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- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
Vol.13 No.11
Abstract
Purpose - The purpose of this study is to understand how retailers' green practices influence customer environmental values and their organic food purchasing intention. Research design, data, and methodology - Data were collected from randomly intercepting retail shoppers (n=719) departing from 33 retail stores selling organic food products located in Florida, USA. U.S. Data were analyzed using descriptive statistics, CFA and Hierarchical regression analyses. Results - Results documented that customer environmental values (social-altruistic values and biospheric values) were determinants of organic food purchasing intention. Retailers' green practices representing'green self-governance'were found to significantly enhance the effects of customer environmental values upon organic food purchasing intention. Conclusions - This study successfully demonstrated that customers'willingness to purchase eco-friendly products can be greatly increased when having a positive perceptions toward retailers'green practices such as environmental friendly waste management, environmental improvement of packaging, taking back packaging and recovery of the company's end-of-life products.
Abstract
Purpose - This study aims to propose and validate a research model that describes the relationships between customer socialization, customer participation, and customer loyalty in the online service industry. Although customer loyalty is frequently discussed topic in marketing and strategy research, this study takes a novel approach in adopting customer socialization and participation as the antecedents to customer loyalty. Research design, data, and methodology - Based on adopting and modifying measurement items of the constructs from previous studies, this study develops survey regarding the constructs within the proposed research model. Among current registered members of Facebook and DaumKakao, 522 college students and other regular users are selected as the samples for conducting the survey. The collected data is analyzed by structural equation modeling method using SPSS and AMOS. Results Proposed hypotheses of the positive relationships - between customer socialization and customer participation, and between customer participation and customer loyalty are all supported. Conclusions - The results of this study suggest customer participation as an important precursor to customer loyalty in the online service industry. Also, customer socialization is validated as a new strategy to increase customer participation. These results validate the practical importance of communicating mission, purpose, value, and other customer socialization activities that firms undertake.
Abstract
Purpose - Small- and medium-sized enterprises often rely on the owner's personal characteristics. This study aims to verify the impact of the awareness of such a business leader's sincerity and the sincerity of their leader-member exchange (LMX) on employee psychological ownership and organizational commitment. The findings offer clues to how small- and medium-sized company leaders should engage with employees. Research design, data, and methodology - A total of 289 valid questionnaires were examined using frequency, descriptive statistics, and correlation analyses and structured equation modeling. Results - Authentic leadership and LMX were both found to have a positive impact on each trust factor, each trust factor had a positive impact on psychological ownership and organizational commitment, and psychological ownership had a positive impact on organizational commitment. Conclusion - These results suggest that small- and medium-size company leaders should use self-awareness and self-regulation to encourage the recognition of their sincerity, and strive to achieve a positive relationship with employees. It also suggests that leaders should improve trust between employees and establish various strategies to enable employee psychological ownership.
Abstract
Purpose - This study is an effort to assess the role of behavioral biases in investment decision making, specifically for mutual funds, and the moderating role of the investor. Individual investment behavior is concerned with choices about purchasing various securities. However, behavioral finance disputes the concept of perfect rationality and identifies psychological factors and their impact on decision-making. Research design, data, and methodology - A survey questionnaire was designed and used to collect responses using a judgmental sampling technique from 290 investors in the Gwalior Region. Cronbach's Alpha, factor analysis, and linear regression were all used to test the influence of behavioral biases on investment decision. Results - We found that the behavioral biases have a positive impact on investment decisions. Conclusions - This study's results identified three factors influencing investor behavior(rationale, investment skills, and profit making) and four factors influencing investor decisions (profit maker, market analysis, investment plan, seller). The overall results of the study also show that there is no significant relationship between investor behavior and investment decisions by gender in the market.
