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Examining the Effect of Online Switching Cost on Customers' Willingness to Pay More

  • Kim, Hee-Woong;Gupta, Sumeet;Lee, So-Hyun
    • Asia pacific journal of information systems
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    • v.23 no.1
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    • pp.21-43
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    • 2013
  • Internet vendors are gradually realizing the importance of "locking-in" online customers in order to ensure profitability. Erection of switching barriers increases customers'lock-in and in turn may result in their willingness to pay price-premium for the same service. However, raising customer lock-in online is difficult because search costs are very low. Therefore, this study examines the effect of switching barriers (customer satisfaction, perceived value and relative advantage) on switching costs and the effect of switching costs on customer's willingness to pay more. Since switching costs and consequent relationships may depend upon the type of product therefore the research model in this study is examined for both search products and experience products. Data is collected through an online survey from two websites (one each for search product and experience product). The empirical results show the key role of switching costs in customers' willingness to pay more and the relationships among the four constructs. The theoretical and practical implications of this study are also discussed.

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Software Test Automation Using Data-Driven Approach : A Case Study on the Payment System for Online Shopping (데이터 주도 접근법을 활용한 소프트웨어 테스트 자동화 : 온라인 쇼핑몰 결제시스템 사례)

  • Kim, Sungyong;Min, Daihwan;Rim, Seongtaek
    • Journal of Information Technology Services
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    • v.17 no.1
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    • pp.155-170
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    • 2018
  • This study examines a data-driven approach for software test automation at an online shopping site. Online shopping sites typically change prices dynamically, offer various discounts or coupons, and provide diverse delivery and payment options such as electronic fund transfer, credit cards, mobile payments (KakaoPay, NaverPay, SyrupPay, ApplePay, SamsungPay, etc.) and so on. As a result, they have to test numerous combinations of possible customer choices continuously and repetitively. The total number of test cases is almost 584 billion. This requires somehow automation of tests in settling payments. However, the record playback approach has difficulties in maintaining automation scripts due to frequent changes and complicated component identification. In contrast, the data-driven approach minimizes changes in scripts and component identification. This study shows that the data-driven approach to test automation is more effective than the traditional record playback method. In 2014 before the test automation, the monthly average defects were 5.6 during the test and 12.5 during operation. In 2015 after the test automation, the monthly average defects were 9.4 during the test and 2.8 during operation. The comparison of live defects and detected errors during the test shows statistically significant differences before and after introducing the test automation using the data-driven approach.

The Effects of Cause-Marketing Messages Delivered on Restaurant Menu (외식기업의 공익연계 메시지의 효과연구)

  • Kim, Byoung Seok;Hwang, Johye
    • Knowledge Management Research
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    • v.15 no.4
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    • pp.127-145
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    • 2014
  • This study aims to examine the effects of message framing of restaurant menus on customers' perceptions (trust and immersion) and their willingness to pay a premium price. The contents of messages focused on a hypothetical restaurant's cause-marketing activity. Four types of message framing were created: The first two types were varied by the presence and absence of the information about the current cause-marketing outcome, and the second two types were varied by positive and negative framing. The results showed that respondents in general had trust in cause-marketing messages and immersion of cause-marketing message by negative framing lead to positive influence of willingness to pay. Furthermore it had a significant effect on willingness to pay depending on cause-marketing message type and negative message framed messages showed an intention to willingness to pay a premium price. This study compared the difference in messages by type as an extension of the studies of cause-marketing messages in the past. The results of this study will be used for establishing effective marketing strategies for today's foodservice companies and serve as objective data for setting differentiated prices under the circumstance where the importance of companies' social responsibilities is growing.

