• Asia Marketing Journal
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• v.14 no.1
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• pp.53-81
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• 2012

Constructing attractive bundle offers depends on more than an understanding of the distribution of consumer preferences. Consumers are also sensitive to the framing of price information in a bundle offer. In classical economic theory, consumers' utility should not change as long as the total price paid stays same. However, even when total prices are identical, consumers' preferences toward a bundle product could be different depending on the format of price presentation and the locus of price discount. A weighted additive model predicts that the impact of a price discount on the overall evaluation of the bundle will be greater when the discount is assigned to the more important product in the bundle(Yadav 1995). Meanwhile, a reference dependent model asserts that it is better to assign a price discount to a tie-in component that has a negative valuation at its current offer price than to a focal product that has a positive valuation at its current offer price(Janiszewski and Cunha 2004). This paper has expanded previous research regarding price discount presentation format, investigating the reasons for mixed results of prior research and presenting new mechanisms for price discount framing effect. Prior research has hypothesized that bundling is used to sell a tie-in component with an offer price above the consumer's reference price plus a focal product of the same offer price with reference price(e.g., Janiszewski and Cunha 2004). However, this study suggests that bundling strategy can be used for increasing product's attractiveness through the synergy between components even when offer prices of bundle components are the same with reference prices. In this context, this study employed various realistic bundle sets with same price between offer price and reference price in the experiment. Hamilton and Srivastava(2008) demonstrated that when evaluating different partitions of the same total price, consumers prefer partitions in which the price of the high-benefit component is higher. This study determined that their mechanism can be applied to price discount presentation formats. This study hypothesized that price discount framing effect depends not on the negative perception of tie-in component with offer price above reference price but rather on the consumers' perceived consumption benefit in bundle product. This research also hypothesized that preference for low-benefit discount mechanism is that perceived consumption benefit reduces price sensitivity. Furthermore, this study investigated how consumers' concern for quality in a price discount--a factor not considered in previous research--influences price discount framing. Yadav(1995)'s experiment used only one magazine bundle of relatively low quality uncertainty and could not show the influence of perceived uncertainty of quality. This study assumed that as perceived uncertainty of quality increases, the price sensitivity mechanism for assigning the discount to low-benefit will increase. Further, this research investigated the moderating effect of uncertainty of quality in price discount framing. The results of the experiment showed that when evaluating different partitions of the same total price and the same amount of discounts, the partition that discounts in the price of low benefit component is preferred to the partition that decreases the price of high benefit component. This implies that price discount framing effect depends on the perceived consumption benefit. The results also demonstrated that consumers are more price sensitive to low benefit component and less price sensitive to high benefit component. Furthermore, the results showed that the influence of price discount presentation format on the evaluation of bundle product varies with the perceived uncertainty of quality in high consumption benefit. As perceived uncertainty of quality gradually increases, the preference for discounts in the price of low consumption benefit decreases. Besides, the results demonstrate that as perceived uncertainty of quality gradually increases, the effect of price sensitivity in consumption benefit also increases. This paper integrated prior research by using a new mechanism of perceived consumption benefit and moderating effect of perceived quality uncertainty, thus providing a clearer explanation for price discount framing effect.

• Journal of Distribution Research
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• v.17 no.5
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• pp.1-23
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• 2012

