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Response of Management to the Changesin Consumer Trends and Economic Changes in Korea

Kian Park 1

1경희대학교

Candidate

ABSTRACT

Consumer trend is considered as the most important factors, which strongly influences quality of life and standard of living. Goods and services, which comprise consumer trend, could be a reflection of a response of management according to a change of economic environments. This paper is to identify the changes of consumer trends and response of management to the changes. This identification would be through the hit items and the consumer attitude against the hit‐items implemented. Hit‐items, which are regarded as a reflex of the consumer sentiment, play a roll as an advance notice of consumer’s demand. So as a managerial response to consumer trends shall be described with an example of hit‐items. The first analysis showed that people's perceptions of their current spending level closely correlated with their actual spending behavior. Spending behavior would be displayed in the preferred items, so‐called, hit‐items. The hit products described evidently reflect consumers' interest. As far as consumption features are concerned, quality‐valued consumption culture, rather than price, is widely diffused. They focused most on brand, price and quality when making a purchase decision. In relation to the preferred brands’ features, all income brackets prefer the brands of practical image. Nowadays more and more consumers go for usefulness, rather than pricey things. The new consumer trend has three keywords, i.e. reasonableness, customization, simplicity. In accordance with consumer trends, Korean companies have concentrated their resources to strengthening competitiveness in the non‐price areas such as product quality, design and branding. They have added more value to their products by swiftly releasing sophisticated products reflecting needs of consumers, upgrading design and raising brand profile. A corporate strategy is based on gaining a “differential competition position” rather than pursuing “operational effectiveness” has been stressed. Correspondingly, the creation of quality brands is a way to gain a “differential competition position” and top‐hit brands can be regarded as appropriate response to consumer trend.

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* References for papers published after 2023 are currently being built.

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