• Journal of Distribution Science
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• v.22 no.9
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• pp.49-63
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• 2024

Purpose: This study examines how psychological heuristics influence stock price dynamics in Korea's distribution industry after significant price shocks. Research Design, Data, and Methodology: The study analyzes daily stock price movements exceeding 10% for Korean distribution companies from 1993 to 2022. It establishes anchoring heuristic reference points, including the 52-week high and low, and segments the sample based on company size and volatility. Results: We analyzed a sample previously studied by Lee et al. (2023). Our findings indicate that when a stock experiences a positive (negative) price shock near its 52-week high (or lowest price), investors in large (small) companies exhibit an optimism (pessimism) bias. This leads to overreactions and subsequent stock price reversals after the event date. Conversely, when a stock encounters a negative (positive) price shock near its 52-week high (or lowest price), investorstend to underreact due to anchoring heuristics. Thisresultsin a drift effect on the stock price after the event day. Notably, investor behavior around 52-week highs or lows directly impacts their heuristic behavior related to those price points. Conclusions: This paper uniquely examines behavioral biases among distribution-related stock investors in Korea, shedding light on stock price reversal and drift effects.

• Journal of Distribution Science
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• v.21 no.9
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• pp.103-114
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• 2023

Purpose: This paper aims to assess psychological heuristics' effectiveness on cumulative returns after significant stock price changes. Specifically, it compares availability and anchoring heuristics' empirical validity due to conflicting stock return predictions. Research Design, Data, and Methodology: This paper analyzes stock price changes of Korean distribution industry stocks in the KOSPI market from January 2004 to July 2022, where daily fluctuations exceed 10%. It evaluates availability heuristics using daily KOSPI index changes and tests anchoring heuristics using 52-week high and low stock prices as reference points. Results: As a result of the empirical analysis, stock price reversals did not consistently appear alongside changes in the daily KOSPI index. By contrast, stock price drifts consistently appeared around the 52-week highest stock price and 52-week lowest stock price. The result of the multiple regression analysis which controlled for both company-specific and event-specific variables supported the anchoring heuristics. Conclusions: For stocks related to the Korean distribution industry in the KOSPI market, the anchoring heuristics theory provides a consistent explanation for stock returns after large-scale stock price fluctuations that initially appear to be random movements.

• Korean journal of food and cookery science
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• v.32 no.3
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• pp.342-352
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• 2016

Purpose: This study conducted an Importance-Performance Analysis (IPA) of selective attributes of Home Meal Replacement (HMR) as well as it examined the consumers' needs and willingness to buy HMR products to explore the need for developing more HMR products. Methods: This study was conducted among domestic consumers living in Seoul and its metropolitan areas, in the age range from the 20s to the 50s, and who had experience in purchasing HMR products. From the 490 surveys retrieved, 472 (96.3%) valid surveys were analyzed. Results: The analysis of the frequency of consuming HMR products showed the following results: 247 respondents answered '1-3 times a month' (52.3%); 167 respondents stated '1-2 times a week' (35.3%). With respect to the reason of purchase, 'simplicity of the recipe' was the most common, accounting for 188 respondents (39.8%), followed by 'time efficiency' accounting for 172 respondents (36.4%). Analysis of the demand for bibimbap (mixed rice) HMR products showed that 'chicken bibimbap' had the highest preference with 5.32 points, followed by 'bulgogi bibimbap' (5.08 points), and 'kimchi bibimbap' (4.96 points). In the case of HMR products that need to undergo further development, 'low-sodium products' received the highest points of 5.41 points, followed by 'small packaged products' (5.05 points), and 'functional products' (4.98 points). The factor analysis of the 13 selective attributes showed that they can be divided into 3 factors. The IPA analysis of the selective attributes of HMRs showed 'hygiene', 'taste', 'easy to go packaging', 'convenience in intake', and 'accessibility' in the 1st quadrant. In the 2nd quadrant, 'price' and 'freshness' were shown as the factors. In the 3rd quadrant, 'easy to serve', 'familiar food menu', and 'consistent menu' were shown as the leading factors, and in the 4th quadrant, 'saving labor' was the only factor. Conclusion: Based on these results, the research concludes that with respect to developing HMR products, there is a high demand for low sodium, low calorie, small packaged products; thus, showing the need to develop various HMR products for customer satisfaction. Furthermore, it shows that there is a need to consider developing HMR products that can maintain freshness at an affordable price.