Internet commerce has been growing at a rapid pace for the last decade. Many firms try to reach wider consumer markets by adding the Internet channel to the existing traditional channels. Despite the various benefits of the Internet channel, a significant number of firms failed in managing the new type of channel. Previous studies could not cleary explain these conflicting results associated with the Internet channel. One of the major reasons is most of the previous studies conducted analyses under a specific market condition and claimed that as the impact of Internet channel introduction. Therefore, their results are strongly influenced by the specific market settings. However, firms face various market conditions in the real worlddensity and disutility of using the Internet. The purpose of this study is to investigate the impact of various market environments on a firm's optimal channel strategy by employing a flexible game theory model. We capture various market conditions with consumer density and disutility of using the Internet.
shows the channel structures analyzed in this study. Before the Internet channel is introduced, a monopoly manufacturer sells its products through an independent physical store. From this structure, the manufacturer could introduce its own Internet channel (MI). The independent physical store could also introduce its own Internet channel and coordinate it with the existing physical store (RI). An independent Internet retailer such as Amazon could enter this market (II). In this case, two types of independent retailers compete with each other. In this model, consumers are uniformly distributed on the two dimensional space. Consumer heterogeneity is captured by a consumer's geographical location (ci) and his disutility of using the Internet channel (${\delta}_{N_i}$).
shows various market conditions captured by the two consumer heterogeneities.
(a) illustrates a market with symmetric consumer distributions. The model captures explicitly the asymmetric distributions of consumer disutility in a market as well. In a market like that is represented in
(c), the average consumer disutility of using an Internet store is relatively smaller than that of using a physical store. For example, this case represents the market in which 1) the product is suitable for Internet transactions (e.g., books) or 2) the level of E-Commerce readiness is high such as in Denmark or Finland. On the other hand, the average consumer disutility when using an Internet store is relatively greater than that of using a physical store in a market like (b). Countries like Ukraine and Bulgaria, or the market for "experience goods" such as shoes, could be examples of this market condition.
summarizes the various scenarios of consumer distributions analyzed in this study. The range for disutility of using the Internet (${\delta}_{N_i}$) is held constant, while the range of consumer distribution (${\chi}_i$) varies from -25 to 25, from -50 to 50, from -100 to 100, from -150 to 150, and from -200 to 200.
summarizes the analysis results. As the average travel cost in a market decreases while the average disutility of Internet use remains the same, average retail price, total quantity sold, physical store profit, monopoly manufacturer profit, and thus, total channel profit increase. On the other hand, the quantity sold through the Internet and the profit of the Internet store decrease with a decreasing average travel cost relative to the average disutility of Internet use. We find that a channel that has an advantage over the other kind of channel serves a larger portion of the market. In a market with a high average travel cost, in which the Internet store has a relative advantage over the physical store, for example, the Internet store becomes a mass-retailer serving a larger portion of the market. This result implies that the Internet becomes a more significant distribution channel in those markets characterized by greater geographical dispersion of buyers, or as consumers become more proficient in Internet usage. The results indicate that the degree of price discrimination also varies depending on the distribution of consumer disutility in a market. The manufacturer in a market in which the average travel cost is higher than the average disutility of using the Internet has a stronger incentive for price discrimination than the manufacturer in a market where the average travel cost is relatively lower. We also find that the manufacturer has a stronger incentive to maintain a high price level when the average travel cost in a market is relatively low. Additionally, the retail competition effect due to Internet channel introduction strengthens as average travel cost in a market decreases. This result indicates that a manufacturer's channel power relative to that of the independent physical retailer becomes stronger with a decreasing average travel cost. This implication is counter-intuitive, because it is widely believed that the negative impact of Internet channel introduction on a competing physical retailer is more significant in a market like Russia, where consumers are more geographically dispersed, than in a market like Hong Kong, that has a condensed geographic