Abstract

Today, traditional markets are facing environmental difficulties due to rapid changes in the distribution environment and the development of distribution and logistics-related technologies which have led to the emergence of various competitors such as online and mobile shopping. In order to strengthen the competitiveness of traditional markets, the government and related organizations are providing support for traditional markets by implementing regulations on business hours and mandatory holidays of large discount stores and proposing approaches in terms of culture and tourism. However, some previous studies showed that the effects of traditional market revitalization , such as improving facilities and environments of traditional markets, were insignificant. Therefore, this study attempted to confirm the results of the efforts of the government, related organizations, and traditional markets to revitalize the traditional market. Specifically, we empirically analyzed how projects and activities to revitalize traditional markets affect retailer equity evaluation as a brand for consumers, and how retailer equity in traditional markets affect consumers’ usage intention of traditional markets. For empirical analysis, survey data were collected from 400 consumers with experience using traditional markets, and structural causal relationships for traditional market revitalization → retailer equity → usage intention of traditional markets were analyzed and verified in a structural equation model. As a result of the analysis of research model, facility/environment improvement, customer-participating cultural event, possibility of various payment methods, and advertisement/public relations using various channels, which are measures to revitalize traditional markets, all had a positive effect on the formation of retailer equity. Among them, facility/environment improvement was found to have the greatest impact on retailer equity. In particular, previous studies have argued that the practical improvement effect of facility modernization projects on revitalizing traditional markets was insignificant or that further facility modernization is meaningless. However, in this study, interesting results were found that facility/environment improvement had the greatest positive effect on retailer equity. This can be interpreted as that experience improved facilities and environments when consumers visit traditional markets can greatly help consumers form positive perceptions and images of traditional markets. Second, the availability of various payment methods in traditional markets was an important factor to increase retailer equity of traditional markets perceived by consumers. The result that consumers can use various payment methods in traditional markets increases the convenience of payment methods, which ultimately means that the convenience of these payment methods can help customers highly estimate retailer equity of traditional markets. In addition, customer-participating cultural events in traditional markets had a positive effect on retailer equity of traditional markets perceived by consumers. By using SNS as well as offline cultural events that are linked to local festivals or reflecting the characteristics of local residents, traditional markets can help consumers perceive retailer equity highly that combine online and offline through various channels. Fourth, advertisement/public relations using various channels had a positive effect on the formation of retailer equity of traditional markets perceived by consumers. In particular, traditional markets supported by cultural tourism-type markets are creating various hands-on activities and events to discover local cultures that can be linked and attract consumers. However, if the contact point of advertisement/public relations is small, it will be difficult to increase consumer participation. Therefore, it is important to make and develop interesting contents that allow various experiences, but providing information related to the contents to various consumers can be an effective way to revitalize the traditional market. Finally, retailer equity had a positive effect on consumers’ intention to use traditional markets. This suggests that through efforts to increase retailer equity in traditional markets, consumers estimate the equity in traditional markets highly, and that retailer equity in traditional markets are leading to consumers

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