• Journal of Korean Society of Rural Planning
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• v.28 no.2
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• pp.41-50
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• 2022

The primary purpose of this study is to identify various factors that affect farmland prices according to changes in the actual transaction price of farmland over the past decade, and to use this to derive policy implications for price stabilization. To this end, the farmland price model are constructed at the parcel level in the case area (Namwon-si, Jinju-si). The analysis method is based on the Hedonic price function, and the OLS and the quantile regression are used for the parcel level model. As a result of estimating the parcel level farmland price model in the case area, the larger the parcel area, the lower the farmland price, and the higher the farmland price outside the agricultural promotion area. It was found that there was a price difference according to the type of special purpose areas, and the location characteristics showed some differences across the cities. The farmland price models presented in this study are suitable for identifying the factors affecting farmland prices, and are expected to be highly utilized in that it is possible to construct flexible variables suitable for regional characteristics.

• Environmental and Resource Economics Review
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• v.27 no.3
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• pp.521-544
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• 2018

This paper investigates the impact of ethanol mandate on the price relationship between corn and beef using the monthly time-series data from January 2003 through December 2013. In addition, we examine the non-linearity in ethanol, corn, and beef markets. Based on the threshold cointegration test, we find the symmetric relationship in pairs with ethanol production-corn price and ethanol production-beef price whereas there is the asymmetric relationship between prices of corn and beef. Employing the threshold vector error correction and vector error correction models, we also find that the corn price in the U.S is caused by both ethanol production and beef price in a long-run when the beef price is relatively high. On the other hand, the corn price does not cause both ethanol production and beef price in the long run. Findings from this study imply that demanders for corn such as ethanol and beef producers have price leadership on corn producers.

• Industrial Engineering and Management Systems
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• v.11 no.1
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• pp.30-38
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• 2012

This paper discusses a clearance pricing on daily perishable products considering a reference price of consumers. The daily perishable products are sometimes sold at a discount price before closing time to stimulate demand when the number of unsold products is more than initially envisioned. The discount pricing results both in an increase of the revenue of the day and in a decrease of the disposal cost. The discounting, however, also declines a reference price of consumers which is a mental price and serves as an anchor price to judge if a current sales price is loss or gain for the consumers. An excess discounting decreases the demand for the products sold at a regular price in the future and diminishes long-term profit. This study conducts a mathematical analysis on the clearance pricing problem for a single period with stochastic variations both on demand and on the inventory level at clearance time. The expected profit function especially depends on the response of consumers to the clearing price against their reference prices. A procedure is proposed to derive an optimal clearance price when consumers are loss-neutral. A sufficient condition is shown to obtain an optimal price for loss-averse and loss-seeking consumers by an analogous procedure.

• Journal of Distribution Research
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• v.11 no.1
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• pp.99-124
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• 2006

The purposes of the study are two-folds. First, it analyzes how factors other than price(e.g. delivery service, saving point policies, free gifts) impact total price for various products and different types of stores. Second, it analyzes how to increase market efficiencies through price level, price differences, and the frequency of price changes for different shops, various products and different types of transactions. By analyzing the price level within different types of stores, there found that prices at on-line store were lower than off-line shops. It also found price differences between pure on-line, hybrid, and off-line store. Comparing prices by product size, there found that pure on-line shops have a lower price compared to others. The results showed that on-line store had lower price variation compared to off-line shops. When comparing pure on-line store to hybrid store, hybrid store had lower price variation. In terms of the frequency of price changes, hybrid stores had higher price fluctuations. In terms of total price differences for delivery distances, pure on-line store had great price fluctuation, excluding cosmetic goods. In conclusion, if we consider price level and price fluctuations, on-line store had more efficiencies and was superior in terms of price effectiveness. Hybrid shops, on the other hand, had greater advantages for seasonal goods and dominant products. Therefore, market entry strategies should differ based on order quantity, type of store(pure on-line, hybrid, off-line), product characteristics(seasonality, product life), etc.

