Examining the Effectiveness of Government Policy for Retail Districts: Evidence from Korea
Abstract
:1. Introduction
2. Literature Review
3. Method and Model
3.1. Data
3.2. Model
4. Analysis Results
4.1. Characteristics of Samples
4.2. Analysis of the Reliability and Validity of Shop Attributes
4.3. Analysis Result
4.3.1. Examination of Differences in Consumer Behavior Depending on Provision of Government Support
4.3.2. Characteristics Analysis per Support Type (MNL)
4.3.3. Cause and Effect Analysis between Satisfaction Level and Behavior Intention
5. Conclusions
5.1. Results
5.2. Implication and Limitations
Author Contributions
Acknowledgments
Conflicts of Interest
References
- Kim, W.H.; Kim, H. Regional development strategy for increasing cultural tourism business in South Korea. Asia Pac. J. Tour. Res. 2013, 18, 534–548. [Google Scholar] [CrossRef]
- Rousey, S.P.; Morganosky, M. Retail format change in US markets. Int. J. Retail Distrib. Manag. 1996, 24, 8–16. [Google Scholar] [CrossRef]
- Elms, J.; Canning, C.; de Kervenoael, R.; Whysall, P.; Hallsworth, A.G. 30 years of retail change: Where (and how) do you shop? Int. J. Retail Distrib. Manag. 2010, 38, 817–827. [Google Scholar] [CrossRef]
- Fernie, J. Retail Change and Retail Logistics in the United Kingdom: Past Trends and Future Prospects. Serv. Ind. J. 1997, 17, 383–396. [Google Scholar] [CrossRef]
- OECD. Self-Employment Data. Available online: https://data.oecd.org/emp/self-employment-rate.htm (accessed on 14 March 2018).
- Kim, W.H.; Hallsworth, A.G. Large Format Stores and the Introduction of New Regulatory Controls in South Korea. Int. Rev. Retail Distrib. Consum. Res. 2013, 23, 152–173. [Google Scholar] [CrossRef] [Green Version]
- Parker, S.C. The Economic of Entrepreneurship; Cambridge University Press: Cambridge, UK, 2009. [Google Scholar]
- OECD. SMEs, Entrepreneurship and Innovation; Organization for Economic Cooperation and Development: Paris, France, 2010. [Google Scholar]
- Ministry of SMEs and Startups Press Release. Available online: http://www.mss.go.kr/site/smba/main.do (accessed on 14 March 2018). (In Korean)
- Entrepreneurship at a Glance 2017. OECD Report. Available online: http://www.oecd-library.org/employment/entrepreneurship-at-a-glance2017_entrepreneur_aag-2017-en (accessed on 14 March 2018).
- Congregado, E.; Golpe, A.; Parker, S.C. The dynamics of entrepreneurship: Hysteresis, business cycles and government policy. Empir. Econ. 2012, 43, 1239–1261. [Google Scholar] [CrossRef]
- Hart, D.M. (Ed.) The Emergence of Entrepreneurship Policy; Cambridge Books; Cambridge University Press: Cambridge, UK, 2009. [Google Scholar]
- Dvouletý, O. Effects of Soft Loans and Credit Guarantees on Performance of Supported Firms: Evidence from the Czech Public Programme START. Sustainability 2017, 9, 2293. [Google Scholar] [CrossRef]
- Parker, S.C.; Robeson, M.T. Explaining international variations in entrepreneurship: Evidence from a panel of OECD countries. South. Econ. J. 2004, 1, 287–301. [Google Scholar] [CrossRef]
- Porter, S.S.; Claycomb, C. The influence of brand recognition on retail store image. J. Prod. Brand Manag. 1997, 6, 373–387. [Google Scholar] [CrossRef]
- Burt, S.; Carralero-Encinas, J. The role of store image in retail internationalisation. Int. Mark. Rev. 2000, 17, 433–453. [Google Scholar] [CrossRef]