Abstract
Purpose - In Korea, there has been a recent trend that shows housing prices have risen rapidly following the International Monetary Fund crisis. The rapid rise in housing prices is spreading recognition of this as a factor in housing price volatility. In addition, this raises the expectations of housing prices in the future. These expectations are based on the assumption that a relationship exists between the current housing prices and expected housing prices in the real estate industry. By performing an empirical analysis on the validity of the claim that an increase in current housing prices can be correlated with expected housing prices, this study examines whether a long-term equilibrium relationship exists between expected housing prices and existing housing prices. If such a relationship exists, the recovery of equilibrium from disequilibrium is analyzed to derive related implications. Research design, data, and methodology - The relationship between current housing prices and expected housing prices was analyzed empirically using the Vector Error Correction Model. This model was applied to the co-integration test, the long-term equilibrium equation among variables, and the causality test. The housing prices used in the analysis were based on the National Housing Price Trend Survey released by Kookmin Bank. Additionally, the Index of Industrial Product and the Consumer Price Index were also used and were obtained from the Bank of Korea ECOS. The monthly data analyzed were from January 1987 to May 2015. Results - First, a long-term equilibrium relationship was established as one co-integration between current housing price distribution and expected housing prices. Second, the sign of the long-term equilibrium relationship variable was consistent with the theoretical sign, with the elasticity of housing price distribution to expected housing price, the industrial production, and the consumer price volatility revealed as 1.600, 0.104,and 0.092, respectively. This implies that the long-term effect of expected housing price volatility on housing price distribution is more significant than that of the industrial production and consumer price volatility. Third, the sign of the coefficient of the error correction term coincided with the theoretical sign. The absolute value of the coefficient of the correction term in the industrial production equation was 0.006, significantly larger than the coefficients for the expected housing price and the consumer price equation. In case of divergence from the long-term equilibrium relationship, the state of equilibrium will be restored through changes in the interest rate. Fourth, housing-price volatility was found to be causal to expected housing price, and was shown to be bi-directionally causal to industrial production. Conclusions - Based on the finding of this study, it is required to relieve the association between current housing price distribution and expected housing price by using property taxes and the loan-to-value policy to stabilize the housing market. Further, the relationship between housing price distribution and expected housing price can be examined and tested using a sophisticated methodology and policy variables.
Abstract
Purpose - This study aims to seek determinants of department store sales commission rates under consignment contracts based on transaction cost theory, the power-dependence view, and the resource-based view. A consignment contract is a unique contract where the retailer, over a given period, takes possession of goods owned by a supplier, promotes the sales of these goods, and receives a profit share from their sales. Under this contract, the supplier owns the goods until they are sold. In department stores in South Korea, over 70% of overall sales comes through consignment contracts. In other words, this is the most popular contract agreement between large retailers and vendors in South Korea. Consignment contracts yield high profits to department stores with minimal sales uncertainty, stock cost, and marketing investment. Many suppliers believe the consignment contract commission rates are too high. However, department stores disagree. They state that the commissions are not high as they generate new value for the suppliers by accumulating up-to-date merchandise and supporting various marketing programs on their behalf. Recently, consignment contracts have been critically examined and scrutinized by politicians, mass media, and the public of Korea. This study further intends to derive implications reflecting both buyer and seller perspectives as well as offer insights to policy makers in making appropriate decisions. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 164 suppliers, which currently have relationships with department stores. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. The data were analyzed using SPSS 18.0 and AMOS structural equation modeling program Results - For the transaction cost theory and the power-dependence view, the results indicated that product diversity and demand volatility had a positive impact on the sales dependence on a department store. Dependence in turn had a positive effect on the sales commission under the consignment contract. Based on the resource-based view, the department store's marketing capability, the supplier's perception toward merchandising, and supporting activities could enhance the department store's channel leadership in the buyer-seller relationship. Subsequently, the channel leadership had a positive effect on the sales commission. However, product complexity had no relationship with department store dependence. Conclusions - This is the first empirical research that investigates the determinants of sales commissions under consignment contracts in the domestic retail industry. This study reveals several theoretical and practical implications for both marketing scholars and marketers. In terms of theoretical implication, this study integrated and enlarged certain theoretical background, such as transaction cost theory, the power-dependence view, and the resource-based view, to explain the determinants of sales commissions under consignment contracts that include sales revenue. From a business management viewpoint, this research offers useful insights for policy makers by applying two different perspectives, both the manufacturer and the retailer, in terms of the sales commission issue under a consignment contract.
