• Management & Information Systems Review
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• v.37 no.4
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• pp.63-74
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• 2018

Recently, in the asset management industry, the smart beta strategy, which has an intermediate nature between passive and active strategies, is attracting attention. In this smart beta strategy, value, momentum, low volatility, and quality index are widely used. In this study, we analyzed the quality index which is not clear and complicated to calculate. According to the MSCI methodology, the quality index was calculated using three variables: return on equity, debt to equity, and earnings variability. In addition, we use the index using only return on equity variable, the index using only two variables of return on equity and debt to equity, and the KOSPI index as comparison targets for the quality index. In order to evaluate the performance of the indices used in the analysis, the arithmetic mean return, the coefficient of variation, and the geometric mean return were used. In addition, Fama and French (1993) model, which is widely used in related studies, was used as a pricing model to test whether abnormal returns in each index are occurring. The results of the empirical analysis are as follows. First, in all period analysis, quality index was the best in terms of holding period returns. Second, the quality index performed best in the currency crisis and the global financial crisis. Third, abnormal returns were not found in all indices before the global financial crisis. Fourth, in the period after the global financial crisis, the quality index has the highest abnormal return.

• Journal of Korea Port Economic Association
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• v.37 no.2
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• pp.107-118
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• 2021

This study investigates the strategies that are important for selecting shuttle carriers and logistics warehouses. In container transportation, competitive pricing has become an order qualifier due to the establishment of the standard freight rate system. As a result of this study, it can be seen that both logistics warehouses and shuttle carriers place greater importance on the partnerships with companies and employee education. Besides those two factors, the punctuality of delivery is found to be important for the quality of transportation. Therefore, companies must continue to increase their competitiveness. As customer service of the shuttle carrier, resolving the loss or damage and claim handling part is evaluated more importantly in the logistics warehouse than the ablity to resolve unexpected event. The future strategy should focus on resolving the loss/damage and claim handling factors so that companies can be competitve in the future. Based on research results, logistics warehouses and shuttle carriers can establish different marketing strategies to maintain a firm position on the market by securing competitive advantage within port hinterland.

• Convergence Security Journal
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• v.24 no.2
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• pp.181-188
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• 2024

Amid global geopolitical crises that are heightening tensions worldwide, the importance of national security is being reevaluated. Consequently, South Korea is gaining attention in the global defense market due to its superior technology, competitive pricing, and rapid delivery capabilities. The increasing international demand for defense materials offers opportunities for the development of the domestic defense industry and has the potential to lead to long-term defense strategies and an expansion of exports. In particular, the development of future advanced weapons systems and the expansion of defense exports are likely to be possible through a deep understanding of the international political and economic situation and proactive defense diplomacy. This study analyzes the impact of current global geopolitical crises on Korea's defense industry and presents effective strategies based on these findings, including innovative improvements to defense acquisition systems and the discovery of overseas defense cooperation partners to strengthen defense exports. This strategic approach aims to balance domestic consumption with exports, enhance military strength, and improve the country's standing in the international community. Therefore, efforts are needed to ensure the sustainable growth of the defense industry, enabling South Korea to achieve economies of scale and play a pivotal role in the global defense industry.

• Journal of Global Scholars of Marketing Science
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• v.19 no.3
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• pp.49-61
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• 2009

