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Study On Customers' Choice Behavior | South Korea
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Added on 2019-09-22
Study On Customers' Choice Behavior | South Korea
Added on 2019-09-22
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A STUDY ON STORECHOICE BEHAVIOR OFCONSUMERS in SOUTHKOREADissertationStudent[Pick the date]
A STUDY ON STORE CHOICE BEHAVIOR OF CONSUMERS in SOUTH KOREA 1AbstractThe 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. The study attempts to inquireabout the factors that pull the consumers in South Korea towards a particular retail store. The studyaims to determine this in general and then the findings are based on the particular attributes of theconsumers. The study is theoretical and descriptive in nature. Therefore, the research is descriptive. Thestudy aims to give an insight to the people and the consumers regarding the factors on the basis ofwhich they chose a particular retail store.
A STUDY ON STORE CHOICE BEHAVIOR OF CONSUMERS in SOUTH KOREA 2ContentsChapter 1: Introduction..............................................................................................................................2Chapter 2: Literature Review.....................................................................................................................10Chapter 3: Research Methodology............................................................................................................11Chapter 4: FINDINGS AND ANALYSIS.........................................................................................................16Chapter 6: CONCLUSIONS..........................................................................................................................30QUESTIONNAIRE........................................................................................................................................32References.................................................................................................................................................36
A STUDY ON STORE CHOICE BEHAVIOR OF CONSUMERS in SOUTH KOREA 3Chapter 1: IntroductionThe shoppers are fairly involved in the decision related to the choice of the store. The retail owners find it important and necessary to understand the store choice behavior of the consumers because they use this information to develop the appropriate marketing strategies so that the people are attracted towards the store and the retailers are able to maintain their clientele (Coe, 2006). The major factors on which the buyers base their choice of store are the primary factors and the image based factors. But, the factors depend on the type of store that the customer is visiting. In a place like South Korea, the shoppers do not have a variety of choices to choose from, so they simply like to go to a store which is recognized and sells many different products (Coe, 2013). Also, the people here like to travel less, so they visit the store which is nearby to their residence. But, different people have different choices and preferences; therefore, the study tries to understand the behavior of different buyers regarding the retail setup in the country. The buyers are explored in this study and the primary aim for that are the reasons due to which they chose a particular store. All over the world, the store choice and the patronage is studied by the researchers. With the growth of the stores and the retail setups in South Korea, this phenomenon has gained significance in the market. New stores chains are being set up and they provide new options to the buyers and leave them with new experiences (Neilson, 2014). The evaluation phase is going on with the retailers and the buyers in this place and there is no clear verdict as 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 the actual purchases is very less which leads to high costs of giving service to the customers and reduction in the level of profitability of the buyers. The small shops are the hallmark of this place
A STUDY ON STORE CHOICE BEHAVIOR OF CONSUMERS in SOUTH KOREA 4and this has held back the people to the traditional ways of shopping (Bronnenberg, 2015). Manypeople still believe that the new formats of the retail shops are not effective in adding any value to them; it is just a concept of novelty. There are many popular retail chains that are holding backthe new expansions. Therefore, the current 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 of brand. When the consumers chose a particular brand, they, do not consider the geographical limitations which is not the case with choosing the stores (Chkanikova, 2015). In case of the store choice by the customers, the location of the store plays a major role. It is believed that the cost of traveling while shopping is counted by the customers when they determine their total cost of shopping from a retail outlet. Therefore, they regard the distance of the store from their residence as an important factor while selecting the store (Cho, 2015). It has been observed that the socio-economic background of the consumers, their personality andthe way they have made the shopping decisions in the past have influenced the store choice behavior of the consumers (Shin, 2013). Apart from this, the shoppers have been observed to consider the brand that is being 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, the brand 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 in which they are involved are also a factor that helps them in deciding that which store they must visit to shop from (Cho, 2015). Thus, the
