• Asia Marketing Journal
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• v.21 no.1
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• pp.1-21
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• 2019

Online platforms often provide rating information to customers to relieve the uncertainty they encounter when purchasing experience goods. Prior research has focused mostly on the roles of rating volume and the valence of an average rating among the various possibilities. However, less frequently investigated is the effect of rating dispersion, which may be associated with uncertainty regarding how well a product fits a customer's personal preference, on new trials of experience goods. In this study, we examine the effect of rating dispersion on new trials of experience goods and identify the conditions which intensify or reduce the effect. Empirical analyses of movie box office sales data and online rating data reveal three interesting findings. First, movie sales decrease as movie ratings become increasingly dispersed. Second, the negative effect of rating dispersion on movie sales is more pronounced with more rating volume. Third, this negative effect weakens when additional information about a movie is available (i.e., higher average rating, greater star power, and time since its release). We discuss the academic and practical implications of our findings.

• Journal of the Korean Operations Research and Management Science Society
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• v.19 no.2
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• pp.75-84
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• 1994

The uncertainty in the relative weights of a pairwise comparison matrix n Multi-attribute Decision Making (MADM) is caused by imprecise preference information of decision maker. In this paper, it is shown how weight of attributes can be derived from the pairwise comparison matrix with interval pairwise comparison. The preference information of each pair of attributes with a point pairwise comparison is combined with an interval pairwise comparison in order to estimate a point pairwise comparison for a pair of attributes with the imprecise preference information. A numerical example shows the suggested procedure for deriving weights of attributes.

• Environmental and Resource Economics Review
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• v.15 no.5
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• pp.921-937
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• 2006

In this paper, we apply fuzzy theory in a discrete choice Contingent Valuation Method(CVM) in order for dealing preference uncertainty problem. Fuzzy membership function is used in an empirical analysis to estimate the willingness-to-pay(WTP) for the preservation of the endangered Asiatic Black Bear in Korea. The estimated WTP was about 9,090 Korea Won per household with 78 percent of confidence level. The advantage of applying fuzzy theory in the valuation method could be found in its ability to measure the confidence level of the estimated WTP.

• Journal of applied mathematics & informatics
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• v.42 no.2
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• pp.257-281
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• 2024

In real life, a decision-maker can assign multiple values for pairwise comparison with a certain confidence level. Studies incorporating multi-choice parameters in multi-criteria decision-making methods are lacking in the literature. So, In this work, an extension of the Best-Worst Method (BWM) with multi-choice pairwise comparisons and multi-choice confidence parameters has been proposed. This work incorporates an extension to the original BWM with multi-choice uncertainty and confidence level. The BWM presumes the Decision-Maker to be fully confident about preference criteria vectors best to others & others to worst. In the proposed work, we consider uncertainty by giving decision-makers freedom to have multiple choices for preference comparison and having a corresponding confidence degree for each choice. This adds one more parameter corresponding to the degree of confidence of each choice to the already existing MCDM, i.e. multi-choice BWM and yields acceptable results similar to other studies. Also, the consistency ratio remained low within the acceptable range. Two real-life case studies are presented to validate our study on proposed models.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.10 no.12
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• pp.3775-3781
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• 2009

This aims of this study is to examine the factors influencing on the channel satisfaction and preference of the mobile commerce. This model tests various theoretical research relating to technology acceptance model(TAM), transaction cost theory and service quality. The model is tested Structural Equation Modeling(SEM) using AMOS 7.0 analysis on the sample collected from 320 respondents. The result of hypothesis testing is as follows. First, usefulness, asset specificity, uncertainty, trust and responsiveness were influenced by channel satisfaction. Second, channel satisfaction was influenced positively by channel preference.

• Knowledge Management Research
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• v.11 no.2
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• pp.75-93
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• 2010

Even though there have been many efforts on driver's route recommendation, driver still should get involved to choose the driving path in a manual manner. Uncertain traffic information provided to the driver delays his arrival time and hence may cause diminished economic values. One of the solutions of reducing the uncertainty is to provide various kinds of traffic information, rather than send real-time information. Therefore, as the wireless communication technology improves and at the same time volume of utilizable traffic contents increases in geometrical progression, selecting traffic information based on driver's context in a timely and individual manner will be needed. Hence, the purpose of this paper is to propose a methodology that efficiently sends the rich traffic contents to the personal in-vehicle navigation. To do so, driver preference is modeled and then the recommendation algorithm of traffic information contents was developed using the preference model. Secondly, ontology based traffic situation analyzation method is suggested to automatically inference the noticeable information from the traffic context on driver's route. To show the feasibility of the idea proposed in this paper, an open API service is implemented in consideration of ease of use.

• Journal of the Korea Society of Computer and Information
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• v.14 no.10
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• pp.149-157
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• 2009

This study aims to empirically examine the factors influencing mobile channel loyalty. This study has been reviewed various theoretical research relating to mobile channel loyalty and transaction cost theory. The model was tested Structural Equation Modeling(SEM) using AMOS 7.0 analysis on the sample collected from 240 respondents. The result of hypothesis testing is as follows. First, asset specificity, uncertainty and transaction frequency were influenced by chanel satisfaction. Second, asset specificity was influenced negatively by chanel preference. Third, chanel satisfaction was influenced positively by chanel preference. Finally, chanel satisfaction and chanel preference were influenced positively by chanel loyalty.

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

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

• Journal of Industrial Convergence
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• v.4 no.2
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• pp.39-55
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• 2006

Pioneer brand and follower brand show differences in their perception of the environmental uncertainty. Market pioneer brand companies think that the environment is relatively simple and doesn't change much, whereas follower bland companies think that the environment is complicated and changes a lot. For market pioneer brand companies, among dynamism on the environment lever, there was less potential for the environment and parts, and government restrictions compared to follower brand companies. Also the complexity of the environment level complicated compared to the follower brand companies in areas such as competition for consumers with rival companies, materials, resources of equipment and parts, government restrictions, and the amount of change of the market's preference of the product.

• Asia pacific journal of information systems
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• v.6 no.1
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• pp.195-222
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• 1996

Faced with the challenge of reducing costs and improving competitive position, firms have recognized outsourcing as an important information systems (IS) strategic option. It has not been understood clearly what determines IS outsourcing. Based on the IS literature and transaction cost economics, cost efficiency related factors were identified, and a questionnaire survey was conducted. The results based on 181 responses from the bank executives in U.S. revealed that vendor production cost advantage and transaction risk are significant predictors of degree of outsourcing and outsourcing preference for data processing services. Insufficiency of IS funds and information technology uncertainty were found to be not only positively associated with vendor production cost advantage, but also directly associated with outsourcing preference and degree of outsourcing. Firm size is, however, not significantly related to vendor production cost advantge and IS outsourcing.