The Effects of Perceived Quality Factors on the Customer Loyalty: Focused on the Analysis of Difference between PB and NB (지각된 품질요인이 고객충성도에 미치는 영향: PB와 NB간의 차이분석)
- Ye, Jong-Suk;Jun, So-Yon
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- Journal of Distribution Research
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- v.15 no.2
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- pp.1-34
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- 2010
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Introduction As consumers' purchase behavior change into a rational and practical direction, the discount store industry came to have keen competition along with rapid external growth. Therefore as a solution, distribution businesses are concentrating on developing PB(Private Brand) which can realize differentiation and profitability at the same time. And as improvement in customer loyalty beyond customer satisfaction is effective in surviving in an environment with keen competition, PB is being used as a strategic tool to improve customer loyalty. To improve loyalty among PB users, it is necessary to develop PB by examining properties of a customer group, first of all, quality level perceived by consumers should be met to obtain customer satisfaction and customer trust and consequently induce customer loyalty. To provide results of systematic analysis on relations between antecedents influenced perceived quality and variables affecting customer loyalty, this study proposed a research model based on causal relations verified in prior researches and set 16 hypotheses about relations among 9 theoretical variables. Data was collected from 400 adult customers residing in Seoul and the Metropolitan area and using large scale discount stores, among them, 375 copies were analyzed using SPSS 15.0 and Amos 7.0. The findings of the present study followed as; We ascertained that the higher company reputation, brand reputation, product experience and brand familiarity, the higher perceived quality. The study also examined the higher perceived quality, the higher customer satisfaction, customer trust and customer loyalty. The findings showed that the higher customer satisfaction and customer trust, the higher customer loyalty. As for moderating effects between PB and NB in terms of influences of perceived quality factors on perceived quality, we can ascertain that PB was higher than NB in the influences of company reputation on perceived quality while NB was higher than PB in the influences of brand reputation and brand familiarity on perceived quality. These results of empirical analysis will be useful for those concerned to do marketing activities based on a clearer understanding of antecedents and consecutive factors influenced perceived quality. At last, discussions about academical and managerial implications in these results, we suggested the limitations of this study and the future research directions. Research Model and Hypotheses Test After analyzing if antecedent variables having influence on perceived quality shows any difference between PB and NB in terms of their influences on them, the relation between variables that have influence on customer loyalty was determined as Figure 1. We established 16 hypotheses to test and hypotheses are as follows; H1-1: Perceived price has a positive effect on perceived quality. H1-2: It is expected that PB and NB would have different influence in terms of perceived price on perceived quality. H2-1: Company reputation has a positive effect on perceived quality. H2-2: It is expected that PB and NB would have different influence in terms of company reputation on perceived quality. H3-1: Brand reputation has a positive effect on perceived quality. H3-2: It is expected that PB and NB would have different influence in terms of brand reputation on perceived quality. H4-1: Product experience has a positive effect on perceived quality. H4-2: It is expected that PB and NB would have different influence in terms of product experience on perceived quality. H5-1: Brand familiarity has a positive effect on perceived quality. H5-2: It is expected that PB and NB would have different influence in terms of brand familiarity on perceived quality. H6: Perceived quality has a positive effect on customer satisfaction. H7: Perceived quality has a positive effect on customer trust. H8: Perceived quality has a positive effect on customer loyalty. H9: Customer satisfaction has a positive effect on customer trust. H10: Customer satisfaction has a positive effect on customer loyalty. H11: Customer trust has a positive effect on customer loyalty. Results from analyzing main effects of research model is shown as
, and moderating effects is shown as
. Results This study is designed with 16 research hypotheses, Results from analyzing their main effects show that 9 of 11 hypotheses were supported and other 2 hypotheses were rejected. On the other hand, results from analyzing their moderating effects show that 3 of 5 hypotheses were supported and other 2 hypotheses were rejected. H1-1: (SPC: Standardized Path Coefficient)=-0.04, t-value=-1.04, p>. 05). H1-2: (
