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Feasibility of Tax Increase in Korean Welfare State via Estimation of Optimal Tax burden Ratio (적정조세부담률 추정을 통한 한국 복지국가 증세가능성에 관한 연구)

  • Kim, SeongWook
    • 한국사회정책
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    • v.20 no.3
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    • pp.77-115
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    • 2013
  • The purpose of this study is to present empirical evidence for discussion of financing social welfare via estimating optimal tax burden in the main member countries of the OECD by using Hausman-Taylor method considering endogeneity of explanatory variables. Also, the author produced an international tax comparison index reflecting theoretical hypotheses on revenue-expenditure nexus within a model to compare real tax burden by countries and to examine feasibility of tax increase in Korea. As a result of the analysis, the higher the level of tax burden was, the higher the level of welfare expenditure was, indicating the connection between high burden and high welfare from the aspect of scale. The results also indicated that the subject countries recently entered into the state of low tax burden. Meanwhile, Korea had maintained low burden until the late 1990s but the tax burden soared up since the financial crisis related to the IMF. However, due to the impact of foreign economy and the tax reduction policy, it reentered into the low-burden state after 2009. On the other hand, the degree of social welfare expenditure's reducing tax burden has been gradually enhanced since the crisis. In this context, the current optimal tax burden ratio of Korea as of 2010 may be 25.8%~26.5% of GDP based on input of welfare expenditure variables, a percent that Korea was investigated to be a 'high tax burden-low ITC' country whose tax increase of 0.7~1.4%p may be feasible and that the success of tax system reform for tax increase might be higher probability when compare to others. However, measures of increasing social security contributions and consumption tax were analyzed to be improper from the aspect of managing finance when compared to increase in other tax items, considering the relatively higher ITC. Tax increase is not necessarily required though there may be room for tax increase; the optimal tax burden ratio can be understood as the level that may be achieved on average when compared to other nations, not as the "proper" level. Thus, discussion of tax increase should be accompanied with comprehensive understanding of models of economic developmental difference from nations and institutional & historical attributes included in specific tax mix.

Activation Evaluation of Radiation Shield Wall (Concrete) in Cyclotron room using the Portable Nclide Analyzer Running Title: Activation Evaluation of Concrete in Cyclotron room (휴대용 핵종분석기를 활용한 사이클로트론실 내 차폐벽 방사화 평가)

  • Kim, Seongcheol;Gwon, Da Yeong;Jeon, Yeoryeong;Han, Jiyoung;Kim, Yongmin
    • The Korean Journal of Nuclear Medicine Technology
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    • v.25 no.2
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    • pp.41-47
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    • 2021
  • Purpose There are many cyclotrons compared to the land area of the Republic of Korea. Because GMP certification is required and the nuclear medicine test does not apply for insurance, the number of examinations for nuclear medicine is decreasing. Therefore, there is a high probability of early decommissioning of the cyclotron. However, we do not unusually perform the radioactivation evaluation on concrete that can be classified as radioactive waste during the decommissioning of the cyclotron. In this study, we aim to confirm the radioactivation in the concrete surface using Handheld Radionuclide Identification Devices (RIDs). Materials and Methods Because there is no cyclotron being decommissioning in the Republic of Korea, it was impossible to perform the coring of concrete for radioactivation analysis. In this study, we used the KIRAMS-13 and analyzed the concrete surface in the target direction in the cyclotron room. After setting the target direction as the center, radionuclides were measured for about five months at thirty points with vertical and horizontal intervals of 30 cm. We used the RIIDEye(Detector: NaI(Tl) detector, manufacturer: Thermo) in this study and set the measurement time per point to one day (24 hours). Results Co-60 and Cs-137 were detected in some measurement points, and we confirmed the radioactivity of Co-60 detected at the most points. As a result, we found that the radioactivity of Co-60 was high in the diagonal direction (from the lower-left direction to the upper right direction) based on the center of the target. However, we think it is impossible to apply the corresponding results to all cyclotrons because we performed the study using only one cyclotron. Conclusion In thirty measurement points, we could confirm the radioactive nuclides and the relative radioactivity using the results of portable nuclides analyzer. Therefore, we expect that we can use the portable nuclides analyzer to select the coring position of concrete during the decommissioning of the cyclotron. Also, if we secure the radioactivation data for several years, we expect to make a more accurate estimate of radioactive waste during the preparation period of decommissioning of the cyclotron.