Abstract
Purpose - The number of consumers adopting a lifestyle of health and sustainability has recently increased with the rise of trends in healthy living. The size of the organic agricultural product market has also increased given that these consumers prefer consuming environmentally friendly products that promote family health. However, awareness of organic agricultural products remains insufficient because of the characteristics of the Korean organic agriculture system, which only focuses on food safety inspection. The object of this research is to suggest a policy approach to increase understanding and to expand the purchasing of organic agricultural products by analyzing the influence of customer recognition of such products on their willingness to repurchase. Research design, data, and methodology - This study used binomial logistic regression analysis with the aim of explaining the effects of consumers' socio-demographic characteristics, their awareness of the equivalence arrangement for organic food and of the abolishment of low-pesticide agricultural product certification, and their viewing of negative broadcasts about organic agricultural products on their repurchase intention of such products. A questionnaire survey was conducted with 655 respondents who were in their 20s, lived either in Seoul or in its metropolitan area, and had purchased organic agricultural products. Result - From the results of the analysis, the majority of the respondents recognized organic agricultural products, but they found their prices to be expensive. The majority of the respondents were also aware of the certification system and the reliability of organic agricultural products. However, the results indicate that efforts need to be made to recover consumer trust as many respondents stated that their trust levels in these products were low. In general, those purchasing organic agricultural products were satisfied, but those answering "very satisfied" were not in the majority. Binomial logistic regression analysis results revealed that repurchase intention decreased as consumers viewed a greater number of negative broadcasts about these products. On the other hand, repurchase intention increased as they became more aware of the abolishment of low-pesticide certification. Repurchase intention also increased as income increased, as the number of family members decreased, and when a consumer was a member of a consumer organization. In addition, the older the consumers were who watched the TV programs, the smaller the number of family members that were aware of the abolishment of low-pesticide agricultural product certification and, the higher the income of the consumers aware of organic equivalence arrangement, the greater their repurchase intention. Conclusion - External stimuli, such as negative TV programs on organic agricultural products and the abolishment of the low-pesticide agricultural product certification, relevant social issues and systems, influence consumer repurchase intention. To that end, positive environmental and ecological broadcasting about organic agricultural products would contribute to an increase in purchasing. Additionally, this could be used for promotion and marketing plans as the results indicate that trust in organic agricultural products would cause a positive repurchasing effect.
Abstract
Purpose - Economic status at an early stage of life after one's retirement is often determined by the long-term sacrifice of one's earlier consumption tendencies. In general, the first and foremost way to secure income after retirement is through annuity savings. People sign up for personal annuity savings in order to guarantee a stable economic life upon retirement, and such actions may be heavily influenced by self-efficacy. Confidence in current economic activity is a source of rational decision-making. Inability to achieve self-control can lead to reckless spending and the eventual hindering of proper investment for the future. This paper examines how self-efficacy and self-control affect the intention and action of enrolling in an annuity savings plan in relation to one's level of financial literacy. Research design, data, and methodology - To analyze the proposed model, this study investigates financial consumers over the age of 20. The data were collected from 511 respondents and analyzed with SPSS 21.0 and AMOS 21.0. First, for the one-dimensional test and to measure the convergent validity of each structure, we use the scale purification process. The results of the test and the confirmatory factor analysis ensure the focus of the validity of the single dimension for each structure. In addition, the validity of the measurement was guaranteed from the results of correlation analysis. Results - First, self-efficacy and self-control have positive effects on the purchasing intention of the personal annuity savings plan. Second, purchasing intention positively affects purchasing behavior. Lastly, self-control has a positive effect on purchasing intention among the low financial literacy group, whereas self-efficacy does not have this effect in the high financial literacy one. Conclusions - The time of product benefit is different with age. The younger group would be granted the savings after several decades once they enroll, whereas the older group would wait for a relatively shorter period of time. Therefore, further research should be conducted in order to verify such a difference. However, this study has value through its confirmation that the roles of self-efficacy and self-control play a part in leading to the enrollment in annuity savings plans and by verifying different effects based on levels of financial literacy. Such results suggest a number of implications in a real life setting. First, banks need to put greater emphasis on the stability of annuity savings in general. Second, customers with relatively low levels of financial literacy are able to control their finances through annuity savings, but find self-efficacy difficult due to a lack of financial understanding. Therefore, such customers should be approached from an invest-effectiveness comparison method. Third, customers with high financial literacy tend to put more value in rational economic decision-making and behavior than in self-efficacy. Therefore, such customers should be approached by promoting the reliability of annuity savings and the excellence of the specific bank's annuity savings plan in comparison to those of other financial institutions.
