- Apply for Authority
- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS
ISSN : 1738-3110
The Effect of Business Relationships on Conflict and Satisfaction in the Cosmetics Industry's Distribution Channel
Yang, Hoe-Chang
Sun, Il-Suck
- Downloaded
- Viewed
Abstract
Purpose - The cosmetics industry is a traditional high value-added industry in terms of the domestic demand, small batch production systems, exclusive competition, and raw materials highly dependent on overseas countries as well as an oligopolistic market structure. However, new foreign brands and growing consumer awareness of inexpensive products, has triggered a shift. In line with changing lifestyles and the polarization of consumption, the industry faces a new market structure. Among its key characteristics is the cosmetics industry's numerous distribution channels (i.e., department stores, door-to-door sales, online shopping malls, brand shops, and discount stores). Therefore, the study of its distribution channels is essential. Research design, data, and methodology - The study analyzed channel distribution power divided into coercive and non-coercive power. The factors of coercive power included: unilateral request of an increase in commissions, interference in sales by taking advantage of a superior status, unilateral buck-passing at the time of a problem, unilateral request to stop sales activities, and a unilateral business contract; the factors of non-coercive power included favorable payment conditions, offers of various kinds of information, policy on commission reduction, pride in market entrance, and promotion support. In addition, the mediating variable "interdependence" was applied to the execution of department store (or mart) power and their shop conflicts and satisfaction to examine direct and indirect influential power. The methodology was a survey of managers of cosmetics shops in department stores (or marts). The questionnaire, based on a five-point Likert scale, included questions about basic personal information, execution of power, interdependence, conflict, and satisfaction. The study distributed 198 questionnaires and collected 131. Ten questionnaires with missing or hard to analyze data were excluded. Thus, 121 copies were analyzed. Results - According to the analysis, the execution of coercive power by department stores (or marts) did not affect interdependence, but the execution of non-coercive power did. Interdependence did not influence conflict, but did affect satisfaction. Additionally, the analysis revealed direct influential power: the execution of coercive power positively affected conflict and negatively influenced satisfaction; the execution of non-coercive power positively affected satisfaction. Conclusions - To offer suggestions for distribution business relations in the cosmetics industry, this study investigated how the execution of power by department stores (or marts) affected their shops. More specifically, it examined how much the execution of both coercive power and non-coercive power influenced conflict and satisfaction, and analyzed the mediating role of interdependence. In line with previous study results in various areas, coercive power was shown to be the source of conflict, leading to a decrease in satisfaction, whereas non-coercive power significantly positively influenced satisfaction. Moreover, non-coercive power increased interdependence, which led to greater satisfaction. As a result, interdependence had a mediating effect on non-coercive power and satisfaction. Based on the results, department stores (or marts) should look for improvements plans that increase interdependence. Such plans could alleviate conflict with the shops, increasing their satisfaction.
- keywords
- Cosmetics Industry, Distribution Channel, Coercive power, Conflict, Satisfaction
Reference
Achrol, R. S. (1991). Evolution of the Marketing Organization New Forms for Turbulent Environments. Journal of Marketing, 55(4), 77-93.
Anderson, J. C., & Narus, J. A. (1984). A Model of the Distributor’s Perspective of Distributor-Manufacturer Working Relationships. Journal of Marketing, 48(4), 62-74.
Anderson, J. C., & Narus. J. A. (1990). A Model of Distributor Firm and Manufacturer Firm Working Partnership. Journal of Marketing, 54(1), 42-58.
Anderson, J. C., & Weitz, B. (1992). The Use of Pledges to Build and Sustain Commitment in Distribution Channel. Journal of Marketing Research, 29(1), 18-34.
Assael, H. (1967). The Politics of Distributive Trade Association : A Study in Conflict Resolution. Hempstead. N. Y. :Hofstra University Press.
Bacharach, S. B., & Lawler, E. J. (1981). Bargaining: Power, Tactics and Outcomes. San Francisco: Jossey-Bass Inc.
