- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
A Study on Retail Competition Structure in Traditional Market
Kim, Young-Ki
Kim, Seung-Hee
Abstract
Purpose - Our Research is a study on the competition structure between retailers in traditional markets. Specifically, this study examined the effects of SSM, commodity supply store, Hanaro mart, food mart and other mart in traditional markets on retail stores of small businesses. The purpose of this study is to provide a solution to the market encroachment of large retailers in traditional markets. Research design, data, and methodology - This study is based on the data of 'Market Survey of Traditional Market·Shopping Mall and Store Management in 2016' and 'Current status of SSM(Super SuperMarket), commodity supply store, Hanaro mart, food mart and other mart in the traditional market in 2017' conducted by Small Enterprise and Market Service. In this study, a multiple regression equation was constructed using the number of SSM, commodity supply store, Hanaro mart, food mart and other mart as an independent variable and sales, number of customers as a dependent variable for analysis. Results - The increase of SSM and commodity supply stores in the traditional market affects the sales decrease of the surrounding small merchants in the traditional market. This means that the SSM and commodity supply stores can lead to the decline of the traditional market. However, it has been found that the penetration of these companies in traditional markets does not affect the number of visitors. Second, Hanaro mart's entry into the traditional market has a negative impact on the sales and visitor numbers of the surrounding small-scale merchants. The increase in the number of food mart has a significant effect on the sales and the number of visitors to the small stores. The results of this study indicate that the food mart can contribute to the revitalization of traditional markets. Lastly, other mart with more than medium size were found to affect the sales of small stores, the number of visitors. Conclusions - We examines the competitive structure among retailers in traditional markets. The penetration of large retailers in traditional markets has a negative impact on traditional markets, particularly Hanaro mart has a greater impact than SSM. We provide practical and theoretical implications for the retail competition structure in traditional markets.
- keywords
- Retail Competition, Traditional Market, SSM(Super SuperMarket), Food Mart, Other Mart
Reference
Ahn, S. W., Lee, S. Y., Kim, P. J., & Youn, M. K. (2009). A Practical Study on the New Revenue Estimate Model Of SSM. Journal of Distribution Science, 7(3), 5-24.
Ann, S. W., & Kwon, S. K. (2012). The Effect of Store Characteristics of a Supermarket on Store Loyalty:A Comparative Study of the Local Supermarket and the Super Supermarket. Journal of Distribution Science, 10(11), 61-70.
Aparna, B., & Hanumanthaiah, C. V. (2012). Are Supermarket Supply Channels More Efficient than Traditional Market Channels?. Agricultural Economics Research Review, 25(2), 309-316.
Borraz, F., Dubra, J., Ferres, D., & Zipitria, L. (2014). Supermarket Entry and the Survival of Small Stores. Review of Industrial Organization, 44(1), 73-93.
Boselie, D., Henson, S., & Weatherspoon, D. (2003). Supermarket Procurement Practices in developing Countries: Redefining the Roles of the Public and Private Sectors. American Journal of Agricultural Economics, 85(5), 1155-1161.
Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences(2nd Ed.). Hillsdale, NJ:Lawrence Erlbaum Associates, Inc.
Goldman, A., & Hino, H. (2005). Supermarkets vs. Traditional Retail Stores: Diagnosing the Barriers to Supermarkets’ Market Share Growth in an Ethnic Minority Community. Journal of Retailing and Consumer Services, 12(4), 273-284.
Jia, P. (2008). What Happens When Wal-Mart Comes to Town: An Empirical Analysis of the Discount Retailing Industry. Econometrica, 76(6), 1263-1316.
Kim, G. C. (2013). A Study on the Effects of Super-Supermarket Service Quality on Satisfaction in Store Selection. Journal of Industrial Distribution & Business, 4(2), 41-49.
Kim, W. K., Fan, Q., & Youn, M. K. (2007). A Comparative Study on the Discount Store Selection Behavior between the Korean and the Chinese Consumers. Journal of Distribution Science, 5(1), 41-56.
Kim, Y. K., Kim, S. H., & Lim, J. (2011). A Study on the Meaning & Classification of Conventional Markets. Journal of Distribution Science, 9(2), 83-95.
Kim, Y. O., Lee, M. K., & Youn, M. K. (2005). A Study on the Policy of Small and Medium Retail business in Advanced Country(Ⅰ). Journal of Distribution Science, 3(2), 77-99.
Kuiper, W. E., & Meulenberg, M. T. (2004). Price Leadership within a Marketing Channel: A Cointegration Study. International Journal of Research in Marketing, 21(2), 137-158.
