Research On The Structure Of Household Appliance Retail Industry, Corporate Marketing Behavior And Business Performance In Taiwan Region

Globalization under the dual pressures of competition and the rise of the mainland China market, Service industry in Taiwan is facing intensive pressure for industrial restructuring in the decades after the boom, Taiwanese computer, communication and consumer-electronics (3C) retailer industry had being overall changes in the industrial structure, the profit mechanisms for industry to develop appropriate strategies to compete in the changing of the party’s sustainable development.This study aims to examine the effect on Taiwanese 3C retailer industry structure and firms’ conduct to their performance base on Mason & Bain’s Structure-Conduct-Performance (S-C-P) model in 1939. We propose 11 sub-variables to analyze and combine the time series and cross-section adopting panel data to conduct the regression analysis. The samples consist of 65 retailer firms of 3C industry listed in TEJ (Taiwan Economic Journal) database from 2005 to 2012.All sub-variables of industy structure and firms’s conduct in this paper, only the rate of promotion expense over sales revenue has the positive significant effect on profit margin, in other words, the market share, market concentrated degrees, assets values, and established during term of operation, branches number of physical channel, online sale or not, and the frequency of online sale, all sub-variables has insignificant effect on on profit margin.It means that 3C industry structure is not the key factor affecting net margin. This also corresponds to viewpoint of Baker et al. (2001) that price discount conductive to raising purchase intension of consumer.The results show that the industry structure and firms’conduct have the significant effect on the performance index, it means that the firms with higher market share, higher market concentrated degrees, more total assets value and the longer established during term of operation, those industry structure sub-variables have the sighnificant postitive effect on the patent number of firms, except the branches number in physical channel. Futhermore, the firms that have more patents number own both the manufacturing and channel funchtions are different from the franchise, therefore, the the branches number in physical channel of 3C retail industy have the insignificant effect on the patents number.Moreover, the relationship between branch number of physcial channel and profit margin do not have postive significant correction, but rather increasing promotion expenses to shape brand image and perceived quality of product for consumer will help enhance profitability for firms. In short, the number of branch of physical channel is not the key point for performance, may not help performance improvement, but may result in an internal self-competition called "self-cannibalized effect", we suggest to develop the strategy for inergration various retailer channels, for example, to deevelope the differentiated marketing strategies (product, price, place, promotion) to meet the need of younger Internet gernation create competitive advantage.