- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
Vol.11 No.12
Abstract
Purpose - The purpose of this study was to construct a turnover estimation model by investigating research by Park et al. (2006) on the market area of domestic distribution. The study investigated distribution by using a new tool for the turnover estimation technique. This study developed and discussed the turnover estimation technique of Park et al. (2006), applying it to a large-scale retailer in "D"city that was suitable for on-the-spot distribution. It constructed the new model in accordance with test procedures keeping to this retail business location, to apply its procedures to a specific situation and improve the turn over estimation process. Further, it investigated the analysis and procedures of existing turnover estimation cases to provide problems and alternatives for turnover estimation for a large-scale retailer in "D"city. Finally, it also discussed problems and scope for further research. Research design, data, and methodology - This study was conducted on the basis of "virtue" studies. In other words, it took into account the special quality of the structure of Korea's trade zones. The researcher sought to verify a sale estimate model for use in a distribution industry's location. The main purpose was to enable the sale estimate model (that is, the individual model's presentation) to be practically used in real situations in Korea by supplementing processes and variables. Results - The sale estimate model is constructed, first, by conducting a data survey of the general trading area. Second, staying within the city's census of company operating areas, the city's total consumption expenditure is derived by applying the large-scale store index. Third, the probability of shopping is investigated. Fourth, the scale of sales is estimated using the process of singularity. The correct details need to be verified for the model construction and the new model will need to be a distinct sale estimate model, with this being a special quality for business conditions. This will need to be a subsequent research task. Conclusions - The study investigated, tested, and supplemented the turnover estimation model of Park et al. (2006) in a market area in South Korea. Supplementation of some procedures and variables could provide a turnover estimation model in South Korea that would be an independent model. The turnover estimation model is applied, first, by undertaking an investigation of the market area. Second, a census of the intercity market area is carried out to estimate the total consumption of the specific city. Consumption is estimated by applying indexes of large-scale retailers. Third, an investigation is undertaken on the probability of shopping. Fourth, the scale of turnover is estimated. Further studies should investigate each department as well as direct and indirect variables. The turnover estimation model should be tested to construct new models depending on the type of region and business. In-depth and careful discussion by researchers is also needed. An upgraded turnover estimation model could be developed for Korea's on-the-spot distribution.
Abstract
Purpose - There is a dominant opinion that medium and small enterprises in the Korean economy have not developed qualitatively but only towards quantitative growth and, therefore, the unbalanced structure between large enterprises and those that are medium and small has worsened. In particular, this rapid industrialization causes after-effects such as polarization as well as anti-business sentiment, the collapse of the middle class, and hostility against the establishment. The consensus contends that it is difficult for Korea to be an advanced nation without resolving these problems. This paper attempts to suggest a co-prosperity model by limiting the focus to business relations with medium and small manufacturers (with regard to investment among the various co-prosperity institutions of POSCO). These co-prosperity institutions have been established in POSCO; however, it is thought that the development of a co-prosperity model regarding investment in medium and small manufacturers will help many needy investment manufacturers. Research design, data, and methodology - This study analyzes research on the co-prosperity model, using it to examine Korean cases and foreign cases. The co-prosperity model has been continuously extended but is determined to be seriously insufficient. The purpose of this study is to develop the Korean co-prosperity model by reinterpreting it in various aspects. In order to develop the Korean co-prosperity model, this study suggests the case of the establishment of the co-prosperity model by POSCO with medium and small manufacturers with regard to investment. This model is expected to be presented to many enterprises as the future co-prosperity model. Results - To date, analysis of the co-prosperity model itself and the co-prosperity model through the case of POSCO have been suggested. As empirical studies on co-prosperity in Korea are not sufficient, successful models of co-prosperity should be developed in various aspects in future. It is expected that through this study, medium and small manufacturers would have an opportunity to find various growth engines by actively using the cooperation platform and establishing optimized competitiveness of steel material through a steel business model. The ecosystem of enterprises may evolve and be healthier by making more joint products through productive business relationships between large enterprises and those that are medium and small. From the enterprises' ecosystem viewpoint, cooperation between such businesses rather than one-way support is identified as an essential element for the security of inter-competitiveness. Conclusions - Infrastructure should be established to form a dynamic industry ecosystem not by transient efforts in co-prosperity, but by an entire culture of co-prosperity across industries. In this respect, the leading role of public institutions needs to be intensified initially. In addition, the effects of co-prosperity should be extended to blind spots of policies such as third party companies and regions. A precise co-prosperity monitoring system should be established to continuously conduct and extend these efforts.
