• Title/Summary/Keyword: Consumer benefits

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Cognitive Development of Brand as a Heuristic (소비자 휴리스틱을 통한 인지적 발달 관점에서의 브랜드)

  • Na, Woon Bong;Roger Marshall;Son, Young Seok
    • Asia Marketing Journal
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    • v.13 no.3
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    • pp.163-182
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    • 2011
  • The focus of this paper is to investigate cognitive development of brand heuristics in the mind of a young consumer as the consumer matures. This issue was examined by comparing the nature of the set of associations (that form the brand heuristic) given by consumers across four different age groups, with each age group representing a distinct stage of cognitive maturity. It is found that there are fundamental differences in the way the different age groups perceive the brand. The research method uses the novel approach of classifying the elicited associations into the three types of brand associations: attributes, benefits and attitudes. This classification enables comparisons of the nature of brand associations and the changes that occur as a consumer matures. To conclude, implications for theory and practice are discussed.

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The Effect of Price Discount Rate According to Brand Loyalty on Consumer's Acquisition Value and Transaction Value (브랜드애호도에 따른 가격할인율의 차이가 소비자의 획득가치와 거래가치에 미치는 영향)

  • Kim, Young-Ei;Kim, Jae-Yeong;Shin, Chang-Nag
    • Journal of Global Scholars of Marketing Science
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    • v.17 no.4
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    • pp.247-269
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    • 2007
  • In recent years, one of the major reasons for the fierce competition amongst firms is that they strive to increase their own market shares and customer acquisition rate in the same market with similar and apparently undifferentiated products in terms of quality and perceived benefit. Because of this change in recent marketing environment, the differentiated after-sales service and diversified promotion strategies have become more important to gain competitive advantage. Price promotion is the favorite strategy that most retailers use to achieve short-term sales increase, induce consumer's brand switch, in troduce new product into market, and so forth. However, if marketers apply or copy an identical price promotion strategy without considering the characteristic differences in product and consumer preference, it will cause serious problems because discounted price itself could make people skeptical about product quality, and the changes of perceived value might appear differently depending on other factors such as consumer involvement or brand attitude. Previous studies showed that price promotion would certainly increase sales, and the discounted price compared to regular price would enhance the consumer's perceived values. On the other hand, discounted price itself could make people depreciate or skeptical about product quality, and reduce the consumers' positivity bias because consumers might be unsure whether the current price promotion is the retailer's best price offer. Moreover, we cannot say that discounted price absolutely enhances the consumer's perceived values regardless of product category and purchase situations. That is, the factors that affect consumers' value perceptions and buying behavior are so diverse in reality that the results of studies on the same dependent variable come out differently depending on what variable was used or how experiment conditions were designed. Majority of previous researches on the effect of price-comparison advertising have used consumers' buying behavior as dependent variable. In order to figure out consumers' buying behavior theoretically, analysis of value perceptions which influence buying intentions is needed. In addition, they did not combined the independent variables such as brand loyalty and price discount rate together. For this reason, this paper tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception. And we provided with theoretical and managerial implications that marketers need to consider such variables as product attributes, brand loyalty, and consumer involvement at the same time, and then establish a differentiated pricing strategy case by case in order to enhance consumer's perceived values properl. Three research concepts were used in our study and each concept based on past researches was defined. The perceived acquisition value in this study was defined as the perceived net gains associated with the products or services acquired. That is, the perceived acquisition value of the product will be positively influenced by the benefits buyers believe they are getting by acquiring and using the product, and negatively influenced by the money given up to acquire the product. And the perceived transaction value was defined as the perception of psychological satisfaction or pleasure obtained from taking advantage of the financial terms of the price deal. Lastly, the brand loyalty was defined as favorable attitude towards a purchased product. Thus, a consumer loyal to a brand has an emotional attachment to the brand or firm. Repeat purchasers continue to buy the same brand even though they do not have an emotional attachment to it. We assumed that if the degree of brand loyalty is high, the perceived acquisition value and the perceived transaction value will increase when higher discount rate is provided. But we found that there are no significant differences in values between two different discount rates as a result of empirical analysis. It means that price reduction did not affect consumer's brand choice significantly because the perceived sacrifice decreased only a little, and customers are satisfied with product's benefits when brand loyalty is high. From the result, we confirmed that consumers with high degree of brand loyalty to a specific product are less sensitive to price change. Thus, using price promotion strategy to merely expect sale increase is not recommendable. Instead of discounting price, marketers need to strengthen consumers' brand loyalty and maintain the skimming strategy. On the contrary, when the degree of brand loyalty is low, the perceived acquisition value and the perceived transaction value decreased significantly when higher discount rate is provided. Generally brands that are considered inferior might be able to draw attention away from the quality of the product by making consumers focus more on the sacrifice component of price. But considering the fact that consumers with low degree of brand loyalty are known to be unsatisfied with product's benefits and have relatively negative brand attitude, bigger price reduction offered in experiment condition of this paper made consumers depreciate product's quality and benefit more and more, and consumer's psychological perceived sacrifice increased while perceived values decreased accordingly. We infer that, in the case of inferior brand, a drastic price-cut or frequent price promotion may increase consumers' uncertainty about overall components of product. Therefore, it appears that reinforcing the augmented product such as after-sale service, delivery and giving credit which is one of the levels consisting of product would be more effective in reality. This will be better rather than competing with product that holds high brand loyalty by reducing sale price. Although this study tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception, there are several limitations. This study was conducted in controlled conditions where the high involvement product and two different levels of discount rate were applied. Given the presence of low involvement product, when both pieces of information are available, it is likely that the results we have reported here may have been different. Thus, this research results explain only the specific situation. Second, the sample selected in this study was university students in their twenties, so we cannot say that the results are firmly effective to all generations. Future research that manipulates the level of discount along with the consumer involvement might lead to a more robust understanding of the effects various discount rate. And, we used a cellular phone as a product stimulus, so it would be very interesting to analyze the result when the product stimulus is an intangible product such as service. It could be also valuable to analyze whether the change of perceived value affects consumers' final buying behavior positively or negatively.

