This study is to estimate consumers' value of the functional processing diet rice using the multi bounded discrete choice CVM. The results is shown that householders are willing to pay 2,637won/kg, 2,983won/kg and 3,428won/kg(definitely, sure, not sure) for buying the the functional processing diet rice. Results also show that the estimate of the aggregated buying value of the functional processing diet rice is approximately 2,239 billion won in the definitely scenario in Seoul province. The marketing strategy of the functional processing diet rice is divided by the on line and off line marketing.
Recently, the government has been expanding the supply of hydrogen vehicles according to the roadmap for vitalizing the hydrogen economy, but is developing safety assessment and inspection technology for the relevant vehicles. This study analyzed the prevention of hydrogen bus accidents' economic effect that arises from the application and development of large-capacity CHSS oil pressure repetition-test assessment technology, hydrogen bus internal chamber pressure transmission and emission volume inspection technology, among various technologies capable of assessing the safety of a hydrogen bus fuel system. To this end, the contingent valuation method (CVM), one of the value evaluation methods of non-market goods, was applied to investigate users' willingness to pay for each inspection technology. The survey for users' willingness to pay was conducted by attaching posters to promote surveys on the internet and within buses to the entire public. As a result of the analysis, the average WTP of the hydrogen bus internal chamber pressure transmission volume inspection technology was 25.3 KRW, the average WTP of the hydrogen bus internal chamber pressure emission volume inspection technology was 18.6 KRW, and the average WTP of the large-capacity CHSS oil pressure repetition-test assessment technology was measured at 16.7 KRW. In addition, the costs and benefits of the introduction of the relevant inspection technology were defined through the interviewing of experts at related research institutions and businesses. As a result of conducting an economic analysis (4.5% discount rate) according to the development of each inspection technology, economic feasibility was seen in all assessment and inspection technologies. As much as the technology is indispensable for the safe use of hydrogen buses, it shows that investment in related technology is very necessary in the future. However, because it was decided that the relevant analysis will differ according to the distribution rate of hydrogen buses, further analysis following this future distribution rate of hydrogen buses is needed, and future users should be made clearly aware of the safety and environmental nature of the technology.
Integrated gasification combined cycle (IGCC) power plants not only emit less greenhouse gases and air pollutants than conventional coal-fired power plants, but also use low-price, low-quality, and internationally easily procurable coal. Thus we can benefit from safeguarding energy security through building the IGCC power plant. This paper attempts to value the benefits of energy security enhanced by IGCC power plant. To this end, we report here the results from a contingent valuation survey of randomly selected 600 households. A combination of a double-bounded model and a spike model is applied for the purpose of increasing statistical efficiency and dealing with zero(0) willingness to pay data, respectively. The results show that the respondents are additionally willing to pay 6.05 won for 1kWh of electricity generated from IGCC power plant. In other words, the benefits from safeguarding energy security through building the IGCC power plant are 6.05 won per kWh. Given that the expected amount of generation from the Taean IGCC power plant that is scheduled to be built in late 2015 is 2.27 TWh per year, the benefits are estimated to be 13.74 billion won per year.
This study confirms the responses of consumers when the composition of emoticon bundles can be selected by individuals in MIM service. This aims to verify that customized bundling is a valid marketing strategy in the MIM emoticon market. Currently, the emoticon bundling used in Korean MIM services is in the form of pure bundling. As a result, Consumers must purchase an entire bundle even though he/she doesn't need to use all the emoticons contained in it. Some researches(e.g. Hitt & Chen, 2005; Wu & Anandalingam, 2002) show that when consumers value only part of the products or services included in pure bundling, customized bundling is much more profitable. In their works, customized bundling is appropriate when marginal costs are near zero. Information goods, such as emoticons, meet the condition. On the other hand, customized bundling increase the choosable options, so it can pose a problem of complexity (Blecker et al., 2004). And consumers may experience information overload(Huffman & Kahn, 1998). Thus, judgement on the necessity to introduce customized bundling needs to be made through empirical analyses in the light of characteristics of the product and the reaction of consumers. Results show that when customized bundling was introduced, consumers' purchase intention and willingness to pay significantly increased. Purchase intention for customized bundles has increased by 0.44 based on the five point Likert scale than the purchase intention for existing pure bundles. The increase in purchase intention for customized bundles was statistically independent of the existing purchasing experience. In addition, the willingness to pay was increased by about 2.8% compared to the price of the existing emoticon bundles in the whole group. The group with experience in purchasing pure bundles were willing to pay 5.9% more than pure bundles. The other group without experience in purchasing pure bundles were willing to buy if they were about 5% cheaper than the existing price. Overall, introducing customized bundling into emoticon bundles can lead to positive consumers responses and be a viable marketing strategy.
This paper reports novel empirical results of a choice experiment that elicited the economic values that residents in the Seoul metropolitan area place on the amenity services realized from the landscape views and accessibilities to urban green spaces (i.e., mountains, rivers and urban parks). The 1,000 respondents in the sample were divided into two residential of housing types (apartments vs. houses) and occupancy types (owners vs. tenants). Residents living in apartments are willing to pay an average of 28% (5.0 million KRW per year) above the current housing prices per household for a mountain view, compared to an apartment view from their living room. Their willingness to pay values are about 22% (4.0 million KRW per year) and 10% (1.8 million KRW per year) respectively for a river view and a urban park view. Economic benefits of having access (i.e., a 10 minutes working distance) to mountains, rivers and urban parks are estimated to be an average of 16% (2.9 million KRW per year), 20% (3.6 million KRW per year) and 18% (3.2 million KRW per year), respectively, above the current housing prices per household. On the other hand, access benefits for those residing in houses are 18% (4.7 million KRW per year), 16% (4.1 million KRW per year) and 22% (5.6 million KRW per year) per household, respectively. They are also willing to pay an average of 35% (8.9 million KRW per year) above the current housing prices for keeping or having a garden or vegetation bed. Furthermore, a strong "greenspace premium" is centered around the three Gangnam districts for house-dwellers, whereas it is areas of "new real estate boom" for apartment dwellers.
Customer Experience Management (CEM) appeared as a complementary solution to overcome CRM limitations. CEM enhances profitability through building long-term relations with customers by understanding their experiences. This study aims at investigating the impact of customer experience quality on the willingness to pay more through customer satisfaction in the hotel businesses. The survey for this study was carried out on customers who had domestic hotel experience s within the last 6 months. Out of the 306 questionnaires retrieved, 225 valid responses were used for the empirical analysis that utilizied the statistical package programs SPSS 18.0 and AMOS 18.0. The research findings may be summarized as follows. First, as an outcome of the research hypothesis that each component of customer experience management would influence satisfaction, 'the peace of mind' & 'the moment of truth' were shown to have a significantly positive (+) impact on it. On the other hand, 'the product experience' was shown not to significantly influence it in a positive (+) way. Second, as an outcome of the research hypothesis that satisfaction would influence willingness to pay more. From the findings of the study, theoretical implications are as follows. It can be predicted that customer experience management will likely make customers more profitable because customers are willing to pay more with a sense of loyalty built through satisfaction of the hotel industry. In the practical implications, the dimension of experience quality examined by the study can be used as an index to measure and manage customer experience in the hotel industry.
Park, So-Yeon;Lee, Chang-Su;Kim, Min-Seop;Jo, In-Young;Yoo, Seung-Hoon
Journal of the Korean Society of Marine Environment & Safety
/
v.24
no.1
/
pp.101-111
/
2018
The Korean government has been trying to conserve a marine ecosystem that has been shifting due to climate change. As part of this effort, the government designated seventy-seven marine species that have been disappearing and deserve to be protected as endangered managing them specially. To generate basic data to guide policy for these endangered species, their value must be measured. OOf the species declared endangered, coral is particularly threatened by climate change, and its management is important. Accordingly, understanding the potential value of reefs, can be an effective way of proving the benefits of continuous management to decision makers and the general public alike. To this end, we have applied the contingent valuation method (CVM), an economic technique of for valuing a environmental and non-market goods such as a coral reef. A national face-to-face survey of 1,000 randomly selected households was conducted in order to determine the public's willingness to pay (WTP) for conserving coral reefs. A one-and-one-half-bound (OOHB) model was adopted to interpret WTP responses, and a spike model was employed to deal with zero WTP responses. The results show that the conservation value of a coral reef can be estimated at 3,016 won per household per year, statistically significant at the 1 % level. Expanding values to the national population gives an annual value of 58.9 billion won. We can conclude that the public is willing to pay a significant amount to conserve coral reefs.
Kim, Mi-Ki;Jung, Ji-Ho;Min, Deul-Le;Lee, Hai-Ja;Park, Eun-Jung
The Journal of Pediatrics of Korean Medicine
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v.25
no.1
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pp.111-118
/
2011
Objectives: The purpose of this study is to examine the different preferences between herbal medicine and health functional food, and analyze the reasons for the preferences to figure out the better way of promoting herbal medicine. Methods: 500 questionnaires has been handed out to the parents having elementary school students in Gyeonggi-do province, and 331 questionnaires has been collected and evaluated for this study. Results: Among the 331 responses, 58.4% were female, and 41.6% were male. The percentages of the subjects who consume health supplements and that of herbal medicines were 67.4% and 59.2% respectively. The preference rate for the health supplements was 57.6%, and for herbal medicines was 42.4%. The major reason of taking the health supplements was that they were convenient to consume(54%). The major reason for choosing herbal medicines was that people 'expect them to be more effective'(72.7%). However, the problem with Herbal medicine was their consumptions were inconvenient (39.8%), and their tastes was unfavorable. The most preferable form of herbal medication was pills(50.6%), followed by syrup(22.9%). Pertinent price for herbal medication, the participants were favorable to pay 30,000 within a week. For the question on when to start taking the herbal medication, 18 months after was the popular answers from the participants. Conclusions: Among the 331 subjects, the percentage of consuming the health supplements (67.4%) was higher than that of consuming the Herbal Medicine (59.2%). Also the preference was higher than the Herbal Medicine. The reason why the participant preferred health supplements was that they were 'easy to take', The reason for subjects' great preference in herbal medicine was based on their conception that herbal medicines were highly effective. When taking herbal medicine, participants addressed inconvenience in consuming, and unfavorable taste as the biggest problems. Also they thought that pills would be most convenient form of herbal medicine to consume. For the proper price, they were willing to pay less than 30000won, lower than a market price, per a week for the herbal medicine. Most parents thought that proper age of taking herbal medicine is ' 18 month after the birth'. Taking these into account, different perspectives on herbal medicine is necessary at the very moment.
The objective of this study was to investigate the existence of starting point bias in the bidding game contingent valuation elicitation technique when determining willingness to pay (WTP) for improving the qualify of running water in Seoul and its vicinity. Of all existing contingent techniques, the bidding game most closely mimics the normal price taking behavior in local markets. Three different starting points (low, medium and high) were used to determine WTP and the existence of starting point bias in the meanwhile respectively. The respondents were randomly assigned to the three different starting point groups in order to ensure homogeneity, so that any variation seen in WTP could be attributed to the starting point effects. And a pretested interviewer-administered questionnaire used to elicit WTP. Non-parametric test and the logit model were used to analyze the data for evidence of starting point bias. In this instance, the high starting point group had a high WTP, and low starting point group had a low WTP. This means there exist starting point bias in estimating WTP by bidding game in this instance. This finding might signal that people may actually be making up their minds on the maximum amount they are willing to pay for running water service as a bidding iterating is going on and is influenced by the starting point used in the bidding game. The problem of slaking point bias can be avoided if the respondent is asked directly for the maximum WTP without payment cards or a bidding game. But such a question is perceived as being very difficult to answer and this leads to problems of non-response and being unrealistic.
As carbon dioxide, the main greenhouse gas, is generally emitted by vehicles, the development and distribution of electric cars is important for the sustainability of environmentally-friendly tourism, especially in national parks. National parks in Korea, however, still see the use of traditional vehicles powered by internal combustion engines in the handling of visitors and the transportation of goods and staff. Such engines being the cause of environmental problems such as exhaust emission and noise pollution, the introduction of electric cars in national parks is needed. This study aims to analyze the economic value of electric cars in national parks as well as contribute to the development of the Green Transportation model in tourism destinations. The study used a logit model to estimate the willingness to pay for the introduction of electric cars in national parks. Adults over the age of twenty, with gender and age apportioned equally, were surveyed using questionnaires that included dichotomous as well as demographic questions. The findings show that the amount an individual is willing to pay for the purpose of environmental conservation is 3,948 won, while the value the national parks would derive from the use of electric cars is 56,138,130,000 won. The introduction of electric cars in national parks is expected to offer both direct and indirect benefits while helping to improving the environment of the national parks by eliminating exhaust emission and noise. This introduction would also be a response to climate change that can be taken by society as a whole.
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