• Asia Marketing Journal
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• v.14 no.1
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• pp.83-98
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• 2012

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.

• 제어로봇시스템학회:학술대회논문집
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• 2004.08a
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• pp.383-388
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• 2004

This paper presents the aerodynamic coefficient modeling with a new model structure explored by Least Squares using Modulating Function Technique (LS/MFT) for an F-16XL airplane using wind tunnel data supplied by NASA/LRC. A new model structure for aerodynamic coefficient was proposed, one that considered all possible combination terms of angle of attack ${\alpha}$(t) and ${\alpha}$(t) given number of harmonics K, and was compared with Pearson's model, which has the same number of parameters as the new model. Our new model harmonic results show better agreement with the physical data than Pearson's model. The number of harmonics in the model was extended to 6 and its parameters were estimated by LS/MFT. The model output of lift coefficient with K=6 correspond reasonably well with the physical data. In particular, the estimation performances of four aerodynamic coefficients were greatly improved at high frequency by considering all harmonics included in the input${\alpha}$(t), and by using the new model. In addition, the importance of each parameter in the model was analyzed by parameter reduction errors. Moreover, the estimation of three parameters, i.e., amplitude, phase and frequency, for a pure sinusoid and a finite sum of sinusoids- using LS/MFT is investigated.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.30 no.8B
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• pp.562-568
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• 2005

The content of this paper is concerned with the pricing decision model when the new telecommunication service enter into market. The pricing decision model of firm level is based on the problems of the previous service pricing model that are abstracted from the literature survey. We suggest a new pricing model and prove the model's fitness using the way of empirical simulation study. We empirically apply the proposed model to obtain the price level of such a new service as the convergence service between mobile communication service and broadcasting service. finally, we prove that the proposed model is successful because we get the new . service price based on the pricing decision model suggested in this paper.

• International Journal of Reliability and Applications
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• v.15 no.1
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• pp.65-76
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• 2014

In this article, a new model based on Lomax distribution is introduced. This new model is both useful and practical in areas such as economic, reliability and life testing. Some statistical properties of this model are presented including moments, hazard rate, reversed hazard rate, mean residual life and mean inactivity time functions, among others. It is also shown that the distributions of the new model are ordered with respect to the strongest likelihood ratio ordering. The method of moment and maximum likelihood estimation are used to estimates the unknown parameters. Simulation is utilized to calculate the unknown shape parameter and to study its properties. Finally, to illustrate the concepts, the appropriateness of the new model for real data sets are included.

• Journal of Korean Society for Atmospheric Environment
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• v.15 no.3
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• pp.281-289
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• 1999

A new E-$\varepsilon$ turbulence numerical model is proposed for analysing the turbulent air flow field within are urban street canyon. In this model the equations of eddy viscosity and energy dissipation ae reformed by considering the Kolmogorov time scale and streamline curvature effect. Application results of the new E-$\varepsilon$ model have been compared with those of standard E-$\varepsilon$ model and Yang and Shih's one, which are commonly used ones in engineering fields, and with field experiment results of DePaul and Sheih. The new model appears to be generally superior to other both models in the prediction of an air flow field within street canyon.

• Journal of Advanced Marine Engineering and Technology
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• v.30 no.5
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• pp.589-596
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• 2006

This study aims to propose a new model axial flow fan which attachs centrifugal blades, and to investigate the effect of centrifugal blades on the performance improvement of new model axial flow fan. A numerical simulation has been conducted using STAR-CD commercial code to solve the three dimensional incompressible Navier-Stokes equation for high Reynolds number $k-{\epsilon}$ turbulent model. Numerical simulation is carried out to investigate the detail phenomenon in the flow field and performance characteristics of new model and normal model fan. Calculation results are compared with normal model's results to investigate which centrifugal blades effect on velocity profile and pressure distribution at various flow field positions. and calculation results show that new model fan can improve the performance of total pressure.

• Transactions of the Korean Society of Mechanical Engineers B
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• v.24 no.7
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• pp.1010-1019
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• 2000

The main purpose of this article is to propose and assess a new spray impingement model considering film formation, which is capable of describing the droplet distribution and film flows in direct injection diesel engines. The spray-wall interaction model includes several mathematical formulae, newly made by the energy conservation law and some experimental results. The model consists of three representative regimes, rebound, deposition and splash. In addition, the film flow is described in the present model by solving the continuity and momentum equations for film flows using the integral method. To assess the new spray impingement model, the calculated results using the new model are compared with several experimental data for the normally impinging diesel sprays. The film model is also validated through comparing film radius and thickness against experimental data. The results show that the new model is generally in better agreement with experimental data and acceptable for prediction of the film radius and thickness.

• Journal of Information Technology Services
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• v.14 no.4
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• pp.269-281
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• 2015

The objective of this study is offering new on line business model for automotive market. In order for the research aim, we conduct direct in-depth interviews with CEO, including analysis of business patterns on eight automotive firms in Gwangju city. As a result, we suggest new business model so called, Online to offline (o2o) that combines advantages in both off-line and on-line business. Techniques that o2o automotive companies may employ include in-store pick up of items purchased online, allowing customers. Purchasing the automotive is not only a car but also services including insurance, warrant services. o2o business model suggested shows the operating of the goods and service sale. When it comes to characteristics of automotive conventional sale patterns, utilization of the online-to-offline commerce has not eliminated the advantages that e-commerce companies have. That model can enhance the new values for customers as well as new market creation. Also, this new business model (o2o) can contribute the emerging industry business model installed based in particular, emergence of Iot (Internet of thing) in terms of sharing knowledge and information between enterprise and customers.

• Journal of Korean Society of Water and Wastewater
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• v.34 no.2
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• pp.105-114
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• 2020

In this study, based on the System Dynamics (SD) methodology, the interrelationship between the factors inherent in the operation of the New Technology Certification System (NTCS) in Korea was identified by a causal map containing a feedback loop mechanism in connection with 'new technology development investment', 'commercialization of new technology', and 'sales by new technology'. This conceptualized causal map was applied to the simulation of the operations of the New Excellent Technology and Environmental Technology Verification System (NET&ETV) run by the Ministry of Environment among various NTCSs in Korea. A SD computer simulation model was developed to analyze and predict the operational performance of the NET&ETV in terms of key performance indices such as 'sales by new technology'. Using this model, we predicted the future operational status the NET&ETV and found a policy leverage that greatly influences the operation of the NET&ETV. Also the sensitivity of the key indicators to changes in the external variables in the model was analyzed to find policy leverage.

• Journal of the Korean housing association
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• v.23 no.6
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• pp.49-59
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• 2012

This study suggested a new model in consideration of long life and constructability of apartment house suggested in the former part. New model suggested the possibility of cost saving based on the idea that people trend to reject because of the recognition that the new model would cost a lot of expense which work as the barrier for the expansion and distribution at the local market so as to prepare the ground for its activation. The Study was aimed at verifying the possibility of cost saving through comparing it with the existing standard apartment house system centered on the skeleton and cladding system among the new structural design models suggested in the former part. Assuming that these existing standard both models should be changed structural design into new model system, the quantity volume, cost and construction period along with the alteration of finished materials between two models were compared altogether. Simultaneously BIM library was built for easy taking-off bill of quantity and consideration of working methodology for construction working cycle, which was translated into construction cost so as to derive the cost of the two subject systems to be counted. Through the analysis, it was concluded that new model would secure variability in the future and constructability along with shortening the construction period (29%) and achieve cost saving (13%) of construction against the those of existing model.