Variables Affecting Consumer Satisfaction and Business Performance in the Cosmetic Home Shopping Market
Authors:   Asia-Europe Perspective Association, Choi Soo Ho , Choi Jeong Il 
Published: December 2024

There are seven domestic home shopping companies in 2019. Market share is high in the order of CJ Home Shopping, GS Home Shopping, Hyundai Home Shopping, Lotte Home Shopping, NS Home Shopping, Home & Shopping and Iim Shopping. The size of the home shopping market is growing by 4% every year to ￦4.89 trillion in 2016, ￦5.16 trillion in 2017 and ￦5.26 trillion in 2018. As the home shopping market has recently shifted to digital broadcasting, it is possible to provide high quality information. Home shopping firms are increasing new types of shopping services as the T-Commerce market becomes active.
Home shopping companies are attempting to expand their sales and diversify their profits by pioneering overseas markets based on the know-how and experience of the domestic market. Compared to the offline market, the home shopping market can be agile in responding to consumer demand and minimize the effects of economic fluctuations. Domestic cosmetic brands are leading the ‘K-Beauty’ market, showing high brand values worldwide.
This study examined the effects of logistics service, brand value, and product preference on consumer satisfaction and business performance in the online home shopping market. To carry out hypothesis testing, this study looked for prior studies and examined operational definitions and measurement variables. In addition, reliability and feasibility analysis were performed. Reliability analysis is the process of determining how properly the characteristics of a sample are formed. This is an internal consistency check process that verifies whether respondents clearly understand the questionnaire and respond consistently. In this study, Chronbach’s α coefficient was used as a reliability test method to verify internal consistency.
The purpose of this paper is to examine the effect of logistics service, brand value, and product preference on consumer satisfaction and business performance for users of online home shopping market. To this end, the survey was conducted for two weeks with 250 users nationwide. In the survey, the independent variables were “Logistics Service, Brand Value and Product Preference”, the parameters were “Consumer Satisfaction,” and the dependent variables were “Business Performance”. Using these variables, four research hypotheses were set. The questionnaire survey performed the Richard five-point scale for each factor to conduct importance, reliability, and validity.
In this study, reliability and feasibility analysis were performed to measure each variable. Reliability analysis is the process of determining how well the characteristics of a sample are formed. This is an internal coherence process where respondents are clearly familiar with the questionnaire and verify that they respond consistently. In addition, this study used Chronbach’s α coefficient to verify internal consistency. Chronbach’s α was calculated to be greater than 0.7, and the measured variables used in this study were internally consistent. In order to confirm the validity of the measured variables, this study analyzed exploratory factors by applying Varimax Rotation to principal component analysis.
Analysis result, Chronbach’s α was calculated as logistics service 0.702, brand value 0.725, product preference 0.744, consumer satisfaction 0.721 and business performance 0.798. Thus, the measurement factors ensured internal consistency. This study analyzed exploratory factors for feasibility analysis. As a result, logistics services, brand value, product preferences, consumer satisfaction, and business performance were all combined well with the same factors. In the discriminant validity test, both AVE and CR values were suggested to be above the acceptable thresholds of 0.5 and 0.8. Therefore, the discriminant validity of the variables used in this study was well confirmed.