Dae Ryun Chang

A study on the rating of import sources for industrial products in a newly industrializing country: The case of South Korea

Abstract This study looks at the purchasing of imported industrial products among managers in a newly industrializing country (NIC). The authors propose that the industrial marketing requirements to buyers in an NIC, given their mix of environmental and organizational conditions, are different from those in advanced nations. South Korea, in addition to being a representative NIC, is interesting from the standpoint that there is a heavy import dependence on Japan. The results of a survey of South Korean companies importing industrial products in key representative industries suggest that the strong ratings for Japanese industrial products are based not only on stronger overall quality, but also on their higher orientation toward intangible factors such as communication, technical assistance, and reliability. Moreover, many of the Japanese sources have “localized” their product to compete with the domestic suppliers as well. These results suggest that in order to improve their performance, other foreign suppliers must compete on dual fronts; a product-related dimension as well as a more service-related dimension. Other possible avenues for improvement can be found by examining differences in supplier ratings based on organizational and situational influences. This study shows that buyers in smaller and newer companies tend to be more open to non-Japanese products. The findings also suggest that certain technology-transfer modes may be more conducive to generating better supplier ratings. Overall, the variability of country ratings across situational factors strongly indicates that more conceptualization and theory building is needed in the international industrial marketing area.

Korea as a Comparative Business Marketing System: Review and Prospects

Purpose: South Korea is now considered to be one of the major players in the global business arena. Along with its economic progress, the Korean business market has also been growing steadily for the past 40 years. Despite the prominence of Korean business, research on Korean business and in particular Korean marketing has been less systematic. This is especially true of business-to-business marketing (B2B) in Korea, which is a well-established area of study in most other developed countries. The purpose of this study is to therefore review and categorize the articles published in a broad range of B2B marketing research involving Korea. In so doing, we intend to provide a desirable agenda for the development of B2B marketing in this country. Methodology/approach: This article analyzed 50 Korean B2B marketing articles, which were published in international leading journals during the period 1990–2012. The descriptive data were reported and then a contents analysis was performed. The contents analysis was divided into two frameworks: (1) Intra firm dynamics and (2) inter firm dynamics. Each part was then analyzed more deeply from cultural and relationship perspectives. Findings: This article enables a deeper understanding of Korea’s B2B research situation and provides direction as to what we should study in the future. In the descriptive analysis, Korean B2B articles account for only 4% of marketing-related research, and 70% of the articles used Korean data only, whereas 28% referred to data from abroad. In the contents analysis, the articles mainly addressed the cultural differences between the East and the West as well as the differences in the perception regarding B2B relationships. In particular, Koreans consider the special relationship regarding education (Hakyoen) and region (Jiyeon) as being significant factors. Originality/value: This research addresses a unique phenomenon, Chaebol, in the Korean economy. Chaebols, conglomerates originating from Korea, are defined as business groups consisting of formally independent firms under the single common administrative and financial control of one family. Chaebols have had a tremendous impact on the Korean economy. Chaebols have successfully transformed themselves from being exporters of cheap products to now being major global players. Thus, Chaebols have been regarded as a driving force of the Korean economy. Firms affiliated with Chaebols tend to generate higher profitability than independent firms in some circumstances. However, buyers in group-affiliated companies do not generate positive outcomes because they often support loss-making parts suppliers by paying higher-than-market prices. This research also introduces the most unique phenomenon, the North Korean economy. The fundamental principle of distribution in North Korea is to systematically distribute goods through the national distribution network as established by the state. However, the recent distribution trend in North Korea seems to not be in suppressing commerce itself, but in tightening the regulation of public market activity while absorbing the deviated distribution demands through the state-operated store network. The authorities have also created an organization that integrates company production, distribution, and sales; however, there have not been sufficient resources or time for this model to succeed. To address this challenge, North Korean authorities are actively seeking unprecedented changes in order to deal with their distribution problems and are aggressively reorganizing the entire producer and consumer goods sectors.

