• Journal of Global Scholars of Marketing Science
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• v.19 no.4
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• pp.24-31
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• 2009

Firms produce various products that differ by function, design, color, etc. Product proliferation occurs for three different reasons. When there exist economies of scope, the unit cost for a product is lower when it is produced in conjunction with another product than when it is produced separately. Second, consumers are heterogeneous in the sense that they have different tastes, preferences, or price elasticities. A firm can earn more profit by segmenting consumers into different groups with similar characteristics. For example, product proliferation helps a firm increase profits by satisfying various consumer needs more precisely. The third reason for product proliferation is based on strategy. Producing a number of products can not only deter entry by providing few niches, but can also cause a firm to react efficiently to a low-price entry. By producing various products, a firm can reduce niches so that potential entrants have less incentive to enter. Moreover, a firm can produce new products in response to entry, which is called fighting brands. That is, when an entrant tries to attract consumers with a low price, an incumbent introduces a new lower-quality product while maintaining the price of the existing product. The drawback of product proliferation, however, is cannibalization. Some consumers who would have bought a high-price product switch to a low-price product. Moreover, it is possible that proliferation can decrease profits when a new product is less differentiated from a rival’s than is the existing product because of more severe competition. Many studies have analyzed the effect of product line rivalry in the areas of economics and marketing. They show how a monopolist can solve the problem of cannibalization by adjusting quality in a market where consumers differ in their preferences for quality. They find that a consumer who prefers high-quality products will obtain his or her most preferred quality, but a consumer who has not such preference will obtain less than his or her preferred quality to reduce cannibalization. This study analyzed the effects of product line rivalry in a duopoly market with two types of consumers differentiated by quality preference. I assume that the two firms are asymmetric in the sense that an incumbent can produce both high- and low-quality products, while an entrant can produce only a low-quality product. The effects of product proliferation can be explained by comparing the market outcomes when an incumbent produces both products to those when it produces only one product. Compared to the case in which an incumbent produces only a high-quality product, the price of a low-quality product tends to decrease in a consumer segment that prefers low-quality products because of more severe competition. Prices, however, tend to increase in a segment with high preferences because of less severe competition. It is known that when firms compete over prices, it is optimal for a firm to increase its price when its rival increases its price, which is called a strategic complement. Since prices are strategic complements, we have two opposing effects. It turns out that the price of a high-quality product increases because the positive effect of reduced competition outweighs the negative effect of strategic complements. This implies that an incumbent needs to increase the price of a high-quality product when it is also introducing a low-quality product. However, the change in price of the entrant’s low-quality product is ambiguous. Second, compared to the case in which an incumbent produces only a low-quality product, prices tend to increase in a consumer segment with low preferences but decrease in a segment with high preferences. The prices of low-quality products decrease because the negative effect outweighs the positive effect. Moreover, when an incumbent produces both kinds of product, the price of an incumbent‘s low-quality product is higher, even though the quality of both firms’ low-quality products is the same. The reason for this is that the incumbent has less incentive to reduce the price of a low-quality product because of the negative impact on the price of its high-quality product. In fact, the effects of product line rivalry on profits depend not only on changes in price, but also on sales and cannibalization. If the difference in marginal cost is moderate compared to the difference in product quality, the positive effect of product proliferation outweighs the negative effect, thereby increasing the profit. Furthermore, if the cost difference is very large (small), an incumbent is better off producing only a low (high) quality product. Moreover, this study also analyzed the effect of product line rivalry when a firm can determine product characteristics by focusing on the issue of fighting brands. Recently, Korean air and Asiana airlines have established budget airlines called Jin air and Air Busan, respectively, to confront the launching of budget airlines such as Hansung airline and Jeju air, among others. In addition, as more online bookstores have entered the market, a leading off-line bookstore Kyobo began its own online bookstore. Through fighting brands, an incumbent with a high-quality product can increase profits by producing an additional low-quality product when its low-quality product is more differentiated from that of the entrant than is its high-quality product.

• Journal of Distribution Science
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• v.10 no.2
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• pp.29-41
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• 2012

This paper undertakes a conceptual review of transaction cost to broaden the understanding of the transaction cost analysis (TCA) approach. More than 40 years have passed since Coase's fundamental insight that transaction, coordination, and contracting costs must be considered explicitly in explaining the extent of vertical integration. Coase (1937) forced economists to identify previously neglected constraints on the trading process to foster efficient intrafirm, rather than interfirm, transactions. The transaction cost approach to economic organization study regards transactions as the basic units of analysis and holds that understanding transaction cost economy is central to organizational study. The approach applies to determining efficient boundaries, as between firms and markets, and to internal transaction organization, including employment relations design. TCA, developed principally by Oliver Williamson (1975,1979,1981a) blends institutional economics, organizational theory, and contract law. Further progress in transaction costs research awaits the identification of critical dimensions in which transaction costs differ and an examination of the economizing properties of alternative institutional modes for organizing transactions. The crucial investment distinction is: To what degree are transaction-specific (non-marketable) expenses incurred? Unspecialized items pose few hazards, since buyers can turn toalternative sources, and suppliers can sell output intended for one order to other buyers. Non-marketability problems arise when specific parties' identities have important cost-bearing consequences. Transactions of this kind are labeled idiosyncratic. The summarized results of the review are as follows. First, firms' distribution decisions often prompt examination of the make-or-buy question: Should a marketing activity be performed within the organization by company employees or contracted to an external agent? Second, manufacturers introducing an industrial product to a foreign market face a difficult decision. Should the product be marketed primarily by captive agents (the company sales force and distribution division) or independent intermediaries (outside sales agents and distribution)? Third, the authors develop a theoretical extension to the basic transaction cost model by combining insights from various theories with the TCA approach. Fourth, other such extensions are likely required for the general model to be applied to different channel situations. It is naive to assume the basic model appliesacross markedly different channel contexts without modifications and extensions. Although this study contributes to scholastic research, it is limited by several factors. First, the theoretical perspective of TCA has attracted considerable recent interest in the area of marketing channels. The analysis aims to match the properties of efficient governance structures with the attributes of the transaction. Second, empirical evidence about TCA's basic propositions is sketchy. Apart from Anderson's (1985) study of the vertical integration of the selling function and John's (1984) study of opportunism by franchised dealers, virtually no marketing studies involving the constructs implicated in the analysis have been reported. We hope, therefore, that further research will clarify distinctions between the different aspects of specific assets. Another important line of future research is the integration of efficiency-oriented TCA with organizational approaches that emphasize specific assets' conceptual definition and industry structure. Finally, research of transaction costs, uncertainty, opportunism, and switching costs is critical to future study.

• Journal of the Korea Convergence Society
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• v.11 no.6
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• pp.145-151
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• 2020

'Hansik', or Korean cuisine is one of Korea national brands. To understand the domestic consumer awareness of Korean cuisine, data was gathered under the keyword search, 'Hansik.' Textom 3.5 was used to gather data from blogs, news media found on Naver from November 1, 2018, to October 31, 2019. The results from frequency and TF-IDF analysis indicate that the 'buffet' had the largest proportion in terms of consumer awareness to Hansik. Also, broadcasting contents starring star chefs had a great influence. The Hansik awareness did not remain in the domains of its traditionality, but also branched into extents into areas such as fusional and gourmet cuisine. UCINET6 and NetDraw were used to conduct CONCOR analysis. Four cluster formations have been found; various food cultural cluster, high-end restaurant cluster referring to aired restaurants on media, Hansik brand cluster, and Hansik buffet cluster. This study proposes presenting a various menu of Hansik which use a multiple number of ingredients. Also, a promotion that introduces fine Hansik and a development of marketing views and media contents about the convenient HMRs make the associated imagery of Hansik to be strengthen.

• KOREAN JOURNAL OF CROP SCIENCE
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• v.51 no.3
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• pp.227-232
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• 2006

Rice quality must certainly be considered as one of the primary preference for consumers. On aspect concerns marketing, such attributes as appearance, physicochemical characteristics, and palatability of brand rice are very important. Therefore this study was carried out to observe the quality of commercial brand rice in Gyeongbuk Province, Korea from 2002 to 2004. In seasonal changes of mean air temperature from early July to middle August, it was lower in 2003 by $0.8{\sim}3.3^{\circ}C$ than that in normal year. Among the rice quality characteristics, the cv of percentage of head rice and palatability (Toyo value) were very low but those of chalky rice and protein content were very high during three years, and the same tendency was also observed among the brands. The average percentages of head rice were 92.5% in 2002, 89.9% in 2003 and 93.3% in 2004, respectively. On the contrary, the percentages of chalky rice were higher in 2003 as 4.9% than those in 2002 (3.9%) and in 2004 (2.8%). These results were caused by the abnormal meteorological conditions in 2003. Due to the higher protein content (8.0%) in 2003, the palatability was deteriorated to 71.0. However the protein content in 2004 was reduced to 7.0% and this result improved the palatability to 77.0.

