• Title/Summary/Keyword: Willingness to Return

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The Effect of Post-Purchase Discount Format on Consumers' Perception of Loss and Willingness to Return

  • Luo, Xueqing;Lee, Jennifer J.
    • The Journal of Asian Finance, Economics and Business
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    • v.5 no.4
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    • pp.101-105
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    • 2018
  • Price discount is one of the commonly used promotion strategies to increase sales and revenue. If a discount is perceived before the purchase (i.e., pre-purchase discount), consumers are likely to perceive it as a potential gain. If it is noticed after making a regular-priced purchase (i.e., post-purchase discount), consumers may develop negative emotions and attitudes. Based on the rising transparency and omnipresence of price and discount information through web and mobile platforms, we attempt to tackle an understudied topic on the negative effect of post-purchase price discount. Specifically, post-purchase discount information may increase consumers' perception of monetary loss, which may affect consumers' decision to return the product, potentially increasing the operating costs borne by retailers. Based on a close scrutinization of the current market environment and previous academic literature, we suggest a novel conceptual framework to understand consumers' perception, attitude, and behavior (perception of loss, willingness to return) upon perceiving various formats of discount promotion (absolute value vs. percentage discount) posterior to the purchase of a product. We also look at the effect of price level (low-priced vs. high-priced). For marketing practitioners, we intend to suggest optimal promotion formats that can alleviate consumers' negative perceptions and prevent additional operation costs.

A Study on Activation factors of Social Return for Government R&D supported SMEs (정부 R&D 지원 중소기업의 사회 환원 활성화 요인에 대한 연구)

  • Kim, Ki-Woong
    • Journal of Digital Convergence
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    • v.20 no.2
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    • pp.21-35
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    • 2022
  • In this paper, government R&D supported 310 small and medium enterprises in three main sectors were surveyed and examined the relationship between major factors related to social return using the structural equation model. The main results show that although the level of public awareness of social return and willingness of government R&D supported SMEs are established to some extent, the internal culture and system of SMEs for social return implementation are insufficient, and therefore policy aiming should be placed on establishing internal system of SMEs. In addition, this study suggests that the government policy delivery mechanism should be supplemented to positively increase willingness of SMEs and it is important to pay attention to the growth of SMEs must precede for activation of social return.

Factors related to willingness of choosing the same hospital (입원환자의 재선택 의향과 결정요인)

  • Seol, Dong-Won;Yu, Seung-Hum;Park, Eun-Cheol;Kim, Eun-Suak
    • Korea Journal of Hospital Management
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    • v.2 no.1
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    • pp.65-79
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    • 1997
  • This study aims to measure in-patients' willingness to choose the same hospital, and to define the related factors. The willingness was measured by the fact whether in-patients would return to the same hospital for their future hospitalization and can be said as the essence of ascertaining patients' satisfaction. Data was collected from 236 patients hospitalized in two hospitals selected according to its superiority, one being superior in medical technique, the other being superior in facility and equipment. To enhance the comparability between the two hospitals, the department and the diagnosis were matched, and structured questionnaires were self-fill-up. The main findings are as follows. Hospitals were analyzed by their superiority : medical services, facility and equipment. In case of hospitals with superior medical services, the willingness was proportional to positive doctor-patient relationship, to satisfaction with the medical level, and to the acknowledgement of utility in cure. In case of hospitals with superior facility and equipment, the willingness was proportional to the satisfactory state of overall facility. Two types of hospitals were combined and analyzed. The willingness for choosing hospitals with superior medical services was stronger than that for choosing the other hospitals. The satisfaction with overall facility, satisfaction with medical level, acknowledgement of utility in cure, positive doctor-patient relationship, and better consultation produced higher willingness to choose the same hospital. The willingness for the option shows to what degree the hospital suffices patients' expectation. Patients' understanding views were obviously influential. The satisfaction level for medical aspect was more influential than the level for non-medical aspect.