${\Delta}\chi^2$ =1.10, df=1, p> 0.05). H1-1 and H1-2 are rejected, so it is prove that perceived price is not a significant decision variable having influence on perceived quality and there is no significant variable between PB and NB in terms of influence of perceived price on perceived quality. H2-1: (SPC=0.31, t-value=3.74, p<. 001). H2-2: (${\Delta}\chi^2$ =3.93, df=1, p< 0.05). H2-1 and H2-2 are supported, so it is proved that company reputation is a significant decision variable having influence on perceived quality and, in terms of influence of company reputation on perceived quality, PB has relatively stronger influence than NB. H3-1: (SPC=0.26, t-value=5.30, p< .001). H3-2: (${\Delta}\chi^2$ =16.81, df=1, p< 0.01). H3-1 and H3-2 are supported, so it is proved that brand reputation is a significant decision variable having influence on perceived quality and, in terms of influence of brand reputation on perceived quality, NB has relatively stronger influence than PB. H4-1: (SPC=0.31, t-value=2.65, p< .05). H4-2: (${\Delta}\chi^2$ =1.26, df=1, p> 0.05). H4-1 is supported, but H4-2 is rejected, Therefore, it is proved that product experience is a significant decision variable having influence on perceived quality and, on the other hand, there is no significant different between PB and NB in terms of influence of product experience on product quality. H5-1: (SPC=0.24, t-value=3.00, p<. 05). H5-2: (${\Delta}\chi^2$ =5.10, df=1, p< 0.05). H5-1 and H5-2 are supported, so it is proved that brand familiarity is a significant decision variable having influence on perceived quality and, in terms of influence of brand familiarity on perceived quality, NB has relatively stronger influence than PB. H6: (SPC=0.91, t-value=19.06, p< .001). H6 is supported, so a fact that customer satisfaction increases as perceived quality increases is proved. H7: (SPC=0.81, t-value=7.44, p<. 001). H7 is supported, so a fact that customer trust increases as perceived quality increases is proved. H8: (SPC=0.57, t-value=7.87, p< .001). H8 is supported, so a fact that customer loyalty increases as perceived quality increases is proved. H9: (SPC=0.08, t-value=0.76, p> .05). H9 is rejected, so it is proved influence of customer satisfaction on customer trust is not significant. H10: (SPC=0.21, t-value=4.34, p< .001). H10 is supported, so a fact that customer loyalty increases as customer satisfaction increases is proved. H11: (SPC=0.40, t-value=5.68, p< .001). H11 is supported, so a fact that customer loyalty increases as customer trust increases is proved. Implications Although most of existing studies have used function, price, brand, design, service, brand name, store name as antecedent variables for perceived quality, this study used different antecedent variables in order to analyze and distinguish purchase group PB and NB through preliminary research. Therefore, this study may be used as preliminary data for a empirical study that is designed to be helpful for practical jobs. Also, this study is made to be easily applied to any practical job because SEM(Structural Equation Modeling), most strongly explaining the relation between observed variable and latent variable, is used for this study. This study suggests a new strategic point that, in order to increase customer loyalty, customer's perceived quality level should satisfied for inducing customer satisfaction, customer trust, and customer loyalty. Therefore, after finding an effective differentiating factors in perceived quality in order to increase customer loyalty through increasing perceived quality, this factor was made to be applied to PB and NB. Because perceived quality factors which is recognized as being important by consumers is different between PB and NB, this study suggests how to efficiently establish marketing strategy by enhancing a factor. Companies have mostly focused on profitability in terms of analyzing customer loyalty, but this study included positive WOM(word of mouth). Hence, this study suggests that it would be helpful for establishing customer loyalty when consumers have cognitive satisfaction and emotional satisfaction together. Limitations This study used variables perceived price, company reputation, brand reputation, product experience, brand familiarity in order to determine whether each constituent factor has different influence on perceived quality between purchase group PB and NB. These characteristic variables are made up on the basis of the preliminary research, but it is expected that more precise research result would be obtained if additional various variables are included in study. This study selected a practical product that is non-durable, low-priced and bestselling product in a discount store through the preliminary research because it can be easily estimated by consumers. Therefore. generalization of study would be more easily obtained if more various product characteristics is included. Regarding a sample used in this study, it was only based on consumers who purchase products in a large-scale discount store located in Seoul and in the capital area. Accordingly, this sample has some geographical limitation, If a study is expanded by including more areas, more representative research results may be produced. Because this study is only designed to analyze consumers who purchase a product in a large-scale discount store, some difference may be found according to characteristics of each business type. In other words, there is certainly some application limitation, so research result from this study may not be applied to other business types. Future research may have fruitful results if it adjusts a variable to each business type.Ecological Studies on the Transition of Sheath Blight of Rice in Korea (한국(韓國)에서의 벼 잎집무늬마름병 발생변동(發生變動)에 관(關)한 생태학적(生態學的) 연구(硏究))
