• Environmental and Resource Economics Review
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• v.13 no.2
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• pp.219-243
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• 2004

Generally, electricity market has monopoly market structure because of need of enormous investment for infrastructure. However, the introduction of competition in network industry as electricity is a tendency of the world with decreasing the effects of economy of scale due to the advancement of technology. Now, electricity industry restructuring is in progress but the competition in electricity retail market is not in force yet in Korea. Whether a effective competition exist or not is very important to policy decision maker who drive restructuring, but there are small numbers of quantitative researches on that. In this study, we estimated the effectiveness of competition in the electricity retail market through switching costs. If switching costs are high, consumers actually can be locked in incumbent firm in spite of introduction of competition. Therefore switching is a critical factor to determine effectiveness of competition and to estimate the size of switching costs quantitatively can proffer the information about whether the competition in the electricity retail market is effective or not in the future. We estimated switching costs using consumer' stated-preference data by conjoint analysis. In according to estimation results, the cost of switching process is not so high, but the relative brand loyalty of an incumbent company is significantly high. And the price is considered as the most important factor choosing an electric service commodity. Based on the empirical results, it is possible to analyze the relationship between suppliers' competitiveness resulted from management efficiency and customers' switching possibilities. The paper therefore provides guidance for suppliers in deciding to enter into retail competition and for policy makers in introducing retail competition. And it has a significance of estimating the switching costs directly.

• Journal of Distribution Science
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• v.10 no.11
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• pp.79-88
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• 2012

Purpose - The objective of this paper is to suggest that a company's CRM activities have an effect on customer loyalty in the Korean retail industry. Typically, Korean customers use large local marts with convenience in the absence of any other choice. Therefore, this study aims to shed light on the fact that customers do not break away from their preferred retail stores, either owing to their stringent loyalty (the lie loyalty) or difficulty in turning to alternative choices. Research design, data, methodology - By surveying a sample of 200 hyper-markets through a questionnaire, and excluding dubious and missing responses, I obtained 181 samples to be included in the empirical analysis. The survey was conducted for two weeks during October 2011. AMOS and SPSS18 statistical packages were used for conducting statistical analysis for this study. This paper was developed using the concept of customer equity on CRM, which is known to have a positive impact on customer loyalty through the satisfaction and switching-barrier parameters. The hypothesis of this paper is that customer equity is composed of relationship equity, value equity and brand equity, and that the relationship equity variable has positive effects on the value equity and brand equity amongst other types of customer equity. Moreover, customer equity influences customer loyalty through parameters including customer satisfaction and switching costs in the Korean retail industry. Results - According to the results of the analysis, it was confirmed that relationship value had a positive effect (+) on all variables, including the perceived QoS (Quality of Service), store brand images, economic value, and store convenience. It was also confirmed that the assumption that the perceived QoS (Quality of Service), economic value, and store convenience had a positive effect on customer satisfaction was shown to be statistically significant, with a p-value below 0.05. Only the store brand value variable had an effect on the switching-cost variable with respect to the causal sequence of the variables, including the perceived QoS, store brand value, economic value, and store convenience. The remaining variables did not seem to influence the switching-cost variable. On the other hand, another effect showed that customer satisfaction had a statistically significant influence on the switching-costs variable. Moreover, the customer satisfaction and switching-cost variables also had a statistical influence on customer loyalty. Conclusions - The CRM activities had an influence on various variables (including perceived QoS, perceived economic value, store brand value, and store convenience) pertaining to customer values. Customer satisfaction and switching-cost had some effects on customer loyalty as a parameter. This confirms that stringent loyalty exists with respect to customer loyalty in the retail industry. The fact that the variable had such a statistically significant influence on the switching-cost and store brand equity variables means that consumers react to the reputation of a brand, confidence about the store, and quality confidence. The implications of this study in the retail industry should be further extended to devise strategies for customer retention.

• The Journal of Bigdata
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• v.8 no.1
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• pp.131-156
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• 2023

The traditional retail industry significantly changed over the past decade due to the mobile and online technologies. This change has been accompanied by a shift in consumer behavior regarding purchasing patterns. Despite the rise of online shopping, there are still specific categories of products, such as "Processed food" in Mongolia, for which traditional shopping remains the preferred purchase method. To prepare for the inevitable future of retail businesses, firms need to closely analyze the performance of their offline stores to plan their further actions in a new multi-channel environment. Retailers must integrate diverse channels into their operations to stay relevant and adjust to the shifting market. In this research, we have analyzed the performance data such as sales, profit, and amount of sales of offline stores by using clustering approach. From the clustering, we have found the several distinct insights by comparing the circumstances and performance of retail stores. For the certain retail stores, we have proposed three different strategies: a fulfillment hub store between online and offline channels, an experience store to elongate customers' time on the premises, and a merge between two non-related channels that could complement each other to increase traffic based on the store characteristics. With the proposed strategies, it may enhance the user experience and profit at the same time.