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The Effect of the Gap between College Students' Perception of the Importance of Coffee Shops and Their Satisfaction after Patronizing Coffee Shops on Their Purchasing Behavior (대전원교학생대가배점중요성적감지화타문광고가배점지후적만의도지간적차거대타문구매행위적영향(大专院校学生对咖啡店重要性的感知和他们光顾咖啡店之后的满意度之间的差距对他们购买行为的影响))

  • Lee, Won-Ok
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.4
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    • pp.1-10
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    • 2009
  • The purpose of this study was to categorize the gap between coffee shop 'importance' (as perceived by customers before patronizing the coffee shop) and 'satisfaction' (perception of customers after patronizing the coffee shop) as positive or negative and to analyze the effect of these gaps on purchasing behavior. To do this, I used the gap between importance and satisfaction regarding the choice of a coffee shop as the explanatory variable and performed an empirical analysis of the direction and size of the effect of the gap on purchasing behavior (overall satisfaction, willingness-to-revisit) by applying the Ordered Probit Model (OPM). A previous study that used IPA to evaluate the effects of gaps estimated the direction and size of a quadrant but failed to analyze the effect of gaps on customers. In this study, I evaluated the effects of positive and negative gaps on customer satisfaction and willingness-to-revisit. Using OPM, I quantified the effect of positive and negative gaps on overall customer satisfaction and willingness-to-revisit. Per-head expenditure, frequency of visits, and coffee-purchasing place had the most positive effects on overall customer satisfaction. Frequency of visits, followed by per-head expenditure and then coffee-purchasing place, had the most positive impact on willingness-to-visit. Thus per-head expenditure and frequency of visits had the greatest positive effects on overall satisfaction and willingness-to-revisit. This finding implies that the higher the actual satisfaction (gap) of customers who spend KRW5,000 or more once or more per week at coffee shops is, the higher their overall satisfaction and willingness-to-revisit are. Despite the fact that economical efficiency had a significant effect on overall satisfaction and willingness-to-revisit, college and university students still use coffee shops and are willing to spend KRW5,000 because they do not only purchase coffee as a product itself, but use the coffee shop for other activities, such as working, meeting friends, or relaxing. College and university students also access the Internet in coffee shops via personal laptops, watch movies, and study; thus, coffee shops should provide their customers with the appropriate facilities and services. The fact that a positive gap for coffee shop brand had a positive effect on willingness-to-revisit implies that the higher the level of customer satisfaction, the greater the willingness-to-revisit. A negative gap for this factor, on the other hand, implies that the lower the level of customer satisfaction, the lower the willingness-to-revisit. Thus, the brand factor has a comparatively greater effect on satisfaction than the other factors evaluated in this study. Given that the domestic coffee culture is becoming more upscale and college/university students are sensitive to this trend, students are attentive to brands. In most upscale coffee shops in Korea, the outer wall is built out of glass that can be opened, the interiors are exotic with an open kitchen. These upscale coffee shops function as landmarks and match the taste of college/university students. Coffee shops in Korea have become a cultural brand. To make customers feel that coffee shops are upscale, good quality establishments and measures to provide better services in terms of brand factor should be instituted. The intensified competition among coffee shop brands in Korea as a result of the booming industry indicates that provision of additional services is needed to differentiate competitors. These customers can also use a scanner free of charge. Another strategy that can be used to boost brands could be to provide and operate a seminar room for seminars and group study. If coffee shops adopt these types of strategies, college/university students would be more likely to consider the expenses they incur worthwhile and, subsequently, they would be more likely to be satisfied with the brands of these coffee shops, with an associated increase in their willingness-to-revisit. Gender and study year had the most negative effects on overall satisfaction and willingness-to-revisit. Female students were more likely to be satisfied and be willing to return than male students, and third and fourth-year students were more likely to be satisfied and willing-to-return than first or second-year students. Students who drink coffee, read books, and use laptops alone at coffee shops are easily noticeable. High-grade students tend to visit coffee shops alone in order to use their time efficiently for self-development and to find jobs. The economical efficiency factor had the greatest effect on overall satisfaction and willingness-to-revisit in terms of a positive gap. The higher the actual satisfaction (gap) of students with the price of the coffee, the greater their overall satisfaction and willingness-to-revisit. Economical efficiency with a negative gap had a negative effect on willingness-to-revisit, which implies that a less negative gap will result in a greater willingness-to-revisit. Amid worsening market conditions, coffee shops located around colleges/universities are using strategies, such as a point or membership card, strategic alliances with credit-card companies, development of a set menu or seasonal menu, and free coffee-shot services to increase their competitive edge. Product power also had a negative effect in terms of a negative gap, which indicates that a higher negative gap will result in a lower willingness-to-revisit. Because there are many more customers that enjoy coffee in this decade, as compared to previous decades, the new generation of customers, namely college/university students, want various menu items in addition to coffee, and coffee shops should, therefore, add side menu items, such as waffles, rice cakes, cakes, sandwiches, and salads. For example, Starbucks Korea is making efforts to enhance product power by selling rice cakes flavored in strawberry, wormwood, and pumpkin, and providing coffee or cream free of charge. In summary, coffee shops should focus on increasing their economical efficiency, brand, and product power to enhance the satisfaction of college/university students. Because shops adjacent to colleges or universities enjoy a locational advantage, providing differentiated services in terms of economical efficiency, brand, and product power, is likely to increase customer satisfaction and return visits. Coffee shop brands should, therefore, be innovative and embrace change to meet their customers' desires. Because this study only targeted college/university students in Seoul, comparative studies targeting diverse regions and age groups are required to generalize the findings and recommendations of this study.

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A Study of the Impact of Knowledge Sharing and Utilization on the Characteristics and Joint Performance of the Participants in an International Joint Ventures

  • Lee, Won-Hee;Moon, Jae-Young
    • Journal of the Korea Society of Computer and Information
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    • v.24 no.11
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    • pp.187-193
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    • 2019
  • The study is to investigate the impact of the knowledge sharing and utilization among the participants in international joint ventures on the characteristics and the joint venment performance of the participants. The specific areas of the investigation for significant impacts of knowledge sharing & utilization by international joint ventures are contract compliance, motivation & willingness for business participation, management autonomy, organizational culture and the joint performances, and the characteristics that are unique to the participants in international joint ventures are empirically investigated as well. The findings of the empirical analysis are as follows: knowledge sharing & utilization has positive impacts on the areas of contract compliance, management autonomy, motivation & willingness for business participation and organizational culture, and, in return, the areas of contract compliance, managerial autonomy, and motivation & willingness for business participation appeared to have positive effects on their joint venture performances.

An Analysis on the Economic Validity of the Establishment of R&D Supreme Academy (R&D 인력 재교육 전문기관의 경제적 타당성 분석)

  • Lim, Chang-Joo;Kim, Sang-Yung;Baek, Nak-Ki;Oh, Sea-Hong;Seo, Jong-Hyen
    • Journal of the Korea Safety Management & Science
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    • v.11 no.3
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    • pp.181-188
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    • 2009
  • This paper presents the economic validity with the cost/benefit analysis on establishing R&D Supreme Academy. To evaluate the profitability of R&D Supreme Academy, willingness to pay (WTP) is measured by contingent valuation method (CVM) and then the net present value (NPV), internal rate of return (IRR) and benefit/cost ratio(BCR) are calculated. The results of economic evaluation verified that the establishment of R&D Supreme Academy is timely and effective in an economic perspective.

Feasibility Survey on the Introduction of Forest Land Bank System focusing on Forest Owners, Non-forest Owners, and People Who Return to the Farm (산주와 비산주 및 귀농·귀촌인을 대상으로 한 산지은행제도 도입 타당성 설문조사)

  • Kim, Jong Ho;Kim, Won Kyung;Kwon, Soon-Duk
    • Journal of Korean Society of Forest Science
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    • v.103 no.2
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    • pp.278-286
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    • 2014
  • Forestry management problems in South Korea have been caused by small and scattered forest lands, aging forest owners, and the increase of absentee forest owners. To solve these problems, it is a time to consider the introduction of forest land bank system for the expansion of forestry management scale, the effective management of neglected forest lands, and the stable livelihood support for aged forest owners. Therefore, this research implemented the questionnaire survey of necessity, expectation, willingness to use, and introduction plans for the forest land bank system in order to examine the feasibility and demand of the system focused on forest owners, non-forest owners, and people who return to the farm. The questionnaire survey was conducted for 262 of resident forest owners, 152 of absentee forest owners, 427 of non-forest owners, and 101 of people who return to the farm. 77.5% of forest owners and 63.8% of non-forest owners agreed with the necessity of the introduction for the forest land bank system. Both forest owners and non-forest owners would prefer to use forest land reverse mortgage and leasing among projects of the forest land bank. In addition, 75% of people who return to the farm also expected that forest land bank would be helpful to their rural and mountain life, and they would have higher preference to participate in leasing and buying forest lands than other projects. Based on the outputs of the feasibility and demand survey in this research, this study can play a key role in determining basic direction, major functions, types and range of projects as well as providing information for establishing policies of the forest land bank system.

Economic Effects of the Management Model far Environment Pollution in Gwangyang Bay (광양만 환경오염 관리모델 연구의 경제적 파급효과 분석)

  • Nam Kwanghyun;Kwon Sukjae;Oh Weeyeong
    • Journal of Korea Technology Innovation Society
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    • v.7 no.3
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    • pp.657-679
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    • 2004
  • The purpose of this paper is to measure economic impact of marine environment conservation research development project. Benefit-Cost(B/C) analysis and Contingent Valuation Methods(CVM) are used to valuate the benefits from the research development projects. A period of three years for research development fund is considered as a part of the costs and adjusted to the net present value (NPV) of the 2002 ending period. The environmental charges for marine environment improvement are considered for the benefit measurement. The benefits are estimated by using monthly average willingness to pay, which is 2,289 Korean won. The contribution of the developing a management model for environmental pollution in the Gwangyang Bay is evaluated utilizing survey data and information. Based on the assessment by expert groups, the contribution of the model was 37.5%. The research results showed that B/C ratio is 20.61, NPV is 89,200 million Korean won, and social rate of return is 185.7%. When the level of contribution is over 1.83% at the assessment of potential influence, it is recognized to be economically feasible. This research presents a quantitative framework for Research and Development projects for marine environment conservation, and it can be applied to decision making for the investment size of R&D projects.

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Analyzing Public Preference for Community-Based Floating Photovoltaic Projects: A Discrete Choice Experiment Approach (주민참여형 수상태양광 발전사업에 대한 국민 선호도 분석: 선택실험법을 이용하여)

  • Hye Lee, Lee;JongRoul, Woo
    • Current Photovoltaic Research
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    • v.10 no.4
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    • pp.121-132
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    • 2022
  • The need for floating photovoltaic is being emphasized to expand renewable energy but low residents' acceptance is a major obstacle to the deployment of floating photovoltaic. Using the discrete choice experiment, this study analyzed the preferences for community-based floating photovoltaic projects and proposed a method to increase the residents' acceptance of floating photovoltaic projects. The estimates of the marginal willingness to accept (MWTA) of the distance, the coverage ratio, the landscape, the project owner (public institution), and the project owner (large company) are -0.69%p/km, 0.13%p/%p, -0.57%p, -2.95%p, -1.73%p, respectively. According to the result of simulation analysis, the residents' acceptance is significantly higher when the project is operated by a public institution, with a choice probability of 58%, than when the project is operated by a private company, with a choice probability of 29%, 12% for a large and small company, respectively. In addition, as a result of the analysis of the expected returns, the results show that the closer the distance from the residence to the power plant, the higher the expected return.

A Study on the Economic Feasibility Analysis of Public Library Construction - Focused on the Case of Geumsaem Library Construction - (공공도서관 건립의 경제적 타당성 분석에 관한 연구 - 금샘도서관 건립 사례를 중심으로 -)

  • Kang, Hee-Kyung;Lee, Yong-Jae
    • Journal of Korean Library and Information Science Society
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    • v.48 no.2
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    • pp.99-119
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    • 2017
  • As a part of feasibility study of constructing Geumsaem library, the purpose of this study is to examine the result of economic feasibility analysis on constructing the library. In order to achieve the purpose, we evaluated policy relevance, investigated people's demand for constructing the library, and examined the result of economic feasibility analysis. As the tools of economical efficiency analysis, we used the techniques like cost-benefit ratio, net present value and internal rate of return to analyse the economic feasibility, and we estimated the amount of benefit by contingent valuation method. As the result of this study, cost-benefit ratio for constructing Geumsaem library was turned out as 1.28, and we could get an assessment of positive economic feasibility about constructing the library.