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http://dx.doi.org/10.5762/KAIS.2017.18.3.703

Consumers' preference about the attributes of 3rd generation device  

Jung, Jae-Young (Department of Economics, Korea University)
Lee, Joo-Suk (Division of International Trade and Economics, Korea Maritime and Ocean University)
Kwak, Seung-Jun (Department of Economics, Korea University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.18, no.3, 2017 , pp. 703-710 More about this Journal
Abstract
Third-generation (3G) devicesare next-generation devices that allow the use of intelligent services and applications through the Internet of Things (IoT). As the market forexisting smart devices like smartphones and tablet PCs enters the stage of stagnation, the world is now focusing on 3G devices, parts, and services. This study is intended to measure the user's benefits from the various attributes of 3G devices by applying an economic valuation method. For this purpose, the conjoint analysis method was applied, which is one of the representative valuation methods. To apply conjoint analysis, the following attributes of 3G devicesare considered: mode of use, power efficiency, life care, and price. By applying the mixed logit model, the marginal willingness-to-pay(WTP) for each attribute was derived. The results are statistically significant. Respondents showed a high preference or complete flexibility in the mode of use attribute. And they were also found to have WTP for improvements in the life care attribute. The implications and quantitative results of this study are expected to be useful for policies and strategies in the 3G device market.
Keywords
$3^{rd}$ generation device; Choice experiment; Conjoint analysis; Mixed logit model; Smartphone;
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