Application of contingent valuation method for estimating willingness-to-pay in planning the integrated sewerage system in the catchment of Dam Chung-Ju (충주댐 상류지역 하수도시설 확충사업에 관한 주민의 지불의사액 추정을 위한 CVM의 적용에 관한 연구)

  • Jeong, Dong-Hwan;Park, Kyoo-Hong;Jin, Young-Sun;Cho, Joung-Moo
    • Journal of Environmental Impact Assessment
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    • v.13 no.2
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    • pp.73-86
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    • 2004
  • The objective of this research was to estimate residents' willingness-to-pay using contingent valuation method and to investigate their environmental sensibilities prior to conduct the costbenefit analysis on the watershed management program of integrated sewerage construction and operation in the catchment of Dam Chung-Ju. A set of questionnaire was prepared and asked to 1,200 residents at downstream area as well as upstream area of Dam Chung-Ju. As a result, environmental sensibility of the residents living in the catchment of upstream of Lake Chung-Ju seemed very high. However, the substantial practice in their own life for conserving their environment was inactive, although residents' efforts trying to collect and dispose garbages in separate containers and to minimize the waste discharge load were actually made. The willingness-to-pay on each month for 20 years was estimated as 4,841 wons for the openended question and 3,411 wons for the close-ended question. Factorial analysis was also performed to obtain correlation among the questions asked. Seven groups of the correlated questions were identified and their contribution to the estimated willingness-to-pay was analyzed.

The Effects of Mobile Application Quality on Satisfaction and Intention to Pay Mobile Application (모바일 애플리케이션의 품질이 사용자 만족과 애플리케이션 지불의도에 미치는 영향)

  • Kim, Sang-Hyun;Park, Hyun-Sun
    • The Journal of Information Systems
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    • v.20 no.3
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    • pp.81-109
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    • 2011
  • The increase in the number of smartphone users has recently been steep, which started to offer companies and individuals more opportunities to enter into a new business field. Furthermore, the smartphone applications have become one of the hottest topics inside and outside the mobile industry. Still the market is in its infancy and intention to pay of charged application of most smartphone users is relatively low. However, rate of charged application in appstore is expected to be increase steadily for some years to come. In this perspective, it is important to consider the smartphone mobile application. Research on smartphone application is still in its early stage. Thus, the purpose of this study is to find what are the effective factors on user satisfaction and intention to pay of mobile application. Based on information system success model, we proposed system quality(stability, usability, security), information quality(timeliness, accuracy, enjoyment) and service quality(reactivity, reliability, empathy) as factors to effect on user satisfaction in mobile application. The results showed that stability, usability, timeliness, accuracy, enjoyment, reactivity and empathy affected significantly user satisfaction. The relationship among satisfaction and intention to pay of mobile application was significantly supported. The implications of the findings is that firms and individual developers of mobile application should focus on customer retention through enhancing satisfaction and quality.

A Study of the Consumer's Purchase Behavior and Willingness-to-Pay on the New Soymilk - Foucused on Cooperative Members in Cheonan - (두유 신제품 개발을 위한 소비자 구매행태 및 지불의사에 대한 연구 - 천안지역 생협 소비자를 중심으로 -)

  • Lee, Seog-Won;Yang, Sung-Bum
    • The Korean Journal of Food And Nutrition
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    • v.29 no.5
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    • pp.795-800
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    • 2016
  • The objective of this study was to propose motivation for the analysis of consumer's purchasing behavior and willingness to pay for the new soymilk products in cooperative stores. We surveyed the purchasing behavior, willingness to purchase, willingness to pay, and impact factors on willingness to pay. The results indicated that most consumers drank soymilk more than once per week. The reasons for consuming soymilk were health, nutrition, and taste, in order. When purchasing soymilk, consumers considered environment-friendly, quality, country of origin, brand, and price, consecutively. Taste was also an essential quality factor. Thus, consumers showed some willingness to purchase new soymilk products. In addition, cooperative members considered environmental characteristics of raw material and improvement of preference for final product as more important than functionality or food additives. Differentiation of process and marketing strategies are required for the development of soymilk products for cooperative members.