- Yu, Seung-hun
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- Korean Journal of Agricultural Science
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- v.4 no.2
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- pp.283-316
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- 1977
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In an attempt to obtain a basic information to develop an effective integrated system of controlling sheath blight of rice in Korea, the transition of this disease, the variation of cultural characters and pathogenicity of the pathogen, environmental conditions affecting the disease outbreak and varietal resistance have been investigated. 1. Rice sheath blight which has been minor disease in the past was widely spread, especially since 1971. This disease has promptly spread all over the country and infected 65.2% of total rice growing area in 1976. Various factors are considered to be related to such transition of this disease. Above all, increace of application of nitrogenous fertilizer, early season and earlier cultivation of rice, introduction of more susceptible "Tongil" varieties etc. must be important factors influencing the outbreak of this disease. 2. Great variations in cultural characteristics-such as mycelial growth rate, color of the medium, amount of the aerial mycelium, shape and color of the sclerotia- and in the pathogenicity of isolates of the pathogen, Thanatephorus cucumeris
Dank were observed. The optimum temperature for mycelial growth also varied with isolates, from $25^{\circ}C$ to$30^{\circ}C$ . There were not necessarily any correlation between curtural characteristics and pathogenicity of isolates of Thanatephorus cucumens. 3. Mycelial grow th of isolates of Thanatephorus cucumens on the PDA medium were correlated with the air temperatures of the region where the isolates were collected. The isolates from the regions with high temperature grew well on PDA medium at$35^{\circ}C$ than those from the region with low temperature, on the other hand, the isolates from the regions with the low temperature grew well on the same medium at$12^{\circ}C$ than those from the regions with high temperature. 4. Pectin polygalacturonase (PG) and cellulase (Cx) were most active on the 3rd day after inoculation on the leaves of rice plant with Thanatephorus cucumeris, whereas pectin methylestrase (PE) was most active on the 4th day after inoculation. Relationship between the activities of PE of isolates and the strength of pathogenicity of isolates was obtained, but PG and cellulase activities were not correlated with pathogenicity of isolates. 5. The tolerence of sclerotia from in-vitro culture to low temperature varied with their water content, the dried cultural sclerotia were more tolerent than wet ones, Dried cultural sclerotia maintained almost 100% germinability for 45 days at$-20^{\circ}C$ , whereas wet sclerotia lost viability at$-5^{\circ}C$ . The germination ratio of the sclerotia after overwintering changed from 18% to 70% according to the water content of the test paddy fields and the ratio was low in wet paddy condition. 6. To investigate the host range of this fungi in and near paddy field, 17 weeds were inoculated with fungi. The lesions of sheath blight disease was obserbed on Sagittaria trifolia L., Echinochloa crusgalli P. Beauv., Monochoria vaginal is Presl, Polygonum Hydropiper L., Eclipta prostrata L., Digitaria sanguinalis Scapoli. 7. When the level of nitrogen applied was doubled over standard level, total nitrogen content in rice sheath increased, ami when silicate was applied, starch content in rice sheath decreased, inducing the rice plants more susceptible to sheath blight disease. Increased dressing of potash ferilizer reduced the incidence of sheat blight disease. 8. The percentage of infected stems in the early period increased more in the narrow hill plot than in the wide hill plot, but in the late period this tendency was inversed; the percentage of infected stems as well as severity in the wide hill plot increased more compared to the narrow hill plot, and the disease severity in the one plant per hill plot was also low. The number of stems in the wide hill plot was more than the number of stems in the narrow hill plot. This indicates that the microclimate, such as the relative humidity, in the narrow hill plot was more favorable for the development of this disease. 9. There was a high negative correlation between the disease severity of varieties to the sheath blight and the maturity of the varieties, that is, the early varieties were more susceptible than the late ones, and much-tillering varieties usually showed more infection than less tillering varieties. 10. No relationship was obtained between the percentage of infected stems in the early period and the severity after heading, whereas a distinct relationship was obtained between former and latter after Aug. 10.