distribution of consumers. illustrates how this happens. When mangers consider the overall impact of the Internet channel, however, they should consider not only channel power, but also sales volume. When both are considered, the introduction of the Internet channel is revealed as more harmful to a physical retailer in Russia than one in Hong Kong, because the sales volume decrease for a physical store due to Internet channel competition is much greater in Russia than in Hong Kong. The results show that manufacturer is always better off with any type of Internet store introduction. The independent physical store benefits from opening its own Internet store when the average travel cost is higher relative to the disutility of using the Internet. Under an opposite market condition, however, the independent physical retailer could be worse off when it opens its own Internet outlet and coordinates both outlets (RI). This is because the low average travel cost significantly reduces the channel power of the independent physical retailer, further aggravating the already weak channel power caused by myopic inter-channel price coordination. The results implies that channel members and policy makers should explicitly consider the factors determining the relative distributions of both kinds of consumer disutility, when they make a channel decision involving an Internet channel. These factors include the suitability of a product for Internet shopping, the level of E-Commerce readiness of a market, and the degree of geographic dispersion of consumers in a market. Despite the academic contributions and managerial implications, this study is limited in the following ways. First, a series of numerical analyses were conducted to derive equilibrium solutions due to the complex forms of demand functions. In the process, we set up V=100, ${\lambda}$=1, and ${\beta}$=0.01. Future research may change this parameter value set to check the generalizability of this study. Second, the five different scenarios for market conditions were analyzed. Future research could try different sets of parameter ranges. Finally, the model setting allows only one monopoly manufacturer in the market. Accommodating competing multiple manufacturers (brands) would generate more realistic results.
Kim, Yun Ho;Lee, Na Ra;Rhee, Sang Young;Hwang, Seong Won
Journal of Agricultural Extension & Community Development
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v.20
no.4
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pp.1181-1216
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2013
This study was accomplished to enhance brand value for hanwoo and to develop strategy for brand positioning that move customer's heart. This study in order to achieve the research was carried out as follows: First, the cluster analysis based on demographic characteristics for consumer on the basis of three types segmentation on market was conducted. Market A was consisted of a well-educated, high-income and young bracket. Market B was consisted of a well-educated, high-income and middle-aged bracket. Market C was consisted of a low-income and middle-aged class. Second, consumer's positioning map was analyzed based on perceiving data which are products' functional, emotional, and self-expressive benefits about consumer's feeling beef products. This study was analyzed each relative brand advantage and structure of competition on segmented market by conjoining each brands positioning map and feature vectors map. By the result of the analysis, each brand's positioning strategy was devised. As a result of the study, the hoengseong hanwoo is competitive about all kinds of market. We chooses that hoengseong hanwoo's target is A market, because that brand is evaluated as a high-ranked quality by high-class image of luxury price, quality, brand image. For management improvement sake, this brand(the hoengseong hanwoo) is needed to effort for promoting consumer's awareness about safety and reliability.
Journal of the Korean Society of Food Science and Nutrition
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v.44
no.2
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pp.291-295
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2015
Sweet pumpkin is a squash fruit that contains low total solids but is rich in carotene, pectin, mineral salts, vitamins, and other substances beneficial to health. An attempt was made to develop a value-added food product; sweet pumpkin powders (SPP) were incorporated into a model system of noodles as a healthy food ingredient, and selected physicochemical properties and consumer preferences were determined. Elevated SPP concentration was associated with increased pH, soluble solids, and turbidity; however, moisture absorption decreased (P<0.05). Increasing amounts of SPP significantly reduced both raw and cooked noodle brightness (L*); however, yellowness (b*) appeared to increase. In addition, 1,1-diphenyl-2-picrylhydrazyl radical scavenging activity increased significantly (P<0.05). The consumer acceptance test indicated that incorporation of 10% SPP to the formulation is recommended to take advantage of the health benefits of SPP without major sacrificing the quality acceptance of consumers.
