The Negative Impact Study on the Information of the Large Discount Retailers

Abstract

Purpose – This study aims to find out what impacts large retailers’ behaviors appearing when they promote the strengthening of their market dominating power in the trade relations with small and medium suppliers or in the market can have on consumers. Research design, data, methodology – This study analyzed negative information (news) on large retailers (Lotte Mart, E-Mart and Homeplus) based on the monthly data over the past five years from 2008 to 2012 and also analyzed the correlation between dependent variables that are likely to affect sales through large retailer economic index, Results – This study conducted a correlation analysis on the time lag of the factors that have an impact on the negative information and sales of large retailers in order to analyze how consumers respond to the choice of large retailers’ store (store sales) when they perceived negative information about the unethical behaviors of large retailers. Conclusions - Unfair and negative information on large retailers appeared significant for the hypothesis that sales will be affected by the image of large retailers and change of consumer attitudes.