Abstract

Characteristic of Korean meat wholesale market would be briefed as follows.Firstly, the distribution rate of the Meat Quasi-wholesale market has been kept high in spite of the wholesale market oriented policy of the Korean government.Secondly, the wholesale market specializes in transaction of general item such as dairy beef that has relatively standardized quality while the quasi-wholesale market does in high-quality beef such as the Hanwoo (Korean native beef) that has wide range of quality differences.Thirdly, despite the tendency that average price of the Hanwoo at farm gate is higher than that of the wholesale market, most of the merchants in the quasi-wholesale market purchase the Hanwoo at the farm gate. And most retailers procure their cattle from the quasi-wholesale market rather than the wholesale market.This paper intends to explain how aforementioned marketing practice in Korea is established by reviewing the related law, policy and other conditions underlying the marketing practice and analyzing the economic entities' marketing behavior regarding product differentiation in the wholesale market.This paper perceives as product differentiation behavior the sales promotion and product policy of both the wholesale market and the quasi-wholesale market. This product differentiation behavior and entailing reactions from farmers and retailers are analyzed to explain the factors that form the marketing practices in Korea.

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