This article provides training exercises for executives into interpreting subroutine maps of executives' thinking in processing business and industrial marketing problems and opportunities. This study builds on premises that Schank proposes about learning and teaching including (1) learning occurs by experiencing and the best instruction offers learners opportunities to distill their knowledge and skills from interactive stories in the form of goal.based scenarios, team projects, and understanding stories from experts. Also, (2) telling does not lead to learning because learning requires action-training environments should emphasize active engagement with stories, cases, and projects. Each training case study includes executive exposure to decision system analysis (DSA). The training case requires the executive to write a "Briefing Report" of a DSA map. Instructions to the executive trainee in writing the briefing report include coverage in the briefing report of (1) details of the essence of the DSA map and (2) a statement of warnings and opportunities that the executive map reader interprets within the DSA map. The length maximum for a briefing report is 500 words-an arbitrary rule that works well in executive training programs. Following this introduction, section two of the article briefly summarizes relevant literature on how humans think within contexts in response to problems and opportunities. Section three illustrates the creation and interpreting of DSA maps using a training exercise in pricing a chemical product to different OEM (original equipment manufacturer) customers. Section four presents a training exercise in pricing decisions by a petroleum manufacturing firm. Section five presents a training exercise in marketing strategies by an office furniture distributer along with buying strategies by business customers. Each of the three training exercises is based on research into information processing and decision making of executives operating in marketing contexts. Section six concludes the article with suggestions for use of this training case and for developing additional training cases for honing executives' decision-making skills. Todd and Gigerenzer propose that humans use simple heuristics because they enable adaptive behavior by exploiting the structure of information in natural decision environments. "Simplicity is a virtue, rather than a curse". Bounded rationality theorists emphasize the centrality of Simon's proposition, "Human rational behavior is shaped by a scissors whose blades are the structure of the task environments and the computational capabilities of the actor". Gigerenzer's view is relevant to Simon's environmental blade and to the environmental structures in the three cases in this article, "The term environment, here, does not refer to a description of the total physical and biological environment, but only to that part important to an organism, given its needs and goals." The present article directs attention to research that combines reports on the structure of task environments with the use of adaptive toolbox heuristics of actors. The DSA mapping approach here concerns the match between strategy and an environment-the development and understanding of ecological rationality theory. Aspiration adaptation theory is central to this approach. Aspiration adaptation theory models decision making as a multi-goal problem without aggregation of the goals into a complete preference order over all decision alternatives. The three case studies in this article permit the learner to apply propositions in aspiration level rules in reaching a decision. Aspiration adaptation takes the form of a sequence of adjustment steps. An adjustment step shifts the current aspiration level to a neighboring point on an aspiration grid by a change in only one goal variable. An upward adjustment step is an increase and a downward adjustment step is a decrease of a goal variable. Creating and using aspiration adaptation levels is integral to bounded rationality theory. The present article increases understanding and expertise of both aspiration adaptation and bounded rationality theories by providing learner experiences and practice in using propositions in both theories. Practice in ranking CTSs and writing TOP gists from DSA maps serves to clarify and deepen Selten's view, "Clearly, aspiration adaptation must enter the picture as an integrated part of the search for a solution." The body of "direct research" by Mintzberg, Gladwin's ethnographic decision tree modeling, and Huff's work on mapping strategic thought are suggestions on where to look for research that considers both the structure of the environment and the computational capabilities of the actors making decisions in these environments. Such research on bounded rationality permits both further development of theory in how and why decisions are made in real life and the development of learning exercises in the use of heuristics occurring in natural environments. The exercises in the present article encourage learning skills and principles of using fast and frugal heuristics in contexts of their intended use. The exercises respond to Schank's wisdom, "In a deep sense, education isn't about knowledge or getting students to know what has happened. It is about getting them to feel what has happened. This is not easy to do. Education, as it is in schools today, is emotionless. This is a huge problem." The three cases and accompanying set of exercise questions adhere to Schank's view, "Processes are best taught by actually engaging in them, which can often mean, for mental processing, active discussion."

• Journal of Distribution Science
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• v.13 no.9
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• pp.37-45
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• 2015

Purpose - This paper's aim is to investigate whether or not gross profitability explains the cross-sectional variation of the stock returns in the Korean stock market. Gross profitability is an alternative profitability measure proposed by Novy-Marx in 2013 to predict cross-sectional variation of stock returns in the US. He shows that the gross profitability adds explanatory power to the Fama-French 3 factor model. Interestingly, gross profitability is negatively correlated with the book-to-market ratio. By confirming the gross profitability premium in the Korean stock market, we may provide some implications regarding the well-known value premium. In addition, our empirical results may provide opportunities for the fund distribution industry to promote brand new styles of funds. Research design, data, and methodology - For our empirical analysis, we collect monthly market prices of all the companies listed on the Korea Composite Stock Price Index (KOSPI) of the Korea Exchanges (KRX). Our sample period covers July1994 to December2014. The data from the company financial statementsare provided by the financial information company WISEfn. First, using Fama-Macbeth cross-sectional regression, we investigate the relation between gross profitability and stock return performance. For robustness in analyzing the performance of the gross profitability strategy, we consider value weighted portfolio returns as well as equally weighted portfolio returns. Next, using Fama-French 3 factor models, we examine whether or not the gross profitability strategy generates excess returns when firmsize and the book-to-market ratio are controlled. Finally, we analyze the effect of firm size and the book-to-market ratio on the gross profitability strategy. Results - First, through the Fama-MacBeth cross-sectional regression, we show that gross profitability has almost the same explanatory power as the book-to-market ratio in explaining the cross-sectional variation of the Korean stock market. Second, we find evidence that gross profitability is a statistically significant variable for explaining cross-sectional stock returns when the size and the value effect are controlled. Third, we show that gross profitability, which is positively correlated with stock returns and firm size, is negatively correlated with the book-to-market ratio. From the perspective of portfolio management, our results imply that since the gross profitability strategy is a distinctive growth strategy, value strategies can be improved by hedging with the gross profitability strategy. Conclusions - Our empirical results confirm the existence of a gross profitability premium in the Korean stock market. From the perspective of the fund distribution industry, the gross profitability portfolio is worthy of attention. Since the value strategy portfolio returns are negatively correlated with the gross profitability strategy portfolio returns, by mixing both portfolios, investors could be better off without additional risk. However, the profitable firms are dissimilar from the value firms (high book-to-market ratio firms); therefore, an alternative factor model including gross profitability may help us understand the economic implications of the well-known anomalies such as value premium, momentum, and low volatility. We reserve these topics for future research.

