• Journal of Distribution Research
• /
• v.17 no.4
• /
• pp.29-53
• /
• 2012

As so many marketers get to use diverse sales promotion methods, manufacturer and retailer in a channel often use them too. In this context, diverse issues on sales promotion management arise. One of them is the issue of unplanned buying. Consumers' unplanned buying is clearly better off for the retailer but not for manufacturer. This asymmetric influence of unplanned buying should be dealt with prudently because of its possibility of provocation of channel conflict. However, there have been scarce studies on the sales promotion management strategy considering the unplanned buying and its asymmetric effect on retailer and manufacturer. In this paper, we try to find a better way for a manufacturer in a channel to promote performance through the retailer's sales promotion efforts when there is potential of unplanned buying effect. We investigate via game-theoretic modeling what is the optimal cost sharing level between the manufacturer and retailer when there is unplanned buying effect. We investigated following issues about the topic as follows: (1) What structure of cost sharing mechanism should the manufacturer and retailer in a channel choose when unplanned buying effect is strong (or weak)? (2) How much payoff could the manufacturer and retailer in a channel get when unplanned buying effect is strong (or weak)? We focus on the impact of unplanned buying effect on the optimal cost sharing mechanism for sales promotions between a manufacturer and a retailer in a same channel. So we consider two players in the game, a manufacturer and a retailer who are interacting in a same distribution channel. The model is of complete information game type. In the model, the manufacturer is the Stackelberg leader and the retailer is the follower. Variables in the model are as following table. Manufacturer's objective function in the basic game is as follows: ${\Pi}={\Pi}_1+{\Pi}_2$, where, ${\Pi}_1=w_1(1+L-p_1)-{\psi}^2$, ${\Pi}_2=w_2(1-{\epsilon}L-p_2)$. And retailer's is as follows: ${\pi}={\pi}_1+{\pi}_2$, where, ${\pi}_1=(p_1-w_1)(1+L-p_1)-L(L-{\psi})+p_u(b+L-p_u)$, ${\pi}_2=(p_2-w_2)(1-{\epsilon}L-p_2)$. The model is of four stages in two periods. Stages of the game are as follows. (Stage 1) Manufacturer sets wholesale price of the first period($w_1$) and cost sharing level of channel sales promotion(${\Psi}$). (Stage 2) Retailer sets retail price of the focal brand($p_1$), the unplanned buying item($p_u$), and sales promotion level(L). (Stage 3) Manufacturer sets wholesale price of the second period($w_2$). (Stage 4) Retailer sets retail price of the second period($p_2$). Since the model is a kind of dynamic games, we try to find a subgame perfect equilibrium to derive some theoretical and managerial implications. In order to obtain the subgame perfect equilibrium, we use the backward induction method. In using backward induction approach, we solve the problems backward from stage 4 to stage 1. By completely knowing follower's optimal reaction to the leader's potential actions, we can fold the game tree backward. Equilibrium of each variable in the basic game is as following table. We conducted more analysis of additional game about diverse cost level of manufacturer. Manufacturer's objective function in the additional game is same with that of the basic game as follows: ${\Pi}={\Pi}_1+{\Pi}_2$, where, ${\Pi}_1=w_1(1+L-p_1)-{\psi}^2$, ${\Pi}_2=w_2(1-{\epsilon}L-p_2)$. But retailer's objective function is different from that of the basic game as follows: ${\pi}={\pi}_1+{\pi}_2$, where, ${\pi}_1=(p_1-w_1)(1+L-p_1)-L(L-{\psi})+(p_u-c)(b+L-p_u)$, ${\pi}_2=(p_2-w_2)(1-{\epsilon}L-p_2)$. Equilibrium of each variable in this additional game is as following table. Major findings of the current study are as follows: (1) As the unplanned buying effect gets stronger, manufacturer and retailer had better increase the cost for sales promotion. (2) As the unplanned buying effect gets stronger, manufacturer had better decrease the cost sharing portion of total cost for sales promotion. (3) Manufacturer's profit is increasing function of the unplanned buying effect. (4) All results of (1),(2),(3) are alleviated by the increase of retailer's procurement cost to acquire unplanned buying items. The authors discuss the implications of those results for the marketers in manufacturers or retailers. The current study firstly suggests some managerial implications for the manufacturer how to share the sales promotion cost with the retailer in a channel to the high or low level of the consumers' unplanned buying potential.

• KDI Journal of Economic Policy
• /
• v.13 no.1
• /
• pp.3-33
• /
• 1991

Since the early 1980's, the Korean government has gradually been widening the Korean market to foreign consumer goods. This, combined with the increased purchasing power of the Korean consumers resulting from the continued economic growth of the country, has sparked a spectacular influx of foreign consumer goods into Korea, ranging from BMW's to chopsticks. Import of foreign consumer goods amounted to more than 6 billion dollars in 1989 and is continuing to grow at a rapid rate. The increased import of foreign consumer goods doubtlessly improved the overall welfare of the Korean consumers by providing them with a wider range of options to choose from, by lowering the prices of some of the consumer goods domestically produced, and also by forcing the producers of some Korean goods to face competition with better foreign goods, thus giving them an incentive to raise the quality of their products. However, it is agreed by most economists that this increase in general welfare has been much smaller than what they had expected at the outset. Consumer prices of most imported consumer goods are easily double the import price, and in some cases, more than treble the import prices. Further, there has not been a noticeable drop in the prices of domestically produced consumer goods. Much of the blame has been attributed to the distribution sector of Korea. The objective of this paper is to analyze the imported consumer goods distribution sector of Korea, focusing on the possible sources of the poor performance of that sector, and to make policy suggestions that could potentially increase the welfare. This paper differs from all the previous research by others on this subject in that it analyzes the imported consumer goods distribution sector of Korea as a vertical structure. The distribution sector of an imported consumer good is a vertical structure since it consists of an international market, an import stage, and domestic wholesale and retail markets, in that order vertically. Our study naturally includes the analysis of the vertical restraints as well as the analysis of the industrial organization of each horizontal stage in the vertical structure. Each horizontal component of the imported consumer goods distribution sector is basically a monopolistically competitive market differentiated by characteristics of goods and by the locations and the services of firms. Further, restrictive dealership and resale price maintenance are found to be widely in use. Our main findings are the follwing; First, most consumer goods are imported monopolistically or oligopolistically through restrictive dealership contracts between foreign producers and domestic importers. Such restrictive dealership gives importers market power in the domestic market and explains many of the large discrepancies betwen the consumer prices and the import prices of many goods. Korean anti - trust law does not cover the issues arising from the market power of an importer resulting from a restrictive dealership contract. Second, some major producers of Korean goods are also importers of foreign goods that are substitutes of their products. The import of substitutes by major domestic producers is anti - competitive because it tends to raise the prices of both domestic goods and foreign goods, and also because it reduces the incentive of the domestic producers to raise the quality of their products. Third, wholesalers and retailers widely use resale price maintenance as a price fixing mechanism, and while this is against the anti- trust law, it seldom gets noticed. Fourth, the high level of rents of real estate for commercial use works as an entry barrier to the distribution sector and results in reduced competition by the firms in that sector. Finally, there are information problems. Consumers have inferior information to firms about the quality of a foreign consumer good that they have not tried before. Such information asymmetry often enables firms to raise prices. In addition, information asymmetry between importers frequently delays the import of cheaper substitutes. In order to alleviate the problems indentified above, we suggest the following policy changes. The government should strengthen the anti - trust law and its enforcement to regulate restrictive import contracts, import of competing goods by major domestic producers, and RPM by wholesalers and retailers that is aimed at price fixing. In addition, the government should loosen its tight real estate policy to encourage investment in the distribution sector. Finally, we suggest that the import price revelation policy that has been in use for some items since 1990 be expanded to most imported consumer goods that are introduced for the first time to give consumer better information and be used only for the period of time needed to inform sufficient number of consumers.