The conflict between major corporations and small and medium-sized businesses is being aggravated, the trickle down effect is not working properly, and, as the controversy surrounding the effectiveness of the business limiting system continues to swirl, the plan proposed to protect the business domain of small and medium-sized businesses, resolve polarization between these businesses and large corporations, and protect small family run stores is the suitable business type designation system for small and medium-sized businesses. The current status of carrying out this system of selecting suitable business types among small and medium-sized businesses involves receiving applications for 234 items among the suitable business types and items from small and medium-sized businesses in manufacturing, and then selecting the items of the consultative group by analyzing and investigating the actual conditions. Suitable business type designation in the service industry will involve designation with priority on business types that are experiencing social conflict. Three major classifications of the service industry, related to the livelihood of small and medium-sized businesses, will be first designated, and subsequently this will be expanded sequentially. However, there is the concern that when designated as a suitable business type or item, this will hinder the growth motive for small to medium-sized businesses, and designation all cause decrease in consumer welfare. Also it is highly likely that it will operate as a prior regulation, cause side-effects by limiting competition systematically, and also be in violation against the main regulations of the FTA system. Moreover, it is pointed out that the system does not sufficiently reflect reverse discrimination factor against large corporations. Because conflict between small to medium sized businesses and large corporations results from the expansion of corporations to the service industry, which is unrelated to their key industry, it is necessary to introduce an advanced contract method like a master franchise or local franchise system and to develop local small to medium sized businesses through a franchise system to protect these businesses and dealers. However, this method may have an effect that contributes to stronger competitiveness of small to medium sized franchise businesses by advancing their competitiveness and operational methods a step further, but also has many negative aspects. First, as revealed by the Ministry of Knowledge Economy, the franchise industry is contributing to the strengthening of competitiveness through the economy of scale by organizing existing individual proprietors and increasing the success rate of new businesses. It is also revealed to be a response measure by the government to stabilize the economy of ordinary people and is emphasized as a 'useful way' to revitalize the service industry and improve the competitiveness of individual proprietors, and has been involved in contributions to creating jobs and expanding the domestic market by providing various services to consumers. From this viewpoint, franchises fit the purpose of the suitable business type system and is not something that is against it. Second, designation as a suitable business type may decrease investment for overseas expansion, R&D, and food safety, as well negatively affect the expansion of overseas corporations that have entered the domestic market, due to the contraction and low morale of large domestic franchise corporations that have competitiveness internationally. Also because domestic franchise businesses are hard pressed to secure competitiveness with multinational overseas franchise corporations that are operating in Korea, the system may cause difficulty for domestic franchise businesses in securing international competitiveness and also may result in reverse discrimination against these overseas franchise corporations. Third, the designation of suitable business type and item can limit the opportunity of selection for consumers who have up to now used those products and can cause a negative effect that reduces consumer welfare. Also, because there is the possibility that the range of consumer selection may be reduced when a few small to medium size businesses monopolize the market, by causing reverse discrimination between these businesses, the role of determining the utility of products must be left ot the consumer not the government. Lastly, it is desirable that this is carried out with the supplementation of deficient parts in the future, because fair trade is already secured with the enforcement of the franchise trade law and the best trade standard of the Fair Trade Commission. Overlapping regulations by the suitable business type designation is an excessive restriction in the franchise industry. Now, it is necessary to establish in the domestic franchise industry an environment where a global franchise corporation, which spreads Korean culture around the world, is capable of growing, and the active support by the government is needed. Therefore, systems that do not consider the process or background of the growth of franchise businesses and harm these businesses for the sole reason of them being large corporations must be removed. The inhibition of growth to franchise enterprises may decrease the sales of franchise stores, in some cases even bankrupt them, as well as cause other problems. Therefore the suitable business type system should not hinder large corporations, and as both small dealers and small to medium size businesses both aim at improving competitiveness and combined growth, large corporations, small dealers and small to medium sized businesses, based on their mutual cooperation, should not include franchise corporations that continue business relations with them in this system.

• Culinary science and hospitality research
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• v.22 no.3
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• pp.224-239
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• 2016

The purpose of this study is to understand the influence of customer-based brand equity(CBBE) on brand trust, customer satisfaction, and repurchase intention in the stock farm products brand, Hoengsung hanwoo. Based on a total of 301 samples obtained from empirical research, this study reviewed the reliability and fitness of the research model and verified a total of 5 hypotheses using the AMOS program. The hypothesized relationships in the model were tested simultaneously by using a structural equation model(SEM). The proposed model provided an adequate fit of the data, ${\chi}^2=635.175$(p<0.001), df=233, CMIN/DF=2.726, GFI=0.863, NFI=0.859, CFI=0.903, TLI=0.885, RMSEA=0.068. The model's fit, as indicated by these indexes, was deemed satisfactory, thus providing a good basis for testing the hypothesized paths. The SEM showed that the sublevels of CBBE of stock farm product brand such as perceived product quality(${\beta}=.562$) and brand image(${\beta}=.377$) had a positive significant influence on brand trust. In addition, brand trust had a positive significant influence on customer satisfaction(${\beta}=.525$) and repurchase intention(${\beta}=.669$). This study confirms that a firm brand management works as a significant factor in forming brand trust, and, as a result, has a positive impact on its consumer's satisfaction and repurchase intention. Through the studys' results, it is study proposed that there is a needs for establishing effective marketing strategies to improve of regional economies.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.5
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• pp.193-203
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• 2014

This study was to highlight the importance of elements of flower fair to organizer who organize flower fair in local community, to increase of participancy in flower fair exhibition with informing experience element and finally to increase incomes of flower farmhouse. To investigate degrees of interest of visitors on experience marketing of exhibition factors in flower fair, survey was conducted for 278 target audiences and data was analyzed to find the effect of experience marketing of exhibition factors in flower fair on the interest of purchasing. To population statistics, female took majority, 61.9% in sex, twenties, 34.5% in ages, married, 50.7% in marriage and students, 36.7% in job. University graduation occupied 58.3% in education, one million something, 48.6% in average income, seoul showed 38.1% in resident cities and 1st time visit was 79.9% in flower fair visit. For statistical categories, technology statistics analysis and reliability analysis were conducted. To check validity, factor analysis was conducted, and to see interrelationship of factors, using regression analysis, fluence among factors was analyzed. Results showed that exhibition environment of flower fair was effected by cultural elements, exhibition quality and exhibition service were effected by event and cultural element, exhibition marketing was effected by cultural and image element and purchasing interest was effected by image element.