- Dalwadi, R.; Rathod, H.S.; Patel, A. Key Retail store Attributes Determining Consumers’ Perceptions: An Empirical Study of Consumer of Retail Stores Located in Ahmedabad (Gujarat). SIES J. Manag. 2010, 7, 20–34. [Google Scholar]
- Kotler, P. Atmospherics as marketing tool. J. Retail. 1974, 49, 48–64. [Google Scholar]
- Donovan, R.J.; Rossiter, J.R. Store atmosphere: An environmental psychology approach. J. Retail. 1982, 58, 34–57. [Google Scholar]
- Louviere, J.J.; Johnson, R.D. Reliability and validity of the brand anchored conjoin approach to measuring retailer image. J. Retail. 1990, 66, 359–382. [Google Scholar]
- Ehrenberg, A.S.C.; Hammond, K.; Goodhardt, G.J. The after-effects of price-related consumer promotions. J. Advert. Res. 1994, 34, 11–21. [Google Scholar]
- Freymann, J.V. Grocery store pricing and its effect on initial and ongoing store choice. Mark. Manag. J. 2002, 12, 107–119. [Google Scholar]
- Basu, R.; Guin, K.K.; Sengupta, K. Do apparel store formats matter to Indian shoppers? Int. J. Retail Distrib. Manag. 2014, 42, 698–716. [Google Scholar] [CrossRef]
- Anuradha, A. Influence of psycho-demographic variables of customers on their expectations and satisfaction towards retail store image attributes. Int. J. Bus. Innov. Res. 2017, 14, 439–459. [Google Scholar] [CrossRef]
- Zeithaml, V. The New Demographics and market Fragmentation. J. Mark. 1985, 49, 64–75. [Google Scholar] [CrossRef]
- McGoldrick, P.J.; Andre, E. Consumer misbehavior: Promiscuity or royalty in grocery shopping. J. Retail. Consum. Serv. 1997, 4, 73–81. [Google Scholar] [CrossRef]
- Carpenter, J.; Moore, M. Consumer demographics, store attributes, and retail format choice in the US grocery market. Int. J. Retail Distrib. Manag. 2006, 34, 434–452. [Google Scholar] [CrossRef]
- Sinha, P.K.; Banerjee, A. Store choice behaviour in an evolving market. Int. J. Retail Distrib. Manag. 2004, 32, 482–494. [Google Scholar] [CrossRef]
- Prasad, C.J.; Aryasri, A.R. Effect of shopper attributes on retail format choice behaviour for food and grocery retailing in India. Int. J. Retail Distrib. Manag. 2011, 39, 68–86. [Google Scholar] [CrossRef]
- Yildirim, K.; Cagatay, K.; Hidayetoğlu, M.L. The effect of age, gender and education level on customer evaluations of retail furniture store atmospheric attributes. Int. J. Retail Distrib. Manag. 2015, 43, 712–726. [Google Scholar] [CrossRef]
- Deshwal, P. Customer experience quality and demographic variables (age, gender, education level, and family income) in retail stores. Int. J. Retail Distrib. Manag. 2016, 44, 940–950. [Google Scholar] [CrossRef]
- Niklas, H.; Sverker, C.J.; Simmon, M. Public Support for Pro-Environmental Policy Measures: Examining the Impact of personal Values and Ideology. Sustainability 2017, 9, 679. [Google Scholar] [CrossRef]
- Fox, E.J.; Montgomery, A.L.; Lodish, L.M. Consumer shopping and spending across Retail Formats. J. Bus. 2004, 77, S25–S60. [Google Scholar] [CrossRef]
- Bawa, K.; Ghosh, A. A model of Household Grocery Shopping Behavior. Mark. Lett. 1999, 10, 149–160. [Google Scholar] [CrossRef]
- Mehta, R.; Sharma, N.K.; Swami, S. A Typology of Indian Hypermarket Shoppers Based on Shopping Motivation. Int. J. Retail Distrib. Manag. 2014, 42, 40–55. [Google Scholar] [CrossRef]
