Duty-free Shops Research Articles

Enhancing sustainable passenger experience through duty-free shopping at King Fahd Airport: A multimodal perspective

With the increasing significance of travel retail within the global tourism industry, understanding the effects of duty-free shopping experiences on traveler well-being and brand perceptions has become crucial for enhancing customer satisfaction and engagement. This study examines the relationships between duty-free shopping experiences, traveler well-being, and brand perceptions at King Fahd International Airport. Utilizing a quantitative research approach, data were collected from 412 passengers who had recently engaged with duty-free shops. The study incorporated four key experiential dimensions—pragmatic, sociability, hedonic, and usability experiences—alongside well-being, brand engagement, brand experience, and word-of-mouth (WOM) advocacy. The findings indicated positive associations between well-being and pragmatic, hedonic, and usability experiences. Moreover, well-being significantly influenced brand engagement and brand experience, but not WOM. Brand engagement was found to be a significant predictor of brand experience, while it had no significant effect on WOM. Additionally, WOM did not significantly influence brand experience. These insights contribute to a comprehensive understanding of the intricate interplay between shopping experiences, well-being, and brand-related outcomes, providing valuable guidance for airport retailers and marketers to optimize traveler satisfaction and engagement.

Passenger Routing Algorithm for COVID-19 Spread Prevention by Minimising Overcrowding

COVID-19 has become a pandemic which has resulted in measures being taken for the health and safety of people. The spreading of this disease is particularly evident in indoor spaces, which tend to get overcrowded with people. One such place is the airport where a plethora of passengers gather in common places, such as coffee shops and duty-free shops as well as toilets and gates. Guiding the passengers to less overcrowded places within the airport may be a solution to reduce disease spread. In this paper, we suggest a passenger routing algorithm whereby the passengers are guided to less crowded places by using a weighting factor, which is minimised to accomplish the desired goal. We modeled a number of shops in an airport using the AnyLogic software and we tested the algorithm showing that the exposure time is less with routing and that people are appropriately spread out across the common spaces, thus preventing overcrowding. Finally, we added a real airport in Kavala, Greece to show the efficiency of our approach.

Factors Affecting the Memorable Experiences of Chinese Customers in Duty-Free Shopping

The current research explored the antecedents and consequences of the memorable experiences of Chinese tourists in duty-free shopping. Utilitarian (i.e., savings, quality, and convenience) and hedonic (i.e., value expression, exploration, and entertainment) benefits were proposed to enhance the memorable experiences of these tourists. Unlike previous studies, this study examined the antecedents and consequences of memorable experiences in the field of duty-free shopping for the first time. Based on these theoretical relationships, a research model with 11 hypotheses was developed and the hypotheses tested with data collected from 523 Chinese tourists with shopping experiences at duty-free shops in Korea. The results of structural equation modeling analysis indicated that savings, quality, exploration, and entertainment benefits play important roles in the formation of memorable experiences. Additionally, memorable experiences were found to be an important predictor of brand attitude and brand preference. Moreover, brand preference had a positive influence on WOM.

Exploring tourist shopping from the perspective of duty-free shopping: An analysis of online reviews

As an important part of tourist shopping, the study of duty-free shopping experiences is of great value for enhancing economic growth in the travel retail market and improving the image of tourist destinations. However, current research on duty-free shopping has failed to meet these practical requirements. To effectively identify tourists’ shopping needs and develop effective shopping strategies, we conducted a study from the perspective of destination marketing organizations. For comments on duty-free shopping, we used thematic modeling and sentiment analysis. The thematic analysis showed five themes based on the duty-free shopping experience: perceived variety and function, perceived online process, perceived service, perceived environment, and perceived cost. Our study begins with a duty-free shopping tourism experience and expands on relevant research findings to enrich the tourist shopping knowledge system. Through this study, we hope to provide appropriate and targeted recommendations for marketing shopping tourist destinations.

How is leadership maintained? A longitudinal mediation model linking informal leadership to upward voice through peer advice seeking.