• Journal of Distribution Science
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• v.13 no.11
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• pp.39-46
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• 2015

Purpose - In Korea, there has been a recent trend that shows housing prices have risen rapidly following the International Monetary Fund crisis. The rapid rise in housing prices is spreading recognition of this as a factor in housing price volatility. In addition, this raises the expectations of housing prices in the future. These expectations are based on the assumption that a relationship exists between the current housing prices and expected housing prices in the real estate industry. By performing an empirical analysis on the validity of the claim that an increase in current housing prices can be correlated with expected housing prices, this study examines whether a long-term equilibrium relationship exists between expected housing prices and existing housing prices. If such a relationship exists, the recovery of equilibrium from disequilibrium is analyzed to derive related implications. Research design, data, and methodology - The relationship between current housing prices and expected housing prices was analyzed empirically using the Vector Error Correction Model. This model was applied to the co-integration test, the long-term equilibrium equation among variables, and the causality test. The housing prices used in the analysis were based on the National Housing Price Trend Survey released by Kookmin Bank. Additionally, the Index of Industrial Product and the Consumer Price Index were also used and were obtained from the Bank of Korea ECOS. The monthly data analyzed were from January 1987 to May 2015. Results - First, a long-term equilibrium relationship was established as one co-integration between current housing price distribution and expected housing prices. Second, the sign of the long-term equilibrium relationship variable was consistent with the theoretical sign, with the elasticity of housing price distribution to expected housing price, the industrial production, and the consumer price volatility revealed as 1.600, 0.104,and 0.092, respectively. This implies that the long-term effect of expected housing price volatility on housing price distribution is more significant than that of the industrial production and consumer price volatility. Third, the sign of the coefficient of the error correction term coincided with the theoretical sign. The absolute value of the coefficient of the correction term in the industrial production equation was 0.006, significantly larger than the coefficients for the expected housing price and the consumer price equation. In case of divergence from the long-term equilibrium relationship, the state of equilibrium will be restored through changes in the interest rate. Fourth, housing-price volatility was found to be causal to expected housing price, and was shown to be bi-directionally causal to industrial production. Conclusions - Based on the finding of this study, it is required to relieve the association between current housing price distribution and expected housing price by using property taxes and the loan-to-value policy to stabilize the housing market. Further, the relationship between housing price distribution and expected housing price can be examined and tested using a sophisticated methodology and policy variables.

• Journal of Distribution Science
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• v.13 no.4
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• pp.55-64
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• 2015

Purpose - Multi-dimensional prices comprise multiple components such as monthly payments and a number of payments rather than a single lump-sum amount. According to previous studies, an increase in the number of price dimensions leads to a massive amount of cognitive stress resulting in incorrect calculation, and deterioration in the consistency of the price judgment. However, an increase only in the level of complexity of calculating multi-dimensional prices does not always result in a corresponding decrease in the accuracy of price evaluation. Since diverse variables could affect consumers' purchase-decision-making process, the results of price evaluation would be different. In this study, an empirical analysis was performed to determine how the accuracy of price evaluation varies depending on the extent of the complexity of price dimensions using product involvement and brand preference as moderating variables. Research design, data, and methodology - A survey was conducted on 260 students, and 252 effective responses were used for analysis. The data was analyzed using t-test, one-way ANOVA, and two-way ANOVA. In this study, six hypotheses were developed to examine the effect of product involvement and brand preference on consumers' evaluation effort of multi-dimensional prices. Results - As the number of price dimensions increased, accuracy of price evaluation appeared to be low in high involvement, as expected. However, it showed no differences in price evaluation effort when the level of complexity of calculating multi-dimensional prices is low. When a small number of price dimensions are presented in both cases of high and low involvement, accuracy of price evaluation is much higher in a weak brand preference. On the contrary, a strong brand preference enhances an accuracy of price evaluation only in case of low involvement when the number of price dimensions is increased. An interaction effect of product involvement and brand preference on consumers' evaluation of multi-dimensional prices did not exist irrespective of the level of complexity of calculating prices being high or low. Conclusions - When the number of price dimensions is small, consumers' effort for price evaluation shows almost no difference without the moderating effect of involvement, and a weak brand preference leads to a higher accuracy of price evaluation in an effort to make the best selection. No interaction effect of product involvement and brand preference was found except for a main effect of brand preference. When a price is composed of multiple dimensions rendering it more difficult to calculate the final price, the effort for price evaluation was expected to decrease only slightly in case of combination of high involvement and strong brand preference. This is because people have a higher purchase intentions and trust for that particular brand. However, the accuracy of price evaluation was much lower in cases of high involvement, and there was no interaction effect between product involvement and brand preference except for a main effect of involvement and brand preference, respectively.

