• Journal of the Korean Operations Research and Management Science Society
• /
• v.25 no.2
• /
• pp.23-31
• /
• 2000

Many studies in marketing and economics have attempted to model price and sales path under the dynamic diffusion process. Most of these models have been based on a fixed product lifetime. The current business climate requiring intensive development of new products however affects the diffusion of new products and their lifetime. Many products have not enjoyed the expected life cycle at the launching stage due to intense technical development competitive reactions, and financial problems. Most diffusion models however have not taken account of the lifetime uncertainty of new product. If the products do not last over the planning horizon set by those models. the optimal price derived from them could be futile. Therefore we had better take such lifetime uncertainty into consideration when developing diffusion models, In this paper we study the impact of uncertain product lifetime on its optimal pricing path in non-competitive market. We develop an optimal pricing model under uncertain product lifetimes and conduct a simulation study to investigate their effects on the optimal pricing and corresponding sales paths. The simulation study provides some interesting findings on optimal pricing policy under uncertain product lifetime. This study could be a stepping stone for the further extended study of optimal pricing strategy with uncertain product lifetime.

• Asia Marketing Journal
• /
• v.10 no.2
• /
• pp.125-151
• /
• 2008

Both companies and consumers are highly interested in on-line customer reviews which enable consumers to share their experience and knowledge about products. In this study, after classifying real reviews into context units and deriving categories, we analyzed differences between categories based on channel(manufacturers' homepage/ shopping mall), product attribute(search/experience) and price(high/low). The method to derive categories is based on roughly adopting constructs of ACSI model and elaborate and repetitive classification of real reviews. We set up the classification category with 3 levels. Level 1 consists of product and service, level 2 consists of function, design, price, purchase motive, suggestion/user-tip and recommendation/repurchase in product and AS/up-grade and delivery/others in service and level 3 is composed of details of level 2 of category. We could find remarkable differences between channels in all 8 items of level 2 of category. As the number of context units in homepage is more than in shopping mall, we found reviews in homepage is more concrete. Moreover, overall satisfaction in review was higher at homepage's. Also, in product attribute dimension, we found different patterns of reviews in design, purchase motive, suggestion/user-tip, recommendation/repurchase, AS/up-grade and delivery/others and no difference in overall customer's satisfaction. In price dimension, we found differences between high and low price in design, price and AS/up-grade and no difference in overall customer's satisfaction.

• Journal of Korean Society of Rural Planning
• /
• v.22 no.1
• /
• pp.101-111
• /
• 2016

The purpose of this study is to investigate the roadside agricultural product shops located in Miryang city, and to find out the current situation on how people rate the importance and satisfaction levels of various aspects through surveys on sellers and consumers. With this information, the main problems and possible solutions are analyzed with the Important Performance Analysis(IPA) method. First, building parking spaces for customers should be prioritized to improve safety. Because many roadside shops for agricultural products are located alongside two-lane roads, sufficient parking spaces are needed for the consumers' safety. Second, to enhance the rural landscape, consumers express that improving store quality and integrating more with the environment are important. Store owners should take more care in maintaining store quality so that customers do not experience inconvenience while shopping. Futhermore, institutional guidelines and standards must be implemented to allow for a more harmonious relationship between these shops and the environment. Third, both sellers and consumers think that taste, price, and freshness are important aspects of roadside agricultural product shops. However, while sellers and consumers both agree that the price is the most important factor, there is a discrepancy between these two groups regarding the satisfactory price level. The sellers do not agree that their products are being sold at the fair price. This can be interpreted as sellers believe that the prices are set too low. Because pricing is important aspect and also a very delicate issue, mid to long term consideration and study will be needed to improve roadside shops for agricultural products in the future.