• The Journal of Industrial Distribution & Business
• /
• v.2 no.2
• /
• pp.25-38
• /
• 2011

After the financial crisis, what has been the rapidly growth of large supermarkets, stores, and restaurants linked to concerns that have already reached saturation point, but the new opening large supermarkets is expected to continue into the future. The major supermarkets are continue to grow outward but growth slowed. And that is expected to continue differentiation of the product, acceptance the customer needs, acquiring high margin of sales products. Then the ongoing development of PB brand is to be positioned effective marketing strategy for overcoming the period of slow growth. In addition, big three local supermarkets continue to launch a clothing PB brand, expansion and operation strategy for the situation and based on this study and the success of the domestic large-Mart's PB and PB identifying problem and the need for differentiation and profit for the successful strategy is to discuss in this study. This research looks at the concept of major market's private brand, the strategy, the success example and the prospects, and views the globally rapid-growing private brands, not only having the limited role of distributing the products as retailers, but also having a control of the distribution channel as a manufacturing company. World's major advanced distribution companies, to differentiate their companies' products and increase the profitability, are putting a lot of efforts into private brand products, and there are many good examples that are globalizing, externally expanding, and creating high financial results. In this research, we presented three major domestic discount stores as examples to show that there is a need for a differentiated private brand management strategy in the saturated discount store industry in Korea. Also, we aim to provide a new product strategy for the future that has been saturated with discount stores to the limit, by providing suggestions that private brand products can be used as weapons with the strongest competiveness in the retail industry through pursuing store differentiations from thorough market analysis and product researches, meeting the customers' needs, and obtaining high margins. PB products, particularly clothing design, a thorough market analysis and product development trends and customer needs to reflect the acquisition of High margin differentiated powerful products and sustainable growth through the stores, large supermarkets, congested, a new breakthrough that can give a good opportunity to provide implications discount stores, new product strategy based on ways to limit proposed. This study discount the major three companies studied, the less strain is a generalization. In the future, domestic and local discount store brand PB, SPA brand that the multinational comparative analysis of the value of the PB expansion strategy centered on clothing, additional studies will be needed.

• Food Science of Animal Resources
• /
• v.30 no.6
• /
• pp.896-904
• /
• 2010

HACCP is a scientific and systematic program that identifies specific hazards and gives measurements in order to control them and ensure the safety of foods. Transportation of livestock and its products is one of the vulnerable sectors regarding food safety in Korea, as meats are transported by truck in the form of a carcass or packaged meat in a box. HACCP application and its acceleration of distribution, in particular transportation, are regarded as important to providing consumers with ultimately safe livestock products. To achieve this goal, practical tools for HACCP application should be developed. Supply chain management (SCM) is a holistic and strategic approach to demand, operations, procurement, and logistics process management. SCM has been beneficially applied to several industries, notably in vehicle manufacture and the retail trade. HACCP-based real-time visibility system using wireless application (WAP) of the livestock distribution is centralized management system that enables control of temperature and HACCP management in real-time for livestock transportation. Therefore, the application of HACCP to livestock distribution (transportation, storage, and sale) can be activated. Using this system, HACCP management can be made easier, and distribution of safe livestock products can be achieved.

• Proceedings of the Korean Society of Postharvest Science and Technology of Agricultural Products Conference
• /
• 1993.12a
• /
• pp.6-9
• /
• 1993