A study on the rating of import sources for industrial products in a newly industrializing country

Abstract This study looks at the purchasing of imported industrial products among managers in a newly industrializing country (NIC). The authors propose that the industrial marketing requirements to buyers in an NIC, given their mix of environmental and organizational conditions, are different from those in advanced nations. South Korea, in addition to being a representative NIC, is interesting from the standpoint that there is a heavy import dependence on Japan. The results of a survey of South Korean companies importing industrial products in key representative industries suggest that the strong ratings for Japanese industrial products are based not only on stronger overall quality, but also on their higher orientation toward intangible factors such as communication, technical assistance, and reliability. Moreover, many of the Japanese sources have “localized” their product to compete with the domestic suppliers as well. These results suggest that in order to improve their performance, other foreign suppliers must compete on dual fronts; a product-related dimension as well as a more service-related dimension. Other possible avenues for improvement can be found by examining differences in supplier ratings based on organizational and situational influences. This study shows that buyers in smaller and newer companies tend to be more open to non-Japanese products. The findings also suggest that certain technology-transfer modes may be more conducive to generating better supplier ratings. Overall, the variability of country ratings across situational factors strongly indicates that more conceptualization and theory building is needed in the international industrial marketing area.

When a good company transgresses: A study of the influences of CSR, moral decoupling, and ethnocentrism

Abstract Transgressions can result in negative consequences, especially when committed by global companies. Some of the biggest multinational companies in the world take extra steps to be socially responsible and to have positive reputations in domestic and foreign markets. Despite the extra steps that may be taken, it is a common occurrence for some of these companies to commit transgressions. The knowledge of the effect of corporate social responsibility (CSR) history and the country of origin of transgressing companies is scarce in studies that examine the consumers’ reasoning process to forgive or not to forgive the transgression. While the moral reasoning process to forgive transgressions has been examined in instances with public figures, studies are lacking in the instance of companies. This study will bridge these gaps by examining the effects of CSR history and consumer ethnocentrism on the evaluation of companies before and after transgressions. This study will also examine the effects of company evaluations before and after transgressions in the reasoning process of consumers. The authors conclude the study by discussing implications for marketing managers and the potential for further research.

An Extended Framework of Adjusting Channel Strategies in Industrial Markets

Considers the need for industrial producers (intermediaries) to be flexible and adapt their channel, e.g. commercial and consumption, strategies to the changing demands of producers and end users. Summarizes that the differing outputs demanded by the above – e.g. steady flow of consumption and stock inventory for the former, product variety and waiting time for the latter – should not conflict even though end users dictate the intermediaries priorities. Concludes that intermediaries should position themselves effectively between producers and end users and differentiate in order to retain their niche and avoid being taken over, the above being capable of performing many of their functions themselves.

The ''We-Me'' Culture: Marketing to Korean Consumers

This paper is a focused examination of the parallel collectivistic and individualistic tendencies of South Korean consumers. The “We-Me” concept argues that the two seemingly countervailing tendencies can actually co-exist. The paper discusses the phenomenon, its underlying causes, and the strategic implications of how to market to such consumers.

An Empirical Study on the Rating of Import Sources of Industrial Products

Abstract This study looks at the purchasing of imported industrial products among managers in a newly industrializing country (NIC). The authors propose that the industrial marketing requirements to buyers in an NIC, given their mix of environmental and organizational conditions, are different from those in advanced nations. South Korea, in addition to being a representative NIC, is interesting from the standpoint that there is a heavy import dependence on Japan. The results of a survey of South Korean companies importing industrial products in key representative industries suggest that the strong ratings for Japanese industrial products are based not only on stronger overall quality, but also on their higher orientation toward intangible factors such as communication, technical assistance, and reliability. Moreover, many of the Japanese sources have “localized” their product to compete with the domestic suppliers as well. These results suggest that in order to improve their performance, other foreign suppliers must compete on dual fronts; a product-related dimension as well as a more service-related dimension. Other possible avenues for improvement can be found by examining differences in supplier ratings based on organizational and situational influences. This study shows that buyers in smaller and newer companies tend to be more open to non-Japanese products. The findings also suggest that certain technology-transfer modes may be more conducive to generating better supplier ratings. Overall, the variability of country ratings across situational factors strongly indicates that more conceptualization and theory building is needed in the international industrial marketing area.