Setting Criteria of Suitable Site for Southern-type Garlic Using Non-linear Regression Model (비선형회귀 분석을 통한 난지형 마늘의 적지기준 설정연구)

  • Choi, Won Jun;Kim, Yong Seok;Shim, Kyo Moon;Hur, Jina;Jo, Sera;Kang, Mingu
    • Korean Journal of Agricultural and Forest Meteorology
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    • v.23 no.4
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    • pp.366-373
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    • 2021
  • This study attempted to establish a field data-based write analysis standard by analyzing field observation data, which is non-linear data of southern garlic. Five regions, including Goheung, Namhae, Sinan, Changnyeong, and Haenam, were selected for analysis. Observation values for each observation station were extracted from the temperature data of farmland in the region through inverse distance weighted. Southern-type garlic production and temperature data were collected for 10 years, from 2010 to 2019. Local regression analysis (Kernel) of the obtained data was performed, and growth temperatures were analyzed, such as 0.8 (18.781℃), 0.9 (18.930℃), 1.0 (19.542℃), 1.1 (20.165℃), and 1.2 (21.042℃) depending on the bandwidth. The analyzed optimum temperature and the grown temperature (4℃/25℃) were applied to extract the growth temperature for each temperature by using the temperature response model analysis. Regression analysis and correlation analysis were performed between the analyzed growth temperature and production data. The coefficient of determination(R2) was analyzed as 0.325 to 0.438, and in the correlation analysis, the correlation coefficient of 0.57 to 0.66 was analyzed at the significance probability 0.001 level. Overall, as the bandwidth increased, the coefficient of determination was higher. However, in all analyses except bandwidth 1.0, it was analyzed that all variables were not used due to bias. The purpose of this study is to accommodate all data through non-linear data. It was analyzed that bandwidth 1.0 with a high coefficient of determination while accepting modeling as a whole is the most suitable.

New Normality in the Asia-Pacific Region: Beijing between Moscow and Washington (Новая нормальность в АТР: Пекин между Москвой и Вашингтоном)

  • Sergey A. Lukonin;Sung Hoon Jeh
    • Analyses & Alternatives
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    • v.7 no.1
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    • pp.229-258
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    • 2023
  • For the main countries of the Asia-Pacific region, the United States, China and Russia, a situation of "new normality" is emerging. Moreover, for each of the countries, this "new normality" has its own meaning. For the United States, this is an aggravation of the military confrontation with China in the Taiwan Strait. For China, this is an increase in the degree of rivalry with the United States and a slowdown in the pace of economic development with a very high probability of their decline in the future. For Russia, this is an almost complete curtailment of relations with the United States against the background of a special military operation and imposed sanctions. These nuances, in addition to the results of the 20th CPC Congress, will determine the main trends in Sino-American and Sino-Russian relations. It seems that China's attitude towards Russia will not change against the background of the Ukrainian crisis. Beijing will maintain a position of "benevolent neutrality" towards Moscow. At the same time, the balance between "goodwill" and "neutrality" may vary depending on the scope of Sino-Russian cooperation. For example, in the economic sphere, Chinese companies will be afraid to cooperate with Russian partners for fear of secondary sanctions. However, in general, Russia will retain its importance for China as the strongest anti-American pole. In relations with the United States, China will continue to firmly defend its interests, while at the same time not excluding the normalization of relations with Washington in certain areas of cooperation: strategic stability, non-traditional threats, ecology, etc. In general, the decisions of the 20th CPC Congress do not allow us to say either in favor or against the idea of China's readiness to resume dialogue with the United States in the post-congress period. Sino-American relations, as noted above, have their own logic and will probably continue to develop within its framework. However, so are Sino-Russian relations. Within the framework of these logics, Beijing seems to continue to balance between the two vectors of its foreign policy. On the one hand, this is the development of bilateral cooperation with Russia in order to strengthen its own negotiating positions in the confrontation with the United States: military cooperation with an emphasis on joint exercises, political cooperation based on anti-Americanism, economic cooperation with an eye to the risks of secondary sanctions. On the other hand, it is unacceptable for China to recognize the collapse of Ukraine, the inadmissibility of a direct military clash with the United States and the extreme undesirability of further aggravation of relations with the United States on the factor of Chinese friendship with Russia.