• 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.10 no.8
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• pp.25-34
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• 2012

Understanding customer' lifestyles important for banks because it will guide in determining marketing policies, such as services, pricing, service delivery and promotion decisions. From the customer' lifestyle, banks will know what kind of customers' attitudes, interests and opinions, so they also will understand what the costumer' needs and what services needed by them. For Islamic banks, customers understanding are important because, nowadays, the competition of the banks is not only with other Islamic banks but also with the well-established conventional banks offering Islamic products or services The aims of this research paper are to describe what factors underline the customer's lifestyle of both Islamic and conventional bank, to segment the bank customers based on their lifestyles and investigate the profile of each segments, to compare the characteristics of the segments, and to identify marketing policies based on the characteristics. The population of the study is banking customers in Indonesia, in which the researchers have used judgment sampling as sample selection. There were 186 customers of Islamic banks and 244 customers of conventional bank as respondents in this study. Statistical methods employed were exploratory factor analysis and cluster analysis. The finding of the study shows that there are twelve factor underlining the customers' lifestyle, namely: factor of fashion conscious, internet usage, sports spectator, financial and technology optimism, price sensitivity, independent, compulsive housekeeper, new brand tryer community activities, opinion leader, credit usage, and homebody. In addition, for Islamic banking, there are two market segments, namely fashionable-independent and innovative-social segment. Based on the lifestyle characteristics, the first segment has higher level in factor of fashion conscious, homebody, independent, optimism and price conscious, which is therefore called fashionable-independent segment. On the other hand, the second cluster has higher level in factor of new brand tryer, community minded, sport spectator, credit user, internet usage, opinion leader, and compulsive housekeeper, which is therefore called the innovative-social segment. Furthermore, for conventional banking, there are also two segments, namely persuasive-optimistic and sensitive-independent segment. The first segment has higher level on some factors, namely: opinion leader, optimism, internet usage rate, credit usage level, sport spectator, and new brand tryer. On the other hand, the second cluster is characterized by higher level in factor of price conscious, confidence, community minded, homebody, fashion conscious, and compulsive housekeeper. Managerial implications for the management of Islamic banks could be identified in this study as follows. Firstly, the twelve lifestyle factors of this study could be an alternative view in observe Islamic banking customers. The domination of both the fashionable conscious and the internet usage factor show that the aspects are quite instrumental in perceiving the customer' lifestyles, in which reflects the importance of these two aspects to customers. Secondly, in serving their customers, Islamic banks need to understand the customer lifestyle, in which the lifestyle segments found in this study provide a guide of how their needs were reflected. Finally, by understanding the segments and the characteristics each segment of the conventional banks, Islamic banks could adjust their marketing strategies differently from the conventional banks.

• Korean Journal of Agricultural Science
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• v.18 no.2
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• pp.127-139
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• 1991

1. The purpose of this study was to recommend ways of more efficient pheasant farm business management and promoting the demand of pheasant foods by reviewing the current pheasant farm business management and the general pattern of consumption of pheasant foods. The study was conducted on the basis of the field survey covering 83 pheasant feeders and 283 consumers. 2. Majority of pheasant feeders, 86.8%(n=72), utilized broiler feed for pheasant rearing because of high price of exclusive pheasant feed. 3. In case of producing 1,000 heads of 5 month-old pheasant, the primary production cost per head was roughly calculated at about 5,530 Won. And 40.3% of primary production cost was consisted of feed cost and 12.9% was depreciation cost for facillities including artificial incubator equipments. 4. 81.1%(n=51) of whole surveyed feeders disposed of 1-4 week-old birds directly to the new feeders and 6%(n=6) sold them to the middlemen who were almost pioneering pheasant feeders. 5. 48.9%(n=138) of the surveyed consumer respondents have taken the pheasant foods once and several times, and the others never once. And 50.6%(n=69) of the respondents who had taken the pheasant foods were satisfied with the tastes. 6. The surveyed consumers were asked whether they knew the nutritional value of pheasant foods and 47.3(n=136) recognized it positively and 37.5%(n=106) negatively. 7. To increase the pheasant farm income and promote the demand of pheasant foods. followings are recommended. - Production cost should be reduced by cooperative utilization of facilities and equipments at farm level, and exclusive pheasant feed of good quility should be developed and supplied to the feeders at a low price. - Pheasant marketing and pricing system should be improved to prevent consumers from price disorder of retail shop including pheasant food reataurants and to popularize the pheasant foods. - Various type of menu of pheasant foods should be developed not only to satisfy consumers in tastes but also to solve the seasonality of pheasant supply. But it is preferable that this action is led by pheasant feeders and their cooperative organization, espectially through vertical intergration system owned by pheasant feeders. - Generic, pioneering advertisement and promotion should be carried out to promote primary demend of pheasant foods. It would be preferable that these primary demend advertising and promoting activities shuld be sponsored by pheasant feeders and government together. And their activities should be supported by institutional regulation.

