• Journal of Families and Better Life
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• v.19 no.6
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• pp.19-33
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• 2001

This study was performed to make suggestions for improving consumer welfare in public utility pricing. The consumer related issues in the process of public utility pricing and the consumers' burden on expenditures for public utility were reviewed. Due to the large proportions of the expenditures for public utility to total consumption expenditures, the poor and the younger consumers had more disadvantages in rising consumer price on public utility than the rich and the older. Finally, four kinds of alternatives were suggested to solve the consumer problems in public utility pricing.

• Asia Marketing Journal
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• v.18 no.4
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• pp.125-138
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• 2017

The goal of the study is to understand how consumers' constraint as opposed to utility structure gives rise to final decision when consumers purchase more than one variant of product at a time, i.e., horizontal variety seeking or multiple-discreteness. Purchase and consumption decision not only produces utility but also involves some sort of cognitive pressure. Past consumption or last purchase is likely to be linked to this burden we face such as concern for obesity, risk of harm, and guilt for mischief. In this research, the existence and the role of dynamic constraint are investigated through a microeconomic utility model with multiple dynamic constraint. The model is applied to the salty snacks data collected from field study where burden for spiciness serves as a constraint. The results are compared to the conventional multiple discreteness choice models of static constraints, and policy implications on price discounts is explored. The major findings are that first, one would underestimate the level of consumer preference for product offerings when ignoring the carry-over of the concern from the past consumption, and second, the impact of price promotion on demand would be properly evaluated when the model allows for the role of constraint as both multiple and dynamic. The current study is different from the existing studies in two ways. First, it captures the effect of 'mental constraint' on demand in formal economic model. Second, unlike the state dependence well documented in the literature, the study proposes the notion of state dependence in different way, via constraint rather than utility.

• Korean Management Science Review
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• v.27 no.1
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• pp.45-60
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• 2010

This study evaluates life annuity plans based on two different types of measures : financial benefit and utility on consumption. The financial benefit is measured by Money's Worth (MW) ratio and return on annuity. For the measure of utility, an optimization problem is formulated with the objective of maximizing utility on consumption. To solve the optimization model, we use Dynamic Programming (DP) technique. The both types of measures are applied to cases of Korean pre-retirees at age 40 with different accumulation years of annuity (i.e. level of annuity asset at the age of retirement) and different timings of annuitization. Our results generally indicate that the utility based optimization model is superior to the financial measures in terms of providing a better evaluation of an annuity plan due to its capability to consider an individual's financial situation during his/her retirement period. Also, they suggest that the level of annuity asset is an important factor when an individual determines the optimal annuitization timing.

• Journal of the Korean Society for Industrial and Applied Mathematics
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• v.16 no.2
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• pp.107-124
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• 2012

In this paper we conduct comparative statics for optimal consumption and portfolio selection of an agent who has a utility function of Epstein and Zin type. We derive the Slutsky equations and decompose the total effects of changes into the substitution effects and the income effects. We identify the role of the elasticity of intertemporal substitution and the coefficient of relative risk aversion.

• Journal of Fashion Business
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• v.12 no.5
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• pp.141-154
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• 2008

The purpose of this study was to identify factor structure of consumption value, clothing attitudes and the effects of consumption value on clothing attitudes. Questionnaires were administered to 513 college students living in Deagu and Kyungbook province. Data were analyzed by using frequency, factor analysis, multiple regression, t-test, ANOVA, and Scheffe-test. The findings are as follows. Consumption values were composed of five factors such as social value, differentiated individuality, material value, functional value, and circumstances value. Clothing attitudes were composed of five factors such as pursuit of individuality, fashion interests, utility pursuit, appearance conspicuousness, and social approval. The effects of consumption value on each of clothing attitude variables, pursuit of individuality, fashion interests, appearance conspicuousness, and social approval were explained by the factors such as social value, differentiated individuality, and functional value, utility pursuit by social value, functional value, and circumstances value.

