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The effect of distribution channel diversification of foreign luxury fashion brands on consumers’ brand value and loyalty in the Korean market

Author

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  • Kim, Mijeong
  • Kim, Sookhyun
  • Lee, Yuri

Abstract

The purpose of this research is to examine South Korean consumers’ brand value and brand loyalty toward foreign luxury fashion brands and current distribution channels for those brands (i.e., Department stores/Specialty stores, Factory outlet, Internet retailing, TV home shopping). Furthermore, this research examines the impact of channel diversification on consumers’ brand value and brand loyalty toward foreign luxury fashion brands. This study employed a quantitative research method. Factor analysis, ANOVA, Duncan test, and multiple regression analysis were employed to test the hypotheses. When testing brand values for each channel diversification case, participants evaluated brand value differently depending on the type of distribution channel. Participants did not show significantly different brand loyalty depending on distribution diversification cases. When the influence of brand value on brand loyalty was tested, different brand values affected brand loyalty depending on the type of distribution channel. Also, this research could suggest possible distribution channel options for foreign luxury brands to be successful in the Korean market and values they need to put an importance depending on the retail types. In addition, foreign luxury brands could apply the results of this study to their own markets.

Suggested Citation

  • Kim, Mijeong & Kim, Sookhyun & Lee, Yuri, 2010. "The effect of distribution channel diversification of foreign luxury fashion brands on consumers’ brand value and loyalty in the Korean market," Journal of Retailing and Consumer Services, Elsevier, vol. 17(4), pages 286-293.
    • Handle: RePEc:eee:joreco:v:17:y:2010:i:4:p:286-293
    DOI: 10.1016/j.jretconser.2010.02.006
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    Cited by:

    1. Ferdinand Augusty Tae & Wahyuningsih Wahyuningsih, 2018. "Salespeople’s innovativeness: a driver of sales performance," Management & Marketing, Sciendo, vol. 13(2), pages 966-984, June.
    2. Wilhelmus Hary Susilo & Yan Pieter Mulia Hutabarat & Otto Bustani, 2019. "The Pursuit for Brand Usage Intent: Insight in Higher Education which Used the Compatible Computer," International Review of Management and Marketing, Econjournals, vol. 9(5), pages 125-132.
    3. Paul, Justin, 2019. "Masstige model and measure for brand management," European Management Journal, Elsevier, vol. 37(3), pages 299-312.
    4. Zhang, Lini & Zhao, Haidong, 2019. "Personal value vs. luxury value: What are Chinese luxury consumers shopping for when buying luxury fashion goods?," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 62-71.
    5. Yoo, Jungmin & Park, Minjung, 2016. "The effects of e-mass customization on consumer perceived value, satisfaction, and loyalty toward luxury brands," Journal of Business Research, Elsevier, vol. 69(12), pages 5775-5784.
    6. Rosa Maria Dangelico & Fabio Nonino & Alessandro Pompei, 2021. "Which are the determinants of green purchase behaviour? A study of Italian consumers," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2600-2620, July.
    7. Li, Guoxin & Li, Guofeng & Kambele, Zephaniah, 2012. "Luxury fashion brand consumers in China: Perceived value, fashion lifestyle, and willingness to pay," Journal of Business Research, Elsevier, vol. 65(10), pages 1516-1522.

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