Abstract

In cases of fashion businesses operating by consignment, base estimate on quantity of sales is the most essential part of merchandising. This study classified factors influential to sales into factors with systematic influence and factors with unsystematic influence. In order to find out influence of each factor on sales, non-linear regression was used with SPSS package on the basis of actual data on sales for 5 years for sport shoes brand. Major findings of this study are as follows. First, price level had significant negative(-) influence on sales. Second, price expectation effects had significant negative(-) influence on sales. Third, competitor's price effect showed significant negative(-) value. Fourth, day-of-the-week effect showed significant positive(+) effect. The theoretical marketing implications of this study are as follows. First, study on price leads to expansion of the researches from apparels to sport shoes. Field of study on price was enlarged through expansion of variable of study from price level and price expectation effect to promotion, day-of-the-week effect and rainfall effect. Second, quantitative scale of day-of-the-week effect was found and it could be confirmed that there was seasonal differences with day-of-the-week effect. Implications of above findings on marketing managers are as follows. First, it was found that an increase in competitiveness of brand power and a decline in absolute value of competitor's price effect can be realized when new product groups are developed to meet the unsatisfied needs in the market. Second, it was possible to find out the parameters scales of the price response function, making it possible to estimate sales for the next season, and in turn realize increase in rate of sales and profit rate. This research is based on the dynamic price response function, which is rare to find in the apparel business and it academic significance due to its expanding response model which was focused on price in conventional researches to non-systematic variables.

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