Hojin Jung, Kyoung-min Kwon and Gun Jea Yu
Using panel data on gasoline and grocery transactions in Korea, the purpose of this paper is to empirically explore the effect of a retail chain store’s establishment of on-site…
Abstract
Purpose
Using panel data on gasoline and grocery transactions in Korea, the purpose of this paper is to empirically explore the effect of a retail chain store’s establishment of on-site fuel sales. The empirical analyses present strong empirical evidence that the sale of fuel had statistically and economically significant effect on retail store traffic and revenue in the short run. However, the effect did not remain significant in the longer run. To explain the dramatic decrease in the effect of the fuel sale, the authors consider the enhanced competition in the local gasoline retail industry and examine cross-sectional price variations at the station level. The results suggest that the increased competition led to the reduction in the price dispersion across stations and thereby to an increase in consumer welfare.
Design/methodology/approach
Using a linear specification that has traditionally been used to model retail chain data, the authors developed a series of difference-in-differences models. This technique is ideal for estimating the effect of a treatment in the presence of possible selection bias and has been widely employed in many social-science studies on policy intervention.
Findings
In a certain environment, introducing fuel sales did not increase retail chain store traffic or revenue in the long run, despite having statistically and economically significant effects in the short run. The results document empirical evidence of myopic management in a common marketing practice, which often leads to a negative impact on the firm value in the long run.
Research limitations/implications
The span of data and sample size were limited to meet the company’s data protection policy.
Practical implications
Considering that many of developed countries are characterized by a gasoline retail environment similar to that which is investigated in this paper, the authors believe that the implications of the results are particularly valid for practitioners and policy makers.
Social implications
The findings document empirical evidence of myopic management in a common marketing practice, which often leads to a negative impact on the firm value in the long run. Marketing researchers should make efforts in establishing metrics to help identify myopic management decision.
Originality/value
This paper addresses an interesting and practical issue related to the effects of the introduction of gasoline sales by a supercenter store on its store traffic.
Details
Keywords
Byoung Kwon Choi, Hyoung Koo Moon, Wook Ko and Kyoung Min Kim
The purpose of this paper is to test the mediating effect of organizational identification (OI) in the relationship between organizational justice and organizational citizenship…
Abstract
Purpose
The purpose of this paper is to test the mediating effect of organizational identification (OI) in the relationship between organizational justice and organizational citizenship behavior (OCB), and also to examine the moderating effects of transactional and relational contracts in the relationship between OI and OCB.
Design/methodology/approach
Data were collected from employees working for ten companies in South Korea. The participants were asked with a self-reported survey, and 284 questionnaires were used in the analyses.
Findings
Among the three types of organizational justice, the effects of distributive and interactional justice on OCB were mediated by OI. The authors also found that the positive relationship between OI and OCB was stronger for both a low level of transactional and a high level of relational contract. In addition, the moderated mediation analyses confirmed that the indirect relationships between distributive, interactional justice and OCB through OI were valid for both high and low level of transactional contract, and only for low level of relational contract.
Practical implications
To facilitate employees’ OCB, organizations have to pay adequate attention to distributive justice which is rather neglected, and also must understand what types of psychological contract employees have.
Originality/value
This study intensively explored the internal mechanism as to how the different types of organizational justice lead to OCB by identifying the mediating effect of OI and moderating roles of psychological contracts.