Kwon, O. C., Kim, J. S., Kim, P. J., Kim, P. J., Kim, H. S., Namkung, S., Park, Y. K., Park, C. J., Park, H. J., Youn, M. K., Lee, J. H., Hwang, H. C., & Kim, Y. O. (2007). A Note on the Unification on Retail Trade Terminology. Journal of Distribution Science, 5(2), 5-16.
Lee, C. S., Kim, Y. K., & Kim. S. H. (2018). A Study on the Support Policy for Digital Transformation of Small Businesses. Journal of Distribution Science, 16(2), 89-99.
Lee, G. H., & Kim, S. C. (2017). The Growth Strategy of Retail Companies: Focusing on New Stores Expansion of E-mart. International Journal of Industrial Distribution & Business, 8(1), 15-22
Lee, S. Y., & Choi, I. S. (2012). A Study on The Regulatory Environment of The French Distribution Industry and The Intermarche's Management Strategies. Journal of Industrial Distribution &Business, 3(1), 7-16
Litz, R. A., & Stewart, A. C. (1998). Franchising for Sustainable Advantage? Comparing the Performance of Independent Retailers and Trade-name Franchisees. Journal of Business Venturing, 13(2), 131-150.
Maruyama, M., & Trung, L. V. (2007). Traditional Bazaar or Supermarkets: A Probit Analysis of Affluent Consumer Perceptions in Hanoi. International Review of Retail, Distribution and Consumer Research, 17(3), 233-252.
Meulenberg, M. T. G. (1997). Distribution. In D. I. Padberg, C. Ritson, & L. M. Albisu (Eds.), Agro-Food Marketing. Oxon: CAB International, 351-372.
Miller, C. E., Reardon, J., & McCorkle, D. E. (1999). The Effects of Competition on Retail Structure: An Examination of Intratype, Intertype, and Intercategory Competition. Journal of Marketing, 63(4), 107-120.
Minten, B., & Reardon, T. (2008). Food Prices, Quality, and Quality's Pricing in Supermarkets versus Traditional Markets in Developing Countries. Review of Agricultural Economics, 30(3), 480-490.
Nam, S. H., Cho, Y. K., Yoo, J. S., & Kim, D. T. (2013). Exploratory Study on Consumer Attitude toward the SSM Regulation Law, Journal of Distribution Science. 11(10), 47-53.
Park, J. H., & Chung, L. C. (2016). The Effect of Store Selection Attributes and Consumption Emotion on Revisit Intention to Traditional Market under Retail Regulation. Journal of Distribution Science, 14(6), 17-26.
Peterson, M., & McGee, J. E. (2000). Survivors of “W-day”: An Assessment of the Impact of Wal-Mart’s Invasion of Small Town Retailing Communities. International Journal of Retail &Distribution Management, 28(4/5), 170-180.
Porter, M. (1980). Competitive Strategy. New York: Free Press.
Reardon, T., & Hopkins, R. (2006). The Supermarket Revolution in Developing Countries: Policies to Address Emerging Tensions among Supermarkets, Suppliers and Traditional Retailers. The European Journal of Development Research, 18(4), 522-545.
Seenivasan, S., & Talukdar, D. (2016). Competitive Effects of Wal-Mart Supercenter Entry: Moderating Roles of Category and Brand Characteristics. Journal of Retailing, 92(2), 218-225.
Small Enterprise and Market Service (2017). Survey on the Supply of Commodities in the Traditional Market, Food Marts and Other Marts(over 330㎡).
Small Enterprise and Market Service (2018). Survey on the Management of Traditional Markets, Shopping Centers and Stores in 2016. Retrieved March 25, 2018 from http://www.sbiz.or.kr/sup/custcenter/report/1208222_1716.jsp.
Smith, G. E., Venkatraman, M. P., & Wortzel, L. H. (1995). Strategic Marketing Fit in Manufacturerretailer Relationships: Price Leaders Versus Merchandise Differentiators. Journal of Retailing, 71(3), 297-315.
So, J. H., & Hwang, H. J. (2012). A Study on the Locational Decision Factors of Discount Stores:The Case of Cheonan. Journal of Distribution Science, 10(5), 37-44.
Walker Jr, O. C., & Ruekert, R. W. (1987). Marketing's Role in the Implementation of Business Strategies:A Critical Review and Conceptual Framework. Journal of Marketing, 51(3), 15-33.
Yoo, S. W., & Lee, S. Y. (2011). A Study on the Competition Strategy for Private Super Market against Super Super Market. International Journal of Industrial Distribution & Business, 2(2), 39-45.
Youn, M. K., & Kim, Y. O. (2017). Principles of Distribution (3rd ed.). Seoul, Korea: Dunam.
Youn, M. K., Kim, Y. O., Lee, M. K., & Namkung, S. (2006). Domestic Restrictions on the Opening of Retail Stores. Journal of Distribution Science, 4(1), 121-160.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations