer loyalty as a function of different nationality. As a result, it appeared that price benefits and IT convenience affected customer satisfaction more among Koreans than among Chinese. Finally, it appeared that customer satisfaction and trust affected customer loyalty more among Chinese than among Koreans. Conclusions - The results of this study contribute to the theoretical knowledge, but also provide strategic alternatives to enhance differentiation, international competence of enterprises led by duty free shop and service quality improvement and customer loyalty of enterprises are drawn as a foundation for constructing international customer relationship in future global era.

• Journal of Digital Convergence
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• v.16 no.7
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• pp.189-198
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• 2018

Automotive parts distribution industry focused on increasing sales by product quality until early 2010, but as competition has recently intensified, each company has become interested in core values such as customer satisfaction, trust and loyalty. Therefore, effect of customer-oriented service mindset should be analyzed for the relationship between service quality and customer satisfaction, trust, and loyalty in this industry. For this, a questionnaire survey was conducted for 342 distributors. Structural equation models were analyzed using AMOS 23.0. Empirical results show service quality has positive effects on customer loyalty, and customer satisfaction and trust mediate between service quality and customer loyalty. The service quality became a key factor to elicit customer satisfaction, trust and loyalty. Following studies, it is expected to enhance service quality focusing on extending region coverages.

• Clean Technology
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• v.18 no.4
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• pp.440-445
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• 2012

15 carbon footprint product (CFP) schemes, including Korea Carbon Footprint Label, UK Carbon Trust's Carbon Reduction Label and Japan CFP are implemented in the world. A CFP describes green house gases (GHGs) emissions emitted throughout product's life cycle and is intended to reduce GHGs emissions by labeling a CFP result on product. This study calculates Korea, UK and Japan CFP result of vacuum cleaner, detergent, packagin material in order to analyze the Korea, UK and Japan CFP standards. Our results demonstrate significant differences among then calculated results because of criteria, emission factors, etc. Therefore, there are many difficulties in providing various CFP results and the international standard and guidelines for product category are needed.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.6
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• pp.287-297
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• 2021

The goal of this study is to investigate and provide information to the Fintech Industry on the main factors responsible for customer loyalty via the mediating effect of customer satisfaction. Secondly, providing traditional banking reasons for customer shifts from banking to Fintech, therefore these factors could be more focused. The consumer choices presented in this study can thus serve as a foundation for further research into post-adoption behaviors associated with Fintech for cross-border payments. This study examines consumer evaluations of how key attributes of fintech using mobile payment services affect their choice by using a conjoint analysis approach, which allows for the approximation of user preferences for specific features. In our study we have used SPSS 26 to test the reliability and mediation effect on the sample size of 348 people who regularly used Fintech for cross border payments. All the questionnaires were prepared if the customers were given fintech as an option instead of traditional banks to send their remittances abroad. The result shows that(Service Quality, Customer's trust and product quality) effecting customer satisfaction significantly would be very helpful for the current fintechs working for home remittances to improve these factors and would serve as a benchmark for the upcoming fintech startups and traditional banks to focus on these factors and catch up the fintech Industry. Finally, it is argued that, in order to be successful, focusing on service quality, customer trust, and product quality triggered customer loyalty for the Fintech in comparison to other traditional options for cross-border payments via the mediation effect of customer satisfaction.

• Journal of Global Scholars of Marketing Science
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• v.19 no.4
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• pp.32-43
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• 2009

