• Asia Marketing Journal
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• v.14 no.1
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• pp.53-81
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• 2012

Constructing attractive bundle offers depends on more than an understanding of the distribution of consumer preferences. Consumers are also sensitive to the framing of price information in a bundle offer. In classical economic theory, consumers' utility should not change as long as the total price paid stays same. However, even when total prices are identical, consumers' preferences toward a bundle product could be different depending on the format of price presentation and the locus of price discount. A weighted additive model predicts that the impact of a price discount on the overall evaluation of the bundle will be greater when the discount is assigned to the more important product in the bundle(Yadav 1995). Meanwhile, a reference dependent model asserts that it is better to assign a price discount to a tie-in component that has a negative valuation at its current offer price than to a focal product that has a positive valuation at its current offer price(Janiszewski and Cunha 2004). This paper has expanded previous research regarding price discount presentation format, investigating the reasons for mixed results of prior research and presenting new mechanisms for price discount framing effect. Prior research has hypothesized that bundling is used to sell a tie-in component with an offer price above the consumer's reference price plus a focal product of the same offer price with reference price(e.g., Janiszewski and Cunha 2004). However, this study suggests that bundling strategy can be used for increasing product's attractiveness through the synergy between components even when offer prices of bundle components are the same with reference prices. In this context, this study employed various realistic bundle sets with same price between offer price and reference price in the experiment. Hamilton and Srivastava(2008) demonstrated that when evaluating different partitions of the same total price, consumers prefer partitions in which the price of the high-benefit component is higher. This study determined that their mechanism can be applied to price discount presentation formats. This study hypothesized that price discount framing effect depends not on the negative perception of tie-in component with offer price above reference price but rather on the consumers' perceived consumption benefit in bundle product. This research also hypothesized that preference for low-benefit discount mechanism is that perceived consumption benefit reduces price sensitivity. Furthermore, this study investigated how consumers' concern for quality in a price discount--a factor not considered in previous research--influences price discount framing. Yadav(1995)'s experiment used only one magazine bundle of relatively low quality uncertainty and could not show the influence of perceived uncertainty of quality. This study assumed that as perceived uncertainty of quality increases, the price sensitivity mechanism for assigning the discount to low-benefit will increase. Further, this research investigated the moderating effect of uncertainty of quality in price discount framing. The results of the experiment showed that when evaluating different partitions of the same total price and the same amount of discounts, the partition that discounts in the price of low benefit component is preferred to the partition that decreases the price of high benefit component. This implies that price discount framing effect depends on the perceived consumption benefit. The results also demonstrated that consumers are more price sensitive to low benefit component and less price sensitive to high benefit component. Furthermore, the results showed that the influence of price discount presentation format on the evaluation of bundle product varies with the perceived uncertainty of quality in high consumption benefit. As perceived uncertainty of quality gradually increases, the preference for discounts in the price of low consumption benefit decreases. Besides, the results demonstrate that as perceived uncertainty of quality gradually increases, the effect of price sensitivity in consumption benefit also increases. This paper integrated prior research by using a new mechanism of perceived consumption benefit and moderating effect of perceived quality uncertainty, thus providing a clearer explanation for price discount framing effect.

• Journal of Fashion Business
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• v.20 no.5
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• pp.16-29
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• 2016

The study aims to explore the impacts of types of consumer's self-construal, prices of brands, and types of discount-based sales promotion on consumers' purchase intention. For this study, a three-way mixed factor method was applied based on a formula, types of consumer's self-construal x prices of brands x types of discount-based sales promotion. The subjects were 218 females in their 20s to 30s living in seoul or Gyeonggi-do areas. For data analysis, three-way variate analysis, analysis of simple interactions and analysis of simple main impacts were conducted through use of the SPSS program. First, based on the impacts of types of consumer's self-construal, prices of brands, and types of discount-based sales promotions in the favor of consumers, there was a significant difference between higher and lower-priced brands. Second, comprehensive discounts rather than monopolistic discounts corresponded to higher favoring by consumers of interdependent self-construal. As for monopolistic discount, lower-priced products corresponded to higher favor than higher-priced ones. Third, there was a significant difference between consumers of independent self-construal and interdependent self-construal. Fourth, comprehensive discount, rather than monopolistic discount, corresponded to higher purchase intention regardless of prices of brands in the group of consumers with interdependent self-construal.

