How do Korean customers respond to Japanese retailers?

Abstract

Purpose - In recent, Japanese retailers have expanded their business into Korea, although Korean customers have anti-Japan sentiment in their mind, It is, thus, necessary to investigate how Korean customers react to Japanese retailers, when selecting a shopping place. Research design, data, and methodology - The authors have developed a research model with five hypotheses, based on the literature review process, and used confirmative factor analysis(CFA) as well as a structural equation model(SEM) as a research technique, in order to verify hypotheses. Results - All of hypotheses are accepted. Anti-Japan sentiment significantly influences consumer ethnocentrism and animosity. Interestingly, consumer ethnocentricity affects the formation process of animosity. Rather than ethnocentrism, animosity relatively influences customer attitudes towards Japanese retailers, when Korean customers choose a retailer. Conclusions - The authors found that anti-Japan sentiment has significantly affected Korean customer attitudes. In order for Japanese retailers to increase their market shares in the Korean market, they have to make a significant effort to alleviate the degree of anti-Japan sentiment, together with Japanese government. In contrast with research findings, Japanese retailers have done their business very well in Korea. Considering that Japanese retailers target younger customers in Korea, demographic elements should be involved in the future research.