- Pan, Y.; Zinkhan, G.M. Determinants of retail patronage: A meta-analytical perspective. J. Retail. 2006, 82, 229–243. [Google Scholar] [CrossRef]
- Yan, R.; Eckman, M. Are lifestyle centres unique? Consumers’ perceptions across locations. Int. J. Retail Distrib. Manag. 2009, 37, 24–42. [Google Scholar] [CrossRef]
- Anselmsson, J. Effects of shopping centre re-investments and improvements on sales and visit growth. J. Retail. Consum. Serv. 2016, 32, 139–150. [Google Scholar] [CrossRef]
- Nilsson, E.; Gärling, T.; Marell, A. Consumers’ satisfaction with grocery shopping in supermarkets and convenience stores. Int. J. Sales Retail. Mark. 2013, 2, 72–90. [Google Scholar]
- Martinez-Ruiz, M.P.; Blazquez-Resino, J.J.; Pino, G. Store attributes leading customer satisfaction with unplanned purchases. Serv. Ind. J. 2017, 37, 277–295. [Google Scholar] [CrossRef]
- Koo, D. Inter-relationships among store images, store satisfaction, and store loyalty among Korea Discount Retail patrons. Asia Pac. J. Mark. Logist. 2003, 15, 42–71. [Google Scholar] [CrossRef]
- Bitner, M.J. Evaluating Service Encounters: The Effects of Location Surroundings and Employee Responses. J. Mark. 1990, 54, 69–82. [Google Scholar] [CrossRef]
- Szymanski, D.M.; Henard, D.H. Customer Satisfaction: A Meta-analysis of the Empirical Evidence. J. Acad. Mark. Sci. 2001, 29, 16–35. [Google Scholar] [CrossRef]
- Newberry, C.R.; Klemz, B.R.; Boshoff, C. Managerial implications of predicting purchase behavior from purchase intentions: A retail patronage case study. J. Serv. Mark. 2003, 17, 609–620. [Google Scholar] [CrossRef]
- Chang, C.H.; Tu, C.Y. Exploring store image, customer satisfaction and customer loyalty relationship: Evidence from Taiwanese hypermarket industry. J. Am. Acad. Bus. Camb. 2005, 7, 197–202. [Google Scholar]
- Na, Y.K.; Oh, W.K. A Study on Fashion Store Attributes and Brand Equity according to Lifestyle and Brand Type. Korean Soc. Fash. Des. 2010, 10, 97–114. [Google Scholar]
- Lee, D.H.; Lee, J.H.; Hwang, S.H. The Study for the Effect of Retail Service Quality Satisfaction and Social Connectedness on the Store Royalty in the Consumer Cooperatives. Asia Pac. J. Small Bus. 2015, 37, 77–99. [Google Scholar]
- Mafini, C.; Dhurup, M. Drivers of Customer Loyalty in South African Retail Stores. J. Appl. Bus. Res. 2015, 31, 1295–1310. [Google Scholar] [CrossRef]
- Nair, S.R. Analyzing the relationship between store attributes, satisfaction, patronage intention and lifestyle in food and grocery store choice behavior. Int. J. Retail Distrib. Manag. 2018, 46, 70–89. [Google Scholar] [CrossRef]
- Kim, S.H.; Han, J.H. Traditional retail market revitalization strategy using recognition analysis. Rural Econ. 2011, 34, 59–77. (In Korean) [Google Scholar]
- Kim, W. The influence of structural changes in a local commercial district on local consumer consumption behavior in South Korea: Using the multinomial logit model. Afr. J. Bus. Manag. 2011, 5, 4455–4464. [Google Scholar]
- Lee, S.; Kim, W. Empirical research on the influence of spatial competition in the distribution industry on consumer behaviors in South Korea. Asia Mark. J. 2013, 15, 107–128. [Google Scholar]