Abstract
Purpose - The structure of retailing has changed as retailers develop markets in response to business environment changes. This study aims to analyze the general situation of retailers in order to predict future global strategy using case studies of overseas expansion strategy and the Metro Group's global strategy. Research design, data, and methodology - The backgrounds to the new retail business model and retailer classification are analyzed as theoretical data. In addition, the key success point of the Metro Group's "cash and carry" strategy is analyzed as is the Metro Group's global CFAR (collaborative planning, forecasting, and replenishment) strategy. Finally, the plan for cooperation and precise forecasting under the Metro Group's supply chain management are analyzed from the promotion environment viewpoint. Related materials analyzed included the 2012 annual report, the Metro Group's web page, and a video interview with the executive in charge of global strategy and the new market development department. Some data were revised to avoid disrupting essential aspects of the case studies. Results - The important finding was that the Metro Group could be a world-class retail company with its successful global expansion strategy. The Metro Group's global strategy's primary goal is to have a leading business position in Eastern and Western Europe. The "cash and carry" strategy is highest priority in its overseas expansion strategy. Moreover, the Metro Group has standardized product planning capacity, which could be applied in various countries with different structural and cultural backgrounds. This is the main reason that the Metro Group could rapidly become successful in the Eastern Europe and Asian markets through its structural overseas expansion strategies. In addition, the Metro Group emphasizes the importance of supply chain management. Conclusions - First, retailers should create additional value through utilizing the domestic market, market power, and economies of scale to launch a global strategy to maximize benefits from diversification. Second, the political, economic, and cultural background of the target country needs to be understood to successfully implement the overseas expansion strategy. Third, the main factor of successful cooperation with a local partner is how quickly the company gains total understanding of the business resources and core competence of its partner. All organizations should focus on the achievement of goals in order to successfully operate the partnership. Fourth, retailers should improve their business, financial and organizational structure. Moreover, the work processes and company culture should also be improved to respond strongly in the competitive global market. Fifth, the essential point of a successful retail business is the control capacity of its branding and format. The retailer could avoid forecasting errors through supply chain management by perfectly distributing the actual amount of its inventory. In addition, the risks along the supply chain are effectively shared between the supply chain partners. Finally, the central tendency of the market is to gain in strength with this taking place across all parts of the business.
Abstract
Purpose - This study attempts to examine the underlying dimensions of service quality (tangibility, reliability, responsiveness, assurance, and empathy) for low-cost carriers. It subsequently seeks to determine the effect of the relationships of the dimensions of service quality, airline image, and behavioral intentions on airline services to provide adequate basic information and attributes for developing differentiated and competitive service marketing strategies. Research design, data, and methodology - The survey for this study was conducted on patrons with low-cost carrier boarding experiences in districts near universities and central businesses of Seoul and Busan from 5/10/2012 to 16/10/2012. Out of 346 questionnaires, 20 questionnaires with missing data and insincere answers were excluded for this study. Collected data were processed using SPSS 18.0, and the hypothesis was verified by analyzing the structural equation model with Lisrel 8.54. First, the frequency analysis was conducted to identify universal characteristics. Second, the exploratory factor analysis and reliability analysis were conducted to identify the accuracy of the variable measurements of the construct. Third, to assess uni-dimensionality and reliability, confirmatory factor analysis was conducted. Finally, to verify the adequacy of the research model and research hypothesis, the structural model was employed. Results - The results revealed that the factors, "tangibility, reliability, responsiveness, assurance, and empathy" were shown to be the most important dimensions of service quality for the airline image of the low-cost carrier which was consistent with previous studies. Therefore, it is fair to suggest that these verified factors are crucial attributes for the brand image of low-cost carriers. Second, as reliability and responsiveness were shown to be the most important factors for behavioral intentions, it is viable to suggest that these two attributes are crucial for the sales value of low-cost carriers. Further, it was found that the brand image of low-cost carriers was closely related to behavioral intentions. Therefore, in order to ensure the competitiveness and loyalty of patrons, the airline image value is a crucial attribute. Conclusions - The result of this study established that service quality is the most important attribute for marketing to ensure competitiveness, and intensive and differentiated service marketing play a crucial role in creating profits for low-cost carrier companies. First, as tangibility is found to be the most crucial factor in ensuring service quality, quality control and maintenance of medium and small carriers must be provided to ensure reliability, as they are the main attributes of low-cost carriers. Second, in order to promote positive behavioral intentions, it is essential to enhance the value of airline image. Third, in order to ensure competitiveness, it is imperative to carry out intensive and differentiated service marketing. Therefore, to promote the image of low-cost carriers and enhance behavioral intentions, the level of service quality must be secured by developing appropriate service improvement programs.
Abstract
Purpose - A pre-study on service quality-based customer value is conducted with the path structure (perceived value of service quality→customer satisfaction→behavior intention) based on the hierarchical model of service quality including interaction and outcome quality, physical environment quality and the SERVQUAL model of process quality, namely, reliability, responsiveness, assurance, empathy, and tangibles. In addition, customer value in the service industry is studied by dividing into the two-way structure of utilitarian and emotional values. This study classifies customer values of family restaurants through the customer value model based on the 4×4 matrix needs system of Jeon and Kim (2009). It illustrates the path structure of customer value→customer satisfaction→behavior intention targeting college students in order to generalize the customer value system of family restaurants. Research design, data, and methodology - This study established seven hypotheses based on the relationship between each type of customer value (food quality, convenience, social, emotional, interior quality, service encounter, and purchasing) and customer satisfaction, and the relationship between customer satisfaction and behavior intention. The study data were collected from students in the Department of Business and Tourism at Kimpo University. In all, 294 survey papers were returned of the 300 distributed: 253 pieces were used in the final analysis excluding 41 with insufficient and less effective answers. For statistical analysis, the statistics software package SPSS 15.0 was used. Results - The results of the analysis are as follows: first, the customer values of family restaurants are classified by seven customer values: goods quality value, emotional value, convenience value, social value, purchasing value, service encounter value, and inner quality value. Second, emotional value, purchasing value, service encounter value, and inner quality value had positive impact on customer satisfaction. In particular, purchasing value through being included in functional value was not classified in the previous study; however, this study could classify and generalize this value in a new way. Finally, customer satisfaction had a positive impact on behavior intention. This showed that college students had behavior intention - repurchase intention and word-of-mouth - because they could be content with the food items on the menu and the service provided by employees. Conclusions - The main points based on the above-mentioned results are as follows. This study with college students as study subjects could be classified into four dimensions, namely, generic value, usage value, purchasing value, and physical value and seven sub-dimensions on customer values of family restaurants based on a 4×4 matrix needs system. Then, to confirm its generalization, the path structure of customer value→customer satisfaction→behavior intention was verified. While existing pre-studies used simplified values by classifying restaurant values largely as utilitarian value and hedonic value, this study classified various forms of customer value, and that customer value especially could be expanded by adding purchasing value. As a result, it is shown that marketers need to diversify their customer services because this study proved that customer values can be classified in various ways based on customer needs.
Abstract
Purpose - Ethical consumption is the action of buying one product over another with an ethical idea in mind. It has gained in popularity since the 1990s with more emphasis being put on the power of consumer actions to create social, economic, and environmental change. Ethical consumption involves boycotts of certain products or brands as well as purchases linked to ethical issues. Cause-related marketing (the buying behavior of ethical consumption) involves a for-profit and non-profit entity teaming up to promote a product at the same time as promoting a social cause. Each time a consumer buys that product, a donation is made by the for-profit entity to the non-profit entity supporting the specific cause. Cause-related marketing has become a tremendously popular type of ethical consumption in recent years owing to its reputation of allowing companies to "do well by doing good." This study examines how consumers' perception of cause and attitude influence their attitude toward a cause-related marketing campaign and attempts to suggest implications for marketers. Research design, data, and methodology - First, this study was designed to examine the consumers' perception factors (cause involvement, attitude for cause, attitude for company and brand familiarity) in order to determine whether these factors have significantly affected consumers' attitude toward a cause-related marketing campaign. Second, this study developed a structural equation model and tested it empirically using survey data from 223 individual respondents. Respondents were undergraduate students in Chungnam. They were shown an existing real campaign message of cause-related marketing, and then filled out a questionnaire. Data were analyzed with SPSS 20.0 and AMOS 17.0 programs. Results - The hypotheses were tested using factor analysis and structural equation modeling. The study's results showed that brand familiarity, attitude to the company and attitude to the cause significantly affected consumers' attitude toward the cause-related marketing campaign and performance. In particular, attitude to the cause was significantly related to attitude and performance of the cause-related marketing campaign. However, the hypothesis about cause involvement was not supported with the results indicating that cause involvement did not affect consumers' attitude toward the cause-related marketing campaign. The findings underline the importance of consumer perceptions of the cause and the company and their attitude to the cause. They point to the importance of individual differences that influence consumer perceptions of the cause, the company and brand familiarity. Also of importance is the consumer's attitude to the cause. Conclusions - The findings suggest some practical implications in designing and implementing cause-related marketing campaigns. It is important to enhance brand familiarity and create a favorable attitude to the company and attitude to the cause before designing cause-related marketing campaigns. The rising popularity of cause-related marketing has been attributed to its potential to cut through advertising clutter. The findings in this study suggest that marketing campaigns supporting a cause make a difference.
Abstract
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.