Abstract
Purpose - The aim of this study is to develop an empirical model of the effects of traditional market service quality factors on customer value, relationship quality, and behavior. The specific objectives of the study are as follows: 1) to classify study objects into cultural tourism markets and non-cultural tourism markets as well as to verify the differences in service quality among the two markets and, 2) to present practical service marketing methods that fit with the characteristics of the traditional markets by amending the five quality evaluation items of SERVQUAL (a multiple-item scale for measuring service quality)to suit the characteristics of the traditional markets and establish the relationship among customer value, relationship quality, and behavior intention. Research design, data, and methodology - The study methods of empirical investigation are as follows. First, this study selected for a study object the Suwon Paldalmun Gate Market to represent the cultural tourism market, and general traditional markets to represent the non-cultural tourism market. This study also conducted personal interviews in order to increase the response rate and collected a total of 418 responses between March 18, 2014 and April 05, 2014. The total of 418 responses used for this study excluded 14 responses that had either misleading information or missing values. Results - This study verified the perceived differences of service quality based on traditional market specialization through an independent sample t-test. It appeared that the perceived service quality of the cultural tourism market was generally higher than that of the non-cultural tourism market. This study executed a path analysis in order to examine the effects of service quality factors on customer value, relationship quality, and behavior intention. This study also comprehensively analyzed the specialized market and non-specialized market separately. Although there were some differences among the results, the overall results were uniform. It appeared that convenience, reliability, and empathy, among the service quality factors, exerted meaningful effects on customer value. On the other hand, convenience, reliability, responsiveness, and empathy, excluding the tangibles, exerted meaningful effects on the relationship quality. In addition, it appeared that all service quality factors exerted meaningful effects on the customer value, relationship quality, and behavior intention. Therefore, the study verified that all of the hypotheses formulated in the study were generally adopted. Conclusions - The implication of this study may be classified into academic and practical implication as follows. With respect to the academic implication, it seems that this study is among the early studies to verify the differences between the cultural tourism market and the non-cultural tourism market. The practical implication of this study is that the perceived service quality, such as convenience, reliability, responsiveness, and tangibles, excluding empathy, was higher in the cultural tourism market than in the non-cultural tourism market. This means that customer satisfaction is enhanced by governmental aid such as hardware, software, and information and communications technology.