Relation between Ablation Execution Time and Radiation Exposure Effect in the Treatment of Atrial-fibrillation using Cryo-balloon and 3D Radio-frequency Ablation (냉각 풍선 절제술과 3D 고주파 절제술을 이용한 심방세동 치료 시 절제술 시행 시간과 방사선 피폭 영향과의 연관성)

  • Seo, Young-Hyun
    • Journal of the Korean Society of Radiology
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    • v.16 no.4
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    • pp.427-434
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    • 2022
  • Atrial fibrillation treatment includes 3D RFCA and Cryo-balloon ablation. Both procedures have in common that they enter after understanding the structure of the heart using angiography equipment. Therefore, there is a disadvantage that the effect of exposure according to the procedure time can be a threat to both the patient and the operator, so this study aims to confirm the relationship between the total ablation time and the effect of radiation exposure. We used follow-up data (retrospective) from 41 patients who underwent coronary angiography and arrhythmia at the same time from March 2019 to July 2022. The range for total ablation time was based on the recorded data from the start to the end of the total ablation. The end point of 3D RFCA was when the ablation was completed for 4 pulmonary veins, and in the case of Cryo-balloon ablation, the data that succeeded in electrical insulation were included. As a result of analyzing the total ablation time, the time taken for Cryo-balloon ablation was 1037.29±103.66 s, which was 2448.61 s faster than 3D RFCA using 3485.9±405.71 s, and was statistically significant. (p<0.05) As a result of analyzing the total fluoroscopy time, the exposure time for 3D RFCA was 2573.75±239.08 s, which was less by 1717.15 s than the exposure time for Cryo-balloon ablation, 4290.9±420.42 s, and was statistically significant. In the case of total area dose product, 3D RFCA was 59.04±13.1 uGy/m2, which was lower than Cryo-balloon ablation 980.6±658.07 uGy/m2 by 921.56 uGy/m2, which was statistically significant. As the insulation time of the Cryo-balloon ablation is shorter than that of the 3D RFCA, the method using the Cryo-balloon ablation is considered to be effective when the patient's condition is not good and a quick procedure is required. However, in patients with permanent Atrial fibrillation, there is a high probability of structural changes in the heart, so it is considered that 3D RFCA is better than Cryo-balloon ablation, which is difficult to manipulate.

Statistical Analysis on Non-Household Unit Water Use for Business Categories (비가정용수의 업종별 사용량 원단위 및 통계적 특성 분석)

  • Lee, Doojin;Kim, Juwhan;Kim, Hwasoo
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.29 no.4B
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    • pp.385-396
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    • 2009
  • Non-household unit water use for each type of business are estimated in this study. The business types are subdivided into forty based on nine categories by the national industrial standard classification, such as office, commerce, public bathing, public water use etc. Correlation analysis and analysis of variance (ANOVA) are applied to obtain statistical characteristics between industrial water use data, surveyed in six cities including Nonsan, Seosan and the National Statistical Bureau and site area, employees number etc. for each detailed business area. As the proposed non-household unit water uses are compared with five surveyed data in USA, it is shown that almost of water uses per unit area are less than those in USA. Non-household unit water uses of 25% cumulative probability water use recommended as efficiency benchmarks among surveyed data in Korea are also less than those in USA. Especially, in the case of water use in school, the average and the range are similar results showing water use range between 0.4 and 6.2 ($l/m^2/day$) as liter per capita day per an unit area, also water use range between 11.9 to 64.0 (l/student/day) as liter per capita day per a person. From the result of correlation analysis with internal and exogenous affecting factors on non-household water use, it can be concluded that a unit area is most appropriate factor as a standard of non-household unit water use. In case of water use in educational business, the number of students including staffs is more correlated than site ares with water use for the settled water consumption tendency. Although the increase and decrease of educational institutes, retail/wholesale store and restaurants are shown remarkable by the temperature as a representative factor, low correlations are shown in water use fluctuation in lodging house and hospital.