Whereas scholars have identified individual antecedents of emerging as an informal leader among one's peers, our research seeks to understand how established informal leaders maintain their leadership status. Guided by principles from expectation states theory, we predict that being seen as an informal leader in a workgroup motivates other members to seek one out for work-related advice and, accordingly, facilitates the informal leader's engaging in upward voice directed toward the formal leader. Upward influence on behalf of the group may, in turn, reinforce leadership status among peers. Cross-lagged panel analysis of four-wave survey responses from 375 employees in 63 duty-free shops supported our hypotheses. Advice network centrality partially mediated the positive relationship between informal leadership and supervisor ratings of upward voice. The time-lagged effect of informal leadership on peer advice seeking was stronger among employees in a more central position of the friendship network. However, the theorized effect of upward voice on subsequent informal leadership received more limited support. Our research identifies a mechanism that stabilizes workgroup leadership structure. (PsycInfo Database Record (c) 2022 APA, all rights reserved).

Identifying Chinese Tourists’ Shopping Values and Their Consequences in the Context of a Duty-Free Shop: The Moderating Role of Country Image

The objective of this study is to identify the role of Chinese tourists’ shopping values in the formation of their outcome variables. This study more specifically proposes that two dimensions of shopping values, which include utilitarian and hedonic shopping values, positively affect brand prestige. In addition, it was hypothesized that brand prestige helps in regard to enhancing well-being perceptions and brand preference. It was also proposed that well-being perceptions and brand preference have a positive influence on word-of-mouth. This study also hypothesized the moderating role of country image in the proposed model. The survey responses were collected from 634 Chinese duty-free tourists. The data analysis results showed that both utilitarian and hedonic shopping values significantly affect brand prestige. Moreover, brand prestige was found to be a significant determinant of well-being perceptions, and well-being perceptions positively affect brand preference. Brand preference is a critical factor affecting word-of-mouth. Lastly, country image played a moderating role in the relationship between brand prestige and well-being perceptions and brand preference and word-of-mouth.

EMERGING SCOPE OF AIRPORT RETAILING IN INDIA

Indian airports are not just limited to the business of flying passengers. After the takeover by private operators Airport infrastructure in India has changed drastically. They are matching the standards of global airports. Along with this airports are being promoted as key retail hubs. There has been a big revamp in most of the airports at metropolitan cities like Delhi, Mumbai, Bangalore etc. The key focus is on making airports more lively and vibrant instead of uninteresting place for passengers. The transformation of dull airports into fascinating shopping lounges has happened due to privatization of airports. The gloomy airport retail areas have been replaced with wonderful retail shops, show cases and boutiques. Moreover,people with high disposable incomes frequently visiting airports promises impressive growth in airport retailing. Few years back Indian airports were considered for doing only duty free shopping of liquor, foreign chocolates, perfumes, cosmetics etc but at present this fact no more holds true as at present traveler every need and want is determined well in advance and airport retailers grabs upon every opportunity to provide delightful shopping experience

Modelling the Consumption Behaviour of Heterogeneous Consumers: A Duty-Free Shop Case Simulation Analysis

Modelling the Consumption Behaviour of Heterogeneous Consumers: A Duty-Free Shop Case Simulation Analysis

Brain–computer interface to predict impulse buying behavior using functional near-infrared spectroscopy

As the rate of vaccination against COVID-19 is increasing, demand for overseas travel is also increasing. Despite people’s preference for duty-free shopping, previous studies reported that duty-free shopping increases impulse buying behavior. There are also self-reported tools to measure their impulse buying behavior, but it has the disadvantage of relying on the human memory and perception. Therefore, we propose a Brain–Computer Interface (BCI)-based brain signal processing methodology to supplement these limitations and to reduce ambiguity and conjecture of data. To achieve this goal, we focused on the brain’s prefrontal cortex (PFC) activity, which supervises human decision-making and is closely related to impulse buying behavior. The PFC activation is observed by recording signals using a functional near-infrared spectroscopy (fNIRS) while inducing impulse buying behavior in virtual computing environments. We found that impulse buying behaviors were not only higher in online duty-free shops than in online regular stores, but the fNIRS signals were also different on the two sites. We also achieved an average accuracy of 93.78% in detecting impulse buying patterns using a support vector machine. These results were identical to the people's self-reported responses. This study provides evidence as a potential biomarker for detecting impulse buying behavior with fNIRS.