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Estimation of Overall Household Utility for Heavy Metal Reduction in Shrimp (새우류 중금속 저감에 대한 전체가구의 효용 추정)

  • Hyun Joung Jin;Ye Jin We
    • Journal of Food Hygiene and Safety
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    • v.38 no.4
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    • pp.255-263
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    • 2023
  • The standards for heavy metal levels in crustaceans are 0.5 mg/kg and 1.0 mg/kg or lower for lead and cadmium, respectively. Further, the contamination levels of arsenic, mercury, methyl mercury, and tin are being continuously investigated, considering their current exposure levels. Shrimps are potentially exposed to heavy metals because they inhabit areas with abundant organic matter, such as sandy or muddy shores, places with a lot of seaweed, and estuaries. This study measured the monetary value of reducing consumer anxiety and increasing consumer confidence if the government prohibits the sale of shrimp species that exceed the threshold for specific heavy metals and of the top shrimp species for which no threshold for heavy metals is specified. We derived consumer willingness-to-pay (WTP). Combining the estimated WTP with the number of households in the country, the total value of benefits was estimated to be 363.9 billion won. The results of this study will provide an important empirical finding, showing to what extent specific policies regarding heavy metals in seafood can alleviate consumer anxiety and provide psychological reassurance.

Determination of the Optimal Access Charge for the Mobile Virtual Network Operator System

  • Kim, Byung-Woon;Park, Sung-Uk
    • ETRI Journal
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    • v.26 no.6
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    • pp.665-668
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    • 2004
  • The introduction of a mobile virtual network operator (MVNO) system is expected to increase consumer benefits, boost competition in the mobile market, utilize idle bandwidth, and expedite mobile-fixed line convergence and growth in the mobile Internet market. This research endeavors to study the optimal access charge for an MVNO system, which is expected to be introduced to the Korean mobile communications market. We found that the optimal access charge is higher in the interdependent model than in the independent model if demand for mobile phone service is based on a substitution relationship. We also found that the optimal access charge is higher than the marginal cost.

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Adaptive algorithm for optimal real-time pricing in cognitive radio enabled smart grid network

  • Das, Deepa;Rout, Deepak Kumar
    • ETRI Journal
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    • v.42 no.4
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    • pp.585-595
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    • 2020
  • Integration of multiple communication technologies in a smart grid (SG) enables employing cognitive radio (CR) technology for improving reliability and security with low latency by adaptively and effectively allocating spectral resources. The versatile features of the CR enable the smart meter to select either the unlicensed or the licensed band for transmitting data to the utility company, thus reducing communication outage. Demand response management is regarded as the control unit of the SG that balances the load by regulating the real-time price that benefits both the utility company and consumers. In this study, joint allocation of the transmission power to the smart meter and consumer's demand is formulated as a two stage multi-armed bandit game in which the players select their optimal strategies noncooperatively without having any prior information about the media. Furthermore, based on historical rewards of the player, a real-time pricing adaptation method is proposed. The latter is validated through numerical results.