- Turley, L.W.; Milliman, R.E. Atmospheric effects on shopping behavior: A review of the experimental evidence. J. Bus. Res. 2000, 49, 193–211. [Google Scholar] [CrossRef]
- Park, H.; Burns, L.D. Fashion orientation, credit card use, and compulsive buying. J. Consum. Mark. 2005, 22, 135–141. [Google Scholar] [CrossRef]
- Angell, R.; Megicks, P.; Memery, J.; Heffernan, T.; Howell, K. Understanding the older shopper: A behavioural typology. J. Retail. Consum. Serv. 2012, 19, 259–269. [Google Scholar] [CrossRef]
- Babakus, E.; Bienstock, C.C.; Van Scotter, J.R. Linking Perceived Quality and Customer Satisfaction to Store Traffic and Revenue Growth. Decis. Sci. 2004, 35, 713–737. [Google Scholar] [CrossRef]
- Hasan, Y.; Muhammad, N.M.N.; Bakar, H.A. Influence of Shopping Orientation and Store Image on Patronage of Furniture Store. Int. J. Mark. Stud. 2010, 2, 175–184. [Google Scholar] [CrossRef]
- Baker, J.; Levy, M.; Grewal, D. An experimental approach to making retail store environmental decisions. J. Retail. 1992, 68, 445–460. [Google Scholar]
- Kumar, A.; Kim, Y.K. The store-as-a-brand strategy: The effect of store environment on customer responses. J. Retail. Consum. Serv. 2014, 21, 685–695. [Google Scholar] [CrossRef]
- Miranda, M.J.; Kónja, L.; Havrila, I. Shoppers’ satisfaction levels are not the only key to store loyalty. Mark. Intell. Plan. 2005, 23, 220–232. [Google Scholar] [CrossRef] [Green Version]
- Levy, M.; Weitz, B.A. Retailing Management, 8th ed.; McGraw-Hill, University of Florida: Gainesville, FL, USA, 2009. [Google Scholar]
- Swoboda, B.; Berg, B.; Schramm-Klein, H.; Foscht, T. The importance of retail brand equity and store accessibility for store loyalty in local competition. J. Retail. Consum. Serv. 2013, 20, 251–262. [Google Scholar] [CrossRef]
- McFadden, D. Conditional Logit Analysis of Qualitative Choice Behavior. In Frontiers in Econometrics; Zarembka, P., Ed.; Academic Press: New York, NY, USA, 1974. [Google Scholar]
- Joyce, M.L.; Lambert, D.R. Memories of the way stores were and retail store image. Int. J. Retail Distrib. Manag. 1996, 24, 24–33. [Google Scholar] [CrossRef]
- Berman, B.; Evans, J.R. Retailing Management: A Strategic Approach, 8th ed.; Pearson Education: New Delhi, India, 2007. [Google Scholar]
- Kim, H.W.; Lee, J.H.; Hwang, S.H. The influence of the attributes and Personality of the Nonghyup Hanaro Mart on Satisfaction, Trust and Loyalty in the Changwon Area. Korean Soc. Coop. Stud. 2017, 35, 49–80. [Google Scholar]
- Forsberg, H. Institutions, consumer habits and retail change in Sweden. J. Retail. Consum. Serv. 1998, 5, 185–193. [Google Scholar] [CrossRef]
- Hsu, M.K.; Huang, Y.; Swanson, S. Grocery store image, travel distance, satisfaction and behavioural intentions–evidence from a Midwest college town. Int. J. Retail Distrib. Manag. 2010, 38, 115–132. [Google Scholar] [CrossRef]
- Nilsson, E.; Gärling, T.; Marell, A.; Nordnall, A.-C. Importance ratings of grocery store attributes. Int. J. Retail Distib. Manag. 2015, 43, 63–91. [Google Scholar] [CrossRef]
- Hoyt, L.M. The Business Improvement District: An Internationally Diffused Approach to Revitalization; Department of Urban Studies and Planning, Massachusetts Institute of Technology: Cambridge, MA, USA, 2003; Available online: http://www.UrbanRevitalization.net (accessed on 14 March 2018).