According to changes in population, economic conditions, life-stile and eating habits, the frui ts and vegetables market wi 11 be shi fted from processed (i. e. , canned) to fresh. Undressed fresh produce, consisting of washed, disinfected and peeled fruits and vegetables that either sliced or grated, are currently increased in demand by retail and institutional market which use them as salad components or in ready-to use foods, Main attributes of minimally processed fruits and vegetables are convenience and fresh-like quality. Minimally processed Products readily deteriorate in quality, especially color and texture, as a result of endogeneous enzyme enhanced respiration and microorganisms which lead to reduced shelf Iife. According to changes in population, economic conditions, life-stile and eating habits, the frui ts and vegetables market wi 11 be shi fted from processed (i. e. , canned) to fresh. Undressed fresh produce, consisting of washed, disinfected and peeled fruits and vegetables that either sliced or grated, are currently increased in demand by retail and institutional market which use them as salad components or in ready-to use foods, Main attributes of minimally processed fruits and vegetables are convenience and fresh-like quality. Minimally processed Products readily deteriorate in quality, especially color and texture, as a result of endogeneous enzyme enhanced respiration and microorganisms which lead to reduced shelf Iife. Thus. to prevent these undesirable changes , val'ious techniques such as controlled atmosphere (CA) storage, modified atmosphere OIA) storage, including vacuum packaging have been receiving considerable attention, Although milch research has been done to find optimal conditions for whole intact frui ts and vegetables, only limi ted information is avai lable on fresh cut. and other minimally processed products. 81 iced frui ts exhibi t increas~d ethylene production and respiration compal'ed to whole f, 'uits during distribution in response to tissue damage. As a result, accelerated senescence and enzymatic browning OCCUI', Recent l'esearch on minimally processed fl'uits and vegetables has mainly focused on methods to inhibit browning, due to ban on use of sulfur dioxide, In order to retard or prevent these physiological changes, val'ious al ternatives, reducing agents. acidulants, chelating agents and inol'ganic sal ts have been evaluated for use on fresh cut fl'ui ts. Al though some agents were effective replacement for sulfur dioxide. consum$\textregistered$I'S demandless use of chemical on such products. Shel~ life of minimally processed products has been extended by inhibition of metabolic reactions associated with loss of quality and by inhibition of aerobic spoilage caused by wide variety of microorganisms. Appl ication of ~I.-\ packaging, including vacuum packaging, retards the rate of respiration, prevents growth of aerobic spoilage organisms, inhibits oxidation and color deterioration. Tissue softening is another major problem in minimally processed products because enzymes re 1 a ted to ce 11 wa 11 degrada t i on are not inactivated. Various treatments have been investigated for retardation of the softening of sliced products. Some studies have concentrated on the application of an active packaging system with ~I, l. packaging and calcium infi 1 tration as possible measures to retain firmness of processed products. In my opinion, one important step for production of minimally processed frui ts wi th favorabl e color of cut surface and firm texture is the selection of better cultivar. As the view, changing tendency of fresh color by apple cultivars and relationship between the tendency and PPO activity will be discussed in the seminar. In addition to the topic, research result on quality enhancement of fresh apple slices by heat shock treatment will be introduced.

