• Title, Summary, Keyword: Switching Cost

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A Study on the Substation Switching System Reliability (신뢰도를 고려한 변전소의 스위칭 평가함수에 관한 연구)

  • Lee, S.K.;Choi, J.Y.;Park, J.K.
    • Proceedings of the KIEE Conference
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    • pp.235-238
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    • 1990
  • This paper presents a method of finding the optimal path of which is considered the switching cost and the reliability index. The problem is formulated as an optimization problem and solved by the maximum flow/mimimum cut method. The objective of this paper is to find the optimal path and minimize the failure cost and switching cost. Presented method has been simulated and the results are discussed.

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A Study on Switching Intention of Mobile Telecommunication Service User: Focused on Group Differences Based on Innovativeness (이동통신 서비스 이용자의 전환의도에 관한 연구: 개인 혁신성에 따른 집단 간의 차이를 중심으로)

  • Oh, Jong-Chul;Yoon, Sung-Joon
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.1
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    • pp.9-21
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    • 2009
  • Recently, the researches to explain Switching Behavior through Theory of Planned Behavior have been discovered. Many researches say that System factors of mobile telecommunication service(MTS) is positively associated with Switching Intention. But There is no difference of system factors between mobile telecommunication services because of IT technique Development. Thus, this study investigated whether switching cost and alternative's attractiveness influence switching intention concerning mobile telecommunication service by adopting Theory of Planned Behavior (TPB) as an underlying theoretical premise. The study also attempted to determine the moderating effects of personal innovativeness on switching intention. For these purposes the author has developed several hypotheses as follows: H-1. The switching cost of different MTS is associated with the attitude of MTS which is using. H-2. The switching cost of different MTS is associated with the subjective norm of MTS which is using. H-3. The switching cost of different MTS is associated with the perceived behavior control of MTS which is using. H-4. The alternative's attractiveness of different MTS is associated with the attitude of MTS which is using. H-5. The alternative's attractiveness of different MTS is associated with the subjective norm of MTS which is using. H-6. The alternative's attractiveness of different MTS is associated with the perceived behavior control of MTS which is using. H-7. The switching cost of different MTS is associated with the switching intention. H-8. The alternative's attractiveness of different MTS is associated with the switching intention. H-9. The attitude of MTS is associated with the switching intention. H-10. The subjective norm of MTS is associated with the switching intention. H-11. The perceived behavior control of MTS is associated with the switching intention. H-12. The personal innovativeness has been a moderating effects to switching intention. Data has been collected from 403 respondents for this study using a questionnaire method. The survey for the actual analysis of the research was done and analyzed with the customers who have an experience of using Mobile telecommunication service and the samples were selected among the middle and high school students who live in Seoul area, the university students who live in Seoul, Gyeonggi and Chungcheng Provinces, and the ordinary workers who are working in Seoul and Gyeonggi Province. The survey was done for 23 days from March 28, 2008 through April 12, 2008. The positive analysis was done with SPSS 12.0K statistics package and visual PLS program using the analysis techniques of frequency analysis, reliability analysis, correlation analysis and factor analysis. In addition, structural equation modeling was conducted using AMOS 5.0. The data was analyzed by frequency analysis using SPSS 12.0 and structural equation modeling using AMOS 5.0. The result of the overall model analysis is as follows: Chi-Square=378.306, d.f.=107, p-value=0.0, GFI=.904, AGFI= 0.863, IFI= 0.939, NFI= 0.917, RMSEA= 0.079, TLI= 0.922. The results of the overall model analysis were coherent. The following study results were revealed: First, switching cost was related positively to attitude, subjective norm and perceived behavior control, three components of TPB. Second, alternative's attractiveness was related negatively to subjective norm but positively to perceived behavior control. Third, switching cost and attitude was related negatively to switching intention, while perceived behavior control was related positively to switching intention. Finally, the study found the moderating effects of personal innovativeness on switching intention. Based on the results, the study offers marketing strategic implications for mobile telecommunication service industry.