Predicting the Potential Habitat and Future Distribution of Brachydiplax chalybea flavovittata Ris, 1911 (Odonata: Libellulidae) (기후변화에 따른 남색이마잠자리 잠재적 서식지 및 미래 분포예측)

  • Soon Jik Kwon;Yung Chul Jun;Hyeok Yeong Kwon;In Chul Hwang;Chang Su Lee;Tae Geun Kim
    • Journal of Wetlands Research
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    • v.25 no.4
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    • pp.335-344
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    • 2023
  • Brachydiplax chalybea flavovittata, a climate-sensitive biological indicator species, was first observed and recorded at Jeju Island in Korea in 2010. Overwintering was recently confirmed in the Yeongsan River area. This study was aimed to predict the potential distribution patterns for the larvae of B. chalybea flavovittata and to understand its ecological characteristics as well as changes of population under global climate change circumstances. Data was collected both from the Global Biodiversity Information Facility (GBIF) and by field surveys from May 2019 to May 2023. We used for the distribution model among downloaded 19 variables from the WorldClim database. MaxEnt model was adopted for the prediction of potential and future distribution for B. chalybea flavovittata. Larval distribution ranged within a region delimited by northern latitude from Jeju-si, Jeju Special Self-Governing Province (33.318096°) to Yeoju-si, Gyeonggi-do (37.366734°) and eastern longitude from Jindo-gun, Jeollanam-do (126.054925°) to Yangsan-si, Gyeongsangnam-do (129.016472°). M type (permanent rivers, streams and creeks) wetlands were the most common habitat based on the Ramsar's wetland classification system, followed by Tp type (permanent freshwater marshes and pools) (45.8%) and F type (estuarine waters) (4.2%). MaxEnt model presented that potential distribution with high inhabiting probability included Ulsan and Daegu Metropolitan City in addition to the currently discovered habitats. Applying to the future scenarios by Intergovernmental Panel on Climate Change (IPCC), it was predicted that the possible distribution area would expand in the 2050s and 2090s, covering the southern and western coastal regions, the southern Daegu metropolitan area and the eastern coastal regions in the near future. This study suggests that B. chalybea flavovittata can be used as an effective indicator species for climate changes with a monitoring of their distribution ranges. Our findings will also help to provide basic information on the conservation and management of co-existing native species.

A Study on the Impact of SNS Usage Characteristics, Characteristics of Loan Products, and Personal Characteristics on Credit Loan Repayment (SNS 사용특성, 대출특성, 개인특성이 신용대출 상환에 미치는 영향에 관한 연구)

  • Jeong, Wonhoon;Lee, Jaesoon
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.18 no.5
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    • pp.77-90
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    • 2023
  • This study aims to investigate the potential of alternative credit assessment through Social Networking Sites (SNS) as a complementary tool to conventional loan review processes. It seeks to discern the impact of SNS usage characteristics and loan product attributes on credit loan repayment. To achieve this objective, we conducted a binomial logistic regression analysis examining the influence of SNS usage patterns, loan characteristics, and personal attributes on credit loan conditions, utilizing data from Company A's credit loan program, which integrates SNS data into its actual loan review processes. Our findings reveal several noteworthy insights. Firstly, with respect to profile photos that reflect users' personalities and individual characteristics, individuals who choose to upload photos directly connected to their personal lives, such as images of themselves, their private circles (e.g., family and friends), and photos depicting social activities like hobbies, which tend to be favored by individuals with extroverted tendencies, as well as character and humor-themed photos, which are typically favored by individuals with conscientious traits, demonstrate a higher propensity for diligently repaying credit loans. Conversely, the utilization of photos like landscapes or images concealing one's identity did not exhibit a statistically significant causal relationship with loan repayment. Furthermore, a positive correlation was observed between the extent of SNS usage and the likelihood of loan repayment. However, the level of SNS interaction did not exert a significant effect on the probability of loan repayment. This observation may be attributed to the passive nature of the interaction variable, which primarily involves expressing sympathy for other users' comments rather than generating original content. The study also unveiled the statistical significance of loan duration and the number of loans, representing key characteristics of loan portfolios, in influencing credit loan repayment. This underscores the importance of considering loan duration and the quantity of loans as crucial determinants in the design of microcredit products. Among the personal characteristic variables examined, only gender emerged as a significant factor. This implies that the loan program scrutinized in this analysis does not exhibit substantial discrimination based on age and credit scores, as its customer base predominantly consists of individuals in their twenties and thirties with low credit scores, who encounter challenges in securing loans from traditional financial institutions. This research stands out from prior studies by empirically exploring the relationship between SNS usage and credit loan repayment while incorporating variables not typically addressed in existing credit rating research, such as profile pictures. It underscores the significance of harnessing subjective, unstructured information from SNS for loan screening, offering the potential to mitigate the financial disadvantages faced by borrowers with low credit scores or those ensnared in short-term liquidity constraints due to limited credit history a group often referred to as "thin filers." By utilizing such information, these individuals can potentially reduce their credit costs, whereas they are supposed to accrue a more substantial financial history through credit transactions under conventional credit assessment system.

