• Title/Summary/Keyword: Individual Risk Model

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An Experimental Study on the Estimation Method of Overtopping Discharge at the Rubble Mound Breakwater Using Wave-Overtopping Height (월파고를 이용한 사석경사제의 월파량 산정방법에 관한 실험적 연구)

  • Dong-Hoon Yoo;Young-Chan Lee;Do-Sam Kim;Kwang-Ho Lee
    • Journal of Navigation and Port Research
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    • v.48 no.3
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    • pp.192-199
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    • 2024
  • Wave overtopping is a significant natural hazard that occurs in coastal areas, primarily driven by high waves, particularly those generated during typhoons, which can cause coastal flooding. The development of residential and commercial areas along the coast, driven by increasing social and economic demands, has led to a concentration of people and assets in these vulnerable areas. This, coupled with long-term sea level rise and an increase in typhoon frequency, has heightened the risk of coastal hazards. Traditionally, the evaluation of wave overtopping volumes has relied on directly measuring the collected volume of water that exceeds the crest height of structures through hydraulic model experiments. These experiments are averaged over a specific measurement period. However, in this study, we propose a new method for estimating individual wave overtopping volumes. We utilize the temporal variation of wave overtopping heights to develop an observation system that can quantitatively assess wave overtopping volumes in actual coastal areas. To test our method, we conducted hydraulic model experiments on rubble mound breakwaters, which are commonly installed along the Korean coast. We introduce wave overtopping discharge coefficients, assuming that the inundation velocity from the structure's crest is the long-wave velocity. We then predict overtopping volumes based on wave overtopping heights and compare and review the results with experimental data. The findings of our study confirm the feasibility of estimating wave overtopping volumes by applying the overtopping discharge coefficients derived in this study to wave overtopping heights.

Youth Poverty and Employment (청년 빈곤 및 고용실태 분석)

  • Kim, Anna;Hong, Hyunwoo
    • Korean Journal of Social Welfare Studies
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    • v.49 no.2
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    • pp.93-124
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    • 2018
  • Using the Korean Survey of Household Finances and Living Conditions panel data from 2012~2016, this study analyzed youth (19~34 years) poverty and employment and examined the factors that affect employment status. The analysis revealed an increase in the proportion of young people who are students or jobless; the economic conditions of the young people varied by factors such as marital status, education, job status, and loans; and the government public transfer policy had little impact on reducing the relative poverty rate of the youth. We also examined the factors affecting the youth's employment status and the risk of being employed in low-paid jobs, using multi-logit and logit regression model respectively. Considering employment status, the older and more educated the youth were, the less frequently they were employed in temporary or daily jobs instead of regular ones, but there was no difference between genders in terms of having temporary or daily jobs. A logit analysis on the determinants of low-paid jobs demonstrated that women, the less educated, spouses or children of the household, and temporary or daily workers have a greater probability of working at low-paid jobs. As women became older, their risk of having low-paid jobs increased, which demonstrated the phenomenon of "lock-in" at low-paid jobs. Temporary or daily workers of all age groups faced a higher risk of lowpaid employment, which stood out for the youth. Based on these results, we suggest that government employment and welfare policies should consider individual characteristics of the youth and their life cycle, along with efforts to supply decent jobs, continuously and stably.

Exploration of Non-suicidal Self-injury based on Ecological Momentary Assessment(EMA) (생태순간평가(EMA) 일기법을 활용한 비자살적 자해경험 분석)