- Brown, A. Farmers’ market research 1940~2000: And inventory and review. Am. J. Altern. Agric. 2002, 17, 167–176. [Google Scholar] [CrossRef]
Variable | Remark | Mean/Freq (%) | Std.D | |
---|---|---|---|---|
Independent Variables | Gender | Male = 1, Female = 0 | 0.10 | 0.30 |
Age | Younger 20s = 2, 30s = 3, 40s = 4, 50s = 5, 60s or older = 6 | 2 = 4.8, 3 = 21.0, 4 = 36.0, 5 = 27.8, 6 = 10.5 | ||
Edu | Over University Graduate = 1, Under University Graduate = 0 | 0.43 | 0.49 | |
Marital Status | Married = 1, Single = 0 | 0.89 | 0.30 | |
Income | 1391 = 1, 2319 = 2, 3246 = 3, 4174 = 4, 5565 = 5 Monthly Household Income (US$) | 1 = 20.5, 2 = 20.5, 3 = 26.5, 4 = 21.8, 5 = 10.8 | ||
Visit | Number | 3.26 | 3.23 | |
Expen | Expenditure per term (KRW: won) | 36,582 | 22,537 | |
Fac1 | Convenience (5-point Likert scale) | 2.43 | 0.69 | |
Fac2 | Product (5-point Likert scale) | 3.09 | 0.65 | |
Fac3 | Atmosphere (5-point Likert scale) | 2.91 | 0.66 | |
Fac4 | Location (5-point Likert scale) | 3.29 | 1.07 | |
Satisfaction | Overall Satisfaction (5-point Likert scale) | 3.86 | 0.62 | |
Dependent Variable | Type of policy | Facility = 1 (n= 90), Management = 2 (n = 71), Facility + Management = 3 (n = 120), No Support = 0 (n = 117) |
Eigenvalue | Factor Loading | Variance | Cronbach’s α | ||
---|---|---|---|---|---|
Convenience Factor | The point system is effective(Coupon) | 6.191 | 0.764 | 36.419 | 0.830 |
Exchange and refunding | 0.763 | ||||
Convenience of the payment method | 0.717 | ||||
Recreational facilities are well provided | 0.703 | ||||
Price parking system is efficient | 0.639 | ||||
Parking lot is convenient | 0.457 | ||||
Product Factor | Product Diversity | 2.125 | 0.806 | 12.500 | 0.835 |
Product Excellence | 0.771 | ||||
Product Reliability | 0.746 | ||||
There are many famous brands | 0.706 | ||||
Product Price | 0.698 | ||||
Atmosphere Factor | Hygienic Product Preservation | 1.625 | 0.800 | 9.556 | 0.850 |
Externally clean | 0.791 | ||||
Luxurious mood | 0.740 | ||||
Good illumination facility | 0.720 | ||||
Location Factor | It is convenient to go on foot. | 1.176 | 0.929 | 6.916 | 0.877 |
Close from home | 0.905 | ||||
Cumulative variance = 65.390 |
Variable | Support Status | Mean (Std.D) | t-Value | p-Value |
---|---|---|---|---|
# of visit | No Support | 3.37(3.40) | 1.158 | 0.247 |
No support | 2.96(2.76) | |||
Expenditure | No Support | 37,953(20,480) | 1.980 | 0.048 * |
No support | 33,108(26,441) | |||
Convenience | Supported | 2.55(0.67) | 5.543 | 0.000 ** |
No support | 2.14(0.66) | |||
Product | Supported | 3.15(0.59) | 2.202 | 0.028 * |
No support | 2.99(0.78) | |||
Atmosphere | Supported | 3.03(0.60) | 5.622 | 0.000 ** |
No support | 2.63(0.71) | |||
Location | Supported | 3.35(1.01) | 1.402 | 0.162 |
No support | 3.18(1.20) | |||
Satisfaction | Supported | 3.49(0.62) | 3.908 | 0.000 ** |
No support | 3.19(0.86) |
