Brand researchers have been in their quest for understanding how consumers evaluate brands and react to branding practices. The purpose of this study is to validate the importance of brand experience in brand building process with high-and low-involvement products of global brands in China. Four global brands (Nike, Kappa, Ferrero, Meiji) were selected for the analysis, and 1,100 participants of the millennial generation consumers participated in the online survey. The findings suggest that both rational perception and emotional feelings of consumers play important roles in the process of brand building among Chinese consumers. The relationship between brand image and brand trust, which is the initial stage of brand building process plays a vital role in consumers' purchasing decisions. Concurrently, brand experience positively influences brand image and attachment, leading to consumers' purchasing decisions. The findings also provide insights regarding different paths in the brand building process for high and low involvement product categories, suggesting the importance of differentiated branding strategies for various product categories in China.
Purpose The purpose of this paper is to examine the antecedents of consumers’ omnichannel (OC) adoption intention and explore how consumers’ personality trait affects their OC adoption behavior. Design/methodology/approach A total of 227 Korean consumers were invited to participate in a survey study, and partial least squares–structural equation modeling was performed to analyze the measurement and structural models. Findings The results show that three consumer groups by “Need for Cognition (NFC)” show different response to four identified OC attribute/benefits. Finally, the authors hypothesize and find that shed light on the possible ways to differentiate OC marketing for different target consumers and provide implications for practice and further research. Research limitations/implications This study provides empirical evidence that OC is an expanded retail format of e-commerce, which is predominantly affected by how information on the cross-channel marketing mix/retail strategies is delivered to consumers. From communication perspective, findings suggest that retail communication strategy need more careful attention in dealing with individual difference of consumers. In addition, the significant role of NFC on consumers’ OC adoption process validates the importance of customization and differentiation in retailers’ message to different consumer groups. In order to do so, comprehensive analysis on consumer database may be necessary to develop personalized OC service. In-depth analysis of consumer profile may enable more specific methods for marketing and managing consumers in the OC context. Although the study provides additional empirical findings for consumers’ perception on selected characteristics of OC (i.e. delivery approach of information and service in OC and institutional mechanism of OC), there may be additional extrinsic motivation factors which affect consumers’ OC adoption behavior. Extrinsic factors such as web design, convenience, assortment, moving saving which trigger positive perception of OC, may be important determinants to consider. Furthermore, situational factor such as social media (Huseyinoglu et al., 2018) and behavioral factors such as platform use habit (Chen, 2018) may also be significant in assessing consumers’ OC adoption behavior. Finally, this study has been conducted on a particular culture setting, and the generalizability of study findings, particularly about the role of NFC may need to be improved by cross-culture evaluation. Practical implications NFC-high and medium consumers are likely to use the four OC service options in future, while a larger proportion of the NFC-low consumers shows negative response to the OC service usage. This evidently shows that innovative features of OC service are not homogenously adopted by consumers, and subject to their experience and intrinsic difference, adoption rate was found to vary. This suggests that companies need to pay careful attention in implementing innovative OC service, and may approach communication of information strategically for different consumer groups. For high-NFC consumers with previous BOPIS experience, retailers may effectively engage them by enhancing and expanding the BOPIS service features, yet for low-NFC consumers, raising awareness and initiating interest among unexperienced consumers may be more imminent issue. Indirect communication using peripheral cues may be necessary to draw less motivated consumer group. Social implications The OC retailers may need to set the scope and range of information into in-depth information and simplified/unified information, and address the different type of information to different consumer groups in order to facilitate consumers’ OC adoption. For consumers with medium and high NFC, it may be necessary to provide in-depth, detailed information relevant to product quality and promotional items consistently both in on/offline channels to gain their trust. Consumers with low NFC are found to prefer unified and simplified messages on information for price, delivery, inventory in on/offline channels. Originality/value This study addresses the perceived value of unique and fundamental features and specificity of OC service by consumers with different personality trait. The authors develop consumers’ OC adoption model based on the theory of reasoned action, which depicts relationship between four extrinsic motivation factors and consumers’ intention for the OC usage, which is further differentiated by an intrinsic factor. We segment consumers based on individual difference of “NFC” and investigate how different consumer groups value different aspect of the selected OC attributes and benefits. Findings validate the importance of customization and differentiation in retailers’ message to different consumer groups and in facilitating consumers’ OC adoption.
Wal-Mart entered South Korea in late 1990s for its international expansion; however, IT had a major failure in this market and left Korea in 2005 as the American way of marketing did not translate well in Korea. Wal-Mart had critical shortfalls in enabling value exchange with the Korean consumers as the Korean consumers had significantly different taste and preferences compared to American consumers. Wal-Mart's Every Day Low Price (EDLP) strategy was not perceived to have the "value" in the minds of the Korean consumers, while its store locations were not strategically well positioned to create sufficient customer traffic. Wal-Mart's competitive advantage of low cost and low price was not suitable in the Korean competition and consumption context. Wal-Mart was not prepared to develop an effective localization strategy that might have stemmed from not having a clear projection of how much it was willing to invest and grow in this market. This Wal-Mart Korean case shows the importance of the compatibility of a corporate unique value proposition and strategic fit with the local market conditions.
With highly negative publicity, GM food marketing in South Korea has become a major challenge for potential marketers who are interested in entering the South Korean market. Several consumer groups and non-government organizations (NGOs) in South Korea initiated anti-GM food campaigns. South Korean consumers are reported to be more concerned about potential risk associated with GM food compared to counterpart consumers in the U.S and Europe (KFDA, 2009). Many South Korean food processors and marketers are responding to this consumer concern by ignoring the labeling requirement of GM contents in their products. There is apparent lack of coordination in the South Korean food supply chain regarding GM food management with South Korean consumers' negative attitude toward GM foods and South Korean food suppliers' avoidance of GM food labeling. Despite the apparent benefits of GM food, GM food may not have sufficient market value in the market if consumers have distrust and insecurity toward such product. This paper develops a quantitative model which identifies major determinants of South Korean consumers' choice behavior for GM foods. The proposed model elicit constructs which form South Korean consumers' attitude which in turn affect their willingness to purchase GM foods. Our study developed a socio-cognitive model of South Korean consumers' behavior, using Fishbein's framework, which has two attitudinal constructs (Perceived Benefits and Perceived Risk) and one construct that capture effect of individual respondent's socioeconomic variance (Socio-Economic Status (SES). Consumers' beliefs and attitudes regarding the risks and benefits of GM foods and their individual socio-demographic status are hypothesized to be linked to consumers' choice behavior of GM foods. A sample of 360 consumers was drawn from a survey study in the capital city, Seoul. Results reveal that consumers' Socio-Economic Status (SES) and their Perceived Benefits associated GM food were found to be strong indicators of consumers' GM food purchase intention. This implies that consumer's background and diversity in South Korean demographic may have significant effect on their purchase intention for GM food. This suggests that further extensive study on South Korean consumer market need to be conducted in order to fully understand the difference among various South Korean consumer market segments in terms of how they respond to GM food issues. Comprehensive market segmentation on South Korean consumer market should be done in terms of their GM risk appetite, GM food knowledge, information search behavior and food consumption pattern. Our results show that favorable attributes of GM food such as medical benefits and nutritional enhancement were found to have significant influence on consumers' attitude toward GM food positively. Results show potentials for second generation GM food in South Korea, if specific of consumer benefits can be effectively developed and promoted to South Korean consumers. Regarding Perceived Risk of GM food, uncertainty/ lac...
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