  • Woo, Jeong;Kwon, Ho-In
    • The Journal of the Korea Contents Association
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    • v.21 no.3
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    • pp.720-729
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    • 2021
  • The purpose of this study was to measure repeated the process of non-suicidal self-injury individuals change in everyday life through the Ecological Momentary Assessment(EMA) daily diary. The study subjects of were 17 adults aged 19 to 29, accessed a link sent by text message on a cell phone and recorded a diary of the day's affects, interpersonal conflicts, self-injury thoughts, and behaviors once a day for two weeks. Using a total of 238 reported entries, the contextual factors of NSSI were examined, and the effects of affects and interpersonal conflicts on NSSI analyzed through a multi-level model. As a result, the negative affects of that day have a significant relation with within subject NSSI behavior and positive affects have a significant relation between subject NSSI behavior. These findings means that overall individuals with low positive affects have a higher risk of self-injury behavior compared to those with higher levles of positive emotions, and an increase in negative emotions on that day within an individual increases the risk of self-injury behavior on that day. In other words, it implies that it is important to manage negative emotions and strengthen overall positive affects for that day in the intervention of emotion-regulation of experienced self-injury individuals. It is meaningful that this study explored NSSI risk factors experienced in daily life through the short-term longitudinal study.

The Factors Affecting Attitudes Toward HSDPA Service and Intention to Use: A Cross-Cultural Comparison between Asia and Europe (대영향(对影响)HSDPA복무적태도화사용의도적인소적연구(服务的态度和使用意图的因素的研究): 재아주화구주지간적(在亚洲和欧洲之间的)-개과문화비교(个跨文化比较))