• Journal of the Korean Society of Clothing and Textiles
• /
• v.14 no.1 s.33
• /
• pp.3-12
• /
• 1990

The purposes of this study were to determine the consumer dissatisfaction factors in the process of purchase and use of clothing, and to investigate the relationships between the dissatisfaction factors and selected variables-clothing importance, evaluative attributes, price, shopping stores. The research questionnaires selected from the pilot study were administered to 547 female subjects in the age of twenties. The dissatisfaction factors identified as a result of the factor analysis were as follows: (1) 'price' factor ($21.6\%$ of the total explained variance), (2) 'product assortment' factor ($21.5\%$), (3) 'purchase decision-making' factor ($19.9\%$), (4) 'quality' factor ($18.6\%$), (5) 'informa­tion and service' factor ($18.4\%$). By these five factors, the $34.7\%$ of the total variance were explained. The factors were validated by the multiple regression analysis. The purchase decision­making factor has the greatest explanatory power suggests that psychological aspects are more important to clothing dissatisfaction than any other objective aspects. The relationships between the dissatisfaction factors and the selected variables were found to be as follows: 1) The higher clothing importance scores, the higher product assortment related dissatisfac­tion score. 2) The higher the purchase price, the lower the price related dissatisfaction, but the higher the product assortment related dissatisfaction scores. 3) The department store and the national brand chain store shoppers had higher product assortment related dissatisfaction compared to the small retail store and discount store shoppers.

• Journal of the Korean Society of Food Culture
• /
• v.27 no.3
• /
• pp.251-260
• /
• 2012

This study was designed to provide practical environmental marketing data by measuring the effect of environmental marketing on customer loyalty and trust at coffee stores. The results were obtained by empirical analysis and are summarized as follows. The first hypothesis, the effect of environmental marketing on consumer trust at coffee stores, showed that environmental marketing at coffee stores had a statistically significant positive effect on consumer trust. Price, product, and facilities as sub-factors of environmental marketing at coffee stores had effects on consumer trust. Especially, facilities was the highest. The second hypothesis, the effect of environmental marketing on customer loyalty at coffee stores, showed that environmental marketing at coffee stores had a statistically significant positive effect on customer loyalty. Price, product, and facilities as sub-factors of environmental marketing at coffee stores had effects on customer loyalty. Especially, facilities was the highest. The third hypothesis, the effect of consumer trust on customer loyalty at coffee stores, showed that consumer trust at coffee stores had a statistically significant positive effect on customer loyalty. Improvement of consumer trust by environmental marketing was an important factor in improving customer loyalty. As for these findings, price, product, and facilities as sub-factors of environmental marketing at coffee stores had effects on consumer trust and loyalty. Consequently, these findings provide helpful information for coffee stores to plan environmental marketing strategies and establish direction, and they can be used for management activities.

• Journal of the Korea Fashion and Costume Design Association
• /
• v.13 no.1
• /
• pp.1-10
• /
• 2011

The purpose of this study was to compare consumers' post acquisition behavior by analyzing the influence of consumer involvement, product price and discount. The data were collected through a survey based on three stages: two pre-tests and a main survey conducted in the U.S and Korea. A total of 520 participants from each country were used. The results of this study are as follows. First, clothing involvement, price and discount had no difference, but there was relationship on discount rate between countries. In addition, there were gender differences in involvement between the countries, and Korea showed a significant relationship in price discount. In general, the involvement of both American and Korean students was high and women had higher involvement than men indicating that women showed more interest in clothing than men. The discount rate was higher in the U.S and had a wider range of discount than Korea. Second, consumer involvement and price discount affected the satisfaction of Korean students whereas only involvement affected the satisfaction of American students. This study will extend understanding of consumer satisfaction between Korea and the United States. With the results of this study, apparel marketers will be able to understand how consumer involvement, price and discount may influence consumer satisfaction and develop effective marketing strategies for their profit.

• Korean Management Science Review
• /
• v.32 no.1
• /
• pp.83-100
• /
• 2015

We analyze a duopoly competition when two firms face input cost increases. The objective of this study is to determine the firms' optimal strategy between a price increase and downsizing under conditions of a spatially differentiated market and consumers' diminishing utility on the product size. We develop a theoretical model of two competing firms offering homogenous products using the standard Hotelling model to determine how firms' optimal strategies change when facing input cost increases. In this paper, there are two types of duopoly competitions: symmetric and asymmetric. In the symmetric case, the two firms have the same marginal cost and are producing and selling identical products. In the asymmetric case, the two firms have different marginal costs. The results show that the optimal strategy decision depends on the size of the input cost increase and the cost differences between the two firms. We find that when two firms are asymmetric (i.e., they have different marginal costs), the two firms might choose asymmetric pairs of strategies in equilibrium under certain conditions. When the cost differences between the two firms are sufficiently large and the cost increase is sufficiently small, the cost leader chooses price increase, and the cost-disadvantaged firm chooses downsizing in equilibrium. This asymmetric strategy reduces price competition between two firms, and consumers are better off. When the cost differences between the two firms are sufficiently large, downsizing is the dominant strategy for the cost-disadvantaged firm. The cost-disadvantaged firm finds it more profitable to reduce the product size than to increase its price to reduce price competition, because consumers prefer downsizing to price increases. This paper might be a good starting point for further analytical research in this area.