Features of the functioning of duty free and tax free areas in Ukraine and the European Union

Introduction. In the current conditions of the development of foreign economic relations in Ukraine, the activity of duty-free shops is of particular importance. However, at the moment, the peculiarities of the activity of duty-free shops are practically not covered in the regulatory acts of Ukraine. The purpose of the paper is to investigate the activity of duty free and tax free in Ukraine, to identify problematic aspects and to propose specific directions for solving the problem. Results. The special status of duty-free shops is not directly established either by the Treaties on the EU or the Treaty on the Functioning of the EU, nor by the consolidated Customs Code of the EU member states. In EU duty-free shops, the "tax-free" system operates, which differs precisely in that the goods are not exempt from VAT for EU citizens, but at the same time, non-EU citizens are provided with the possibility of receiving a refund of the value of the added tax the value for which the customs declaration is filled out. Such a system is connected with the fact that the EU actually has no borders. Ukraine is the only European country where there is no tax-free option for tourists. Conclusion. According to the results of the research, it is worth emphasizing that it is necessary to introduce automatic and transparent VAT refund procedures, as in the EU countries, to introduce new provisions to the Tax Code of Ukraine, which will provide for and describe in detail the features of VAT calculation when supplying goods to duty-free shops trade, it is also important to get rid of smuggling. It is necessary to conduct negotiations to improve the existing free trade agreements between Ukraine and the EU, including to settle the issue of the rules of origin of goods.

Competitiveness of the duty-free shops cluster on the border of “Paz”

The research aims to analyze the competitiveness of the cluster of free-shops in the Fronteira da Paz region (Santana do Livramento-BR and Rivera-UY). The eleven elements of cluster competitiveness proposed by Zaccarelli, et al. (2008) are analyzed. For this, a descriptive analysis is used, with a quali-quantitative approach, through the case study method. Data were collected from secondary data, interviews, questionnaires and observation. The results obtained show that five fundamentals are precisely competitive, these are: geographic concentration, balance without privileged positions, cooperation between companies, selective replacement of businesses and the culture of the community adapted to the cluster. The rest of the six fundamentals are present, but their competitiveness is insufficient, not very dynamic, these are: variety or scope of businesses and institutions, specialization, complementarity through the use of by-products, uniformity of the technological level, evolution through the introduction of new technologies and cluster-oriented outcome strategy. In this way, it is possible to draw up strategies to strengthen the present fundamentals and develop those of insufficient performance.

The impact of the COVID-19 epidemic on where tobacco users purchased cigarettes and snus in different Norwegian regions.

Aims: With the spread of COVID-19, the Norwegian government introduced restrictions on cross-border travel starting March 2020. Purchase of tobacco when travelling, especially from Sweden and duty-free shops, has comprised a substantial part of Norwegian tobacco consumption for many years. We investigated whether COVID-19-related travel restrictions and recommendations led to changes in tobacco purchases from Norway, Sweden, duty-free, other countries, possible illicit sources and web shops. Design: Based on a survey conducted by Ipsos, we examined: (i) the prevalence of smoking and snus use and where smokers and snus users reported having purchased tobacco consumed during the last 24 hours from 2015 to 2019, by county; and (ii) the probabilities of having purchased tobacco from different sources in the period before and after COVID-19-related travel restrictions and recommendations. Results: The proportion of smokers varied from 12% to 19% and the proportion of snus users varied from 12% to 21% across counties. Cigarettes bought in Norway comprised from 27% to 79% of the previous day's consumption, depending on the respondent's county of residence. For snus, the percentages ranged from 20% to 70%. The probability of buying tobacco in Norway increased by around 30 percentage points during the period of COVID-19-related travel restrictions and recommendations, compared with previous years. The increase was greatest in border regions and was accompanied by fewer purchases in Swedish and duty-free shops. Conclusion: The increased share of tobacco purchases from shops in Norway means that, for many tobacco users, buying tobacco become more expensive and that taxes on tobacco to a greater extent were paid in Norway. However, whether these extraordinary circumstances will affect future cigarette and snus use, and place of purchase of tobacco products, remains to be seen.