Abstract
Purpose - The objective of this research is to investigate whether national culture influences consumers' service evaluations. The services industry is receiving increasing attention from academia and practitioners as its position grows in global markets. Standardization or localization is a traditional managerial decision in global business. As the boundaries of services expand across national borders, firms are required to decide whether to standardize services or adjust to local needs. Though it is imperative to reflect global perspectives in marketing theories, these perspectives are mostly based on Western conceptualization of the world. Through a comparison of consumer groups from two culturally remote countries, service quality evaluation mechanisms are examined based on similar stimuli. The study tries to expand service marketing perspectives across national borders. Research design, data, and methodology - Eastern and Western countries are known to be culturally distinct. One Eastern and one Western country were chosen: an Anglo-Saxon country (the U.S., England, and Australia) and South Korea. In Hofstede's cultural dimensions, the differences between the two are pronounced. The Anglo-Saxon based countries share many similarities. Samples of the same sites are targeted. Questionnaires using a service quality scale (SERVQUAL) and a customer satisfaction scale were distributed. Utilizing Hofstede's typology of culture, the service evaluation mechanisms of the respondents from the two groups are evaluated. Three hypotheses are proposed from the review of the literature. These are service evaluation habits, importance of service quality dimensions for the individualistic/collectivistic countries, and strong/weak uncertainty avoidance cultures. Consumers from the individualistic countries are considered to care about themselves and demand a higher level of responsiveness and assurance. On the other hand, consumers from high uncertainty avoidance cultures are assumed to rely more on tangible questions of service quality, as these are the only predictable service quality indicators. A t-test and regression analysis are applied to validate the constructs. Results - The respondents from the Anglo-Saxon countries are more generous on service evaluations than Koreans. Researchers have indicated that Americans tend to give higher service evolution scores than European, Mexican, and Korean counterparts. The tendency is the same here. The sample from Anglo-Saxon countries demonstrated higher service evaluation scores on every dimension of SERVQUAL. For the second hypothesis, the respondents from the collectivistic culture rely less on core service dimensions (assurance and responsiveness) due to their tendency to place more value on group harmony than individual interest. However, the third hypothesis was not validated. Conclusions - The study attempted to expand the scope of service marketing to reflect cross-national perspectives. Service quality is known to have a strong influence on customer satisfaction and loyalty behavior. However, this research demonstrated that individuals from different cultural territories respond heterogeneously to the same stimuli. Scholars argue that national cultures are main factors in such deviated behavior. Scholars and global managers should be aware of differences in consumer value judgment mechanisms such as satisfaction, expectations, and perceptions.
Abstract
Purpose - A traditional retail market is a place that offers economic opportunity to employees and employers alike it also is a place where the community can meet. The Korean government has invested three trillion won to improve physical and non-physical aspects in traditional retail markets since 2004. However, little research on this has been conducted. We explore this research gap that could lead to theory extension. We analyze consumption behavior with respect to traditional retail markets through an empirical analysis, thus overcoming limits in previous research. We empirically analyze policy effects of traditional retail market projects supported by the Korean government. Research design, data, and methodology - We propose a traditional retail market improvement plan via the relation between cause and effect resulting from the analysis. More specifically, logit analysis was carried out with 1,754 consumers in 16 cities nationwide. In order to analyze consumer consumption behaviors nationwide, the probability was analyzed using a logit model. This research analyzes the link between support and non-support by the Korean government using binary values. The dependent variable is whether Korean government support is implemented; the binomial logistic regression is used as the statistical estimation technique. The object variables are:1 (support) or 0 (nonsupport), and the prediction value is between 1 and 0. As a result of the factor analysis of questions related to attributes of service quality, four factors were extracted: convenience, product, facilities, and service. Results - The results indicate that convenience, product, and facilities have a significant influence on consumer satisfaction in accordance with the government's traditional retail market support. Additionally, the results reveal that convenience, product, facilities, and service all have a significant influence on consumer satisfaction in a traditional retail market's service quality and consumer satisfaction. Finally, the analysis indicates that the highly satisfied traditional retail market customer has a significant influence on revisit intention. Moreover, the results reveal that the highly satisfied traditional retail market customer has a significant influence on recommendation intention. Conclusions - This research focused on consumers nationwide to measure policy effects of traditional retail markets compared to previous research that focused on one traditional retail market or a specific area. We verified the relationship of service quality and customer satisfaction and consumer behavior based on service quality theory. The results indicate that consumer satisfaction of traditional retail markets supported by service quality factors has a significant impact. In a concrete form, the results indicate that these effects are from facility modernization projects and marketing support projects of the Korean government. The results also imply that these facility and management support effects from the Korean government have been consistent. We realize that the Korean government has to selectively support traditional retail markets in major cities and small and medium-sized cities. To that end, the Korean government needs to select a concentration strategy for the revitalization of traditional retail markets.
