• Title, Summary, Keyword: Duty Free Shop

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Economic Effects of Incheon International Airport Arrival Duty-Free Shops (인천공항 입국장 면세점 도입에 따른 경제적 효과 분석)

  • Kim, Seok;Choi, Yu-Jin
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.26 no.4
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    • pp.20-26
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    • 2018
  • This study analyzes the economic effect of introducing the arrival duty - free shop at Incheon International Airport. Based on the estimated sales of KRW 127 billion for the duty-free shop at the port of entry, the international balance of payments was estimated at KRW 55.5 billion. Job creation was estimated at 530, including direct and indirect workforce. With the admission of arrival duty-free shops, duty-free shops in the airline are likely to see a decline in sales, helping to improve monopoly structure on the market structure side. It is expected that the rental income generated through the operation of the arrival duty-free shop will be used as a resource for social contribution activities, creating additional social economic effects.

Is the Korean Duty Free Shop Industry Monopolistic? (한국 면세점 산업의 구조, 독과점인가?)

  • Lee, Hee-Tae;Cha, Moon-Kyung
    • Journal of Distribution Science
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    • v.14 no.10
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    • pp.47-57
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    • 2016
  • Purpose - This study's purpose is to investigate the market structure of the Korean duty free shop industry that has received recent attention from researchers and practitioners. By raising the question of whether or not the Korean duty free shop industry is unequivocally monopolistic, a wider viewpoint is provided. The study seeks to offer insights and managerial implications for marketers and policy makers who are in charge of regulating major Korean duty free shops. Research design, data, and methodology - The authors use secondary data from various sources, including Korea Customs Service and the Moodie Report, to investigate the structure of the duty free shop industry of Korea. Based on several theories, they present various criteria and statistical evidence such as K-firm concentration ratio, HHI, consumer substitutability, excess profit, and marketing costs. Results - In terms of consumer substitutability, it is difficult to confirm whether or not the Korean duty free shop industry is monopolistic. Notwithstanding monopoly characteristics in terms of market share, neither the company Lotte nor Shilla appear to have market dominating power. It is not easy for either of them to control prices or to achieve a much lower operational profit ratio due to a dominant bargaining power. Moreover, the license is not an economic rent. In this situation, it is not easy for these companies to obtain an excessive profit. Conclusions - Considering that most global duty free shops are trying to go upscale to improve bargaining power, it does not seem likely that rigid regulations are needed in the industry. Even though the Korean duty free industry ostensibly has a monopolistic structure, government and policy-makers should look beyond the surface. They should take global and other reasonable criteria into consideration when they establish or change regulation policies. Thorough understanding and appropriate support are needed for the Korean duty free shop industry. Additionally, duty free shops should position themselves as global companies struggling against unlimited international competition, rather than Korean domestic companies. At the same time, they need to give customers appropriate information about the benefits they provide.

The Effect of Servicescape at Airport Duty Free Shop on Customer Satisfaction and Image (공항 면세점의 서비스스케이프가 고객 만족 및 이미지에 미치는 영향)

  • Park, Kyu-Seon;Park, Jin-Woo
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.24 no.1
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    • pp.16-24
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    • 2016
  • Despite rapid growing in domestic duty free industry, weight of income from airport duty free area is relatively decreasing because of rapid progress in downtown duty free area. The purpose of this research was investigating the relationship between airport duty free servicescape and its effects on customer satisfaction and image for duty free shop, in order to maintain own competitive advantages. In pursuing above, previous studies related to servicescape, service value, customer satisfaction, and image were examined for literature review. Based on this previous studies, research model were constructed. Hypothesis was verified by effect. Data from 305 samples was employed for final survey. The main results show that functionality, attraction and convenience were meaningful factors to effect perceived servicescape. On the other hand, cleanness and comfort had few or no influence on servicescape. The perceived servicescape affected on service value and customer satisfaction. Service value had positive effects on customer satisfaction which was discovered to affected on image for duty free shop.

A Study on the Effect of Duty Free Shop Sales on Airline Delay at Airport - Focused on airlines of Incheon International Airport - (공항에서 면세점 매출액이 항공기 지연에 미치는 영향에 관한 연구 - 인천국제공항 탑승동 취항 항공사 대상으로 -)

  • Kim, Kwang Il
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.26 no.2
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    • pp.123-131
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    • 2018
  • Air transport industry tries to enhance punctuality, stability and amenity for customer's satisfaction. Especially airlines and airports do make an effort as the distance between these two stakeholders and passengers are close. This research has empirically discussed the relationship between duty free shop purchase of passengers and the number of flights and hours of schedule delay at the airport. According to the result, the total sales of duty free shop sales have meaningful influence on the number of flights and hours of delay. In order to decrease such an impact, close cooperation between airports and duty free shops required.