• Journal of the Korean Home Economics Association
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• v.28 no.1
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• pp.57-66
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• 1990

The purpose of this study was to investigate the analytical model of the implicit price according to objective and subjective characteristics of housing. The hedonic price regression was used for estimating the implicit price. The subjectives of this study were 1,143 dwellers who live in Seoul metropolitan area. Taejeon, and Jeonju. Satistical analyses were conducted using frequencies, percentiles, mean, and multiple regression. The major findings were as follows: 1. There was a significant difference in the implict price of the apartment between owners and renters. 2. There was a sginificant difference in the implicit price of the apartment among Seoul metropolitan area, Taejeon, and Jeonju. 3. Using a stepwise multiple regression method, the order of variables as they were entered in the model were different between tenure types (owner/renter), and regions(Seoul metroplitan area/Taejeon/Jeonju). 4. The linear model was the most appropriate noe which explained the housing price. 5. Subjective characteristics of housing in Taejeon and Jeonju had an effect on the housing price more than those in Seoul metropolitan area.

• Journal of the Korea Institute of Building Construction
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• v.8 no.6
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• pp.65-74
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• 2008

The aim is to get comprehensive view point for the price of apartment. Apartment construction cost is the sun of land cost and building cost. Land price reflects the value of location where building stands. When the gap between price and affordability is narrow enough, effective demand promote apartment construction. The today's trends of rising price, which began in apartment housing, spreads to real estates market and finally overall consumer price. Problem is that price is decided only by supplier's interest. Equilibrium-pricing is common process in housing market. However it is important to review hedonic price and the factor of housing services and focused on the affordability of demanders. AHP analysis was used to study real needs and preference of demanders and dealt with 200 interviewees with brief checklists. We found that social factor is more important than building cost or site development. Especially location of apartment is most important to affect environment quality and accessibility to facilities.

• Journal of the Korean Society of Clothing and Textiles
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• v.36 no.2
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• pp.218-230
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• 2012

This study examines the influence of innovativeness and price sensitivity on the purchase intention of smart wear. A total of 211 copies of data were analyzed to investigate a structural model and test research hypotheses using AMOS 7.0 package. The results were summarized as follows. First, fashion innovativeness and technology innovativeness negatively affected price sensitivity; however, information innovativeness positively affected price sensitivity. Second, technology innovativeness positively affected the purchase intention of smart wear; however, fashion innovativeness and information innovativeness did not affect the purchase intention of smart wear. Third, price sensitivity negatively influenced the purchase intention of smart wear. This study is useful for marketers and managers who establish marketing and a price strategy for smart wear in an exploration of the relation of consumer innovativeness, price sensitivity, and the purchase intention of smart wear.

• Journal of Information Technology Applications and Management
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• v.13 no.1
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• pp.1-16
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• 2006

This paper empirically analyzed consumer price search behavior using Web log data of a Korean web site for price comparison. Consumer click-stream data of the site was used to test the effects of price level, product category, third party certification, reputation of retailers on click behavior. According to the descriptive statistics, 67.4% of shopbot users clicked the offer which was the lowest price returned in a search. We found that third party certification and reputation of retailers were significant determinants of clicking the lowest priced offer from legit analysis. We also applied Tobit regression analysis to estimate the price premium of the two determinants, but only reputation of retailers was found to have price premium of 4.9%.