Valuation of Han River Waterside Landscape with a Double-bound Dichotomous Choice Model and Policy Implications: Focused on the Exponential Willingness to Pay Model (이중양분선택법에 의한 한강 수변 경관의 가치 추정과 그 시사점 -지수지불의사 모형을 중심으로-)

  • Han, Taek-Whan;Hong, Yiseok;Park, Chang Sug
    • Environmental and Resource Economics Review
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    • v.22 no.1
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    • pp.179-214
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    • 2013
  • This paper estimated the value of waterside landscape and ecosystem of Han River basin with a double-bound dichotomous choice type of CVM. We used the exponential willingness to pay model to represent the nonnegative willingness to pay. This model is found to be especially important in analyzing a double-bound dichotomous choice model. The total willingness to pay was estimated as 705.5 billion won per annum. This suggests that current budget size for water quality and ecosystem conservation for Han River needs to be expanded.

Investigation on the Management Status of Incentive Pay System in Hospital and Strategy to Invigorate (병원의 성과급제 운영실태 및 활성화 전략)

  • Moon, Young-Jeon;Park, Jae-San;Ahn, In-Whan
    • The Korean Journal of Health Service Management
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    • v.5 no.1
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    • pp.31-44
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    • 2011
  • The objectives of this study were first to inspect the background information of an incentive pay system in hospitals, which provide specialized services for the public, the current status of hospitals with the system, as well as effects produced by introducing it, and then to come up with measures to invigorate the system. According to the findings of a survey, a total of 123 out of 150 hospitals responded that they applied the system to their HR management, some fully or some partially, which accounts for 82.0 percent. This study suggested that the following strategies to invigorate the incentive pay system: having a clear objective when adopting the system; concerted performance targets; practical yet worth challenging business objectives; transparent information disclosure; and establishing a confidence-building system between labor and management. Mutual trust between labor and capital should be a key factor for the successful implementation of the incentive pay system.

PayWord System using ID-based tripartite Key Agreement Protocol (ID 기반 키동의 프로토콜을 이용한 PayWord 시스템)

  • 이현주;이충세
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.29 no.2C
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    • pp.348-353
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    • 2004
  • Development of an efficient and secure payment system is prerequisite for the construction of electronic payment mechanism in mobile environment. Since current PayWord protocol system generates vendor's certificate for each transaction, it requires lot of operation for transaction. In this paper, we use a session key generated by ID-based tripartite Key agreement protocol which use an Elliptic Curve Cryptosystem over finite field $F_{q}$ for transactions. Therefore, our protocol reduces algorithm operations. In particular, proposed protocol using ID-based public key cryptosystem has the advantages over the existing systems in speed and it is more secure in Man-in-the-middle attacks and Forward secrecy.

Comparison of Denture Satisfaction by Burdened Cost Types (비용부담형태에 따른 의치 만족도 비교)

  • Kang, Byeong-Jin;Cho, Hyun
    • Journal of Technologic Dentistry
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    • v.36 no.4
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    • pp.267-275
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    • 2014
  • Purpose: The purpose of this study is to analyze denture satisfaction by burdened cost types. Methods: All 588 subjects in Gyeongsangnam-do, Korea was surveyed randomly. The study was conducted for about 24 days from March 28th to April 20th, 2014. The objects who participated in the survey were offered self-report questionnaires for this study. Results: Satisfaction with Half Price of the National Health Insurance Support Denture patients appears the highest point of $2.98{\pm}0.22$, and The Governor Pledge Free Denture appears $2.90{\pm}0.17$ the lowest. Also Pay Denture appears $2.96{\pm}0.21$. Provincial authority regulated medical carelessness inefficiently and at all during the procedure, without having to pay the cost of individual. also provincial authority support low budget. This is the result from the lowest satisfaction of The Governor Pledge Free Denture patient. Conclusion: According to the survey results, The Governor Pledge Free Denture and The Total Pay Denture's satisfaction are higher than The National Health Insurance Support Denture. and The National Health Insurance Support Denture are more uncomfortable than pay denture to use.