• Management Science and Financial Engineering
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• v.7 no.1
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• pp.1-26
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• 2001

Assume a company sells two products (a and B) in a retail market. the company adopts a specific promotion mechanism, Tie-in Promotion, in which product A's promotional discount coupon is distributed whenever a consumer purchases product B. Product A will later e sold at a markdown price when consumers eventually take the opportunity to redeem the coupon. in the integrated tie-in promotion and stocking policy, we assume managers of two products coordinate by sharing information on the demand forecast and deciding the order quantities and tie-in promotion program to maximize joint profits. The optimal integrated tie-in policy is analyzed. The integrated tie-in promotion model is then compared with two other base models: (1) a decentralized Newsboy model in which no promotion is considered, and (2) an individual promotion model in which managers design a promotion program to promote one of the two products directly. The factors that make an integrated tie-in promotion a better approach are studied.

• Proceedings of the Korea Database Society Conference
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• 2001.06a
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• pp.251-260
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• 2001

For a continuous revenue increase, a new scheme to increase sale volume is a necessity. This new scheme is based on a revaluation of the customer value for the sake of the future of a company. The concept and use of CRM and OLAP(On-Line Analytical Processing) are introduced in this report. The effectiveness of OLAP-based CRM is demonstrated through a case study of a typical retail company. The research suggests the need for the establishment of a marketing strategy to build a long-term relationship with individual customers. The needs for a scientific and systematic analysis of the industry, competitors and customers are elaborated.

• Journal of the Korea Safety Management & Science
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• v.12 no.4
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• pp.153-160
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• 2010

In this paper, effects of information sharing in multi-level supply chain management have been studied through simulation. The simulation model consists of a manufacturing company as a center, three suppliers, two logistic centers, and three different retail supply lines of each logistics centers. The mathematical model and the simulation were developed when real-time information sharing occurs and does not occur in supply chain under the assumption that each company applies (s, S) inventory policies. In addition, this paper analyzed the effects of the change of variables related to total costs, which compose of total ordering cost, total transportation cost, total carrying cost and shortage cost that are caused by the change of demand of three different patterns with the way of information sharing.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.10 no.11
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• pp.3144-3154
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• 2009

Recently, people seek to recognize organizationally and cross sectionally the period work of a company such as manufacturing, retail, distribution, accounting, and personnel management in order to maximize company profit. Also, the ERP system, which is used as a management concept for plan management designed to optimize the utilization of management resources in an enterprise like manner, has been introduced for the same purpose. This study has examined the ERP system, which has been currently set up, for the parent company, S. The study has evidentially analyzed the system efficiency and satisfaction level of customers by examining implementation effects after onsite application and by seeking ways of improvement after recognizing the difficulty linked with use discovered after onsite application of the system and rejection by customers by conducting a questionnaire survey.

• Journal of Distribution Science
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• v.16 no.12
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• pp.13-21
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• 2018

Purpose - Because it is not possible to assess the quality of service products before experiencing them, one feature of a service product is quality uncertainty; hence consumers may react sensitively to pricing. It is necessary to investigate how different pricing strategies affect consumer purchase intention depending on the level of service quality uncertainty. Research design, data, and methodology - The authors have investigated the potential impact of the level of service quality uncertainty, price discount rate and presentation method on consumer purchase intention. A play was selected as an experimental stimulus, and Vietnamese consumers were surveyed to verify the hypotheses. Results - When uncertainty regarding service quality is low, consumer purchase intention is higher when the price discount rate is high or when the price is low. When uncertainty regarding service quality is high, if the normal price, discount rate, and discounted price are presented simultaneously, consumer purchase intention is higher when the price discount rate is low, but when only the discounted price is presented, purchase intention is higher when the price discount rate is high. Conclusions - The results of this study can provide valuable practical implications for pricing for service products with quality uncertainty.

• Journal of Distribution Science
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• v.14 no.8
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• pp.45-50
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• 2016

Purpose - This study aimed to develop a new practical and universally applicable service quality model by improving the service quality measurement model proposed by many previous studies. Research design, data, and methodology - An in-depth analysis on what influences such service quality model had on the improvement effect of service quality, and Service Evaluation Model("SEM"), which was revised from the existing service quality measurement model, was developed. The model is divided into the two integrative categories: First, activity, that is the group of service-related activities. Next is item, the group of service-related objects. The level of service is evaluated for each category via survey questionnaire on service level evaluation. Based on the model, SEM has visibility by structuring the whole service industry. Results - For the application of the new service quality model, this study attempted to examine the appropriateness of the newly proposed service quality model by applying it to retail service field. Conclusions - As a result, the proposed service model would be a useful and applicable service quality measurement model required by many organizations. Service company can set up self check service levels. Through these results, they can look for the ways to provide better services to customers. Service users can ensure the objectivity of business plan based upon SEM.

• The Journal of Industrial Distribution & Business
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• v.6 no.4
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• pp.5-16
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• 2015

Purpose - Currently, organizations must have a plan to achieve their future objectives. In this case, an information strategy facilitates greater success when planning for the future in any organization. Research design, data, and methodology - The core objective of the project was to explore the information infrastructure of Walkbase in a discursive manner. We started the project by providing a description of the firm, which facilitates retail outlets using in-store analytical devices. Results - We conclude that the management of Walkbase revised its current information structure to implement a more structured one that might be included in a long-term investment. On such an occasion, management can prioritize the component to develop first. Conclusions - Along with our results, we also described the business, its products, its facilities, and how it can serve different industries. Finally, we left the prioritization decision within the framework's components to top management.