A STUDY ON STORE CHOICE BEHAVIOR OF CONSUMERS in SOUTH KOREA 5personal attributes of the people are also connected to the factors that influence 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 who have 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 the traditional formats. In South Korea, there are roadside vendors who sell the food items and in some places, the clothes too. These all are the unorganized ones. But, the shops that are located in the popular supermarkets, or the famous retail chains, form a part of the organized retail in South Korea. The choice of store is a major decision problem because this decision is very dynamic and it can be conceptualized as an issue which is related to the decision of when to shop and from where to shop. The shoppers have to decide about the location of the traditional store and then they have to decide that how many shopping trips they require for getting their things collected from the traditional stores (Bell, 1998). There is a relation between both of these problems. The choice of the store depends on the timing of the trips of shopping because many shoppers generally visit the local stores as filling in trips and for regular shopping, they go to the distant grocery shops (Aaker, 1971). These two decisions are based on the characteristics of the shoppers and the patterns of their consumption. Also, the shopping tasks determine the choice of the store formats. The shopping can be planned where the people prepare a list of things that they have to buy and shop according to that list. Then, the shopping can be emergency too for example when the family member has fallen ill andthe medicines are required urgently. Or the shopping can be unplanned, where the ‘mood’ of the
A STUDY ON STORE CHOICE BEHAVIOR OF CONSUMERS in SOUTH KOREA 6shoppers plays a very important role. Thus, the stores that the consumers choose differ in the salience rating as per the tasks that the shoppers intends to perform (Van Kenhove, 1999). The situational factors like purchasing the necessity goods affect the salience of the stores. It is important that the consumers evaluate the situational factors at their each visit and the choices of the shoppers may get changed because of the situation-specific drivers (Van Kenhove, 1999). All the situations may be evaluated by the shoppers on the basis of the cost that they incur and the utilities that they get from the shopping. The costs that are associated with shopping are both fixed and variable. When the size of the basket and the list of the items gets changed with the trips of the customers, it is the variable cost and when the list remains same in regard to the location of the store or the price format, then the cost is fixed (Darley, 1993). Broadly, it can be concluded that when the buyers talk about their store choices, they carry an image and a perception of the stores which has an influence on the final outcomes that they intend to achieve. The tangible attributes of the stores drives the perceptions of the people for that store. The formatof the store, its distance from the main market or from the house of the consumers etc. is all attributes that determine the choice of the stores by the consumers. Also, it has been observed that the type of the product is related to the nature of stores (Malhotra, 1983).The factors that affect the choice of format of the consumersThere are different ways in which the demography of the people and the socio-economic factors has an impact on the choice of the retail format (Tang, 2001). Either these factors directly influence the choices of the consumers, or they simply affect their buying behavior by affecting the shopping basket of the consumers, or by altering the shopping trips of the consumers (Fotheringham, 1988). Thus, the demography of the people and the socio-economic factors
A STUDY ON STORE CHOICE BEHAVIOR OF CONSUMERS in SOUTH KOREA 7impact the choice of the retail format in both direct and indirect ways. Apart from this, there are several other factors that affect the choice of format of the consumers. 1.One factor is the gender of the shoppers. There has been difference in the shopping behavior of males and females from the very beginning. The main reason behind this is the differences in the occupation of the males and females, the distinction in their preferences and the family responsibilities that they have. It has been on old practice by the males that they are not the common and regular market visitors and they do not have a practice of searching the market much (Dash, 1976). Thus, the marketers of the retail shops place most of their marketing strategies in consideration of the females in the market, rather than the males.2.Another factor that affects the choice of store format is the age group of people, the people of different age groups go for shopping for different things (Leszczyc, 2000). For example, the children and the teenagers do not go to buy the furniture. So the buying behavior differs as per the age groups of people. This is because, the requirements of the people in different age groups in different from each other. For example, whether elderly people go for shopping, they look for the things that will make their life easier and at that time, they do not consider the price as a very important factor. Also, they tend to get attracted towards the offers that the retailers are offering. 3.Then, the shopping also depends on the number of members who are present in a particular family. When the size of the family is big, the consumption of that family is high. So, the shopping has to be done on large scale. Also, when the size of the family is big, the consumers look for a wider variety of the product range (Briesch, 2009). Their
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