Trust has been studied extensively in psychology, economics, and sociology, and its importance has been emphasized not only in marketing, but also in business disciplines in general. Unlike past relationships between suppliers and buyers, which take considerable advantage of private networks and may involve unethical business practices, partnerships between suppliers and buyers are at the core of success for industrial marketing amid intense global competition in the 21st century. A high level of mutual cooperation occurs through an exchange relationship based on trust, which brings long-term benefits, competitive enhancements, and transaction cost reductions, among other benefits, for both buyers and suppliers. In spite of the important role of trust, existing studies in buy-supply situations overlook the role of trust and do not systematically analyze the effect of trust on relational performance. Consequently, an in-depth study that determines the relation of trust to the relational performance between buyers and suppliers of business services is absolutely needed. Business services in this study, which include those supporting the manufacturing industry, are drawing attention as the economic growth engine for the next generation. The Korean government has selected business services as a strategic area for the development of manufacturing sectors. Since the demands for opening business services markets are becoming fiercer, the competitiveness of the business service industry must be promoted now more than ever. The purpose of this study is to investigate the effect of the mutual trust between buyers and suppliers on relational performance. Specifically, this study proposed a theoretical model of trust-relational performance in the transactions of business services and empirically tested the hypotheses delineated from the framework. The study suggests strategic implications based on research findings. Empirical data were collected via multiple methods, including via telephone, mail, and in-person interviews. Sample companies were knowledge-based companies supplying and purchasing business services in Korea. The present study collected data on a dyadic basis. Each pair of sample companies includes a buying company and its corresponding supplying company. Mutual trust was traced for each pair of companies. This study proposes a model of trust-relational performance of buying-supplying for business services. The model consists of trust and its antecedents and consequences. The trust of buyers is classified into trust toward the supplying company and trust toward salespersons. Viewing trust both at the individual level and the organizational level is based on the research of Doney and Cannon (1997). Normally, buyers are the subject of trust, but this study supposes that suppliers are the subjects. Hence, it uniquely focused on the bilateral perspective of perceived risk. In other words, suppliers, like buyers, are the subject of trust since transactions are normally bilateral. From this point of view, suppliers' trust in buyers is as important as buyers' trust in suppliers. The suppliers' trust is influenced by the extent to which it trusts the buying companies and the buyers. This classification of trust using an individual level and an organization level is based on the suggestion of Doney and Cannon (1997). Trust affects the process of supplier selection, which works in a bilateral manner. Suppliers are actively involved in the supplier selection process, working very closely with buyers. In addition, the process is affected by the extent to which each party trusts its partners. The selection process consists of certain steps: recognition, information search, supplier selection, and performance evaluation. As a result of the process, both buyers and suppliers evaluate the performance and take corrective actions on the basis of such outcomes as tangible, intangible, and/or side effects. The measurement of trust used for the present study was developed on the basis of the studies of Mayer, Davis and Schoorman (1995) and Mayer and Davis (1999). Based on their recommendations, the three dimensions of trust used for the study include ability, benevolence, and integrity. The original questions were adjusted to the context of the transactions of business services. For example, a question such as "He/she has professional capabilities" has been changed to "The salesperson showed professional capabilities while we talked about our products." The measurement used for this study differs from those used in previous studies (Rotter 1967; Sullivan and Peterson 1982; Dwyer and Oh 1987). The measurements of the antecedents and consequences of trust used for this study were developed on the basis of Doney and Cannon (1997). The original questions were adjusted to the context of transactions in business services. In particular, questions were developed for both buyers and suppliers to address the following factors: reputation (integrity, customer care, good-will), market standing (company size, market share, positioning in the industry), willingness to customize (product, process, delivery), information sharing (proprietary information, private information), willingness to maintain relationships, perceived professionalism, authority empowerment, buyer-seller similarity, and contact frequency. As a consequential variable of trust, relational performance was measured. Relational performance is classified into tangible effects, intangible effects, and side effects. Tangible effects include financial performance; intangible effects include improvements in relations, network developing, and internal employee satisfaction; side effects include those not included either in the tangible or intangible effects. Three hundred fifty pairs of companies were contacted, and one hundred five pairs of companies responded. After deleting five company pairs because of incomplete responses, one hundred five pairs of companies were used for data analysis. The response ratio of the companies used for data analysis is 30% (105/350), which is above the average response ratio in industrial marketing research. As for the characteristics of the respondent companies, the majority of the companies operate service businesses for both buyers (85.4%) and suppliers (81.8%). The majority of buyers (76%) deal with consumer goods, while the majority of suppliers (70%) deal with industrial goods. This may imply that buyers process the incoming material, parts, and components to produce the finished consumer goods. As indicated by their report of the length of acquaintance with their partners, suppliers appear to have longer business relationships than do buyers. Hypothesis 1 tested the effects of buyer-supplier characteristics on trust. The salesperson's professionalism (t=2.070, p<0.05) and authority empowerment (t=2.328, p<0.05) positively affected buyers' trust toward suppliers. On the other hand, authority empowerment (t=2.192, p<0.05) positively affected supplier trust toward buyers. For both buyers and suppliers, the degree of authority empowerment plays a crucial role in the maintenance of their trust in each other. Hypothesis 2 tested the effects of buyerseller relational characteristics on trust. Buyers tend to trust suppliers, as suppliers make every effort to contact buyers (t=2.212, p<0.05). This tendency has also been shown to be much stronger for suppliers (t=2.591, p<0.01). On the other hand suppliers trust buyers because suppliers perceive buyers as being similar to themselves (t=2.702, p<0.01). This finding confirmed the results of Crosby, Evans, and Cowles (1990), which reported that suppliers and buyers build relationships through regular meetings, either for business or personal matters. Hypothesis 3 tested the effects of trust on perceived risk. It has been found that for both suppliers and buyers the lower is the trust, the higher is the perceived risk (t=-6.621, p<0.01 for buyers; t=-2.437, p<0.05). Interestingly, this tendency has been shown to be much stronger for buyers than for suppliers. One possible explanation for this higher level of perceived risk is that buyers normally perceive higher risks than do suppliers in transactions involving business services. For this reason, it is necessary for suppliers to implement risk reduction strategies for buyers. Hypothesis 4 tested the effects of trust on information searching. It has been found that for both suppliers and buyers, contrary to expectation, trust depends on their partner's reputation (t=2.929, p<0.01 for buyers; t=2.711, p<0.05 for suppliers). This finding shows that suppliers with good reputations tend to be trusted. Prior experience did not show any significant relationship with trust for either buyers or suppliers. Hypothesis 5 tested the effects of trust on supplier/buyer selection. Unlike buyers, suppliers tend to trust buyers when they think that previous transactions with buyers were important (t=2.913 p<0.01). However, this study did not show any significant relationship between source loyalty and the trust of buyers in suppliers. Hypothesis 6 tested the effects of trust on relational performances. For buyers and suppliers, financial performance reportedly improved when they trusted their partners (t=2.301, p<0.05 for buyers; t=3.692, p<0.01 for suppliers). It is interesting that this tendency was much stronger for suppliers than it was for buyers. Similarly, competitiveness was reported to improve when buyers and suppliers trusted their partners (t=3.563, p<0.01 for buyers; t=3.042, p<0.01 for suppliers). For suppliers, efficiency and productivity were reportedly improved when they trusted buyers (t=2.673, p<0.01). Other performance indices showed insignificant relationships with trust. The findings of this study have some strategic implications. First and most importantly, trust-based transactions are beneficial for both suppliers and buyers. As verified in the study, financial performance can be improved through efforts to build and maintain mutual trust. Similarly, competitiveness can be increased through the same kinds of effort. Second, trust-based transactions can facilitate the reduction of perceived risks inherent in the purchasing situation. This finding has implications for both suppliers and buyers. It is generally believed that buyers perceive higher risks in a highly involved purchasing situation. To reduce risks, previous studies have recommended that suppliers devise risk-reducing tactics. Moving beyond these recommendations, the present study uniquely focused on the bilateral perspective of perceived risk. In other words, suppliers are also susceptible to perceived risks, especially when they supply services that require very technical and sophisticated manipulations and maintenance. Consequently, buyers and suppliers must solve problems together in close collaboration. Hence, mutual trust plays a crucial role in the problem-solving process. Third, as found in this study, the more authority a salesperson has, the more he or she can be trusted. This finding is very important with regard to tactics. Building trust is a long-term assignment; however, when mutual trust has not been developed, suppliers can overcome the problems they encounter by empowering a salesperson with the authority to make certain decisions. This finding applies to suppliers as well.