Since 2008 to 2014 the operating margins of Chinese traditional retail industry went a sustained downward. Instead, the operating margins of online-store have been the sudden explosion. In this case which online-store sale the same products with traditional market, my research try to find out how to improve the state of traditional market since 92.5% practitioners of retail industry are doing their business in traditional market. Customer equity can estimate customer lifetime value for the company (Rust et al, 2004). The firm can make proper marketing strategy with customer equity. Customer equity can both satisfy consumers and make a profit for the company (Lemon et al., 2001).So we built a model to connect service quality and customer equity to study how to prove the competitive power of traditional market. In this paper we used customer satisfaction and brand attitude as mediating variables since Store brands have become an important contributor to retail differentiation and basis for building store loyalty (Dodd and Lindley, 2003) and in retail market customer equity varies with customer satisfaction( Pappu and Quester 2006). Considering that Chinese economic growth rate was slowing down, traditional market is being a priority for Chinese Government to relieve severe export pressure and employment pressure. In this research we would like to study the relationships among service quality, customer satisfaction and brand attitude and how they influence customer equity in traditional markets. For this purpose we built a model which composed by service quality, satisfaction brand attitude and customer equity and tested it. The survey was collected from traditional markets in China and South Korea and the data was analyzed by AMOS and SPSS.

• Huanzhang Wang(Changwon National University, Republic of Korea)
• Kyung Hoon Kim(Changwon National University, Republic of Korea)