• Journal of the Korean Society of Costume
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• v.38
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• pp.193-211
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• 1998

Without a solid marketing system in placed, the fashion industry cannot flourish on out-standing design or technology alone. Even though the significance of collecting and analyzing information, merchandising, and retail distribution is recognized, these functions are not firmly rooted or prevalent in our industry. In contrast, Italy which possesses similar demographic traits such as the lack of natural resources and other physical factors has succeed-ed in globalizing its fashion market by responding swiftly and exercising flexiblity to its constantly changing consumer demand. This in turn has earned Italy the competitive edge in the global fashion arena. Italy's unique management skills and operation know-how, along with successful market strategies come into play in bringing competitiveness to Italy's fashion market. Firstly, smaller companies with ability to adopt swiftly to the ever changing market. Secondly, fashion friendly social environment. Thirdly, niche marketing through highly specialized system and differentiation. Fourthly, timeless innovation through intense corporate competition. Lastly, establishment of foundations to support the industry through diverse networking. The alone building blocks have formed a basis for erecting an unparalleled market with a reputation for excellence in design and quality in the global fashion world. This study has examined how Italy's fashion industry has evolved from an underdeveloped textile business into a cutting edge fashion in-dustry. Italy's unique business processes and practices were studied to come up with a collection and merchandising ideas in a niche market. By selecting this venue we are able to continuously grow and develop in a market with diverse consumer needs. To analyze the Italian fashion market, data from 3 institutions were utilized, namely, CIT-ER which has provided consumer trends and sales analysis, SITA,a data service provided statistics from the textile and apparel businesses, and NBI has also furnished valuable data. Italian consumer preference, buying behavior, consumer profile, retail channels and other related data from the above institutions has formed a backbone for market segmentation and target markets, and as a result, we were able to zero in on the type of consumer, produce, pricing and retail channels for our womenswear. Going forward the direction is to elevate product image and pretige, and create syn-ergy between related industries, and at the same note, in order to develop internationally recognized brands such as Max Mara and Benetton. Certain elements such as the specialization of the fashion industry, alon-g with fashion-related data base and systems support, and most importantly experts with acute fashion sense and capacity to analyze pertinent data are in need. I firmly believe that we can achieve Italy's level in the fashion market with support from the government and unrelenting effort within the industry itself, and hope that this report can prove to be useful.

• KDI Journal of Economic Policy
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• v.26 no.2
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• pp.281-314
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• 2004

This paper theoretically formulated and empirically explored the relationship between exchange rate pass-through (ERPT) for (average) market price and an individual country's price, using steel products data in the US market, with special reference to two major steel exporting countries, Korea and Japan. It was found that the direction of market ERPT can be different from that of individual ERPT that each exporter experiences, due to strategic interactions among producers and different parameters. Vector error correction (VEC) models and impulse response analysis were used with the statistical inference based on the bootstrap-after- bootstrap of Kilian (1998) for short-run, and the fully modified estimation of Phillips and Hansen (1990) was used for long-run. Empirical results indicate that market ERPT in the US market due to changes in Korea-US exchange rates is different from those due to changes in Japan-US exchange rates. The framework developed in this study indicates that this phenomenon is attributed to either (i) the two countries have individual ERPTs of different magnitudes and directions for the products in the US market, or (ii) the pricing strategies of the other exporters' (to the US steel market) respond differently depending on whether the price of the product from Korea changes or that from Japan does. As each exporter's ERPT can be significantly different, and market response to each country's ERPT can be also different, this study concludes that it is crucial for an exporter to understand how competitors in the market respond to changes in its price, as well as to understand how its price changes when the relevant exchange rate fluctuates.