• Journal of Korean Institute of Industrial Engineers
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• v.27 no.4
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• pp.345-351
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• 2001

We are concerned with a multiple replenishment contract with a purchase price discount in a supply chain. The chain is composed of one supplier, one buyer and consumers for a product. The replenishment contract is based upon the well-known (s, Q) policy but allows contracting several firmed orders at a time with a price discount. Due to a larger forecast error of the future demand, the buyer should keep a higher level of safety stock to provide the same level of service of the usual (s, Q) policy but can reduce his purchase cost by placing larger quantity. Thus there exists a trade-off between the price discount and inventory holding cost. We present a model for the contract and an algorithm to find the optimum number of the firmed orders. Computer experiments show that the algorithm finds the global optimum solution very fast.

• Journal of Distribution Science
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• v.3 no.1
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• pp.43-67
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• 2005

Recently retail market has been rapidly expanded in the large cities of in Korea and the competition among individual companies in retail market is also being increased. Tenant MD of mixing is one of the most important factor for the company to continuously operate or to fail. The aim of this study is to examine the processes of systematically evaluating the merchandising of the established companies in retail market a part of chain operation in discount store. The basic problem of decision making in general and tenant MD of mixing in particular is to choose a best one in a set of competing alternatives that are evaluated under conflicting criteria. The purpose of research of a paper carries out a duty searching examination with making a tenant MD include by retail research, simultaneously defined when I will show an example for the tenant mix of the profitability side of the domestic discount store market which is tenant MD importance proposing the existing problem arrangement by chain operation management, and is intensifying - tenant MD of standardization in discount store of T-company.

• Journal of the Korean Society of Costume
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• v.52 no.1
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• pp.37-52
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• 2002

The purpose of this study was to investigate influential factors on the buying intention and the impulse buying of discount store apparel. Data were collected by randomly surveys and the subject was married women. SPSS PC+8.0 was used to analyze the data. The factors to influence on the buying intention of discount store apparel were perceived money value, store image, brand familarity, differentiated needs, perceived risk, perceived quality, voluntary performance. It was found that perceived money value affected buying intension and that perceived quality affected the satisfaction after buying. The factors to influence on impulse buying of discount store apparel were environmental stimulus, useful stimulus, emotional stimulus, situational stimulus of consumer. The relationship between factors of impulse buying and influenced factors of buying intention was that store image affected useful stimulus and differentiated needs affected emotional stimulus.

• Journal of Distribution Science
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• v.12 no.9
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• pp.39-45
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• 2014

Purpose - This study aims to explore whether investing in cultural centers enhances the image and performance of corporations, and seeks to identify the effects of the relationship quality of cultural centers on the relationship quality of discount stores. Research design, data, and methodology - To accomplish the objective, a survey was conducted on the users of the cultural center of NH Hanaro Club's S Branch. Regarding the questionnaires, 155 copies were distributed and 139 were used as valid data responses, which were analyzed through a descriptive statistical analysis, correlation analysis, and a path analysis with structural equation modeling. Results -Cultural centers are lifelong educational institutions revolving around females, and corporations can improve their image and performance through cultural centers in pursuit of profits. Moreover, the reliability and responsiveness of cultural centers positively influenced their relationship quality and that of discount stores. Conclusion - Customer service should be provided promptly and sincerely to achieve maximum customer satisfaction. This will boost the relationship quality of cultural centers, and positive customer evaluation will lead to better relationship quality of the discount stores.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.22 no.51
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• pp.151-161
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• 1999