Starter Clutures for Milk Fermentation and Their Characteristics (우유발효에 이용되는 Starter Culture와 그 특성)

  • Keum, Jong-Soo;Kim, Jong-Woo
    • Journal of Dairy Science and Biotechnology
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    • v.14 no.1
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    • pp.97-118
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    • 1996
  • All over the world there is an increasing consumer awareness of the potential influence of various foodstuffs on our health. Today dairy products are expected to be more just food. They have to taste well, appeal and give pleasure, provide of well-being, provide specific health benefits and prevent disease. This paper reviews the different types of fermented milks and their microflora and includes recent work on yogurt, soft cheese and buttermilks, kefir and koumiss. There is considerable interest in the new health promoting products which are now available. Meanwhile during the last decade a new generation of fermented milk products containing selected intestinal bacteria has been introduced to the markets. These are discussed in the light of some recent findings on the ability to lower the blood cholesterol concentration and stimulate the immune response and also describes some fermented milk products available, selection criteria for commercial starter cultures.

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Analysis of the Consumers' Awareness and Information Need for Food Safety -Focused on irradiated foods and environmental hormones- (소비자의 식품 안전성에 대한 인지도 및 정보요구도에 관한 분석 -방사선조사 식품과 환경호르몬을 중심으로-)

  • Kim, Hyo-Chung;Kim, Mee-Ra
    • Journal of the Korean Society of Food Culture
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    • v.17 no.2
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    • pp.153-164
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    • 2002
  • This study examined the consumers' awareness and information need toward the irradiated foods and environmental hormones. The data were collected from 350 adults living in Daegu and Busan by the self-administered questionnaire. Frequencies and chi-square tests were conducted by SPSS. The results of the survey were as follows: (1) consumers' awareness regarding the irradiated foods and environmental hormones were low, while consumers' concerns for them were high, (2) the orders of the information needs for the irradiated foods are safety of irradiated foods, dose permitted for food irradiation, benefits of irradiated foods, kinds of permitted irradiated foods, and legislations of food irradiation, and (3) the orders of the information needs for the environmental hormones are harmfulness of environmental hormones, standards for contamination by environmental hormones, materials releasing environmental hormones, methods to prevent environmental hormones, and kinds of environmental hormones.

Development of a Real-Time Supply Chain Model Using RFID Technology (RFID 기술을 이용한 실시간 공급망 모형 구축)

  • Hong, Young-Jee;Tae, Kyung-Hwi;Park, Jin-Woo
    • Korean Management Science Review
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    • v.27 no.3
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    • pp.137-147
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    • 2010
  • Real-time supply chain environments based on RFID will be an important topic in future society; Nevertheless, adopting RFID in real industry SCM is still in its infancy. The aim of this paper is to develop the physical framework of a fully adopting RFID system from manufacturing to recycle phase and measure the effect. So, we built a simulation station with fully appling RFID and analyzed benefits with mathematic model. Then, specifying the advantages and improvement scheme for real industry limitations were suggested. This work concluded that fully appling RFID in SCM gives improvement of quality and service to both production and consumer.

The Key Determinants of Customer Satisfaction in Finance Industry (금융 소비자 만족도에 영향을 미치는 요인)

  • Chun, Sung Yong
    • Journal of the Korean Operations Research and Management Science Society
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    • v.38 no.1
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    • pp.89-101
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    • 2013
  • With the growing importance of the financial industry, financial service companies need to better understand the behavior of consumers and develop effective marketing strategies accordingly. This study examines the key determinants in the satisfaction of financial services customers. According to the study, "satisfaction with branches," "product profitability," "corporate stability," "convenience" and "relational benefits" have an impact on the satisfaction levels. In particular, "branch satisfaction" was a vital factor for bank-centered customers, while "product diversity" was a key for securities-centered customers. This study will hopefully benefit not only financial companies, but also regulators and authorities in the finance industry.

An Exploratory Study on the Important Factors of Financial Services Depending on the Types of Financial Consumers (금융소비자 특성별 금융서비스 중요 요인에 대한 탐색 연구)

  • Chun, Sung-Yong
    • Journal of the Korean Operations Research and Management Science Society
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    • v.36 no.4
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    • pp.125-141
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    • 2011
  • There have been some research papers on financial services marketing, but there are only few exploratory studies that analyze characteristics of financial consumers in Korea. This study examines, based on FGI and web survey results, which factors consumers consider more important when choosing their financial services. I found that 'product profitability' is the most important factor when consumers choose their financial services, followed by 'relational benefits', 'convenience', 'product diversity', 'company stability', 'branch satisfaction', and 'social responsibility' in order of importance. The study also showed that there are differences in perception of these important factors depending on the types of consumers such as gender, age, size of financial assets, degree of risk-taking, and main financial company they are using. This study hopefully provide implications to marketing managers in financial services that they could decide which factors they have to focus on more when planning marketing strategies. Another objective of this study is to provide useful insights to the future researchers in financial services marketing.