  • Jung, Hae-Sung;Shin, Jong-Kuk;Park, Min-Sook;Jung, Hong-Seob;Hooley, Graham;Lee, Nick;Kwak, Hyok-Jin;Kim, Sung-Hyun
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.4
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    • pp.11-23
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    • 2009
  • HSDPA (High-Speed Downlink Packet Access) is a 3.5-generation asynchronous mobile communications service based on the third generation of W-CDMA. In Korea, it is mainly provided in through videophone service. Because of the diffusion of more powerful and diversified services, along with steep advances in mobile communications technology, consumers demand a wide range of choices. However, because of the variety of technologies, which tend to overflow the market regardless of consumer preferences, consumers feel increasingly confused. Therefore, we should not adopt strategies that focus only on developing new technology on the assumption that new technologies are next-generation projects. Instead, we should understand the process by which consumers accept new forms of technology and devise schemes to lower market entry barriers through strategies that enable developers to understand and provide what consumers really want. In the Technology Acceptance Model (TAM), perceived usefulness and perceived ease of use are suggested as the most important factors affecting the attitudes of people adopting new technologies (Davis, 1989; Taylor and Todd, 1995; Venkatesh, 2000; Lee et al., 2004). Perceived usefulness is the degree to which a person believes that a particular technology will enhance his or her job performance. Perceived ease of use is the degree of subjective belief that using a particular technology will require little physical and mental effort (Davis, 1989; Morris and Dillon, 1997; Venkatesh, 2000). Perceived pleasure and perceived usefulness have been shown to clearly affect attitudes toward accepting technology (Davis et al., 1992). For example, pleasure in online shopping has been shown to positively impact consumers' attitudes toward online sellers (Eighmey and McCord, 1998; Mathwick, 2002; Jarvenpaa and Todd, 1997). The perceived risk of customers is a subjective risk, which is distinguished from an objective probabilistic risk. Perceived risk includes a psychological risk that consumers perceive when they choose brands, stores, and methods of purchase to obtain a particular item. The ability of an enterprise to revolutionize products depends on the effective acquisition of knowledge about new products (Bierly and Chakrabarti, 1996; Rothwell and Dodgson, 1991). Knowledge acquisition is the ability of a company to perceive the value of novelty and technology of the outside (Cohen and Levinthal, 1990), to evaluate the outside technology that has newly appeared (Arora and Gambaradella, 1994), and to predict the future evolution of technology accurately (Cohen and Levinthal, 1990). Consumer innovativeness is the degree to which an individual adopts innovation earlier than others in the social system (Lee, Ahn, and Ha, 2001; Gatignon and Robertson, 1985). That is, it shows how fast and how easily consumers adopt new ideas. Innovativeness is regarded as important because it has a significant effect on whether consumers adopt new products and on how fast they accept new products (Midgley and Dowling, 1978; Foxall, 1988; Hirschman, 1980). We conducted cross-national comparative research using the TAM model, which empirically verified the relationship between the factors that affect attitudes - perceived usefulness, ease of use, perceived pleasure, perceived risk, innovativeness, and perceived level of knowledge management - and attitudes toward HSDPA service. We also verified the relationship between attitudes and usage intention for the purpose of developing more effective methods of management for HSDPA service providers. For this research, 346 questionnaires were distributed among 350 students in the Republic of Korea. Because 26 of the returned questionnaires were inconsistent or had missing data, 320 questionnaires were used in the hypothesis tests. In UK, 192 of the total 200 questionnaires were retrieved, and two incomplete ones were discarded, bringing the total to 190 questionnaires used for statistical analysis. The results of the overall model analysis are as follows: Republic of Korea x2=333.27(p=0.0), NFI=0.88, NNFI=0.88, CFI=0.91, IFI=0.91, RMR=0.054, GFI=0.90, AGFI=0.84, UK x2=176.57(p=0.0), NFI=0.88, NNFI=0.90, CFI=0.93, IFI=0.93, RMR=0.062, GFI=0.90, AGFI=0.84. From the results of the hypothesis tests of Korean consumers about the relationship between factors that affect intention to use HSDPA services and attitudes, we can conclude that perceived usefulness, ease of use, pleasure, a high level of knowledge management, and innovativeness promote positive attitudes toward HSDPA mobile phones. However, ease of use and perceived pleasure did not have a direct effect on intention to use HSDPA service. This may have resulted from the fact that the use of video phones is not necessary for everyday life yet. Moreover, it has been shown that attitudes toward HSDPA video phones are directly correlated with usage intention, which means that perceived usefulness, ease of use, pleasure, a high level of knowledge management, and innovativeness. These relationships form the basis of the intention to buy, contributing to a situation in which consumers decide to choose carefully. A summary of the results of the hypothesis tests of European consumers revealed that perceived usefulness, pleasure, risk, and the level of knowledge management are factors that affect the formation of attitudes, while ease of use and innovativeness do not have an effect on attitudes. In particular, with regard to the effect value, perceived usefulness has the largest effect on attitudes, followed by pleasure and knowledge management. On the contrary, perceived risk has a smaller effect on attitudes. In the Asian model, ease of use and perceived pleasure were found not to have a direct effect on intention to use. However, because attitudes generally affect the intention to use, perceived usefulness, pleasure, risk, and knowledge management may be considered key factors in attitude development from which usage intention arises. In conclusion, perceived usefulness, pleasure, and the level of knowledge management have an effect on attitude formation in both Asian and European consumers, and such attitudes shape these consumers' intention to use. Furthermore, the hypotheses that ease of use and perceived pleasure affect usage intention are rejected. However, ease of use, perceived risk, and innovativeness showed different results. Perceived risk had no effect on attitude formation among Asians, while ease of use and innovativeness had no effect on attitudes among Europeans.

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On an Improved Method for System Readiness Assesment to Meet Required Operational Capability in Weapon Systems Development (무기체계개발에서 작전운용성능을 만족시키기 위한 개선된 시스템성숙도 평가방법)

  • Kwon, Il-Ho;Lee, Jae-Chon
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.14 no.8
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    • pp.3602-3610
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    • 2013
  • The risk of failure in the development of modern weapon systems has been increasing as the demand on the capability and the resulting complexity of the weapons on the war fields are increasing drastically. The analysis of failure has indicated that the main causes can be the following: one is attributed to the unsatisfaction of the system operation concept; and the other is the use of premature technology. As such, DAPA in Korea is urging that the weapons systems development should meet the required operational capability (ROC) as a critical performance requirement. On the other hand, an approach to risk management is to use the technology readiness level (TRL) assessed for each individual technology alone. However, the method of TRL cannot assess the effect of integration between technologies and cannot be performed at system level, which is crucial to systems development. In order to improve the shortfalls, a concept of system readiness level (SRL) has been studied by introducing the technologies integration and also some forms of analysis of advanced degree of difficulty studied separately, but no model considering both of two reported yet. In this paper, under the framework of meeting the ROC, an improved SRL assessment model is presented, which is also considering the advanced degree of difficulty simultaneously. The application of the improved assessment method is discussed in connection with the life cycle of the weapon systems development in conformance with the ROC of DAPA.