For many decades, Deterministic DCF approach has been widely used to evaluate investment opportunities. Under new manufacturing conditions involving uncertainty and risk, the DCF approach is not appropriate. In DCF, Risk is incorporated in two ways: certainty equivalent method, risk adjusted discount rate. This paper proposes a determination method of the Risk Adjusted Discount Rate for economically decision making advanced manufacturing technologies. Conventional DCF techniques typically use discount rate which do not consider the difference in risk of differential investment options and periods. Due to their relative efficiency, advanced manufacturing technologies have different degree of risk. The risk differential of investments is included using $\beta$ coefficient of capital asset pricing model. The comparison between existing and proposed method investigated. The DCF model using proposed risk adjusted discount rate enable more reasonable evaluation of advanced manufacturing technologies.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.25 no.2
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• pp.42-49
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• 2002

Recently, relative importance of the discount store is growing more and, as a life style of consumers changes, and foreign discount store is prosperous. This purpose of the research have a thorough grasp of the physical environment and the influencing variables. This paper was based on data which were collected from a self-administered structured questionnaire and statistical analysis were used. The contents of the research is following ; (1) Consumer's recognition difference verification of each discount store according to the T-test. (2) The Relation analysis between perceptional physical environment and service satisfaction. (3) This paper will suggest effective marketing methods according to the factor of satisfaction

• Journal of Families and Better Life
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• v.19 no.1
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• pp.95-110
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• 2001

Recently a number of large discount store and those of its users was increasing. The purpose of this study is to investigate the tendency of impulse buying and analyzes factors which influence impulse buying. The data had been collected from questionaries with 474 consumers who visit large discount store. The major statistical methods used for data analysis are frequency, percentile, mean, t-test, multiple regression analysis, one-way ANOVA, and Duncans multiple range test utilizing SPSS Win pc+program. The results of this study are as follows : 1. The four different kind of impulse buying is measured. The overall level of impulse buying is 2.76. Suggestion impulse buying(M=3.19) is the highest, and the lowest is pure impulse buying(M=2.66). 2. In the area of demographic variables is significantly different in the age of twenties and thirties(p<.05). A visit frequency and membership. In the area of in-store variables is significantly different by all factors at impulse buying except waiting time. Especially, point-of-purchase(POP) advertisement and discount sale are very important variables. A visit frequency and membership are significantly different in the area of consumer-related variables. 3. Waiting time, a visit frequency, a POP advertisement, and a discount sale have the positive effects on overall impulse buying. Pure impulse buying is influenced by shopping list, POP advertisement and a stores atmospher. Buying companion, membership, kind of store and waiting time have the effect on reminder impulse buying. Suggestion impulse buying is influenced by school career, shopping list and POP advertisement. Planned impulse buying is influenced by sex, POP advertisement, buying companion and discount sale.

• The Research Journal of the Costume Culture
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• v.22 no.1
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• pp.143-157
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• 2014

The aims of this study were to identify the dimensions of both store and PB apparel product attributes at large discount stores, and to empirically examine the effects of each dimension of store and PB apparel product attributes on satisfaction with PB apparel products and on repurchase intension. Questionnaires were given to 264 large discount store customers, who have experienced buying PB apparel products at large discount stores. The results were as follows. First, purchased PB items and image, improvement of PB apparel products showed differences by gender. Second, the dimensions for store attributes were categorized as convenient of shopping environment, product quality, customer service, advertising reach, convenient location, and reasonable prices. The PB apparel product attributes were categorized as material handling management, quality, fashion ability, and brand power. Third, generally, both store and PB apparel product attributes at large discount stores are significantly related to PB apparel satisfaction and repurchase intention. PB satisfaction and repurchase intention of males were partly affected by store attributes and PB apparel product attributes. PB satisfaction and repurchasing intention of females, however, were partly affected by only PB apparel product attributes, not store attributes.