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The Effect of Interactivity, Trust, Switching Cost on Onlinc Game Loyalty (상호작용성, 신뢰, 전환비용이 온라인 게임 애호도에 미치는 영향)

  • Kim, Young-Jae;Park, Seung-Bae
    • Journal of Industrial Convergence
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    • v.4 no.1
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    • pp.17-37
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    • 2006
  • The purpose of this study is to explain the effect of interactivity, trust, switching cost on online game loyalty. It is important to explain the effect of interactivity on online game loyalty. It is assumed that the interactivity, trust, and switching cost would affect the online game loyalty positively. The empirical results have indicated that the interactivity has a positive affect on the online game loyalty, also it show the trust and switching cost have significant effect on the online game loyalty. Theoretical and managerial implications of these results are discussed. Also, limitation of this study and future research areas are proposed.

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Optimal Switching Frequency in Limited-Cycle with Multiple Periods

  • Sun, Jing;Yamamoto, Hisashi;Matsui, Masayuki;Kong, Xianda
    • Industrial Engineering and Management Systems
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    • v.11 no.1
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    • pp.48-53
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    • 2012
  • Due to the customer needs of reducing cost and delivery date shorting, prompt change in the production plan became more important. In the multi period system (For instance, production line.) where target processing time exists, production, idle and delay risks occur repeatedly for multiple periods. In such situations, delay of one process may influence the delivery date of an entire process. In this paper, we discuss the minimum expected cost of the case mentioned above, where the risk depends on the previous situation and occurs repeatedly for multiple periods. This paper considers the optimal switching frequency to minimize the total expected cost of the production process. In this paper, first, the optimal switching frequency model is proposed. Next, the mathematic formulation of the total expectation is presented. Finally, the policy of optimal switching frequency is investigated by numerical experiments.

Examining the Effect of Online Switching Cost on Customers' Willingness to Pay More

  • Kim, Hee-Woong;Gupta, Sumeet;Lee, So-Hyun
    • Asia pacific journal of information systems
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    • v.23 no.1
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    • pp.21-43
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    • 2013
  • Internet vendors are gradually realizing the importance of "locking-in" online customers in order to ensure profitability. Erection of switching barriers increases customers'lock-in and in turn may result in their willingness to pay price-premium for the same service. However, raising customer lock-in online is difficult because search costs are very low. Therefore, this study examines the effect of switching barriers (customer satisfaction, perceived value and relative advantage) on switching costs and the effect of switching costs on customer's willingness to pay more. Since switching costs and consequent relationships may depend upon the type of product therefore the research model in this study is examined for both search products and experience products. Data is collected through an online survey from two websites (one each for search product and experience product). The empirical results show the key role of switching costs in customers' willingness to pay more and the relationships among the four constructs. The theoretical and practical implications of this study are also discussed.

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Scenario Analysis of Low-Carbon Generation Mix Considering Social Costs (사회적 비용을 고려한 저탄소 전원구성의 시나리오 분석)

  • Park, Jong-Bae;Cho, Young-Tak;Roh, Jae Hyung
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.67 no.2
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    • pp.173-178
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    • 2018
  • This study organizes scenarios on the power supply and demand plans considering the uncertainties and the portion of distributed energy resources. In analysing the scenarios, it estimates total electricity supply cost in the social aspect, natural gas demand and air pollutants emission including carbon dioxide. Also the analysis is performed to estimate the marginal cost of carbon dioxide reduction for the fuel switching from coal to liquified natural gas. In result, the social cost could be decreased by replacing some portion of renewable energy by LNG-based combined heat and power and delaying the construction of large base-load generators such as coal and nuclear plants. The marginal carbon dioxide reduction cost by fuel switching is in plausible range for fuel switching to be an option for carbon dioxide emission reduction when the social cost is considered.

A Study on the Structural Relationships among Relational Benefits of the Franchise Coffee Shop, Customer Satisfaction, Switching Cost and Relationship Retention Intention (프랜차이즈 커피전문점의 관계혜택, 고객만족, 전환비용 및 관계유지의도 간 구조관계 연구)

  • Shin, Heung-Ho;Yoo, Young-Jin
    • The Journal of the Korea Contents Association
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    • v.17 no.3
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    • pp.556-570
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    • 2017
  • The purpose of this study is to examine the structural relationships among relational benefits of the franchise coffee shop, customer satisfaction, switching cost and relationship retention intention. The results of this study are as follows: First, among relational benefits, social benefits, psychological benefits, customization benefits and economic benefits had a significant influence on customer satisfaction. Second, among relational benefits, social benefits, psychological benefits, customization benefits and economic benefits had a significant influence on switching cost. Third, customer satisfaction had a significant influence on relationship retention intention. Fourth, switching cost had a significant influence on relationship retention intention. Finally, the conclusion section suggested strategic implications to induce relational benefits, customer satisfaction, switching cost and relationship retention intention based on the findings.