Analysis of Daily Tourism-related Waste Generation in Jeju Island, South Korea

This study examines the amount of waste generated by tourists at popular tourist destinations through the case of Jeju Special Self-governing Province (Jeju) in South Korea. First, the population of the local residents and that of inbound tourists and their length of stay were considered in the computation of municipal waste generation in Jeju to differentiate the amount of municipal waste generated by local residents and that by tourists. Next, to calculate the amount of waste generated by tourism-related activities and tourists on a daily basis (kg/person/day), this study chose major sources of tourism waste in the marine and air transport sectors (ferry and port, airline and airport, car rental and bus charters), wholesale and retail sectors (duty-free shops), lodging and restaurant industries (lodgings and in-house facilities and restaurants), and tourism industry (tourist attractions) and compiled the data on commercial waste generation from tourist sites through written surveys and field research. When the waste generated by tourists was considered in the municipal waste generated per capita in Jeju (1.77 kg/person/day), the amount generated by the residents of Jeju was found to be 1.42 kg/person/day, and approximately 19.5% of the total municipal waste originated from tourists. Moreover, daily tourism-related commercial waste generation per person was calculated to be 0.66 kg/person/day on average, with one tourist generating 1.01 kg/person/ day of tourism waste when assuming that an average tourist visits 1.3 tourist attractions per day. The study’s findings reveal the need to enforce strict measures for businesses that generate large amounts of waste, as well as enforcing waste discharge reporting and limiting the type of businesses that are allowed to take their waste to designated waste collection points. The results of this study can be used as a base data for introducing green taxes that apply the “polluter pays” principle to individual emitters. Furthermore, the analysis results provided a basis for designing efficient policies and strategies for improving waste treatment systems and reducing waste generation at popular tourist destinations.

The customs procedure of duty-free trade: Methodological problems of indirect taxation and solutions

Subject. The article discusses customs payments made as part of sale and purchase deals for imported goods passing the duty-free trade customs clearance procedure. Objectives. We study methodological aspects of indirect taxation in the sale of goods passing the duty-free trade customs clearance procedure, and determine economically reasonable consequences in common situations. Methods. We use the graphic method, methods of comparison and observation to prove the reasonableness, reliability of methodological provisions and provide our reasoning on economically correct tax implications of indirect taxes as part of sale of imported goods subject to the duty-free trade customs clearance procedure. Results. Setting forth effective rules for duty-free shops and the use of the duty-free customs clearance procedure, the government expected that goods be sold to outbound passengers. However, as the real situation shows, inbound passengers can also go for duty-free shopping. Some methodological issues and contradictions arose after the scope of the duty-free procedure changed. There are two types of deals in selling goods to a duty-free shop (the seller is a Russian resident in the first case, but not in the other). Furthermore, currently, duty-free shops may sell goods to each other, being in the Russian Federation, which also engenders complicated contractual schemes. Conclusions. The paper outlines scenarios of selling goods to duty-free shops, and respective tax implications. We also consider the mechanism for charging taxes on deals involving goods subject to the duty-free trade procedure. In this study, we determine the taxation of other transactions that duty-free shops can make, out of the scope of the duty-free trade customs clearance procedure.

Impact of Non-Aeronautical Revenues on Airport Landing Charge in Global Airports

The airport industry, which is heavily regulated, has shown interest in improving performance by increasing non-aeronautical revenues (NAR) to cope with changes in the aviation environment, including trends toward liberalization and privatization. This study uses panel data from three separate years (2012, 2014, and 2016) to analyze how a high NAR share might affect airport charging policies and explores the impact of NAR on landing charges of global airports grouped by type of aircraft. The data was collected from 137 airports worldwide, and generalized least squares regression was performed by including data obtained from the ATRS (Air Transport Research Society) Global Airport Benchmarking Reports. The results indicate that an increase in the NAR share has a statistically significant negative effect on airport charges. This study provides meaningful implications from an empirical analysis of how a change in an airport’s business model, such as increasing the NAR share, might affect airport charges. This study’s results are expected to encourage international airports to be more active in promoting commercial activities (e.g., duty-free shops) and pursue a pricing policy that can bring them a competitive advantage.

A Multi-Dimensional Model of Israeli Travelers’ Experience in Duty-Free Stores

Travelers’ duty-free shopping represents an under-researched consumption behavior with far reaching management and marketing implications. This study explores the extent to which three surface personality traits (impulsiveness, shopping involvement, and escapism) mediated by store atmosphere, store temptation, and shopping enjoyment, lead to buying in duty-free stores. A convenience sample of 163 Israeli adults in Israel’s Ben-Gurion International airport was used. A SEM-PLS model was used to analyze the relationships among the model’s constructs. The model supports the positive impacts of traits impulsiveness, shopping involvement, and escapism on buying behavior in duty-free stores, mediated by store atmosphere and store temptation (shopping enjoyment only affecting store temptation). A post-hoc analysis showed a positive relationship between store atmosphere and store temptation. This paper contributes to the literature by developing and testing an integrative model with important implications for tourism and hospitality industries. Deriving from the findings of this study, it behooves managers of stores and centers to promote the environmental sustainability aspects of the products sold in these stores.