RTN4 3'-UTR Insertion/Deletion Polymorphism and Susceptibility to Non-Small Cell Lung Cancer in Chinese Han Population

  • Lu, De-Yi;Mao, Xu-Hua;Zhou, Ying-Hui;Yan, Xiao-Long;Wang, Wei-Ping;Zheng, Ya-Biao;Xiao, Juan-Juan;Zhang, Ping;Wang, Jian-Guo;Ashwani, Neetika;Ding, Wei-Liang;Jiang, Hua;Shang, Yan;Wang, Ming-Hua
    • Asian Pacific Journal of Cancer Prevention
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    • v.15 no.13
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    • pp.5249-5252
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    • 2014
  • Nogo protein, encoded by gene reticulon-4 (RTN4), includes three major isoforms by different splicing, named Nogo-A Nogo-B and Nogo-C. Nogo proteins play an important role in the apoptosis of cells, especially in tumor cells. RTN4 single nucleotide polymorphisms (SNPs) can influence the efficiency of transcription and translation thus being related with an individual's predisposition to cancer. The CAA insertion/deletion polymorphism (rs34917480) within RTN4 3'-UTR has been reported to be associated with many cancer types. In order to investigate the relationship between this polymorphism and susceptibility to non-small cell lung cancer (NSCLC) in the Chinese population, we conducted the present case-control study including 411 NSCLC patients and 471 unrelated healthy controls. The genotype distributions were significantly different between cases and controls (p=0.014). We found that the del allele could significantly increase NSCLC risk (ins/ins vs ins/del: p=0.007, OR 1.46, 95%CI=1.11-1.93; dominant model: p=0.004, OR 1.47, 95%CI=1.13-1.92 and allele model: p=0.008, OR 1.35, 95%CI=1.08-1.67). This association was stronger in participants over 60 years old, males and smokers. We therefore conclude that the CAA insertion/deletion polymorphism (rs34917480) contributes to non-small cell lung cancer risk in Chinese population. Age, sex and environmental exposure are also related to carcinogenic effects of rs34917480.

Financial Products Recommendation System Using Customer Behavior Information (고객의 투자상품 선호도를 활용한 금융상품 추천시스템 개발)

  • Hyojoong Kim;SeongBeom Kim;Hee-Woong Kim
    • Information Systems Review
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    • v.25 no.1
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    • pp.111-128
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    • 2023
  • With the development of artificial intelligence technology, interest in data-based product preference estimation and personalized recommender systems is increasing. However, if the recommendation is not suitable, there is a risk that it may reduce the purchase intention of the customer and even extend to a huge financial loss due to the characteristics of the financial product. Therefore, developing a recommender system that comprehensively reflects customer characteristics and product preferences is very important for business performance creation and response to compliance issues. In the case of financial products, product preference is clearly divided according to individual investment propensity and risk aversion, so it is necessary to provide customized recommendation service by utilizing accumulated customer data. In addition to using these customer behavioral characteristics and transaction history data, we intend to solve the cold-start problem of the recommender system, including customer demographic information, asset information, and stock holding information. Therefore, this study found that the model proposed deep learning-based collaborative filtering by deriving customer latent preferences through characteristic information such as customer investment propensity, transaction history, and financial product information based on customer transaction log records was the best. Based on the customer's financial investment mechanism, this study is meaningful in developing a service that recommends a high-priority group by establishing a recommendation model that derives expected preferences for untraded financial products through financial product transaction data.