Empirical Analysis Approach to Investigating how Consumer's Continuance Intention to Use Online Store is Influenced by Uncertainty, Switching Cost, Offline Trust, and Individual Negative Emotion: Emphasis on Offline-Online Multi-Channels (오프라인-온라인 멀티채널 상황에서 불확실성, 전환비용, 오프라인 신뢰 및 개인의 부정감정이 사용자 지속구매의도에 미치는 영향에 관한 실증연구)

  • Jeon, Hyeon Gyu;Lee, Kun Chang
    • The Journal of the Korea Contents Association
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    • v.16 no.5
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    • pp.428-439
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    • 2016
  • It becomes undeniable trends that offline shopping stores operate their own online shopping stores too. The multi-channel shopping stores like this allow consumers to have much choices to shop from either offline channel or online channel. This trend, however, also opens new research issues. Especially, we have found from literature survey that a new research model is necessary for more in-depth study of the consumer behavior analysis in the multi-channel trends like this, where those constructs such as offline trust, uncertainty, switching cost, and individual negative emotion are considered. It is noted, especially in the multi-channel environments, that uncertainty and switching cost need to be considered, and that individual tends to feel negative emotion much more. By relying on 406 valid questionnaires, we obtained empirical results such that switching cost and offline trust have a positive effect on continuance intention, and uncertainty tends to increase switching cost. Individual negative emotion also affects continuance intention significantly.

The Effects of Consumer Perception and Propensity on Satisfaction and Switching Intention (소비자 지각 및 성향이 만족도와 전환의도에 미치는 영향)

  • Kim, Hyun-Kyung
    • Korean Family Resource Management Association
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    • v.12 no.3
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    • pp.1-21
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    • 2008
  • Research has emphasized that relationship marketing programs enhance customer satisfaction and reduce switching intentions by building switching barriers. However, the psychological reactance theory demonstrates that building switching barriers can make customers fsel that the alternative not chosen is more attractive, because their freedom of choice has been deprived. It can be hypothesized that a relationship marketing program, which is intended to offer various benefits to customers, may not result in positive customer attitude and behavior. This paper examines the effects of relationship marketing programs on customers' perceptions of switching cost and loss of freedom. The effects of those perceptions on customer satisfaction and switching intentions were identified. In addition, the moderating role of personal reactance was examined. The results of this study suggest that (1) perceived switching cost has significant influence on boosting perceived loss of freedom; (2) perceived loss of freedom has no significant effects on customer satisfaction; (3) perceived loss of freedom enhances customers' switching intentions. Furthermore, psychological reactance has a significant influence on customers' switching intentions. This study concludes that the role of relationship marketing programs should be reconsidered, especially in terms of customers' switching intentions. Customer satisfaction is not the key factor of predicting customers' future behavior.

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An Empirical Study on the Adjustment Effect of Switching Barriers on Customer Retention in Mobile Telecommunication Services (이동통신서비스에서 전환장벽이 고객유지에 미치는 조절효과에 관한 실증연구)

  • Kim, Moon-Koo;Park, Myeong-Cheol;Jeong, Dong-Heon;Park, Jong-Hyun
    • Asia pacific journal of information systems
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    • v.13 no.3
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    • pp.107-130
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    • 2003
  • This paper aims to investigate the adjustment effect of switching barriers on customer retention in mobile telecommunication services. The detailed factors regarding switching barriers are classified based on the related literatures. Furthermore, the hierarchical regression analysis is used to analyze the extent to which the factors affect customer retention. The main contribution of this paper is to focus on switching barriers and theirs relationships with customer retention rather than customer satisfaction on early studies. The results are as follows: First, among the factors of switching barriers, switching costs, such as continuity cost and contractual cost, interpersonal relationship, and attractiveness of alternatives are key factors in determining customer retention. Second, continuity cost and interpersonal relationship have an adjustment effect between customer satisfaction and customer retention. The findings can help the mobile operators establish a customer-oriented strategy by identifying a few key factors strengthening the linkage with customers.