Bass, J. D., & Burkhardt, M. E. (1993). Potential Power and Power Use: an Investigation of Structure and Behavior. Academy of Management Journal, 36(3), 441-470.
Buchanan, L. (1992). Vertical Trade Relationship: The Role of Dependence and Symmetry in Attaining Organizational Goals. Journal of Marketing Research, 29(1), 65-75
Cartwright, D. (1965). Influence, Leadership and Control. in James G. March(ed), Handbook of Organizations (pp.1-47)., Chicago: Rand McNaily.
Chae, Seo-il (2004), Practice of Social Science Research Method. Seoul, Korea : Hakhyunsa.
Dahl, Robert. A. (1957). The Concept of Power. Behavioral Science, 2(3), 201~215.
Emerson, R. M. (1962). Power-Dependence Relations. American Sociological Review, 27(2), 31-41.
Frazier, G. L., & Rody, R. C. (1991). The Use of Influence Strategies in Interfirm Relationships in Industrial Product Channels. Journal of Marketing, 55(1), 52-69.
French, J. R., & Raven, B. (1959), The Bases of Social Power. in Dorwin Cartwright (Ed), Studies in Social Power pp. 612-613), Ann Arbor, MI: University of Michigan Press.
Frazier, G. L., & Rody, R. C. (1991). The Use of Influence Strategies in Interfirm Relationships in Industrial Product Channels. Journal of Marketing, 55(1), 52-69.
Gaski, J. F. (1984). The Theory of Power and Conflict in Channel of Distribution. Journal of Marketing, 48(3), 9-29.
Geyskens, I., & Steenkamp, P. (2000). Economic and Social Satisfaction: Measurement and Relevance to Marketing channel Relationships. Journal of Retailing, 76(1), 11-32.
Gundlach, G. T., & Cadotte, E. R. (1994). Exchange Interdependence and Interfirm Interaction: Research in a Simulated Channel Setting. Journal of Marketing Research, 31(4), 516-532.
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50.
French, J. R., & Raven, B. (1959). The Bases of Social Power. in Dorwin Cartwright (Ed), Studies in Social Power (pp. 612-613), Ann Arbor, MI: University of Michigan Press.
Huh, Nam-Il (1989). Study on Power and Conflict in Distribution Channels. Seoul. Korea : Thesis of Doctorate in Sungkyunkwan University.
Hunt, S. D., & Nevin, J. R. (1974). Power in a Channel of Distribution : Sources and Consequences. Journal of Marketing Research, 11(2), 186-193.
Jakki, M., & Nevin, J. R. (1990). Communication Strategies in Marketing Channels: A Theoretical Perspective. Journal of Marketing, 50(4), 36-51.
Kale, S. H. (2001). Dealer Dependence Levels and Reciprocal Action in a Channel of Distribution in a Developing Country. Journal of Marketing, 58(1), 50-69.
KHIDI : Korea Health Industry Development Institute (2012). 2011 Cosmetic Industry Analysis Report, 13.
KHIDI : Korea Health Industry Development Institute (2015). 2014 Cosmetic Industry Analysis Report, 88.
Kim, Ki-Young., Lee, Dong-Keun, & Pae, Seong-Il (2011). A Study on Power and Relationship Commitment as they Relate to Food Service Firms and the Distribution Channel. Journal of Tourism Research, 25(4), 191-208.
Kumar, N., Scheer, L. K., & Steenkamp, E. M. (1995). The Effects of Perceived Interdependence on Dealer Attitudes. Journal of Marketing Research, 32(3), 348-356.
Kumar, N., Scheer, L. K., Jan-Benedict, E., & Steenkamp, M. (1998). Interdependence, Punitive Capability and the Reciprocation of Punitive Actions in Channel Relationships. Journal of Marketing Research, 35(2), 225-235.
Lawler, E. J., & Bacharach, S. B. (1987). Comparison of Dependence and Punitive Forms of Power. Social Forces, 66(2), 446-462.