Abstract
Purpose - This study's purpose is to investigate the impact of supply chain management (SCM) factors among targeted Korean distribution firms. Antecedents are established for supply chain orientation (SCO) for the management and organization of cultural assets. The research sets up SCO corresponding to management cultural assets and to organizational factors in the results. The research model is created to examine the SCO based on a strategic perspective and the operational performance of the SC and SCM. In addition, an integrated model is constructed to analyze the moderating effect by setting partner cooperation as a relational capital factor. The main aim of this study is to analyze the characteristics of the supply chain structure as a source of competitive advantage for distribution service firms participating in the supply chain. In the moderating effects analysis, the role of partner cooperation as relational capital is examined in detail. Research design, data, and methodology - The study examined the existing research related to supply chains, discussing the antecedents of the performance of SCM and SCO. SCM was established with the partner's cooperation as relational capital. Including the moderating effects of the partner cooperation, the research proposed a seven hypotheses path analysis model. The samples were collected from the Korean export enterprises in the distribution service sector, with 185 samples selected for the final analysis. To try and measure the four latent variables presented in the analysis model based on existing studies, 22 measurement items were used. The empirical analysis used the appropriate PLS (partial least squares) method on the path analysis reliability and validity and for common method bias. After testing the seven hypotheses, the research tested the moderating effects to the path analysis. Using PLS as structural equation modeling, the seven hypotheses were tested including the moderating effects of the partner relational capital on the 185 samples. Results - In the results, the SCO had a positive impact on both SCM and the relational capital of partner cooperation. The SCM had a significant impact on the operational performance of the SC. Further, partner cooperation also had a significant impact on SCM and the operational performance of the SC. The moderating effect analysis of the SCM and partner cooperation found a significant impact on the operational performance of the SC. On the other hand, the moderating effect of the SCO and partner cooperation did not affect the SCM. Conclusion - The results of this research show that the existing supply chain-related research can be applied to the operational performance of the SC for a Korean distribution service firm. In view of the fact that SCO is a source of competitive advantage, it should be taken into account when a firm wants to improve the performance of the SCM of the distribution service. This is because it can be assumed that SCO plays a role in supply chain management for the distribution firm.
Abstract
Purpose - Due to highly elevated levels of competition, many companies today have to face the problem of decreasing profits even when their actual sales volume is increasing. This is a common phenomenon that is seen occurring among companies that focus heavily on quantitative growth rather than qualitative growth. These two aspects of growth should be well balanced for a company to create a sustainable business model. For supply chain management (SCM) planners, the optimized, quantified flow of resources used to be of major interest for decades. However, this trend is rapidly changing so that managers can put the appropriate balance between sales volume and sales quality, which can be evaluated from the profit margin. Profit optimization is a methodology for companies to use to achieve solutions focused more on profitability than sales volume. In this study, we attempt to provide executional insight for companies considering implementation of the profit optimization system to enhance their business profitability. Research design, data, and methodology - In this study, we present a comprehensive explanation of the subject of profit optimization, including the fundamental concepts, the most common profit optimization logic algorithm -linear programming -the business functional scope of the profit optimization system, major key success factors for implementing the profit optimization system at a business organization, and weekly level detailed business processes to actively manage effective system performance in achieving the goals of the system. Additionally, for the purpose of providing more realistic and practical information, we carefully investigate a profit optimization system implementation case study project fulfilled for company S. The project duration was about eight months, with four full-time system development consultants deployed for the period. To guarantee the project's success, the organization adopted a proven system implementation methodology, supply chain management (SCM) six-sigma. SCM six-sigma was originally developed by a group of talented consultants within Samsung SDS through focused efforts and investment in synthesizing SCM and six-sigma to improve and innovate their SCM operations across the entire Samsung Organization. Results - Profit optimization can enable a company to create sales and production plans focused on more profitable products and customers, resulting in sustainable growth. In this study, we explain the concept of profit optimization and prerequisites for successful implementation of the system. Furthermore, the efficient way of system security administration, one of the hottest topics today, is also addressed. Conclusion - This case study can benefit numerous companies that are eagerly searching for ways to break-through current profitability levels. We cannot guarantee that the decision to deploy the profit optimization system will bring success, but we can guarantee that with the help of our study, companies trying to implement profit optimization systems can minimize various possible risks across various system implementation phases. The actual system implementation case of the profit optimization project at company S introduced here can provide valuable lessons for both business organizations and research communities.