• Journal of Distribution Science
• /
• v.9 no.2
• /
• pp.111-122
• /
• 2011

The purpose of this study is to survey the successful cases of small and medium Business Systematization Cognition by examining their entrepreneurial characteristics and analysing the factors affecting their success. To that end, previous studies on the association types of small businesses were studied. A research model was developed, and research hypotheses for an empirical analysis were established upon it. Suh et al. (2010) insist on the importance of Small Business Systematization in Korea but also show that small business performance is suffering: they are too small to stand alone. That is why association is so crucial for them: they must stand together. Unfortunately, association is difficult, as they have few specific links and little motivation. Even in franchising networks, association tends to be initiated by big franchisers, not small ones. In that sense, association among small businesses is crucial for their long-term survival. With this in mind, this study examines how they think and feel about the issue of 'Industrial Classification', how important Industrial Classification is to their business success, and what kinds of problems it raises in the markets. This study seeks the different cognitions among the association types of small businesses from the perspectives of participation motivation, systematization expectation, policy demand level, and management performance. We assume that different industrial classification types of small businesses will have different cognitions concerning these factors. There are four basic industrial classification types of small businesses: retail sales, restaurant, service, and manufacturing. To date, most of the studies in this area have focused on collecting data on the external environments of small businesses or performing statistical analyses on their status. In this study, we surveyed 4 market areas in Busan, Masan, and Changwon in Korea, where business associations consist of merchants, shop owners, and traders. We surveyed 330 shops and merchants by sending a questionnaire or visiting. Finally, 268 questionnaires were collected and used for the analysis. An ANOVA, T-test, and regression analyses were conducted to test the research hypotheses. The results demonstrate that there are differences in cognition depending upon the industrial classification type. Restaurants generally have a higher cognition concerning job offer problems and a lower cognition concerning their competitiveness. Restaurants also depend more on systematization expectation than do the other industrial classification types. On the policy demand level, restaurants have a higher cognition. This study identifies several factors that are contributing to management performance through differences in cognition that depend upon association type: systematization expectation and policy demand level have positive effects on management performance; participation motivation has a negative effect on management performance. We confirm also that the image factors of different cognitions are linked to an awareness of the value of systematization and that these factors show sequential and continual patterns in the course of generating performances. In conclusion, this study carries significant implications in its classifying of small businesses into the four different associational types (retail sales, restaurant, services, and manufacturing). We believe our study to be the first one to conduct an empirical survey in this subject area. More studies in this area will likely use our research frameworks. The data show that regionally based industrial classification associations such as those in rural cities or less developed areas tend to suffer more problems than those in urban areas. Moreover, restaurants suffer more problems than the norm. Most of the problems raised in this study concern the act of 'associating itself'. Most associations have serious difficulties in associating. On the other hand, the area where they have the least policy demand is that of service types. This study contributes to the argument that associating, rather than financial assistance or management consulting, promotes the start-up and managerial performance of small businesses. This study also has some limitations. The main limitation is the number of questionnaires. We could not survey all the industrial classification types across the country because of budget and time limitations. If we had, we could have produced many more useful results and enhanced the precision of our analysis. The history of systemization is very short and the number of industrial classification associations is relatively low in Korea. We should keep in mind, though, that this is very crucial to systemization entrepreneurs starting their businesses, as it can heavily affect their chances of success. Being strongly associated with each other might be critical to the business success of industrial classification members. Thus, the government needs to put more effort and resources into supporting the drive of industrial classification members to become more strongly associated.

• Journal of the Korean Society for Library and Information Science
• /
• v.32 no.4
• /
• pp.69-86
• /
• 1998

The purpose of velop the indexing algorithm of secondary legal information by the study of characteristics of legal information, to compare the indexing system using controlled vocabulary to the indexing system using natural language in the secondary legal information full-text databases, and to prove propriety and superiority of the indexing system using controlled vocabulary. The results are as follows; 1)The indexing system using controlled vocabulary in the secondary legal information full-text databases has more effectiveness than the indexing system using natural language, in the recall rate, the precision rate, the distribution of propriety, and the faculty of searching for the unique proper-records which the indexing system using natural language fans to find 2)The indexing system which adds more words to the controlled vocabulary in the secondary legal information full-text databases does not better effectiveness in the retail rate, the precision rate, comparing to the indexing system using controlled vocabulary. 3)The indexing system using word-added controlled vocabulary with an extra weight in the secondary legal information full-text databases does not better effectiveness in the recall rate, the precision rate, comparing to the indexing system using word-added controlled vocabulary without an extra weight. This study indicates that it is necessary to have characteristic information the information experts recognize - that is to say, experimental and inherent knowledge only human being can have built-in into the system rather than to approach the information system by the linguistic, statistic or structuralistic way, and it can be more essential and intelligent information system.

