The influence of structural changes in a local commercial district on local consumer consumption behavior in South Korea: Using the multinomial logit model

Abstract

This research determined how structural changes in local commercial districts influence local consumer behaviors. First and foremost, to investigate structural changes to commercial districts around South Korean traditional markets, we conducted a correlation analysis by examining changes in population and in employee numbers, by market type. We then analyzed local consumers’ consumption behaviors by using the multinomial logit model. Analytical results indicated positive correlations among the population, employee numbers in businesses in traditional markets, and employee numbers in other businesses in South Korea. According to analytical results vis-a-vis consumer behaviors, the most influential variable is the physical characteristics of the traditional markets; the government support most desired by the merchants in the traditional market, is a measure that seeks to improve the market environment and modernize the facilities within traditional markets in South Korea. The most urgent policy in revitalizing traditional markets is that which will improve the convenience of using those markets. There are several reasons as to why consumer use of traditional markets in South Korea has been in decline, and so, merchants and local consumers should establish self-rescue plans for revitalizing traditional markets; the government and the national and/or local level should support and promote such plans.