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Shopping Value, Shopping Goal and WOM - Focused on Electronic-goods Buyers (쇼핑 가치 추구 성향에 따른 쇼핑 목표와 공유 의도 차이에 관한 연구 - 전자제품 구매고객을 중심으로)

  • Park, Kyoung-Won;Park, Ju-Young
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.2
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    • pp.68-79
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    • 2009
  • The interplay between hedonic and utilitarian attributes has assumed special significance in recent years; it has been proposed that consumption offerings should be viewed as experiences that stimulate both cognitions and feelings rather than as mere products or services. This research builds on previous work on hedonic versus utilitarian benefits, regulatory focus theory, customer satisfaction to address two question: (1) Is the shopping goal at the point of purchase different from the shopping value? and (2) Is the customer loyalty after the use different from the shopping value and shopping goal? We surveyed 345 peoples those who have bought the electronic-goods within 6 months. This research dealt with the shopping value which is consisted of 2 types, hedonic and utilitarian. Those who pursue the hedonic shopping value may prefer the pleasure of purchasing experience to the product itself. They tend to prefer atmosphere, arousal of the shopping experience. Consistent with previous research, we use the term "hedonic" to refer to their aesthetic, experiential and enjoyment-related value. On the contrary, Those who pursue the utilitarian shopping value may prefer the reasonable buying. It may be more functional. Consistent with previous research, we use the term "utilitarian" to refer to the functional, instrumental, and practical value of consumption offerings. Holbrook(1999) notes that consumer value is an experience that results from the consumption of such benefits. In the context of cell phones for example, the phone's battery life and sound volume are utilitarian benefits, whereas aesthetic appeal from its shape and color are hedonic benefits. Likewise, in the case of a car, fuel economics and safety are utilitarian benefits whereas the sunroof and the luxurious interior are hedonic benefits. The shopping goals are consisted of the promotion focus goal and the prevention focus goal, based on the self-regulatory focus theory. The promotion focus is characterized into focusing ideal self because they are oriented to wishes and vision. The promotion focused individuals are tend to be more risk taking. They are more sensitive to hope and achievement. On the contrary, the prevention focused individuals are characterized into focusing the responsibilities because they are oriented to safety. The prevention focused individuals are tend to be more risk avoiding. We wanted to test the relation among the shopping value, shopping goal and customer loyalty. Customers show the positive or negative feelings comparing with the expectation level which customers have at the point of the purchase. If the result were bigger than the expectation, customers may feel positive feeling such as delight or satisfaction and they would want to share their feelings with other people. And they want to buy those products again in the future time. There is converging evidence that the types of goals consumers expect to be fulfilled by the utilitarian dimension of a product are different from those they seek from the hedonic dimension (Chernev 2004). Specifically, whereas consumers expect the fulfillment of product prevention goals on the utilitarian dimension, they expect the fulfillment of promotion goals on the hedonic dimension (Chernev 2004; Chitturi, Raghunathan, and Majahan 2007; Higgins 1997, 2001) According to the regulatory focus theory, prevention goals are those that ought to be met. Fulfillment of prevention goals in the context of product consumption eliminates or significantly reduces the probability of a painful experience, thus making consumers experience emotions that result from fulfillment of prevention goals such as confidence and securities. On the contrary, fulfillment of promotion goals are those that a person aspires to meet, such as "looking cool" or "being sophisticated." Fulfillment of promotion goals in the context of product consumption significantly increases the probability of a pleasurable experience, thus enabling consumers to experience emotions that result from the fulfillment of promotion goals. The proposed conceptual framework captures that the relationships among hedonic versus utilitarian shopping values and promotion versus prevention shopping goals respectively. An analysis of the consequence of the fulfillment and frustration of utilitarian and hedonic value is theoretically worthwhile. It is also substantively relevant because it helps predict post-consumption