An Empirical Study on Perceived Value and Continuous Intention to Use of Smart Phone, and the Moderating Effect of Personal Innovativeness (스마트폰의 지각된 가치와 지속적 사용의도, 그리고 개인 혁신성의 조절효과)

  • Han, Joonhyoung;Kang, Sungbae;Moon, Taesoo
    • Asia pacific journal of information systems
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    • v.23 no.4
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    • pp.53-84
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    • 2013
  • With rapid development of ICT (Information and Communications Technology), new services by the convergence of mobile network and application technology began to appear. Today, smart phone with new ICT convergence network capabilities is exceedingly popular and very useful as a new tool for the development of business opportunities. Previous studies based on Technology Acceptance Model (TAM) suggested critical factors, which should be considered for acquiring new customers and maintaining existing users in smart phone market. However, they had a limitation to focus on technology acceptance, not value based approach. Prior studies on customer's adoption of electronic utilities like smart phone product showed that the antecedents such as the perceived benefit and the perceived sacrifice could explain the causality between what is perceived and what is acquired over diverse contexts. So, this research conceptualizes perceived value as a trade-off between perceived benefit and perceived sacrifice, and we need to research the perceived value to grasp user's continuous intention to use of smart phone. The purpose of this study is to investigate the structured relationship between benefit (quality, usefulness, playfulness) and sacrifice (technicality, cost, security risk) of smart phone users, perceived value, and continuous intention to use. In addition, this study intends to analyze the differences between two subgroups of smart phone users by the degree of personal innovativeness. Personal innovativeness could help us to understand the moderating effect between how perceptions are formed and continuous intention to use smart phone. This study conducted survey through e-mail, direct mail, and interview with smart phone users. Empirical analysis based on 330 respondents was conducted in order to test the hypotheses. First, the result of hypotheses testing showed that perceived usefulness among three factors of perceived benefit has the highest positive impact on perceived value, and then followed by perceived playfulness and perceived quality. Second, the result of hypotheses testing showed that perceived cost among three factors of perceived sacrifice has significantly negative impact on perceived value, however, technicality and security risk have no significant impact on perceived value. Also, the result of hypotheses testing showed that perceived value has significant direct impact on continuous intention to use of smart phone. In this regard, marketing managers of smart phone company should pay more attention to improve task efficiency and performance of smart phone, including rate systems of smart phone. Additionally, to test the moderating effect of personal innovativeness, this research conducted multi-group analysis by the degree of personal innovativeness of smart phone users. In a group with high level of innovativeness, perceived usefulness has the highest positive influence on perceived value than other factors. Instead, the analysis for a group with low level of innovativeness showed that perceived playfulness was the highest positive factor to influence perceived value than others. This result of the group with high level of innovativeness explains that innovators and early adopters are able to cope with higher level of cost and risk, and they expect to develop more positive intentions toward higher performance through the use of an innovation. Also, hedonic behavior in the case of the group with low level of innovativeness aims to provide self-fulfilling value to the users, in contrast to utilitarian perspective, which aims to provide instrumental value to the users. However, with regard to perceived sacrifice, both groups in general showed negative impact on perceived value. Also, the group with high level of innovativeness had less overall negative impact on perceived value compared to the group with low level of innovativeness across all factors. In both group with high level of innovativeness and with low level of innovativeness, perceived cost has the highest negative influence on perceived value than other factors. Instead, the analysis for a group with high level of innovativeness showed that perceived technicality was the positive factor to influence perceived value than others. However, the analysis for a group with low level of innovativeness showed that perceived security risk was the second high negative factor to influence perceived value than others. Unlike previous studies, this study focuses on influencing factors on continuous intention to use of smart phone, rather than considering initial purchase and adoption of smart phone. First, perceived value, which was used to identify user's adoption behavior, has a mediating effect among perceived benefit, perceived sacrifice, and continuous intention to use smart phone. Second, perceived usefulness has the highest positive influence on perceived value, while perceived cost has significant negative influence on perceived value. Third, perceived value, like prior studies, has high level of positive influence on continuous intention to use smart phone. Fourth, in multi-group analysis by the degree of personal innovativeness of smart phone users, perceived usefulness, in a group with high level of innovativeness, has the highest positive influence on perceived value than other factors. Instead, perceived playfulness, in a group with low level of innovativeness, has the highest positive factor to influence perceived value than others. This result shows that early adopters intend to adopt smart phone as a tool to make their job useful, instead market followers intend to adopt smart phone as a tool to make their time enjoyable. In terms of marketing strategy for smart phone company, marketing managers should pay more attention to identify their customers' lifetime value by the phase of smart phone adoption, as well as to understand their behavior intention to accept the risk and uncertainty positively. The academic contribution of this study primarily is to employ the VAM (Value-based Adoption Model) as a conceptual foundation, compared to TAM (Technology Acceptance Model) used widely by previous studies. VAM is useful for understanding continuous intention to use smart phone in comparison with TAM as a new IT utility by individual adoption. Perceived value dominantly influences continuous intention to use smart phone. The results of this study justify our research model adoption on each antecedent of perceived value as a benefit and a sacrifice component. While TAM could be widely used in user acceptance of new technology, it has a limitation to explain the new IT adoption like smart phone, because of customer behavior intention to choose the value of the object. In terms of theoretical approach, this study provides theoretical contribution to the development, design, and marketing of smart phone. The practical contribution of this study is to suggest useful decision alternatives concerned to marketing strategy formulation for acquiring and retaining long-term customers related to smart phone business. Since potential customers are interested in both benefit and sacrifice when evaluating the value of smart phone, marketing managers in smart phone company has to put more effort into creating customer's value of low sacrifice and high benefit so that customers will continuously have higher adoption on smart phone. Especially, this study shows that innovators and early adopters with high level of innovativeness have higher adoption than market followers with low level of innovativeness, in terms of perceived usefulness and perceived cost. To formulate marketing strategy for smart phone diffusion, marketing managers have to pay more attention to identify not only their customers' benefit and sacrifice components but also their customers' lifetime value to adopt smart phone.