Effect of Duty Free Shop's Service Quality on Relationship Quality and Loyalty (면세점의 지각된 서비스품질이 관계품질과 고객충성도에 미치는 영향)

  • Li, Liang;Yoo, Kun-Woo;Park, Chan-Wook
    • Journal of Distribution Science
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    • v.15 no.4
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    • pp.41-57
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    • 2017
  • Purpose - With the growth of the duty free shop field and an increase in the executive interest in it, it becomes necessary to examine if PBZ (1988) SERVQUAL could be applied to duty free shop service reflecting on this increased interest and the importance of marketing strategy alternative managing multinational customers. Therefore, the present research focused on the comparison of Korean and Chinese consumers. We examined how service quality would affect relationship quality and customer loyalty. Research design, data, and methodology - Surveys were distributed to 235 Korean and 220 Chinese consumers who have visited a Korean duty free shop. We analyzed frequency analysis, mean difference analysis, and reliability analysis, exploratory factor analysis, confirmatory factor analysis, structural equation model analysis, and multi-group analysis. Results - First, perceived tangibles, responsiveness, empathy, assurance, price benefits, product diversity, and IT convenience of duty free shop service all appeared to be positive effect on customer satisfaction; at the same time, only tangibles, responsiveness, empathy, assurance, and price benefits positively affected customer trust. Secondly, customer satisfaction and trust that are the components of the relationship quality appeared to be positive effect on customer loyalty. Thirdly, customers' satisfaction was found to play a full mediating role effect among all of the service quality factors with customer loyalty; however, customer trust was found to have the mediating effects only with tangibles, empathy, assurance, and price benefits. Fourthly, we found a difference between how service quality influences relationship quality and how service quality influences customer loyalty as a function of different nationality. As a result, it appeared that price benefits and IT convenience affected customer satisfaction more among Koreans than among Chinese. Finally, it appeared that customer satisfaction and trust affected customer loyalty more among Chinese than among Koreans. Conclusions - The results of this study contribute to the theoretical knowledge, but also provide strategic alternatives to enhance differentiation, international competence of enterprises led by duty free shop and service quality improvement and customer loyalty of enterprises are drawn as a foundation for constructing international customer relationship in future global era.

A Study on the Shopping Behavior of Duty Free Shop Users

  • Choi, Yu-Jin;Park, Jin-Woo
    • Journal of Distribution Science
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    • v.16 no.8
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    • pp.39-50
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    • 2018
  • Purpose - The ultimate purpose of this research is to analyze the influence of personal disposition on shopping value and behavioral intention by expanding the theory of planned behavior (TPB). Research design, data, and methodology - An attempt was made to examine the effects of personal disposition (reflecting duty-free shop characteristics) on three selective actions of consumers - compulsive buying, variety seeking, and price sensitivity. We conducted a questionnaire survey with the users of airport duty-free shops, downtown duty-free shops (offline), and online duty-free shops. In total, 410 copies of the questionnaire were analyzed using a structural equation model. Results - According to the results, compulsive buying, variety seeking, and price sensitivity significantly affected shopping value. Shopping value and subjective norms both had significant effects on attitude, the major variable in the TPB, and attitude had the greatest effect on behavioral intention, followed by subjective norms and perceived behavioral control in descending order. Conclusions - This study has academic implications in that it extends the existing theories of planned behavior and applies it to consumer characteristics and shopping value. It has practical implications as well in that it provides basic data that can be used to establish concrete marketing strategies for duty-free shop owners targeting segmented markets by closely examining customer desires.

Improvement of Service Encounter in Duty free shop using Service Blueprinting (서비스 청사진을 이용한 면세점에서의 서비스접점 개선 연구)

  • Choi, Eun A;Lee, Sang Shik;Lee, DonHee
    • Journal of the Korea Industrial Information Systems Research
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    • v.21 no.4
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    • pp.95-110
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    • 2016
  • The purpose of this study is to design a service encounter of a duty free shop using a blueprinting method. This case study analyzed differences between city-based and airport-based duty free shop and proposed a flow chart based on administration blueprinting of the duty free shop in South Korea. The paper presented process criteria based on administrative procedures of customers in city-based and airport-based duty free shop. The results of the study provided the cause of failure with waiting point of customer and customer service and suggested management plan to solve failure. Also, the study addressed more customer-oriented service delivery processes to improve service quality and customer satisfaction through waiting and failure points.

