• Journal of Global Scholars of Marketing Science
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• v.8
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• pp.233-267
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• 2001

The management environment in Korea today is undergoing rapid changes; in particular, domestic corporations and businesses are confronting formidable adversity with IMF crisis and WTO. Though cost cutback, higher quality, rapid production, and diversification of products were accepted as important requirements for competitiveness in the past, they have been replaced by brand power. Consumption patterns have changed their focus from function to image orientation. This is why managers in corporations have invested enormous amounts of resources into producing powerful brands, which can attract consumers' attention greatly enough to improve the image of their products. Brands are regarded as a vital vehicle for marketing strategies and thus as a legal asset. Brands with remarkable and favorable image can secure a loyal consumer groups stable revenues. M & A, currently active between corporations, makes brand equity all the more important. The purpose of the present study was to investigate the effect of internal marketing and increased brand diversification on brand equity by combining them as influential factors with marketing mix factor. For this purpose, literature review was make on previous fragmented studies of influential factors on brand equity build-up. Based on the findings of this study, some operational implications were suggested for marketing managers. The findings and implications of the present study are as follows; First, efficient communication among organization members was found to have a significant effect on product quality. Second, job satisfaction and efficient communication among members was shown to significantly influence price policies. Thirdly, efficient communication among organization workers proved to have a significant effect on distribution strategies. Forth, efficient communication among members was demonstrated to significantly influence advertisement and other public-relations activities. Fifth, opacity of market environment appeared to have a significant effect on product quality, prior market entrance as perceived by organization members turned to be of negative influence on product quality. Sixth, opacity of market environment was found to have a significant effect on price policies. Seventh, opacity of market environment was shown to be of significant effect on distribution strategies. Eighth, grater opacity of market environment proved to improve advertisement and other public-relations activities. Ninth, price policies, distribution strategies, advertisement and public-relations activities were found to have a significant effect on brand equity value. To sum up these findings, in order for corporations and businesses to cope with consumers' needs that are increasingly segmented, internal marketing strategies and brand diversification should be implemented so as to generate greater synergy effect. It is also important to stress that differentiated, higher competitiveness should be secured for Korean corporations and businesses to survive in the drastically changing, globalized market environment. In this regard, continuous and long-term management strategies for brand equity build-up should be ensured and is essential in the present unlimited competition. The last but not least important point to notice is that to increase brand equity value, intensive investment and constant emphasis should be made on internal marketing management on intra-organizational members before strengthening external marketing.

• Journal of Intelligence and Information Systems
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• v.27 no.1
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• pp.65-82
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• 2021

Stock market investors are generally split into foreign investors, institutional investors, and individual investors. Compared to individual investor groups, professional investor groups such as foreign investors have an advantage in information and financial power and, as a result, foreign investors are known to show good investment performance among market participants. The purpose of this study is to propose an investment strategy that combines investor-specific transaction information and machine learning, and to analyze the portfolio investment performance of the proposed model using actual stock price and investor-specific transaction data. The Korea Exchange offers daily information on the volume of purchase and sale of each investor to securities firms. We developed a data collection program in C# programming language using an API provided by Daishin Securities Cybosplus, and collected 151 out of 200 KOSPI stocks with daily opening price, closing price and investor-specific net purchase data from January 2, 2007 to July 31, 2017. The self-organizing map model is an artificial neural network that performs clustering by unsupervised learning and has been introduced by Teuvo Kohonen since 1984. We implement competition among intra-surface artificial neurons, and all connections are non-recursive artificial neural networks that go from bottom to top. It can also be expanded to multiple layers, although many fault layers are commonly used. Linear functions are used by active functions of artificial nerve cells, and learning rules use Instar rules as well as general competitive learning. The core of the backpropagation model is the model that performs classification by supervised learning as an artificial neural network. We grouped and transformed investor-specific transaction volume data to learn backpropagation models through the self-organizing map model of artificial neural networks. As a result of the estimation of verification data through training, the portfolios were rebalanced monthly. For performance analysis, a passive portfolio was designated and the KOSPI 200 and KOSPI index returns for proxies on market returns were also obtained. Performance analysis was conducted using the equally-weighted portfolio return, compound interest rate, annual return, Maximum Draw Down, standard deviation, and Sharpe Ratio. Buy and hold returns of the top 10 market capitalization stocks are designated as a benchmark. Buy and hold strategy is the best strategy under the efficient market hypothesis. The prediction rate of learning data using backpropagation model was significantly high at 96.61%, while the prediction rate of verification data was also relatively high in the results of the 57.1% verification data. The performance evaluation of self-organizing map grouping can be determined as a result of a backpropagation model. This is because if the grouping results of the self-organizing map model had been poor, the learning results of the backpropagation model would have been poor. In this way, the performance assessment of machine learning is judged to be better learned than previous studies. Our portfolio doubled the return on the benchmark and performed better than the market returns on the KOSPI and KOSPI 200 indexes. In contrast to the benchmark, the MDD and standard deviation for portfolio risk indicators also showed better results. The Sharpe Ratio performed higher than benchmarks and stock market indexes. Through this, we presented the direction of portfolio composition program using machine learning and investor-specific transaction information and showed that it can be used to develop programs for real stock investment. The return is the result of monthly portfolio composition and asset rebalancing to the same proportion. Better outcomes are predicted when forming a monthly portfolio if the system is enforced by rebalancing the suggested stocks continuously without selling and re-buying it. Therefore, real transactions appear to be relevant.