Journal of the Korean Society of Food Science and Nutrition
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v.44
no.1
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pp.160-164
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2015
The effects of different ingredient formulations on physicochemical qualities and consumer preferences were investigated using Baikseolgi incorporated with pomegranate concentrate (PC), a healthy food ingredient, as a model system. PC was incorporated into the formulation at five different amounts [0%, 1.6%, 3.3%, 5%, and 6.6% (w/w)] by replacing the equivalent amount of water added. After appropriate mixing, rice cakes were steamed and quality attributes were evaluated after cooling. The pH decreased while moisture content increased significantly with increased PC substitution (P<0.05). Lightness decreased significantly from 82.33 to 65.09 with higher incorporation of PC (P<0.05), indicating that the color of Baikseolgi became darker. Redness and yellowness, on the other hand, increased significantly (P<0.05). Hardness gradually increased as the PC content increased in the formulation (P<0.05). In addition, DPPH and ABTS radical scavenging activities increased significantly (P<0.05), and they were well correlated. The overall consumer acceptance results indicate that incorporation of 1.6% PC in the formulation of Baikseolgi is recommended to take advantage of the health benefits of PC without sacrificing quality acceptance by consumers.
Integrated Social Welfare Management System is an information system that comprehensively manages information and services regarding diverse welfare benefits provided by the government. It is designed to improve efficiency of social welfare administration and the service delivery system. The system is found to have significantly contributed to efficiency of the welfare delivery system by reducing the workload of public officials who are responsible for welfare administration in local governments and changing the way they work for the better. This study analyzes the costs and benefits of the Integrated Social Welfare Management System and describes what it has achieved for the provider and recipients. The system has enhanced efficiency of the welfare delivery system and enabled case management, the function social welfare public officials are supposed to do. Ultimately, the system will play a key role in building a consumer-centered welfare administration environment in the future.
With current real economic growth of more than 10% per year, the Chinese energy consumption is rapidly increasing. Coal supply consists of the vast majority of China's total energy consumption requirements in 2008. China, the largest energy consumer, is expected to be heavily dependent on coal for future power generation, too (IEA,2009). A growing concern on global warming, on the other hand, drives Chinese government to declare her commitment to the reduction of CO2 emission by 2020. In this paper, China's energy market is examined for the current and future primary energy mix. Coal is found to be the biggest part accounting for 68.7% of total primary energy consumption while coal-fired power accounts for over 80% of the total power generation. The importance of Clean Coal Technology is being discussed based on the findings of the importance of coal in China's economy and its sustainable development. Among the technologies involved, a brief investigation of IGCC(Integrated Gasification Combined Cycle) technology with a review on current IGCC projects in China are provided from the perspective of environmental benefits. Studies on regional Chinese power market is also conducted. It is found that the regulated power tariff in electricity system makes the power suppliers suffer from financial loss and changes in the electricity price system is under serious consideration by Chinese government. Even though Chinese power market system causes difficulties of commercialization for IGCC technology, the potential benefits will be high due to China's huge requirements of power generating capacity and its heavy reliance on coal if the electricity price system can be changed smoothly.
Journal of the Korea Society of Computer and Information
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v.25
no.1
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pp.199-206
/
2020
In this study, the factors affecting consumers' intention to use AI speakers were focused on the perceived value of the product and the perceived necessity of the product. Factors affectationist consumers' perceived value of the product were divided into benefits and costs. Reflecting the characteristics of information technology products, I included perceptions of usefulness of products. Empirical results show that consumers' perceptions of perceived benefits and usefulness of AI speaker products have a positive effect on perceived value and perceived necessity. Perception of necessity had a positive (+) significant effect on perception of value. Perception of necessity and perception of value had a positive(+) and positive effect on each intention of use. However, the cost perceived by consumers did not have a significant effect on perception of value.