The Research focusing on the Goal-directed Behavior of Duty Free Shop Users (면세점 이용객들의 목표지향적 행동에 관한 연구)

  • Choi, Yu-Jin;Park, Jin-Woo
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.23 no.4
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    • pp.73-81
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    • 2015
  • The purpose of this study is to explore structural relationship between cognitive factors and emotional factors in predicting behavioral intention of duty-free users. This study conducted questionnaire survey on 246 users of duty-free shops and analyzed it by using structural equation. As the result of the study, attitude was significantly associated with both desire and behavioral intention. Subjective norm had a significant impact on desire, but had no significant imfact on behavioral intention. Whereas perceived behavioral control did not have a significant influence on desire and intention. Desire, which plays mediating role as a major variable in goal-directed behavioral model, turned out to not only have significant impact on behavioral intention but has the strongest effect as well. This study has its academic meaning in that it explored factors which have effect on decision-making process of duty-free users focusing on goal-oriented behavioral model, which is one of integrated psychological models. In practical terms, this study can be used as a basic material for corporations to establish goals in domestic duty-free shops.

The Effect of Duty Free Shop Consumers' Store Benefits Sought and Fashion Merchandise Shopping Orientation on Store Satisfaction (면세점 이용 소비자의 점포 추구혜택 및 패션제품 쇼핑성향이 점포 만족도에 미치는 영향)

  • Lee, Hyun-Jin;Ku, Yang-Suk
    • Fashion & Textile Research Journal
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    • v.13 no.4
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    • pp.572-581
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    • 2011
  • The purpose of this study was to investigate the effect of duty free shop consumers' store benefits sought and fashion merchandise shopping orientation on store satisfaction. Survey data were collected from questionnaires filled out by 194 domestic consumers who had purchase experience of fashion goods in duty free shops located in Korea. The data were analyzed by reliability analysis, factor analysis, and multiple regression analysis. The results of this study were as follows: First, the store benefits sought was categorized into five factors such as pursuit of convenience, salesperson/atmosphere, promotion, product quality, and product fashionability/variety. The fashion merchandise shopping orientation was categorized into six factors such as pleasure orientation, pursuit of fashion, pursuit of brand, planned orientation, pursuit of confidence, and convenience orientation. The store satisfaction was categorized into six factors such as atmosphere/reputation of store, promotion, product fashionability/variety, convenience, price, and salesperson. Second, the store benefits sought, composed of pursuit of convenience, salesperson/atmosphere, promotion, product quality, and product fashionability/variety, had an effect on the store satisfaction. Third, the shopping orientation such as pleasure orientation, pursuit of fashion, pursuit of brand, and planned orientation, with the exception of pursuit of confidence and convenience orientation, had an effect on the store satisfaction.

A Research on the Effect of Duty Free Shop's Visual Merchandising(VMD) to Customer Loyalty with Parameter Effects of Brand Awareness and Image (공항면세점 VMD 구성요인이 브랜드 인지도와 브랜드 이미지를 매개로 하여 고객충성도에 미치는 영향에 관한 연구)

  • Kim, Taek-Joon;Kim, Ki Woong;Lee, In Hwan;Jang, Soon Ja;Park, Sung Sik
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.21 no.2
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    • pp.47-61
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    • 2013
  • A concession business at Incheon Int'l airport has achieved a huge success since its grand opening of 2001. However the duty-free market became matured due to downtown duty free stores and on-line stores. Thus this paper tried to research and suggest strategic planning of VMD at Incheon airport's duty-free after analyzing the relationship among the components of duty-free store's VMD, brand awareness, brand image and customer's loyalty. Components of VMD are constructed in harmony, attractiveness, trendiness and Trust, which are independent variables. In addition, brand awareness and brand image are chosen as control variables. Customer loyalty is also designated as a dependant variable. Focusing those variables, this paper tried to find out the effect of VMD components to brand and consumer loyalty. According to the research result, it is proven attractiveness and harmony have a significant positive impact on brand awareness and brand image. It is also found out brand awareness and image have a positive impact on passenger's loyalty on duty-free stores at Incheon airport.