• The Korean Journal of Pesticide Science
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• v.14 no.2
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• pp.110-115
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• 2010

The aim of this study is to investigate the exposure assessment of Korean consumers to five neonicotinoid pesticides in fruit vegetables cultivated in Korea, using a probabilistic approach. We used five neonicotionid pesticides residues(acetamiprid, clothianidin, imidacloprid, thiacloprid, thiamethoxam) data in fruit vegetables reported by Rural Development Administration for the 2009 monitoring programme. Total exposure of five neonicotinoid pesticides for Korean consumer ranged from 0.087 to 0.236 ${\mu}g$/kg/day at the $95^{th}$ percentile. The $95^{th}$ percentile values of total exposure of five neonicotinoid pesticides by probabilistic approach were lower than those by deterministic approach, although mean values of total exposure by probabilistic approach were similar with those of total exposure by deterministic approach. Total exposure to acetamiprid residue may be mainly due to the exposure to acetamiprid through the consumption of strawberry. Also, acetamiprid residues in strawberry were considered as much more contributory factor to total exposure of acetamiprid than consumption data of strawberry. This contributory properties of acetamiprid were similar with those of all other neonicotinoid pesticides, excluding thiacloprid.

• The Research Journal of the Costume Culture
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• v.20 no.6
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• pp.895-911
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• 2012

The purpose of this study was to examine consumers' perceptions of eco-friendly children's-wear and their impact on the selection criteria for children's-wear and stores. A descriptive survey method using a self-administered questionnaire was employed. The sample consisted of mothers with children under the age of 13 residing in Seoul and the Gyeonggi area. Data were collected from September 2011 to October, 2011. The collected data were analyzed to find the differences between purchasers and non-purchasers of eco-friendly children's-wear in terms of their perceptions of eco-friendly children's-wear, as well as the influence of these perceptions on the consideration degree of criteria for the selection of children's wear and store. The results indicate that perceptions of eco-friendly children's-wear implied five key factors related to quality reliability, expected value, style, degree of recognition, and dissatisfaction with design and price. The results also revealed some differences between the group purchasing eco-friendly children's-wear and the group not purchasing eco-friendly children's-wear. These different perceptions were related to the aspects of quality reliability, expected value, style, degree of recognition. In general, the non-purchasing group displayed a lower mean score than the purchasing group. Both groups showed a low interest in aesthetic appreciation and the degree of recognition factor. The results showed that consumer's perceptions of eco-friendly children's-wear had an influence on the criteria for the selection of children's-wear and store type in both groups. Considering the findings of the study, it is clear that both purchasers and non-purchasers of eco-friendly children's-wear showed differences in their perceptions and purchasing behavior. Therefore, marketing strategies to appeal to the non-purchasing group should be differentiated from strategies used to ensure the loyalty of the purchasing group.

• Journal of the Ergonomics Society of Korea
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• v.36 no.2
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• pp.123-144
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• 2017

Objective: The objective of this study is to evaluate affection on how users perceive colors viewed from an automotive visual display according to cultural and radical differences including North America, Europe, and Southeast Asia. This study especially aims to identify effects of the variation of tone and chroma of representative color groups by analyzing affection differences depending on cultural and racial differences targeting the colors constituted through variation of tone and chroma, centered on representative colors. Background: The colors of the menu, information display or background viewed through an automotive visual display are an important factor stimulating consumer's affection, and therefore an effort to express the vehicle's brand and product image through colors is made. The studies on colors focus only on the research on unique characteristics of colors, but an affective approach lacks according to cultural and racial differences on colors considering tone and chroma variation within a color from the currently used automotive visual displays. Method: To grasp the visual affection felt by users, this study extracted affective adjectives related with colors through existing literature and a dictionary for adjectives, and presented human affection dimensions on colors through evaluation of various colors. Prior to carrying out affection evaluation, the basic light sources, red (R), green (G), and blue (B) constituting the colors used for automotive visual displays were defined as a representative color group, respectively. When colors in a color group are constituted, the evaluation target of each color group consisted of the colors considering the variation of tone and chroma by changing color sense through RGB values of the remaining two light sources. And then, this study carried out affection evaluation on the constituted colors targeting the subjects with cultural and racial differences. Results: As a result of evaluating the constituted colors with representative affections, there were statistically significant differences between the groups having cultural and racial differences. As a result of S-N-K post-hoc analysis on the colors showing significant differences, North America and Europe were classified as heterogeneous groups. In some cases, Korea was classified as the homogeneous group with North America, but Korea was mainly classified as the homogenous group with Europe. Conclusion: The representative affections on colors from an automotive visual display was drawn as three affective dimensions: passionate, neat, and masculine. Based on these, the affection of Korea and Europe on the constituted colors showed significant differences from that of North America, as a result of affection evaluation on the constituted colors viewed through the visual display by reflecting cultural and racial factors. Regarding representative color groups, bigger cultural and racial differences were revealed in terms of affection on red and green colors than on blue color, and variation of affection was the biggest in the red color. Application: This study analyzed correlations of affection considering the colors constituted through variation of tone and chroma, and the culture and race in the representative color groups constituting a visual display. The results of this study are predicted to be utilized in coordination and selection of colors viewed from an automotive visual display taking into account culture and race.