Lawler, E, J., Ford, R. S., & Blegen, M. A. (1988). Coercive Capability in Conflict : A Test of Bilateral Deterrence Versus Conflict Spiral Theory. Social Psychology Quarterly, 51(2), 93-107.
Leonidou, L. C., Talias, M. A., & Leonidou, C. N. (2008). Exercised Power as a Driver of Trust and Commitment in Cross-border Industrial Buyer-Seller Relationships. Industrial Marketing Management, 37(1), 92-103.
Lee, Hyun-Hwa, & Moon, Hee-kang (2012). Consumer Responses to Retailer's Location-based Mobile Shopping Service : Focusing on PAD Emotional State Model and Information Relevance. Journal of Channel and Retailing, 17(2), 63-92.
Lusch, R. F. (1976), Sources of Power : Their Impact on Intra channel Conflict. Journal of Marketing Research, 13(4), 382-390.
Nunnally, J. C. (1978). Introduction to Psychological Measurement. New York : McGraw-Hill.
Oh, Se-Jo (2006). Market-Oriented Distribution Management. Seuol : Pakyoungsa.
Park, Soo-Hong (2008). A Study on the Relation Effects and Respons Act in the Distribution Channels of National &Foreign Clothing Brand -The Relationship between the Department Store and the Tenant in the Department store-. Journal of Korean Distribution and Management, 11(4), 79-106.
Park, Soo-Hong (2011). The Study on the Power-Conflict and the Response Model in the Distribution Channel For Foreign Brand Apparel In the Korean Market. Journal of Trade & Commerce, 17(4), 189-211.
Pfeffer, J., & Salancik, G. R. (1978). The External Control of Organizations: A Resource Dependence Perspective. New York : Haper & Row Publisher, Inc.
Ping, R. A. (1933). The Effects of Satisfaction and Structural Constraints on Retailer Exiting, Voice, Loyalty, Opportunism and Neglect. Journal of Retailing, 69(3), 320-352.
Rosenberg, L. J. (1974). A New Approach to Distribution Conflict Management. Business Horizons, 17(10), 67-74.
Rusbult, C. E., Farrell, D., Rogers, G., & Mainous, A. (1988). Impact of Exchange Variables on Exit, Voice, Loyalty, and Neglect: An Integrative Model of Responses to Declining Job Satisfaction. Academy of Management Journal, 31(3), 599-627.
Seo, Min-Kyo, Kwon, Jae-Hyun, & Choi, Young-Jun (2013). Impact of Logistics Service Quality on Customer Satisfaction and Loyalty in Parcel Service. Korea Logistics Review, 23(5), 239-262.
Wilkinson, I. F. (1981). Power, Conflict and Satisfaction in Distribution Channels: An Empirical Study. International Journal of Physical Distribution and Material Management, 11(7), 20-30.
Yang, Hoe-Chang, Jeon, Jun-ho, & Park, Jong-Rock (2014). Contact Frequency and Psychological Distance between Leaders: Job Distress and Mediation through Employees'Perceived Self-Leadership. Journal of Distribution Science, 12(6), 41-48.
Yi, Ho-Taek, Lee, Han-Geun, & Ji, Seong-Goo (2014). The Antecedents and Consequences of Manufacturer Allowances Expenditure: Resource-based View and Power-Dependence View. Korea Marketing Review, 29(3), 51-71.
Yu, Jong-Pil, & Pysarchik, D. T. (2002). Economic and Non-economic Factors on Korean Manufacturer Retailer Relations. Distribution and Consumer Research, 12(3), 297-318.
Yu, Jong-Pil, & Han, Kyu-Chul (2009). A Study on the Impacts of Power Sources, Influence, Economic & Non-Economic Satisfaction, and Trust on Long-term Orientation between Manufacturers and Retailers : Focused on Local Discount Stores. Korea Journal of Business Administration, 22(1), 6-8.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations