• Journal of the Korean Operations Research and Management Science Society
• /
• v.38 no.1
• /
• pp.15-27
• /
• 2013

Because consumers tend to have negative opinion about a company that neglects social issues like poverty or pollution while it focuses on its own profit, a lot of companies have invested their resources in Corporate Social Responsibility(CSR). CSR has merits of image improving and profit gaining, on the other hand, it has also many shortcomings. First, the cost of CSR may become a heavy financial burden. Specifically, CSR tends to be implemented by a company's unilateral backup, and then this may impose a heavy burden on the company. Second, one cannot expect effects of CSR in a short-term. Because of these shortcomings, the unilateral CSR has gone into alteration of the type of CSR since 1980's. Instead of unilaterality, Cause-Related Marketing(CRM) began to be used for mutual profits among company, consumers, and society. That is, CRM has become to be spotlighted as a new type of CSR. It focuses on partnership between a company and consumers based on cause and mutual profit pursuing through this partnership. So, many contemporary companies prefer CRM activities that derive their positive corporate image, that increase their sales, and that reduce their financial cost. The IBM Matching Grants Program, which is the largest of the IBM-Employee partnership programs, is a typical CRM. This program enables employees and retirees to increase the value of their donations to educational institutions, hospitals, hospices, nursing homes, and cultural & environmental organizations with a matching gift from IBM. Hundreds of educational institutions and thousands of nonprofit organizations have benefited from the contributions by IBM. There might be various types of matching grants. For example, an employee might choose a lump-sum expense or partitioning a lump-sum into a series of small ongoing expenses for his (or her) donation, and a firm might match the employee's total contribution with a lump-sum expense or might match the employee's total contribution with a series of small ongoing expenses. However, it is not easy to find an academic research on which type of matching grant is preferred by employees. This paper shows that an employee prefers the type of matching grants that consists of a lump-sum expense for his (or her) contribution and a series of small ongoing expenses for a firm's contribution [or the type of matching grants that consists of a series of small ongoing expenses for an employee's contribution and a lump-sum expense for a firm's contribution] to the other types of matching grants.

• Journal of Distribution Science
• /
• v.11 no.6
• /
• pp.31-40
• /
• 2013

Purpose - The Northeast Asian Logistic Hub strategy was established to create a national competitive advantage in northeast Asia. Countries in this region are competing fiercely to become the central base distribution port as the volume of container shipping continues to increase due to the northeast Asian (especially Chinese) economic growth. The primary method by which shippers are improving their customer service and distribution is enhancing profits by minimizing call ports on the key route through strategic affiliations and the use of large vessels. Each nation is planning large-scale investments in the construction of sea ports that can accommodate large vessels. This paper proposes ways by which the logistical strategies of domestic corporations can keep pace with changes in government policy concerning the Northeast Asian Business Hub policy. It examines the logistics system in the Northeast Asian region, analyzes the government's Northeast Asian Business Hub policy, and suggests logistical strategies for domestic corporations through an analysis based on a questionnaire designed to grasp domestic firms' needs and goals. Research design, data and methodology - The purpose of this study is to determine how shipping companies establish partnerships with third-party logistics providers and draws out the implications of the results. The survey methods used were personal interviews and questionnaires distributed to a sample population through e-mail, fax, mail, and telephone. A total of 600 questionnaires were distributed, of which 165 were returned. Among these, ten were excluded due to insufficient content; ultimately, 155 were used for the sample. The statistical data collection process was analyzed through data coating and a statistical package program. Results - This study argues that greater flexibility in policies, administration, and systems will be needed to significantly improve established business practices. In this dissertation, we primarily identify that in order to become a center of northeast Asian logistics, Korea must adopt a new paradigm and abandon the existing systems that are based on the economic and social systems that have stemmed from bureaucracy, inflexibility, chauvinism, and equalitarianism. Flexible policies, administration, and systems will be necessary to improve business practices. Domestic corporations must establish a strategic logistics hub and related network while simultaneously pursuing value-added logistics businesses by increasing their manpower and building a logistics information system. This will strengthen their competitive edge and lead to system improvements. Conclusions - Domestic corporations must adopt a new paradigm and use more reasonable business laws, systems, and policies that are based on market-driven flexibility and transparency. Moreover, social norms and regulations should be established to help ensure political and social security. Korea must also develop a culture of tolerance for foreign companies. Finally, the paradigm defining the policy governing the development of the capital city and its satellite cities in this context must be changed.

• The Journal of the Korea Contents Association
• /
• v.17 no.8
• /
• pp.535-550
• /
• 2017

The purpose of this study is to identify the factors that customers perceive as important relationship investment in the relationship efforts provided by retailers for customer relationship purposes and to explain the mediating role of relationship quality such as trust, relationship commitment in the relationship perceived relationship investment and relationship performance. For this study, 270 respondents were surveyed and data were analyzed using SPSS 21.0 and AMOS 20.0 statistical package. Statistical analysis tools, such as SPSS 21.0 and AMOS 20.0 were utilized for ensuring the validity and the reliability, whereas the SEM method was used for testing the research hypothesis. The results of study are as follows. Financial efforts and structural efforts have affected perceived relationship investment. Perceived relationship investment affected trust and relationship commitment but not loyalty. Trust influenced relationship commitment and loyalty whereas relationship commitment did not affect loyalty. Therefore, it is important for retail marketing managers to provide tangible rewards and special benefits at all times in order to recognize that they are doing the best service efforts for customer relations. In order to secure long-term and stable profits by establishing a relationship with them, the service marketing strategies should be promoted to enhance the relationship quality by raising the level of trust.

• The Journal of the Korea Contents Association
• /
• v.18 no.8
• /
• pp.544-560
• /
• 2018

Cause-Related Marketing is the process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organizational and individual objectives. Many companies obtain benefits such as increasing sales profits and fulfilling social responsibility activities from Cause-Related Marketing as a strategic marketing activity. The purpose of this study is to analyze the effects of message of Cause-Related Marketing on consumer attitude, and to examine the moderating effects of ethical consumption propensity, social trust and types of product(utilitarian vs. hedonic) on consumer's product attitude. The research results show that consumers tend to adopt a positive attitude towards those advertisements with Cause-Related Marketing message. In the meanwhile, the ethical consumption propensity and social trust also have moderating effects on Cause-Related Marketing message's influence, but the types of product have no moderating effect. Based on the findings, the theoretical and managerial implication are discussed. In addition, some limitations of this study and future research directions are discussed.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.19 no.2
• /
• pp.387-396
• /
• 2018

This study examined the instability factor of real income and net profits of Chung-yang Green Pepper Farm through an analysis of the operating costs. Furthermore, this paper suggests a plan for stabilizing the price by shipment adjustments resulting from an analysis of the price elasticity by A Linear Approximated Inverse Almost Ideal Demand System (LA/IAIDS). The income instability factor of the farm based on an analysis of the operating costs was attributed to the unexpected loading of utility expenses and collapse of the price due to oversupply at a specific point in time. On the other hand, this is insufficient to completely explain the income instability factor of Chung-yang Green Pepper Farm because a price collapse does not include the monthly price changes. An analysis of the price and scale flexibility of Chung-yang Green Pepper Farm by monthly data showed that annual farm net yield increases by 1.21% due to a 2.21% increase in price if the shipment quantity is reduced to 1% a year. In summary, a plan that supports the farm price received through declining shipments in winter is effective in stabilizing the income of farms. Because Chung-yang Green Pepper in Gyeongnam region has an especially high market share of 82.5%, the prices and income of Gyeongnam Chung-yang Green Pepper farms can be stabilized effectively if they form an association of producers around the Gyeongnam region and adjust the shipment.

• Journal of Korea Port Economic Association
• /
• v.29 no.4
• /
• pp.27-53
• /
• 2013

It is a generalized way for the chartering business to fix the laytime bars except rarely adapting the customary despatch of the cargo work in port. The way of customary despatch is usually accepted by the owners in case the port facilities and other relevant infrastructures are in the satisfactory level for the cargo work whereas the laytime bars to be widely incorporated in the chaterparty for almost all occasions for owners and charterers to bind each other in loading and discharging cargo in port. The main purpose of establishing laytime bars on the charterparty is to secure the right and duty for both parties of the owners and the charterers, and furthermore to make the vessel despatched quickly from the port, whereby the costs incidental to the loading and discharging in port to be saved as much as possible. and the minimized costs in port will contribute to the profits in all parties involved in loading and discharging cargo. The conditions and terms on the laytime bars are expressed variously in their kinds according to the types of the charterparty to be used. The owners and charterers or the ship operators, however, seems not to be so accustomed in lawful understanding on these terms and conditions, and therefrom lots of disputes are noticed practically in the business field. As a result, this study is focused to render the owners and charterers rather clear understanding on their meanings and effects in legal aspects, and the various English Law Cases are referred in order to achieve the purpose of this study.

• The Journal of Art Theory & Practice
• /
• no.2
• /
• pp.169-190
• /
• 2004

The purpose of this article is to delve into the problems of originality of the artwork by examining issues of reproduction within the contemporary art market. In contemporary arts, especially in terms of art production and consumption, we can't overlook society and its economic structure and its connection with of capitalism. As the purity of art creation has turned into an exchange value, art, especially an object as artwork, has fallen into the status of production in an economic marketing system. Walter Benjamin mainly referred to that point in his thesis Das Kunstwerk im Zeitalter seiner technischen Reproduzierbarkeit, which originated the sociology of plastic arts. This thesis, published in 1936, traced how the artistic functions of photograph and movie had been changed through the social development. His main concerns were movie and photograph but what I am concentrating from his point of view, is that even in the field of plastic arts, the manufacture of reproduction has been practiced as a primary method within the social and political contexts and development. Though I am referring to this in the main body of this article, reproduction in contemporary art strongly needs a new definition since it has been spread all over like a newest virus, not only by collector's personal taste or hut also by commercial circulations of these reproductions to the public. This relates to Benjamin's argument about the value of an exhibition at a museum(Ausstellungswert). Since the function of an artwork has been one of cultural industry, the manufacturing of reproduction raises unexpected problems, such as, the originality of the artwork, the value of an exhibition at a museum, its achievement as documentary and as a territory of art criticism. In this point of view, I want to inquire into the value and criteria of an exhibition in contemporary art through the review of the definitions and the intrinsic attributes of reproduction. Somehow in a broad sense, the reproduction is a product coming out of representation or copy (replica) of an original art work or an model. Therefore, the problems it presents differ from the Simulacre, which is an image without an original one. In terms of the Meanings of reproduction, we can distinguish it as reproductions, copies, and productions. These types of reproductions are not the original artworks reflected by the creative intention of the artists. For example, a publishing company reproduced some of lithographs of Salvador Dali in the 1960s. They are commercial copies in the form of representation or reproduction with no artistic and creative intention of the artist. However, In despite of this theoretical basis, reproductions of the famous artists are still displayed without any verification for of the public's quest for the artworks. Moreover, many commercial companies that are planning to exhibit art works of the world-famous artists only for their profits keep trying to speak ill of and judging by the law the honest art critics' articles which discuss the true values of exhibition. If freedom of expression is one of the ideals of democracy, even the judgment of the originality of the artworks should be freely expressed.

• The Journal of the Korea Contents Association
• /
• v.16 no.11
• /
• pp.29-37
• /
• 2016

With the emergence of SNS, TV, newspapers and radio, which are one-way communication media, have become less important. Therefore social networking enables social networking beyond the constraints of time and space, and communication and emotional communication required for social relations have emerged as a factor in the importance of social media. Social media, which is based on rapid connectivity and scalability, is an medium of expression that is advantageous for companies and consumers to communicate more easily than traditional advertising media. Advertising can form a consensus that consumers and companies can create an atmosphere of friendly conversation because of the social media that has the efficiency of communication. This study compares two ads. One is the advertisement of 'Bear and Hare', an animation of John Lewis department store in the UK, where a new form of advertising marketing strategy is fused with emotional storytelling and social media. The second is an advertisement of LG, 'I love you LG' to be. Social media should be remembered as a warm and loving company in the heart of customers through open communication with customers, rather than companies that pursue merit profits by using social media ads as a medium of emotional transmission to consumers. It is a study on useful advertising strategy that can pursue the sales of the company at the same time.

• Journal of Korea Technology Innovation Society
• /
• v.10 no.3
• /
• pp.406-430
• /
• 2007

Most pharmaceutical licensing deals are made in the early stage of drug development. While this development process is not unique for complicated technology, a special feature of drug development is that it is highly regulated and a well-defined process. Its statistics in terms of costs and chances of technical success have been researched extensively. This enables relatively detailed calculations as benchmarks for actual deals to be made. Based on such calculations and on the analysis of licensing terms in published agreements, various companies offer quite expensive information, databases, software programs and consultation services to help establish what might be reasonable economic terms in a licensing deal. Over the years, pharmaceutical royalties have been the subject of various articles in journals. Most specific on this subject was the article on determining pharmaceutical royalties. Many other articles are about a more general nature deal with determining reasonable royalty rates, evaluating and underpinning the empirical value and usefulness of the 25% rule. The object of this article is to provide a relatively simple analytical approach based on the major economic terms underlying pharmaceutical licensing deals. The aim is to enhance the understanding of the relations between the major factors involved. Details are disregarded, as generally, where the terms of licensing deals depend on predictions over a considerable length of time, the value of detail is limited. Some specific issues addressed by the approach are the impact on profits of large investments, high risks and long development times characteristic of drug development, the consequent strong impact that the ultimate sales levels and operating margins may have on what might be considered a reasonable royalty rate, and the relationship between upfront payments and milestone payments to be paid during pharmaceutical development and the royalties due once the drug enters the market.

• Journal of Distribution Science
• /
• v.13 no.11
• /
• pp.123-130
• /
• 2015

Purpose - Due to highly elevated levels of competition, many companies today have to face the problem of decreasing profits even when their actual sales volume is increasing. This is a common phenomenon that is seen occurring among companies that focus heavily on quantitative growth rather than qualitative growth. These two aspects of growth should be well balanced for a company to create a sustainable business model. For supply chain management (SCM) planners, the optimized, quantified flow of resources used to be of major interest for decades. However, this trend is rapidly changing so that managers can put the appropriate balance between sales volume and sales quality, which can be evaluated from the profit margin. Profit optimization is a methodology for companies to use to achieve solutions focused more on profitability than sales volume. In this study, we attempt to provide executional insight for companies considering implementation of the profit optimization system to enhance their business profitability. Research design, data, and methodology - In this study, we present a comprehensive explanation of the subject of profit optimization, including the fundamental concepts, the most common profit optimization logic algorithm -linear programming -the business functional scope of the profit optimization system, major key success factors for implementing the profit optimization system at a business organization, and weekly level detailed business processes to actively manage effective system performance in achieving the goals of the system. Additionally, for the purpose of providing more realistic and practical information, we carefully investigate a profit optimization system implementation case study project fulfilled for company S. The project duration was about eight months, with four full-time system development consultants deployed for the period. To guarantee the project's success, the organization adopted a proven system implementation methodology, supply chain management (SCM) six-sigma. SCM six-sigma was originally developed by a group of talented consultants within Samsung SDS through focused efforts and investment in synthesizing SCM and six-sigma to improve and innovate their SCM operations across the entire Samsung Organization. Results - Profit optimization can enable a company to create sales and production plans focused on more profitable products and customers, resulting in sustainable growth. In this study, we explain the concept of profit optimization and prerequisites for successful implementation of the system. Furthermore, the efficient way of system security administration, one of the hottest topics today, is also addressed. Conclusion - This case study can benefit numerous companies that are eagerly searching for ways to break-through current profitability levels. We cannot guarantee that the decision to deploy the profit optimization system will bring success, but we can guarantee that with the help of our study, companies trying to implement profit optimization systems can minimize various possible risks across various system implementation phases. The actual system implementation case of the profit optimization project at company S introduced here can provide valuable lessons for both business organizations and research communities.