• Journal of Distribution Science
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• v.16 no.2
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• pp.67-81
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• 2018

Purpose - Recently the importance of green consumption and corporate social responsibility has been increasing, thereby enhancing the importance of green consumption space as well. The retail space, as a representative consumption space, is now consuming more energy by introducing bigger retail space, 24-hour operation, cutting-edge equipment, and manless checkout system. Especially for retailers, who are constantly interacting with consumers, not only the economic consideration but also the consumer experience via retail service and physical retail space is crucial for their success. Therefore, this study intends to understand the main factors of motivating consumer perception about green retail space. In addition, we further investigate the mediating and moderating variables to encourage revisit intention and green retail space image. Research design, data, and methodology - In order to test our hypotheses with two models, we conducted a survey using questionnaires. In model 1, 356 respondents were surveyed to determine whether consumers' green attitudes and behaviors enhance environmentally friendly perception on retail space properties. In model 2, a questionnaire survey was conducted on 69 consumers who have experience in green retail space. Questionnaire surveys were conducted with on-line panels in Korea and analyzed using regression model and Hayes' PROCESS macro. Results - We found that consumers with green attitude put more importance on the attributes of green retail space. Also, the utility of the green retail space was found to be significant in emotional and social benefits. And, the consumers, who perceived the importance of green retail space, show higher revisit intentions. The emotional and social utilities have significant positive effects on revisit intention through green retail space image. Conclusions - This study demonstrates that a green retail space can induce positive consumer utility, thereby increasing green retail space image and revisit intention. Thus, in order to increase the image and revisit, retailers should communicate green messages with consumers, enhance green attributes of retail space, and target green consumers. To do so, we suggest that various marketing efforts such as publicity and education are needed to appeal experiential green products and retail space to consumers.

• Management Science and Financial Engineering
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• v.22 no.1
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• pp.13-20
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• 2016

We investigate the optimal consumption and investment problem when a working debtor has an option to file for bankruptcy. By applying the duality approach, the closed-form solutions are obtained for the case of CRRA utility function. The optimal bankruptcy time is determined by the first hitting time when the financial wealth hits the wealth threshold derived from the optimal stopping time problem. Moreover, the numerical results show that the investment increases as the wealth approaches the threshold and the value gain from the bankruptcy option is vanished as wealth increases.

• Asia pacific journal of information systems
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• v.27 no.2
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• pp.99-125
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• 2017

In this study, we propose an operations model to automate a home energy management system (HEMS) that utilizes an energy storage system (ESS) in consideration of consumer utility. Most previous studies focused on the system for the profits obtained from trading charged energy using large-scale ESS. By contrast, the present study focuses on constructing a home-level energy management system that considers consumer's utility over energy consumption. Depending on personal preference, some residential consumers may prefer consuming additional energy to earn increased profits through price arbitrage and vice versa. However, the current system could not yet reflect on this aspect. Thus, we develop an operations model for HEMS that could automatically control energy consumption while considering the level of consumer's preference and the economic benefits of using an ESS. The results of simulations using a dataset of the Korean market show that an operations policy of charging and discharging can be changed depending on consumer's utility. The impact of this policy is not ignorable. Moreover, the technical specifications of ESS, such as self-discharge rate and round-trip efficiency, can affect the operations policy and automation of HEMS.

• Proceedings of the Korean Statistical Society Conference
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• 2003.05a
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• pp.43-48
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• 2003

We consider a consumption and investment problem where an investor's investment opportunity gets enlarged when she becomes rich enough, i.e., when her wealth touches a critical level. We derive optimal consumption and investment rules assuming that the investor has a time-separable von Neumann-Morgenstern utility function. An interesting feature of optimal rules is that the investor consumes less and takes more risk in risky assets if the investor expects that she will have a better investment opportunity when her wealth reaches a critical level.

• Journal of the Korea Fashion and Costume Design Association
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• v.18 no.4
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• pp.1-15
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• 2016

The object of this study is to find out the influence of college students' consumption value on consumer attitudes towards environmental awareness and clothing environmental behavior. Questionnaires were administered to 236 college students living in DaeguCity and Kyoungbuk province. Frequency, factor analysis, reliability analysis, regression analysis, and t-test were used for data analysis. Our findings are as follows. Consumption value of college students had factors as differentiated, consumption needs, utility, economies ostentation, others awareness, and belonging. Consumer attitudes towards environmental awareness were found as environmental importance, environmental product purchase, environmental product interest, and environmental action. Clothing environmental behavior were found as up cycle, buying eco-friendly clothing, active participation, saver purchase, and eco-friendly clothing management. The result of this study showed differentiated, others awareness, and belonging had significant effect of environmental product purchase and consumption needs, utility, and belonging had significant effect of environmental action. Differentiated, and others awareness had significant effect of up cycle, buying eco-friendly clothing, active participation, and eco-friendly clothing management. Gender of college students showed significant differences consumption value, consumer attitudes towards environmental awareness, and clothing environmental behavior.