• Journal of the Korea Convergence Society
• /
• v.12 no.12
• /
• pp.83-91
• /
• 2021

For agricultural products, supply is irregular due to changes in meteorological conditions, and it has high price elasticity. For example, if the supply decreases by 10%, the price increases by 50%. Due to these fluctuations in the prices of agricultural products, the Korean government guarantees the safety of prices to producers through small merchants' auctions. However, when prices plummet due to overproduction, protection measures for producers are insufficient. Therefore, in this paper, we designed a business model that can be used in the electronic transaction system by predicting the price of agricultural products with an artificial intelligence algorithm. To this end, the trained model with the training pattern pairs and a predictive model was designed by applying ARIMA, SARIMA, RNN, and CNN. Finally, the agricultural product forecast price data was classified into short-term forecast and medium-term forecast and verified. As a result of verification, based on 2018 data, the actual price and predicted price showed an accuracy of 91.08%.

• The Korean Journal of Food And Nutrition
• /
• v.34 no.1
• /
• pp.47-57
• /
• 2021

The purpose of this study was to examine the relationship between the regular selling price and nutrient contents of foods used for special medical purposes in Korea. This study investigated the regular selling price and nutritional composition of 114 enteral nutrition (EN) foods on the manufacturer's internet homepage. The average price of the total products was 1,156.0 won/100 mL. The price of foods used for calorie and nutrient supplementation (CNS) was significantly higher compared to that of the other EN food types (p<0.01). With respect to the nutritional content per 100 mL of the product, EN foods for CNS had significantly higher contents of energy, protein, 5 minerals, and 7 vitamins than the other EN food types. On comparing the nutritional contents of foods according to the price, the balanced nutrition foods showed significantly higher contents of energy, carbohydrate, protein, 3 minerals, and 7 vitamins in high-priced products than in low-priced foods. Summarizing these results, foods for CNS were approximately twice as expensive as the other EN foods, and the energy, protein, mineral, and vitamin contents were also high. Balanced nutrition foods had higher nutrient contents in high-priced products, which showed the relationship between the product price and nutrient content.

• Journal of the Korea Fashion and Costume Design Association
• /
• v.14 no.3
• /
• pp.161-176
• /
• 2012

This study aims to find out the influence of satisfaction of the product and shopping mall attributes on mall reliability, repurchase intention, and recommendation intention in internet open market. For this purpose, this study surveyed 266 male and female consumers in their 20's~40's for empirical analysis who have ever purchased clothing through internet open markets. Respondents are selected using the convenience sampling through online survey in August 2011. For statistical analysis, descriptive statistics, reliability analysis, factor analysis, t-test, ANOVA, and regression analysis are carried out using SPSS for Windows 12.0. The results are as follows; First, it was identified that there were Significant differences in consumers' satisfaction on product and shopping mall attributes according to purchase price, degree of purchase, and the demographics. Second, it was identified that performance, sewing condition, the stability of the form, texture, harmony with other clothes, the response of people, fashionability, seller, origin, detailed explanation on products, interaction with shopping malls, and ease-of-use have significant influence on the reliability of open market. Third, it was identified that easiness to be active in, the stability of the food, design, suitability to T.P.O, price, origin, detailed explanation on products, product assortment, reputation of shopping malls, ease-of-use, and delivery charge policy have significant influence on the repurchase intention. Fourth, it was identified that easiness to be active in, the stability of the form, design, suitability to T.P.O, price, origin, detailed explanation on products, product assortment, reputation of shopping malls, ease-of-use, and delivery charge policy have significant influence on the intention to recommend.