• Archives of design research
• /
• v.20 no.3 s.71
• /
• pp.85-96
• /
• 2007

In Korea, with a dramatic growth of Super Supermarket (SSM) in the wake of opening up the retail market and diversifying distribution, the consumer's purchase behavior about food and consumer goods changed. In order to investigate this change, this study was carried out through collecting and analyzing questionnaires from 190 men and women consumers at ages between twenties and sixties, living in Ulsan and Pusan. The result suggested that in overall features, men were mainly affected by design factors such as packaging design, color, and product design, whereas women were mainly affected by cost factors such as price and configuration. As for product properties, it was suggested that women put importance on the price concerning ail products, but men didn't. In addition, it was identified that women were impressed by advertisements on TV, and men and women both often purchased the product after confirming its information among the displayed products. Considering these results, we concluded that for a product whose main target is men in particular, the product development should focus on design. Moreover, as the packaging design and display affect on both men and women as important factors, hereafter a complementary study on the effects of the packaging design and display of manufacturers related to the products in this study is to be proceeded with greater interest.

• The Journal of Fisheries Business Administration
• /
• v.29 no.2
• /
• pp.77-96
• /
• 1998

Fisheries products in Korea generally go through three markets, namely the wholesale market at production site (Market A), the wholesale market at consumption site (Market B), and the retail market (Market C), from producers to end consumers. As the products move from Market A through Market B to Market C, the marginal gap of prices asked in these markets demonstrates an apparent relationship. The producers, middlemen, consumers, and governmental departments concerned may influence the marketing prices of fisheries products. This study employing the cointegration theory tries to investigate whether causality of the price-setting among these markets exists and, if any, what it is. The authors have focused their attention on fisheries markets in Pusan, analyzing the long-run equilibrium relationship and causality between the prices of hairtail and squid among markets at different levels. Data used in this study cover the period f개m August 1984 to December 1997 fer hairtail, and the period from May 1989 to December 1997 for squid. The main findings of the study may be summarized as follows: First, regardless of the price time-series of hairtail and squid in individual market, the first difference is necessary fur satisfying the stationary conditions since each time-series is a first integration. This means homogeneous integration of time-series, which is a requirement of the long-run equilibrium of prices at different markets, is satisfied. Second, the study of the long-run equilibrium relationship between the prices at Market A and Market B shows that a long-run equilibrium relationship does exist for selling prices of the two species at Market A and Market B. Third, the ECM (error correction model ) used here to describe the long- and short-run dynamics of price change demonstrates that, in the case of squid, the price change in Market A will lead to a corresponding price change in Market B in the long-run period. In the short-run, however, the price at Market H is not only influenced by the price change in Market A but influence the price at Market A as well, that is, the Prices between Market A and Market B have a feedback effect. It should be stressed that the limitation in data collection, which cover only two species of hairtail and squid, is likely to cause a sampling bias. Nonetheless, we may conclude that a dynamic relation in the formation of prices does exist in view of the transaction amount of species at different markets. It is believed that the conclusion drawn from this study would not only contribute to a long-lasted debate on the direction of causality of price-setting among academic circle and fishing community, but would provide a useful standard for the policy makers in charge of the price-setting of fisheries products as well.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.8 no.1
• /
• pp.127-136
• /
• 2013

In 2013, the small retailer organized support service, which commenced in 2009, has been expanding its place in the policy by transforming into a small retailer cooperating support service. This support service supports two main sides. One of them is strengthening the financial aspects of the scale by organizing the small retailers in order to make the distribution efficient. The second is improving the management and enhancing the efficiency through visitation education. This research focuses on studying the effects of the visitation education which is one of the two aspects of small retailers support service. Empirical analysis on the effects of the visitation education's quality on the loyalty of support service and business performance was performed in detail by dividing the structure of the companies into chain form and combined form of small retailers. According to the results of the analysis, the visitation education's quality positively affected the support service's loyalty without any restrictions on the structures of the retailers. However in the business performances, the visitation education's quality only showed positive effects on the combined form of small retailers. Therefore, it is implied that in order to continuously receive support program by increasing the loyalty of the retailers, the quality of the visitation education must be increased and the retailer support service need to be considering the structure of the companies in order to improve small retailer's business performance.