behavior such as the promotion versus prevention shopping goals orientation. Because our primary goal is to understand how the post consumption feelings influence the variable customer loyalty: word of mouth (Jacoby and Chestnut 1978). This research result is that the utilitarian shopping value gives the positive influence to both of the promotion and prevention goal. However the influence to the prevention goal is stronger. On the contrary, hedonic shopping value gives influence to the promotion focus goal only. Additionally, both of the promotion and prevention goal show the positive relation with customer loyalty. However, the positive relation with promotion goal and customer loyalty is much stronger. The promotion focus goal gives the influence to the customer loyalty. On the contrary, the prevention focus goal relates at the low level of relation with customer loyalty than that of the promotion goal. It could be explained that it is apt to get framed the compliment of people into 'gain-non gain' situation. As the result, for those who have the promotion focus are motivated to deliver their own feeling to other people eagerly. Conversely the prevention focused individual are more sensitive to the 'loss-non loss' situation. The research result is consistent with pre-existent researches. There is a conceptual parallel between necessities-needs-utilitarian benefits and luxuries-wants-hedonic benefits (Chernev 2004; Chitturi, Raghunathan and Majaha 2007; Higginns 1997; Kivetz and Simonson 2002b). In addition, Maslow's hierarchy of needs and the precedence principle contends luxuries-wants-hedonic benefits higher than necessities-needs-utilitarian benefits. Chitturi, Raghunathan and Majaha (2007) show that consumers are focused more on the utilitarian benefits than on the hedonic benefits of a product until their minimum expectation of fulfilling prevention goals are met. Furthermore, a utilitarian benefit is a promise of a certain level of functionality by the manufacturer or the retailer. When the promise is not fulfilled, customers blame the retailer and/or the manufacturer. When negative feelings are attributable to an entity, customers feel angry. However in the case of hedonic benefit, the customer, not the manufacturer, determines at the time of purchase whether the product is stylish and attractive. Under such circumstances, customers are more likely to blame themselves than the manufacturer if their friends do not find the product stylish and attractive. Therefore, not meeting minimum utilitarian expectations of functionality generates a much more intense negative feelings, such as anger than a less intense feeling such as disappointment or dissatisfactions. The additional multi group analysis of this research shows the same result. Those who are unsatisfactory customers who have the prevention focused goal shows higher relation with WOM, comparing with satisfactory customers. The research findings in this article could have significant implication for the personal selling fields to increase the effectiveness and the efficiency of the sales such that they can develop the sales presentation strategy for the customers. For those who are the hedonic customers may be apt to show more interest to the promotion goal. Therefore it may work to strengthen the design, style or new technology of the products to the hedonic customers. On the contrary for the utilitarian customers, it may work to strengthen the price competitiveness. On the basis of the result from our studies, we demonstrated a correspondence among hedonic versus utilitarian and promotion versus prevention goal, WOM. Similarly, we also found evidence of the moderator effects of satisfaction after use, between the prevention goal and WOM. Even though the prevention goal has the low level of relation to WOM, those who are not satisfied show higher relation to WOM. The relation between the prevention goal and WOM is significantly different according to the satisfaction versus unsatisfaction. In addition, improving the promotion emotions of cheerfulness and excitement and the prevention emotion of confidence and security will further improve customer loyalty. A related potential further research could be to examine whether hedonic versus utilitarian, promotion versus prevention goals improve customer loyalty for services as well. Under the budget and time constraints, designers and managers are often compelling to choose among various attributes. If there is no budget or time constraints, perhaps the best solution is to maximize both hedonic and utilitarian dimension of benefits. However, they have to make trad-off process between various attributes. For the designers and managers have to keep in mind that without hedonic benefit satisfaction of the product it may hard to lead the customers to the customer loyalty.