Physiological and Ecological Studies on the Low Temperature Damages of Rice (Oryza sativia L.) (수도의 저온장해에 관한 생리 생태학적 연구)
- 오윤진
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- KOREAN JOURNAL OF CROP SCIENCE
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- v.26 no.1
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- pp.1-31
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- 1981
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Experiments were conducted to investigate rice varietal response to low water and air temperatures at different growth stages from 1975 to 1980 in a phytotron in Suweon and in a cold water nursery in Chooncheon. Germination ability, seedling growth, sterility of laspikelets, panicle exertion, discoloration of leaves, and delay of heading of recently developed indica/japonica cross(I/J), japonica, and indica varieties at low air temperature or cold water were compared to those at normal temperature or natural conditions. The results are summarized as follows: 1. Practically acceptable germination rate of 70% was obtained in 10 days after initiation of germination test at 15\circ_C for japonica varieties, but 15 days for IxJ varieties. Varietal differences in germination ability at suboptimal temperature was greatest at 16\circ_C for 6 days. 2. Cold injury of rice seedlings was most severe at the 3.0-and 3.5-leaf stage and it was reduced as growth stage advanced. A significant positive correlation was observed between cold injury at 3-leaf stage and 6-leaf stage. 3. At day/night temperatures of 15/10\circ_C seedlings of both japonica and I/J varieties were dead in 42 days. At 20/15\circ_C japonica varieties produced tillers actively, but tillering of I/J varieties was retarded a little. At 25/15\circ_C, both japonica and I/J varieties produced tillers most actively. Increase in plant height was proportional to the increase in all varieties. 4. In I/J varieties the number of differentiated panicle rachis branches and spikelets was reduced at a day-night temperature of 20-15\circ_C compared to 25-20 or 30-25\circ_C, but not in japonica varieties although panicle exertion was retarded at 20-15\circ_C. The number of spikelets was not correlated with the number of primary rachis branches, but positively correlated with that of secondary rachis branches. 5. Heading of rice varieties treated with 15\circ_C air temperature at meiotic stage was delayed compared to that at tillering stage by 1-3 days and heading was delayed as duration of low temperature treatment increased. 6. At cold water treatment of 17\circ_C from tillering to heading stage, heading of japonica, I/J, and cold tolerant indica varieties was delayed 2-6, 3-9, and 4-5 days, respectively, Growth stage sensitive to delay of heading delay at water treatment were tillering stage, meiotic stage, and booting tage in that order, delay of heading was greater in indica corssed japonica(Suweon 264), japonica(Suweon 235), and cold tolerant indica(Lengkwang) varieties in that order. Delay of heading due to cold water treatment was positively correlated with culm length reduction and spikelet sterility. 7. Elongation of culms and exertion of panicles of rice varieties treated with low air temperature 17\circ_C. Culm length reduction rate of tall varieties was lower than that of short statured varieties at low temperature. Panicle exertion was most severaly retarded with low temperature treatment at heading stage. Generally, retardation of panicle exertion of 1/1 varieties was more severe than that of japonica varieties at low temperature. There was a positive correlation between panicle exertion and culm length at low temperature. 8. The number of panicles was increased with cold water treatment at tillering stage, but reduced at meiotic stage. As time of cold water treatment was conducted at earlier growth stage, culm length was shorter and panicle exertion poorer. 9. Sterility of all rice varieties was negligible at 17\circ_C for three days but 30.3-85.2% of strility was observed for nine-day treatment at 17\circ_C. Among the tested varieties, sterility of Suweon 264 and Milyang 42 was highest and that of Suweon 290 and Suweon 287 was lowest. The most sensitive growth stage to low temperature induced sterility was from 15 to 5 days before heading. There was positive correlation between sterility of rice plants treated with low temperature at meiotic and heading stage. 10. Percentage of spikelet sterility was greatest at cold water treatment at meiotic stage (auricle distance -15~-10cm) and it was higher in 1/1 (Suweon 264, Joseng tongil), japonica (Nongbaek, Towada), and cold tolerance indica(Lengkwang) varieties in the order. Level of cold water and position of young-ear affected on the sterility of varieties at meiotic stage; percentage of spikelet sterility of variety, Lengkwang, of which young-ear was located above the cold water level was high, but that of short statured variety, Suweon 264, of which young-ear was located in the cold water was lower. 11. Percentage of ripened grains was not reducted at 15\circ_C air temperature for three days at full heading stage in all varieties. However, at six-day low temperature treatment Suweon 287, Suweon 264 showed percentage of ripended grains lower than 60%, but at nine-day low temperature treatment all varieties showed percentage of ripened grains lower than 60%. Low temperature treatment of 17\circ_C from 10 days after heading for 20 days did not affect on the ripening of all varieties. 12. Uptake of nitrogen, phosphorous, potassium, calcium, and magnesium in whole plants was higher at average air temperature of 25\circ_C, but concentration of the elements was lower compared to those at 19\circ_C. However, both total uptake and concentration of manganese were higher at 19\circ_C compared to 25\circ_C. 13. Higher application of nitrogen, phosphorus, silicate, and compost increased yield of rice due to increased number of panicles and spike let fertility in cold water irrigated paddy.