Variables | Facility | Management | Facility + Management | No Support | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Coef. | S/E | t-Value | Coef. | S/E | t-Value | Coef. | S/E | t-Value | Coef. | S/E | t-Value | |
Constant | −0.960 | 0.17 | −4.447 *** | −0.934 | 0.17 | −3.905 *** | 0.388 | 0.24 | 1.304 | 1.50 | 0.24 | 4.951 *** |
Gender | −0.071 | 0.06 | −0.985 | 0.089 | 0.07 | 1.197 | −0.146 | 0.10 | −1.395 | 0.128 | 0.09 | 1.364 |
Age | −0.058 | 0.02 | −2.643 *** | −0.008 | 0.02 | −0.353 | 0.037 | 0.03 | 1.220 | 0.029 | 0.03 | 0.913 |
Education | −0.102 | 0.03 | −2.497 ** | −0.070 | 0.04 | −1.441 | 0.224 | 0.06 | 3.552 *** | −0.051 | 0.06 | −0.804 |
Marital status | 0.188 | 0.09 | 2.009 ** | 0.133 | 0.08 | 1.476 | −0.101 | 0.10 | −0.974 | −0.219 | 0.10 | −2.069 ** |
Income | 0.000 | 0.00 | 5.476 *** | 0.000 | 0.00 | 3.149 *** | −0.001 | 0.00 | −6.484 *** | 0.000 | 0.00 | 0.467 |
Visit | −0.004 | 0.00 | −0.705 | 0.034 | 0.00 | 5.226 *** | −0.028 | 0.01 | −2.832 *** | −0.001 | 0.00 | −0.133 |
Expend | 0.000 | 0.00 | 2.254 ** | 0.000 | 0.00 | 0.762 | −0.000 | 0.00 | −1.413 | 0.000 | 0.00 | −0.351 |
Convenience | 0.120 | 0.04 | 2.908 *** | −0.128 | 0.04 | −3.009 *** | 0.167 | 0.05 | 2.930 *** | −0.158 | 0.05 | −2.691 *** |
Product | 0.116 | 0.03 | 3.199 *** | −0.105 | 0.04 | −2.593 *** | −0.048 | 0.04 | −0.983 | 0.037 | 0.05 | 0.745 |
Atmosphere | −0.061 | 0.04 | −1.548 | 0.206 | 0.05 | 4.156 *** | −0.010 | 0.06 | −0.178 | −0.135 | 0.06 | −2.260 ** |
Location | 0.040 | 0.02 | 1.902 * | 0.082 | 0.02 | 3.555 ** | −0.103 | 0.02 | −3.777 *** | −0.019 | 0.02 | −0.703 |
Satisfaction | 0.012 | 0.03 | 0.381 | 0.061 | 0.03 | 1.594 | 0.078 | 0.04 | 1.710 * | −0.152 | 0.04 | −3.268 ** |
Log likelihood function | −403.6818 | |||||||||||
Restricted log likelihood | −544.0438 | |||||||||||
Model X2 | 280.7241 * | |||||||||||
Number of Observation | 398 |
Dependent Variable | Independent Variable | Unstandardized | Unstandardized | t-Value | |
---|---|---|---|---|---|
B | Standard Error | Β | |||
Satisfaction | Constant | 1.237 | 0.125 | 9.888 * | |
Revisit | 0.273 | 0.042 | 0.336 | 6.564 * | |
recommendation | 0.341 | 0.045 | 0.389 | 7.606 * | |
R2 = 0.442, Adjusted R2 = 0439, F = 157.386 |
© 2018 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
Share and Cite
Kim, W.; Hallsworth, A.; Kim, H. Examining the Effectiveness of Government Policy for Retail Districts: Evidence from Korea. Sustainability 2018, 10, 1558. https://doi.org/10.3390/su10051558
Kim W, Hallsworth A, Kim H. Examining the Effectiveness of Government Policy for Retail Districts: Evidence from Korea. Sustainability. 2018; 10(5):1558. https://doi.org/10.3390/su10051558
Chicago/Turabian StyleKim, Woohyoung, Alan Hallsworth, and Hyun Kim. 2018. "Examining the Effectiveness of Government Policy for Retail Districts: Evidence from Korea" Sustainability 10, no. 5: 1558. https://doi.org/10.3390/su10051558