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The Impacts of Need for Cognitive Closure, Psychological Wellbeing, and Social Factors on Impulse Purchasing (인지폐합수요(认知闭合需要), 심리건강화사회인소대충동구매적영향(心理健康和社会因素对冲动购买的影响))

  • Lee, Myong-Han;Schellhase, Ralf;Koo, Dong-Mo;Lee, Mi-Jeong
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.4
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    • pp.44-56
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    • 2009
  • Impulse purchasing is defined as an immediate purchase with no pre-shopping intentions. Previous studies of impulse buying have focused primarily on factors linked to marketing mix variables, situational factors, and consumer demographics and traits. In previous studies, marketing mix variables such as product category, product type, and atmospheric factors including advertising, coupons, sales events, promotional stimuli at the point of sale, and media format have been used to evaluate product information. Some authors have also focused on situational factors surrounding the consumer. Factors such as the availability of credit card usage, time available, transportability of the products, and the presence and number of shopping companions were found to have a positive impact on impulse buying and/or impulse tendency. Research has also been conducted to evaluate the effects of individual characteristics such as the age, gender, and educational level of the consumer, as well as perceived crowding, stimulation, and the need for touch, on impulse purchasing. In summary, previous studies have found that all products can be purchased impulsively (Vohs and Faber, 2007), that situational factors affect and/or at least facilitate impulse purchasing behavior, and that various individual traits are closely linked to impulse buying. The recent introduction of new distribution channels such as home shopping channels, discount stores, and Internet stores that are open 24 hours a day increases the probability of impulse purchasing. However, previous literature has focused predominantly on situational and marketing variables and thus studies that consider critical consumer characteristics are still lacking. To fill this gap in the literature, the present study builds on this third tradition of research and focuses on individual trait variables, which have rarely been studied. More specifically, the current study investigates whether impulse buying tendency has a positive impact on impulse buying behavior, and evaluates how consumer characteristics such as the need for cognitive closure (NFCC), psychological wellbeing, and susceptibility to interpersonal influences affect the tendency of consumers towards impulse buying. The survey results reveal that while consumer affective impulsivity has a strong positive impact on impulse buying behavior, cognitive impulsivity has no impact on impulse buying behavior. Furthermore, affective impulse buying tendency is driven by sub-components of NFCC such as decisiveness and discomfort with ambiguity, psychological wellbeing constructs such as environmental control and purpose in life, and by normative and informational influences. In addition, cognitive impulse tendency is driven by sub-components of NFCC such as decisiveness, discomfort with ambiguity, and close-mindedness, and the psychological wellbeing constructs of environmental control, as well as normative and informational influences. The present study has significant theoretical implications. First, affective impulsivity has a strong impact on impulse purchase behavior. Previous studies based on affectivity and flow theories proposed that low to moderate levels of impulsivity are driven by reduced self-control or a failure of self-regulatory mechanisms. The present study confirms the above proposition. Second, the present study also contributes to the literature by confirming that impulse buying tendency can be viewed as a two-dimensional concept with both affective and cognitive dimensions, and illustrates that impulse purchase behavior is explained mainly by affective impulsivity, not by cognitive impulsivity. Third, the current study accommodates new constructs such as psychological wellbeing and NFCC as potential influencing factors in the research model, thereby contributing to the existing literature. Fourth, by incorporating multi-dimensional concepts such as psychological wellbeing and NFCC, more diverse aspects of consumer information processing can be evaluated. Fifth, the current study also extends the existing literature by confirming the two competing routes of normative and informational influences. Normative influence occurs when individuals conform to the expectations of others or to enhance his/her self-image. Whereas informational influence occurs when individuals search for information from knowledgeable others or making inferences based upon observations of the behavior of others. The present study shows that these two competing routes of social influence can be attributed to different sources of influence power. The current study also has many practical implications. First, it suggests that people with affective impulsivity may be primary targets to whom companies should pay closer attention. Cultivating a more amenable and mood-elevating shopping environment will appeal to this segment. Second, the present results demonstrate that NFCC is closely related to the cognitive dimension of impulsivity. These people are driven by careless thoughts, not by feelings or excitement. Rational advertising at the point of purchase will attract these customers. Third, people susceptible to normative influences are another potential target market. Retailers and manufacturers could appeal to this segment by advertising their products and/or services as products that can be used to identify with or conform to the expectations of others in the aspiration group. However, retailers should avoid targeting people susceptible to informational influences as a segment market. These people are engaged in an extensive information search relevant to their purchase, and therefore more elaborate, long-term rational advertising messages, which can be internalized into these consumers' thought processes, will appeal to this segment. The current findings should be interpreted with caution for several reasons. The study used a small convenience sample, and only investigated behavior in two dimensions. Accordingly, future studies should incorporate a sample with more diverse characteristics and measure different aspects of behavior. Future studies should also investigate personality traits closely related to affectivity theories. Trait variables such as sensory curiosity, interpersonal curiosity, and atmospheric responsiveness are interesting areas for future investigation.

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