A Bayesian GLM Model Based Regional Frequency Analysis Using Scaling Properties of Extreme Rainfalls (극치자료계열의 Scaling 특성과 Bayesian GLM Model을 이용한 지역빈도해석)

  • Kim, Jin-Young;Kwon, Hyun-Han;Lee, Byung-Suk
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.37 no.1
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    • pp.29-41
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    • 2017
  • Design rainfalls are one of the most important hydrologic data for river management, hydraulic structure design and risk analysis. The design rainfalls are first estimated by a point frequency analysis and the IDF (intensity-duration-frequency) curve is then constructed by a nonlinear regression to either interpolate or extrapolate the design rainfalls for other durations which are not used in the frequency analysis. It has been widely recognised that the more reliable approaches are required to better account for uncertainties associated with the model parameters under circumstances where limited hydrologic data are available for the watershed of interest. For these reasons, this study developed a hierarchical Bayesian based GLM (generalized linear model) for a regional frequency analysis in conjunction with a scaling function of the parameters in probability distribution. The proposed model provided a reliable estimation of a set of parameters for each individual station, as well as offered a regional estimate of the parameters, which allow us to have a regional IDF curve. Overall, we expected the proposed model can be used for different aspects of water resources planning at various stages and in addition for the ungaged basin.

The Effects of Virtual Reality Advertisement on Consumer's Intention to Purchase: Focused on Rational and Emotional Responses (가상현실(Virtual Reality) 광고가 소비자 구매의도에 미치는 영향: 이성적인 반응과 감성적인 반응의 통합)

