The Primary Factors and the Image Based Factors
Added on - 30 Sep 2019
A STUDY ON STORE CHOICE BEHAVIOR OF CONSUMERS in SOUTH KOREAChapter 1: IntroductionThe shoppers are fairly involved in the decision related to the choice of the store. The retail owners findit important and necessary to understand the store choice behavior of the consumers because they usethis information to develop the appropriate marketing strategies so that the people are attractedtowards the store and the retailers are able to maintain their clientele (Coe, 2006). The major factors onwhich the buyers base their choice of store are the primary factors and the image based factors. But, thefactors depend on the type of store that the customer is visiting. In a place like South Korea, theshoppers do not have a variety of choices to choose from, so they simply like to go to a store which isrecognized and sells many different products (Coe, 2013). Also, the people here like to travel less, sothey visit the store which is nearby to their residence. But, different people have different choices andpreferences; therefore, the study tries to understand the behavior of different buyers regarding theretail setup in the country. The buyers are explored in this study and the primary aim for that are thereasons due to which they chose a particular store. All over the world, the store choice and thepatronage is studied by the researchers. With the growth of the stores and the retail setups in SouthKorea, this phenomenon has gained significance in the market. New stores chains are being set up andthey provide new options to the buyers and leave them with new experiences (Neilson, 2014). Theevaluation phase is going on with the retailers and the buyers in this place and there is no clear verdictas to what drives a person towards a particular store. Unfortunately, due to this, there is increase in thefootfall in the stores, but there is less purchases that happen in the stores. The conversion rate of theactual purchases is very less which leads to high costs of giving service to the customers and reduction inthe level of profitability of the buyers. The small shops are the hallmark of this place and this has heldback the people to the traditional ways of shopping (Bronnenberg, 2015). Many people still believe thatthe new formats of the retail shops are not effective in adding any value to them; it is just a concept ofnovelty. There are many popular retail chains that are holding back the new expansions. Therefore, thecurrent study aims to understand the behavior of the people regarding the choice of stores.Basically, the process of choosing the relevant store is quite cognitive. It is very similar with the choice ofbrand. When the consumers chose a particular brand, they, do not consider the geographical limitationswhich is not the case with choosing the stores (Chkanikova, 2015). In case of the store choice by thecustomers, the location of the store plays a major role. It is believed that the cost of traveling whileshopping is counted by the customers when they determine their total cost of shopping from a retailoutlet. Therefore, they regard the distance of the store from their residence as an important factorwhile selecting the store (Cho, 2015).It has been observed that the socio-economic background of the consumers, their personality and theway they have made the shopping decisions in the past have influenced the store choice behavior of theconsumers (Shin, 2013). Apart from this, the shoppers have been observed to consider the brand that isbeing sold in the various stores. Since the consumers regard the brand and consider it for shopping,therefore, they also see that which of their favorite brands is sold in which of the retail setup. Thus, thebrand and the location have a strong link with the choice of stores (Chkanikova, 2015). Apart from this,
the age of people in South Korea, the age group of people, the size of their family and the occupation inwhich they are involved are also a factor that helps them in deciding that which store they must visit toshop from (Cho, 2015). Thus, the personal attributes of the people are also connected to the factors thatinfluence the choice of the format of the retail stores i.e. the organized retail and the unorganized retail.Organized retail is that retail setup where all the trading activities are undertaken by those retailers whohave the license to do that, and who have registered their retail outlets for the payment of the sales tax;income tax; etc. (Yi, 2013). But, the unorganized retail is those low cost retailing shops that follow thetraditional formats. In South Korea, there are roadside vendors who sell the food items and in someplaces, the clothes too. These all are the unorganized ones. But, the shops that are located in thepopular supermarkets, or the famous retail chains, forma a part of the organized retail in South Korea.Objectives:The study attempts to inquire about the factors that pull the consumers in South Korea towards aparticular retail store. The study aims to determine this in general and then the findings are based onthe particular attributes of the consumers. The objectives for the current study are as follows:1.To study the factors that make people chose a particular format of the retail store i.e. theorganized or the unorganized retail store.2.To determine the attitude and the perceptions of the consumers towards the formats of theretail store.3.To find out the type of goods that the consumers look for in the organized and unorganizedretail setup.4.To analyze the impact of consumers attributes on their choice of retail store.5.To understand the various factors and their relative importance in determining the buyingbehavior of the shoppers.6.To find the level of consumer satisfaction from their choice of retail format and to ask for thetype of improvements that they are looking for in that particular format.
Chapter 2: Literature Review
Chapter 3: Research Methodology