Dynamical Study on the Blasting with One-Free-Face to Utilize AN-FO Explosives (초유폭약류(硝油爆藥類)를 활용(活用)한 단일자유면발파(單一自由面發破)의 역학적(力學的) 연구(硏究))
- Huh, Ginn
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- Economic and Environmental Geology
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- v.5 no.4
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- pp.187-209
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- 1972
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Drilling position is one of the most important factors affecting on the blasting effects. There has been many reports on several blasting factors of burn-cut by Messrs. Brown and Cook, but in this study the author tried to compare drilling positions of burn-cut to pyramid-cut, and also to correlate burn-cut effects of drilling patterns, not being dealt by Prof. Ito in his theory, which emphasized on dynamical stress analysis between explosion and free face. According to former theories, there break out additional tensile stress reflected at the free face supplemented to primary compressive stress on the blasting with one-free-face. But with these experimented new drilling patterns of burn-cut, more free faces and nearer distance of each drilling holes make blasting effects greater than any other methods. To promote the above explosive effect rationary, it has to be considered two important categories under-mentioned. First, unloaded hole in the key holes should be drilled in wider diameter possibly so that it breaks out greater stress relief. Second, key holes possibly should have closer distances each other to result clean blasting. These two important factors derived from experiments with, theories of that the larger the dia of the unloaded hole, it can be allowed wider secondary free faces and closes distances of each holes make more developed stress relief, between loaded and unloaded holes. It was suggested that most ideal distance between holes is about 4 clearance in U. S. A., but the author, according to the experiments, it results that the less distance allow, the more effective blasting with increased broken rock volume and longer drifted length can be accomplished. Developed large hole burn-cut method aimed to increase drifting length technically under the above considerations, and progressive success resulted to achieve maximum 7 blasting cycles per day with 3.1m drifting length per cycle. This achievement originated high-speed-drifting works, and it was also proven that application of Metallic AN-FO on large hole burn-cut method overcomes resistance of one-free-face. AN-FO which was favored with low price and safety handling is the mixture of the fertilizer or industrial Ammonium-Nitrate and fuel oil, and it is also experienced that it shows insensible property before the initiation, but once it is initiated by the booster, it has equal explosive power of Ammonium Nitrate Explosives (ANE). There was many reports about AN-FO. On AN-FO mixing ratio, according to these experiments, prowdered AN-FO, 93.5 : 6.5 and prilled AN-FO 94 : 6, are the best ratios. Detonation, shock, and friction sensities are all more insensitive than any other explosives. Residual gas is not toxic, too. On initation and propagation of the detonation test, prilled AN-FO is more effective than powered AN-FO. AN-FO has the best explosion power at 7 days elapsed after it has mixed. While AN-FO was used at open pit in past years prior to other conditions, the author developed new improved explosives, Metallic AN-FO and Underwater explosive, based on the experiments of these fundmental characteristics by study on its usage utilizing AN-FO. Metallic AN-FO is the mixture of AN-FO and Al, Fe-Si powder, and Underwater explosive is made from usual explosive and AN-FO. The explanations about them are described in the other paper. In this study, it is confirmed that the blasting effects of utilizing AN-FO explosives are very good.