  • Cha, Jae-Yol;Im, Kun-Shin
    • Asia pacific journal of information systems
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    • v.19 no.4
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    • pp.101-124
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    • 2009
  • According to Wikipedia, virtual reality (VR) is defined as a technology that allows a user to interact with a computer-simulated environment. Due to a rapid growth in information technology (IT), the cost of virtual reality has been decreasing while the utility of virtual reality advertisements has dramatically increased. Nevertheless, only a few studies have investigated the effects of virtual reality advertisement on consumer behaviors. Therefore, the objective of this study is to empirically examine the effects of virtual reality advertisement. Compared to traditional online advertisements, virtual reality advertisement enables consumers to experience products realistically over the Internet by providing high media richness, interactivity, and telepresence (Suh and Lee, 2005). Advertisements with high media richness facilitate consumers' understanding of advertised products by providing them with a large amount and a high variety of information on the products. Interactivity also provides consumers with a high level of control over the computer-simulated environment in terms of their abilities to adjust the information according to their individual interests and concerns and to be active rather than passive in their engagement with the information (Pimentel and Teixera, 1994). Through high media richness and interactivity, virtual reality advertisements can generate compelling feelings of "telepresence" (Suh and Lee, 2005). Telepresence is a sense of being there in an environment by means of a communication medium (Steuer, 1992). Virtual reality advertisements enable consumers to create a perceptual illusion of being present and highly engaged in a simulated environment, while they are in reality physically present in another place (Biocca, 1997). Based on the characteristics of virtual reality advertisements, a research model has been proposed to explain consumer responses to the virtual reality advertisements. The proposed model includes two dimensions of consumer responses. One dimension is consumers' rational response, which is based on the Information Processing Theory. Based on the Information Processing Theory, product knowledge and perceived risk are selected as antecedents of intention to purchase. The other dimension is emotional response of consumers, which is based on the Attitude-Structure Theory. Based on the Attitude-Structure Theory, arousal, flow, and positive affect are selected as antecedents of intention to purchase. Because it has been criticized to have investigated only one of the two dimensions of consumer response in prior studies, our research model has been built so as to incorporate both dimensions. Based on the Attitude-Structure Theory, we hypothesized the path of consumers' emotional responses to a virtual reality advertisement: (H1) Arousal by the virtual reality advertisement increases flow; (H2) Flow increases positive affect; and (H3) Positive affect increases intension to purchase. In addition, we hypothesized the path of consumers' rational responses to the virtual reality advertisement based on the Information Processing Theory: (H4) Increased product knowledge through the virtual reality advertisement decreases perceived risk; and (H5) Perceived risk decreases intension to purchase. Based on literature of flow, we additionally hypothesized the relationship between flow and product knowledge: (H6) Flow increases product knowledge. To test the hypotheses, we conducted a free simulation experiment [Fromkin and Streufert, 1976] with 300 people. Subjects were asked to use the virtual reality advertisement of a cellular phone on the Internet and then answer questions about the variables. To check whether subjects fully experienced the virtual reality advertisement, they were asked to answer a quiz about the virtual reality advertisement itself. Responses of 26 subjects were dropped because of their incomplete answers. Responses of 274 subjects were used to test the hypotheses. It was found that all of six hypotheses are accepted. In addition, we found that consumers' emotional response has stronger impact on their intention to purchase than their rational response does. This study sheds much light into practical implications for both IS researchers and managers. First of all, while most of previous research has analyzed only one of the customers' rational and emotional responses, we theoretically incorporated and empirically examined both of the two sides. Second, we empirically showed that mediators such as arousal, flow, positive affect, product knowledge, and perceived risk play an important role between virtual reality advertisement and customer's intention to purchase. In addition, the findings of this study can provide a basis of practical strategies for managers. It was found that consumers' emotional response is stronger than their rational response. This result indicates that advertisements using virtual reality should focus on the emotional side, and that virtual reality can be served as an appropriate advertisement tool for fancy products that require their online advertisements to give an impetus to customers' emotion. Finally, even if this study examined the effects of virtual reality advertisement of cellular phone, its findings could be applied to other products that are suited for virtual experience. However, this research has some limitations. We were unable to control different kinds of consumers and different attributes of products on consumers' intention to purchase. It is, therefore, deemed important for future research to control the consumer and product types for more reliable results. In addition to the consumer and product attributes, other variables could affect consumers' intention to purchase. Thus, the future research needs to find ways t control other variables.