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Regionalism and Local Market Share in the Soju Industry
Beginning of article
ABSTRACT
This article studies the Korean soju industry and investigates the sources of its persistent brand loyalty. The soju industry was heavily regulated up to the early 1990s. During the 1970s in particular the government designated only one soju firm in each regional market and further required local distributors to purchase more than 50 percent of their soju from the designated local firm in each regional market. However, even after this mandatory local soju purchase policy was abolished, local consumers tended to purchase local brands, a trend that continues to this day. To explain the persistence of brand loyalty, we propose an identity-based theory and provide empirical …
