Network externality can be defined as the effect that one user of a good or service has on the value of that product to other people. When a network externality is present, the value of a product or service is dependent on the number of others using it. There exist asymmetries in network externalities between the online and traditional offline marketing channels. Technological capabilities such as interactivity and real-time communications enable the creation of virtual communities. These user communities generate significant direct as well as indirect network externalities by creating added value through user ratings, reviews and feedback, which contributes to eliminate consumers’ concern for buying products without the experience of ‘touch and feel’. The offline channel offers much less scope for such community building, and consequently, almost no possibility for the creation of network externality. In this study, we analyze the effect of network externality on the competition between online and conventional offline marketing channels using game theory. To do this, we first set up a two-period game model to represent the competition between online and offline marketing channels under network externalities. Numerical analysis of the Nash equilibrium solutions of the game showed that the pricing strategies of online and offline channels heavily depend not only on the strength of network externality but on the relative efficiency of online channel. When the relative efficiency of online channel is high, the online channel can greatly benefit by the network externality. On the other hand, if the relative efficiency of online channel is low, the online channel may not benefit at all by the network externality.

This study presents a comparative analysis on mackerel distribution process and price formation process, and investigation of price and margin between traditional markets and Large-scale discount store distribution channel. Through this, the study investigated distribution efficiency of each channel, and examined whether a difference of distribution efficiency leads to a difference of performance through the investigation of a difference of function and role between members of a wholesale market and vendor of Large scale discount store. The following are the results of this study. As a consequence of investigating supply and sum by distribution channel of mackerel, it appeared that mackerels shipped from port market are distributed into 9 consumption sites(Wholesale market, Large scale discount store, Institutional Food Service, etc.). In the comparison of distribution efficiency between traditional retail store and Large scale discount store 52.0% margin is formed in traditional retail store distribution channel and 43.1% margin is formed in Large scale discount store, and a distribution cost rate consists of 19.4% cost in a traditional retail store for fishery products and 18.1% cost in a Large-scale discount store. To analyze a difference of performance, the study examine a difference of role and function between vendor and Wholesale market company, wholesaler and middleman.

Recently, IPTV population is growing by leaps and bounds. and We performed FGI(Focus Group Interview) with various experts related to agriculture field to establish Agriculture and Fisheries special channel. this growth has social background that is change of paradigm caused by the convergence of broadcasting, demand for Agriculture and Fisheries special channel using new media thanks to interests in Wellbeing, Green food. so we think that we need to consider the way to establish Agriculture and Fisheries special channel and its validity from all angles. that is why we are having a heated discussion with Agriculture and Fisheries marketing experts, farmer, fisher(Korean Cyber Farmer Association), broadcasting experts. Concretely, government budget is needed to establish Agriculture and Fisheries special channel, so we are just about to examine its validity and find business model. to make this discussion detailed, we made 4 subjects. First, Do we need agro-fishery products distribution channel using media? Second, After establishing of Agriculture and Fisheries special channel, how many demands will occur? Third, Should we make Agriculture and Fisheries special channel public channel? Fourth, What would be profit model of Agriculture and Fisheries special channel?

The proliferation of the internet and electronic commerce has given the manufacturers the opportunity of direct marketing. This study analyzes the decision of manufacturers regarding whether to sell the products through independent sales company or to sel