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In recent years, the retail market in Korea has been confronted by new hurdles, facing severe competition from various types of retailers: department stores, hypermarkets, e-commerce and m-commerce. In the past competition was mainly intra-type – same categories of retailers competing amongst each other. But recently this has evolved into a multi-faceted competition stemming from the internet that is more based around offline vs online contests. Marketing managers have examined the consumer store selection process and have searched for the distinguishing competitive advantage of their store. As a result, marketers have concentrated not only on merchandising but also on relational benefits as the customer maintenance strategy. Relational benefits are concerned with long-term relationships with customers, not only the main monetary exchanges. It is important for a company to establish a long-term relationship with its customers because maintaining existing customers rather than attracting new customers will help them to secure competitive advantage and generate more profits. Thus, relational benefits are becoming an ever more important strategic goal to maintain long-term relationships with existing customers. This paper has two objectives. Firstly, this study will investigate the effect relational benefits have on switching barriers and store loyalty respectively. Moreover it will explore the additional dimensions of having relational benefits in a retail context. Since previous studies of relational benefits have the viewpoint of Western industry, adopting an Asian perspective provide a wider and richer analysis. Thus, since a fundamental element of respect is added to proceedings (from“Guanxi”a meaning of relationship or connection between stores and customers) we expect this paper significantly to existing studies. Secondly, this paper will conduct the test of group difference for examining distinctive relational * Professor of Marketing, Sookmyung Women’s University ** Ph.D Program, Sookmyung Women’s University *** Ph.D Candidate, Korea Advanced Institute of Science and Technology (KAIST), Corresponding author

The Effect of Relational Benefits on Switching Barriers and Store Loyalty: Group Differences between Offline Stores and Mobile Commerce