• Journal of the Korea Society of Computer and Information
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• v.25 no.9
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• pp.45-52
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• 2020

In this paper, we propose an intention to study the purchase of smart music by Chinese consumers. To study the influence of the originality and usefulness of intelligent music products on the purchase intention of Chinese consumers, and to explore how the originality and usefulness of intelligent music products affect the purchase intention. To achieve this goal, 372 questionnaires were collected through the Internet for frequency analysis, factor analysis, confidence analysis and structural equation analysis of data collection, and were carried out by SPSSV22.0 and AMOSV22.0 methods. Research the validation of assumptions in the model to reveal the psychological and behavioral responses of consumers to smart music products. The results show that the originality and usefulness of new products not only directly affect the purchase intention of Chinese consumers, but also indirectly affect their purchase intention by enhancing their attractiveness. The conclusion of this study is of guiding significance for the development of intelligent music product development and marketing strategy.

• Korean Business Review
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• v.17
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• pp.83-110
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• 2004

In modern society, there exists a growing tendency that the product image, rather than the substance of the product, is given more and more emphasis. In other words, consumers tend to purchase a product whose brand image coincides with their self image. Today, it is one of the essential factors for marketing strategy of a modern enterprise to have brand image perceived by consumer self-image. The image, by affecting the perception of consumers, explains the reason why some consumers choose one brand out of many brands that are available to them. Furthermore, brand-image perceived by consumers becomes more important factor in improving the company's market share. For this research, we investigated the theoretical background based on previous studies and collected statistical data through a market survey. The results of the actual research indicate that the attributes of the images differ notably depending upon demographic attributes; that the brand image judged by a customer is positively correlated to the customer's self image; and that the regression analysis of the purchase intention in accordance with coincidence of independent variables proved to be insignificant. But the correlation analysis of the variables shows that the sensuous image of a perceived brand image product notable differences in the purchase intention. Most of Consumers tend to prefer certain brand of causal wears in accordance with their cognized brand-image and self-image: social self-image and actual self-image. Corporate must not spare any effort to establish differential advantage. through better image or changing image. Also marketers have to identify the strengths and weakness of their brand in relation to the competition in setting up their brand management strategy. In conclusion, the outcomes of the study suggest that the consumers purchase the images of the brands, rather than the products themselves. Accordingly, in the clothes markets with similar quality levels, the emphasis should be put on differentiation of the brand images in order to further increase sales and maximize profits.

• Journal of Distribution Science
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• v.14 no.11
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• pp.117-128
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• 2016

Purpose - In order to collect information needed for the establishment of more effective marketing strategies of on-line purchasing agent services targeting Chinese consumers, the study investigated the relationship among Chinese selection criteria. They included fashion products, use of information source, and satisfaction with on-line purchasing agent services. The study also identified the differences in the Chinese selection criteria of fashion products, use of information source, and the satisfaction level with on-line purchasing agent services according to their age and gender. Research design, data, and methodology - The study was implemented through a normative-descriptive survey method using a self-administered questionnaire. Data were collected from February 9 to 28, 2016, and analyzed by factor analysis, ANOVA and Duncan test, t-test, and multiple regression analysis. Results - Differences were found in selection criteria of fashion products and use of information sources among groups. Thirty's age group was concerned about price/brand more than the twenty's were. Twenty's were concerned about practicality/quality of the products more than the thirty's. Hallyu/broadcasting was used by men more than by women as an information source of Korean fashion. SNS/WOM(word of mouth) was used more by women than by man. Twenty's showed lower level of satisfaction with customer services/credibility than other factors. The thirty's showed lower level of satisfaction with informational role of the service than other factors. Those who utilize each type of fashion information source more showed higher satisfaction level with on-line purchasing agent service of Korean fashion products.. In general, according to the selection criteria and use of information, there were differences in satisfaction with on-line purchasing agent service of Korean fashion products. Conclusions - Considering the findings of the study, as well as age, gender, selection criteria and use of information source, Chinese consumers could be used as a criteria of market segmentation for on-line purchasing agent services of Korean fashion products. The results manifested that there is a need to differentiate marketing strategies according to the satisfaction levels with each satisfaction factors of on-line purchasing agent service of Korean fashion products.