Antecedents of Duty Free Shop Willingness to Pay*

Purpose - This study aims to examine the antecedents of willingness to pay in the domain of duty free shop. Design/methodology/approach - This study chooses willingness to pay as explained variable. The candidates of explanatory variables are price fairness, brand awareness, employee service, product diversity, and crowding. This study uses survey to explore the linear relation between variables. This research collected data using online panel data collection service. The number of valid observation is 265. The research targe is Lotte duty free store. Statistical analysis was for statistical inference. To attain the information of survey respondents, frequency analysis is employed. Next, this study implemented exploratory factor analysis and reliability to ensure both validity and reliability of measurement items. This study executed multiple regression analysis to test research hypotheses Findings - Regrading results, brand awareness, employee service, and product diversity are positively associated with willingness to pay of duty free shop product. Moreover, the results of regression analysis suggest the inverted-U shape association between crowding and willingness to pay. However, price fairness appeared as non-significant variable to account for willingness to pay in the multiple regression analysis. Originality - This study contributes to the literature by examining duty free shop customers more.

The Antecedents and Consequences of Rapport between Customers and Salespersons in the Tourism Industry

This study examined the antecedents and consequences of rapport between customers and salespersons in the context of duty-free shops. Specifically, this study proposed six sub-dimensions of service-dominant orientation (i.e., relational, ethical, individuated, empowered, concerted, and developmental interactions). These dimensions have a positive influence on rapport. In addition, rapport is hypothesized to aid in the formation of customer satisfaction and brand preference, which in turn positively affects word-of-mouth communications. Data were collected from 649 Chinese shoppers who have purchased a product in a Korean duty-free shop. In addition, this study employed confirmatory factor analysis to check the adequacy of the measurement items and structural equation modeling to test 11 hypotheses. Data analysis results indicated that five sub-dimensions of service-dominant orientation, excluding individuated interaction, play an important role in the formation of rapport. Furthermore, rapport has a positive effect on customer satisfaction and brand preference, which in turn positively affects word-of-mouth communications. The findings of this study offer valuable insights for managers of duty-free stores into the most effective methods for managing their operations and providing an appropriate blend of products. Furthermore, this paper contributes to theoretical understanding in this area by improving the acceptability of a commonly believed shopper behavior model.

근로시간 외 정보통신기술을 통한 업무연락이 정서적 반추, 일-가정 갈등 및 정서적 고갈에 미치는 영향: 호텔 및 면세점 종사원을 대상으로

근로시간 외 정보통신기술을 통한 업무연락이 정서적 반추, 일-가정 갈등 및 정서적 고갈에 미치는 영향: 호텔 및 면세점 종사원을 대상으로

Investigating travelers’ multi-impulse buying behavior in airport duty-free shopping for Chinese traveler: Intrinsic and extrinsic motivations

Airport duty-free shopping is becoming the most important source of revenue and profit. As airports provide a unique retailing environment that differs from the day-to-day distribution channels, observation of travelers' shopping behavior in airports shows that it is different from that in traditional retail store environments. Duty-free retailers at airports must recognize this specific shopping behavior to maximize their sales performance. We examine the relationship between two different types of impulse buying behaviors: cognitive and affective. We also study travelers' satisfaction/loyalty in the context of airport duty-free shopping using two moderators of this relationship: intrinsic and extrinsic motivations. Data were collected from outbound Chinese travelers, who represent the largest proportion of travelers worldwide, to identify implications for airport duty-free retailers. This study found a positive relationship between affective impulse buying behavior and travelers' satisfaction, an aspect that also generates loyalty in the context of airport duty-free shopping. Furthermore, travelers' extrinsic motivations moderate the negative relationship between affective impulse buying behavior and travelers' satisfaction. This study provides insights that airport duty-free retailers can utilize to motivate travelers’ consumption and enhance their satisfaction in duty-free shopping, thereby increasing consumer loyalty.