• Culinary science and hospitality research
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• v.22 no.7
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• pp.47-57
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• 2016

This study was conducted to verify the relationships among the image of middle-low price chain hotels, service quality, consumption value, and customer emotion by using the AMOS 22.0 statistic package program. Confirmatory factor analysis and structural equation modeling methods employed for identifying the formulated hypothesis model. According to results, first, it is seen that the image of middle-low price chain hotels has positive effect on the service quality. Second, the image of middle-low price chain hotels has positive effect on the consumption value, and the consumption value has positive effect on the service quality. Third, the service quality does not have positive effect on the customer emotion. Last, the image of middle-low price chain hotels has positive effect on the customer emotion. In this study, we attempted to establish the management strategy device of middle-low price chain hotels by analyzing how the image of middle-low price chain hotels affect the service quality, consumption value, and customer emotion. As a result, when it comes to the service quality according to the image of middle-low price chain hotels, the conviction, in other words, the belief of the hotel staffs was the biggest one. In addition, when it comes to the consumption value according to the image of middle-low price chain hotels, the functional value, the kind service of the hotel staffs was seen as the highest satisfaction. More practical and theoretical implications for developing marketing strategy in context of middle-low price chain hotels has been suggested in conclusions.

• Culinary science and hospitality research
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• v.18 no.3
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• pp.90-107
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• 2012

This research has been conducted to discover the consumer's behavior in the purchase and consumption of korean alcoholic beverages. The intent of these works are to contribute to the growth of the traditional alcoholic beverages markets by giving necessary data for the marketing strategies and the development of favorite beverage to meet the consumer's tastes. The surveys have been conducted against a group of people ranging from their 20's to 60's randomly picked from seoul. The duration of the surveys was from August 1st to September 30th, 2010. We also examined the relationship between the selection attributes of traditional liquor and purchase satisfaction by consumer's life-styles. SPSS 18.0 statistical package was used to process data. Frequency analysis, factor analysis, a reliability test, K-means cluster analysis, one-way ANOVA and multiple regression were executed. As a result, through factor analysis and cluster analysis, authors identified 6 factors in the selection attributes of traditional liquor(characteristics, taste & fragrance, popularity, design, harmony, interest), 4 consumer groups(expert, fan, beginner, indifference), 4 consuming lifestyles(social oriented consuming style, maniac consuming style, pursuit of knowledge consuming style, outsider consuming style). Among the selection attributes of traditional liquor, taste & fragrance and popularity had effects on purchase satisfaction.

• The Korean Journal of Applied Statistics
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• v.27 no.5
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• pp.681-691
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• 2014

Ranking-based conjoint analysis(RBCA) and choice-based conjoint analysis(CBCA) have attracted significant interest in various fields such as marketing research. When conducting research, the researcher has to select one suitable approach in consideration of strengths and weaknesses. This article performs an empirical comparison of the predictability of RBCA and CBCA in order to provide criterion for the selection. A new concept of measurement set is developed by combining the ranking set and choice set. The measurement set enables us to apply two approaches separately on the same consumer group that allows a fair comparison of predictability. RBCA and CBCA are conducted on consumer preferences for RTD-coffee; subsequently, the predicted values of market shares and hit rates are compared. The study result reveals that their predictabilities are not significantly different. Further, the result indicates that RBCA is recommended if the researcher wants to improve data quality by filtering out poor responses or to implement the market segmentation. In contrast, CBCA is recommended if the researcher wants to lessen the burden on the respondents or to measure preferences under similar conditions with the actual marketplace.