The dairy industry, as part of the broader agricultural sector, is classified as a basic industry to the Korea economy. Basic industries provide income to a region by producing an output, purchasing production inputs, services and labor. An integrated, multidisciplinary approach for the next generation of dairy products with added health benefits represent the direct economic contribution. The commercialization of "nutritional" functional foods can only be successful if the consumer is confident in the scientific validity of the claims. Modern biotechnologies such as genomics, genetic expression and biomarkers of health performance suggested to whole dairy products, such as fluid milk, butter, cheese, ice cream and frozen dessert products (German, 1999). The following definition makes the point that dairy products can provide a nutritional value beyond the basic nutritional requirements: 1) The dairy industry has the opportunity to improve the health and well-being of its customers and/or to reduce their risk of disease through dairy products with added activities. 2) Functional dairy products are those that can be demonstrated to benefit target functions in the body in a way that improves the state of health and /or reduces the risk of disease. They are food products that are consumed as part of a normal diet rather than pills or supplements. 3) Dairy products based on functionality will need to link the scientific basis of such functionality to the communication of its benefit to the general public. 4) Both the efficacy and the safety of the food components with health benefits will require evidence based on the measurement of scientific biomarkers relevant to their biological responses and health end points. 5) Sound evidence from human studies based on intermediate health end points using accepted biomarkers will provide the basis for promotional messages divided into two categories-enhanced function and reduced risk of disease. 6) Success in solving key scientific and technological challenges will only be achieved by interdisciplinary research programs to exploit the scientific concepts in functional dairy science.
Hocquette, Jean-Francois;Ellies-Oury, Marie-Pierre;Lherm, Michel;Pineau, Christele;Deblitz, Claus;Farmer, Linda
Asian-Australasian Journal of Animal Sciences
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v.31
no.7
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pp.1017-1035
/
2018
The European Union (EU) is the world's third largest producer of beef. This contributes to the economy, rural development, social life, culture and gastronomy of Europe. The diversity of breeds, animal types (cows, bulls, steers, heifers) and farming systems (intensive, extensive on permanent or temporary pastures, mixed, breeders, feeders, etc) is a strength, and a weakness as the industry is often fragmented and poorly connected. There are also societal concerns regarding animal welfare and environmental issues, despite some positive environmental impacts of farming systems. The EU is amongst the most efficient for beef production as demonstrated by a relative low production of greenhouse gases. Due to regional differences in terms of climate, pasture availability, livestock practices and farms characteristics, productivity and incomes of beef producers vary widely across regions, being among the lowest of the agricultural systems. The beef industry is facing unprecedented challenges related to animal welfare, environmental impact, origin, authenticity, nutritional benefits and eating quality of beef. These may affect the whole industry, especially its farmers. It is therefore essential to bring the beef industry together to spread best practice and better exploit research to maintain and develop an economically viable and sustainable beef industry. Meeting consumers' expectations may be achieved by a better prediction of beef palatability using a modelling approach, such as in Australia. There is a need for accurate information and dissemination on the benefits and issues of beef for human health and for environmental impact. A better objective description of goods and services derived from livestock farming is also required. Putting into practice "agroecology" and organic farming principles are other potential avenues for the future. Different future scenarios can be written depending on the major driving forces, notably meat consumption, climate change, environmental policies and future organization of the supply chain.
Journal of the Korea Fashion and Costume Design Association
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v.11
no.3
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pp.153-162
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2009
The purpose of this study was to examine the differences in the service quality evaluation on the skill and expert, the shop facilities and atmosphere, the time and access, and the price and benefit of a nail care shop by age, income, spendings of appearance and a nail care, and a regular nail care. The survey was performed with questionnaires and the subjects were was 240 consumers who used the nail care. The data were analyzed by frequencies, F-test, T-test, Factor Analysis, one way ANOVA. The results of the study were as follows: Service quality evaluation were classified four factors- the price and benefits, the skill and expertness, the facilities and atmosphere, the time and access. There were no statistically significant differences in the price and benefits by age, income, spendings of appearance and a nail care, and a regular nail care, but there were statistically significant differences in the skill and expertness, the facilities and atmosphere, and the time and access. The service quality on the time and access was evaluated as high by the consumer in the 30s, with more income, and with high appearance and nail care spendings. The service quality on the shop facilities and atmosphere was evaluated as high by the consumers with high nail care spending. The consumers with a regular nail care evaluated the service quality on the skill and expertness, the time and access, the shop facilities and atmosphere as high.
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