A Study on Interactions of Competitive Promotions Between the New and Used Cars (신차와 중고차간 프로모션의 상호작용에 대한 연구)
- Chang, Kwangpil
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- Asia Marketing Journal
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- v.14 no.1
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- pp.83-98
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- 2012
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In a market where new and used cars are competing with each other, we would run the risk of obtaining biased estimates of cross elasticity between them if we focus on only new cars or on only used cars. Unfortunately, most of previous studies on the automobile industry have focused on only new car models without taking into account the effect of used cars' pricing policy on new cars' market shares and vice versa, resulting in inadequate prediction of reactive pricing in response to competitors' rebate or price discount. However, there are some exceptions. Purohit (1992) and Sullivan (1990) looked into both new and used car markets at the same time to examine the effect of new car model launching on the used car prices. But their studies have some limitations in that they employed the average used car prices reported in NADA Used Car Guide instead of actual transaction prices. Some of the conflicting results may be due to this problem in the data. Park (1998) recognized this problem and used the actual prices in his study. His work is notable in that he investigated the qualitative effect of new car model launching on the pricing policy of the used car in terms of reinforcement of brand equity. The current work also used the actual price like Park (1998) but the quantitative aspect of competitive price promotion between new and used cars of the same model was explored. In this study, I develop a model that assumes that the cross elasticity between new and used cars of the same model is higher than those amongst new cars and used cars of the different model. Specifically, I apply the nested logit model that assumes the car model choice at the first stage and the choice between new and used cars at the second stage. This proposed model is compared to the IIA (Independence of Irrelevant Alternatives) model that assumes that there is no decision hierarchy but that new and used cars of the different model are all substitutable at the first stage. The data for this study are drawn from Power Information Network (PIN), an affiliate of J.D. Power and Associates. PIN collects sales transaction data from a sample of dealerships in the major metropolitan areas in the U.S. These are retail transactions, i.e., sales or leases to final consumers, excluding fleet sales and including both new car and used car sales. Each observation in the PIN database contains the transaction date, the manufacturer, model year, make, model, trim and other car information, the transaction price, consumer rebates, the interest rate, term, amount financed (when the vehicle is financed or leased), etc. I used data for the compact cars sold during the period January 2009- June 2009. The new and used cars of the top nine selling models are included in the study: Mazda 3, Honda Civic, Chevrolet Cobalt, Toyota Corolla, Hyundai Elantra, Ford Focus, Volkswagen Jetta, Nissan Sentra, and Kia Spectra. These models in the study accounted for 87% of category unit sales. Empirical application of the nested logit model showed that the proposed model outperformed the IIA (Independence of Irrelevant Alternatives) model in both calibration and holdout samples. The other comparison model that assumes choice between new and used cars at the first stage and car model choice at the second stage turned out to be mis-specfied since the dissimilarity parameter (i.e., inclusive or categroy value parameter) was estimated to be greater than 1. Post hoc analysis based on estimated parameters was conducted employing the modified Lanczo's iterative method. This method is intuitively appealing. For example, suppose a new car offers a certain amount of rebate and gains market share at first. In response to this rebate, a used car of the same model keeps decreasing price until it regains the lost market share to maintain the status quo. The new car settle down to a lowered market share due to the used car's reaction. The method enables us to find the amount of price discount to main the status quo and equilibrium market shares of the new and used cars. In the first simulation, I used Jetta as a focal brand to see how its new and used cars set prices, rebates or APR interactively assuming that reactive cars respond to price promotion to maintain the status quo. The simulation results showed that the IIA model underestimates cross elasticities, resulting in suggesting less aggressive used car price discount in response to new cars' rebate than the proposed nested logit model. In the second simulation, I used Elantra to reconfirm the result for Jetta and came to the same conclusion. In the third simulation, I had Corolla offer $1,000 rebate to see what could be the best response for Elantra's new and used cars. Interestingly, Elantra's used car could maintain the status quo by offering lower price discount ($160) than the new car ($205). In the future research, we might want to explore the plausibility of the alternative nested logit model. For example, the NUB model that assumes choice between new and used cars at the first stage and brand choice at the second stage could be a possibility even though it was rejected in the current study because of mis-specification (A dissimilarity parameter turned out to be higher than 1). The NUB model may have been rejected due to true mis-specification or data structure transmitted from a typical car dealership. In a typical car dealership, both new and used cars of the same model are displayed. Because of this fact, the BNU model that assumes brand choice at the first stage and choice between new and used cars at the second stage may have been favored in the current study since customers first choose a dealership (brand) then choose between new and used cars given this market environment. However, suppose there are dealerships that carry both new and used cars of various models, then the NUB model might fit the data as well as the BNU model. Which model is a better description of the data is an empirical question. In addition, it would be interesting to test a probabilistic mixture model of the BNU and NUB on a new data set.
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