• The Journal of the Korea Contents Association
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• v.13 no.1
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• pp.156-163
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• 2013

In the past, the enlargement of perception through media was 'information'. From now on, however, the primary objective of media is to consist not in conveying information but in sharing the values of 'emotion' and 'experience' that are perceived through information. Individual emotional becomes an issue due to the limitations of the ideology of modernism and the pervasiveness of the autonomous perception in the human thinking that started in postmodernism. If we once again talk about a function-focused, sensible approach for the sake of marketing in the current era that has impinged on the limits of mammonism, we must keep in mind that 'emotion,' presently retaken as the originary, human value and the value of new communication, may come to an end any time. Therefore, th current thesis is designed to examine John Dewey's 'transaction' as a method for figuring out the concept of emotion, the perceptional function latent in humans. Dewey's 'transaction,' which is a term that refers to the reciprocal relationships between humans and environment and the accompanying totality of perceptive process, interprets human emotion, user experience and environment as the organic, circular relationships. For such understanding, one must break out of the boundary of the past, dichotomous communication between the subject and the object to expand into the perceptional relations in a wider environment, in order to seek design methods that would help dismantle the borderline that has so far separated the developer from the user, share sensibilities, and express experiences.

• International Journal of Computer Science & Network Security
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• v.21 no.12spc
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• pp.459-462
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• 2021

The article examines the main problems of land market formation in Ukraine. The article is devoted to the study of problems and prospects of land market introduction after the abolition of the ban on alienation. The advantages and disadvantages of lifting the moratorium on the purchase and sale of agricultural land are highlighted. The experience of such European countries as France, Germany, Latvia, Romania and Poland in regulating the market of agricultural lands is analyzed. The historical stages of market formation, features of state policy in this area are considered. The authors found that in these countries the market for agricultural land is well developed and works effectively, which has positive consequences for the economy of these countries. After analyzing the experience, we identified common elements of an effective mechanism for regulating the land market in European countries, which can be implemented in Ukraine. It is emphasized that after the opening of the land market it is necessary to prevent the concentration of a large number of agricultural lands in the hands of one person or close persons and it is necessary to create an effective supervisory body, whose main functions will be supervising sales prevention of speculation in the land market. Emphasis is placed on the need to improve legislation in the field of land, organizational and informational conditions for land reform. The Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine Concerning the Circulation of Agricultural Land" was analyzed, the adoption of which put an end to the systematic extension of the moratorium on the sale of agricultural land. The positive aspects of such reservations are noted, such as the gradual introduction of the land market, quantitative restrictions, the lower limit of the value equivalent, which can not be less than the normative monetary value. At the same time, the problem is that the lack of an imperative norm on termination of the lease agreement in case of refusal of the lessee to purchase such land at a price not lower than expert assessment, will negatively affect its price formation and actually make the landlord hostage.

• International Journal of Computer Science & Network Security
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• v.22 no.7
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• pp.35-42
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• 2022

The article identifies the problem of monitoring the quality of higher education in three main areas, which are comparative pedagogical systems of education. The first direction is determined by dissertation works, the second - monographs and textbooks, and the third reveals scientific periodicals. According to its internal structure, monitoring the quality of education combines important management components identified in the article (analysis, evaluation and forecasting of processes in education; a set of methods for tracking processes in education; collecting and processing information to prepare recommendations for research processes and make necessary adjustments). Depending on the objectives, three areas of monitoring are identified: informational (involves the accumulation, structuring and dissemination of information), basic (aimed at identifying new problems and threats before they are realized at the management level), problematic (clarification of patterns, processes, hazards, those problems that are known and significant from the point of view of management). According to its internal structure, monitoring the quality of education combines the following important management components: analysis, evaluation and forecasting of processes in education; a set of techniques for tracking processes in education; collection and processing of information in order to prepare recommendations for the development of the studied processes and make the necessary adjustments. One of the priorities of the higher education modernization program during the COVID-19 pandemic is distance learning, which is possible due to the existence of information and educational technologies and communication systems, especially for effective education and its monitoring in higher education. The conditions under which the effectiveness of pedagogical support of monitoring activities in the process of distance learning is achieved are highlighted. According to the results of the survey, the problems faced by higher education seekers are revealed. A survey of students was conducted, which had a certain level of subjectivity in personal assessments, but the sample was quite representative.