• The Korean Journal of Financial Management
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• v.6 no.1
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• pp.31-62
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• 1989

By using deterministic dynamic models, we observe the behavior of the foreign exchange rate of a small open economy with rational expectation formation and different restrictions on the international economic integrations. First, an economy connected to the world by purchasing power parity and uncovered interest parity is studied in the next section. In both sections, financial assets available in the economy are domestic money and bonds. Stocks are added as a financial instrument in the next section, and real capital accumulation is also taken into account. Furthermore, the economy concerned there is fairly autonomous, and not directly governed by either purchasing power parity or uncovered interest parity. The expectation formation used throughout the whole paper is complete perfect foresight, which is the certainty version of rational expectation and free from any forecast errors. It is found that upon monetary expansion the short run depreciation of the foreign exchange rate is a fairly robust result regardless of the degree of the international economic integration, while it is not true for fiscal expansion. The expectation on the long run state significantly affects the short run response of the exchange rate. All of our models postulate that the current account should be balanced eventually. As the result, the short run behavior of the exchange rate is affected by the expectation on the long run balance and may well be a blend of the traditional flow view and modem asset view. The initial overshooting of the exchange rate is easily observed even in the fairly autonomous economy Furthermore, the initial overshooting is not reduced over time, but augmented for some time before it is eventually eliminated. As long as we maintain rational expectaion, introducing time delay in the adjustment of the foreign goods price to the foreign exchange rate does not make much difference.

• Management & Information Systems Review
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• v.30 no.2
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• pp.237-255
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• 2011

This empirical study is focused on practical application of Range-Based Volatility which is estimated by opening, high, low, closing price of overall asset. Especially proper forecasting period is what I want to know. There is four useful Range-Based Volatility(RV) such as Parkinson(1980; PK), Garman and Klass(1980; GK) Rogers and Satchell(1991; RS), Yang and Zhang(2008; YZ). So, four RV of KOPSI 200 index during 2000.5.22-2009.9.18 was used for empirical test. The emprirical result as follows. First, the best RV which shows the best forecasting performance is PK volatility among PK, GK, RS, YZ volatility. According to estimating period forcasting performance of RV shows delicate difference. PK has better performance in the period with financial crisis of sub-prime mortgage loan. if not, RS is better. Second, almost result shows better performance on forecasting volatility without sub-prime mortgage loan period. so we can say that forecasting performance is lower when historical volatiltiy is comparatively high. Finally, I find that longer estimating period in AR(1) and MA(1) model can reduce forecasting error. More interesting point is that the result shows rapid decrease form 60 days to 90 days and there is no more after 90 days. So, if we forecast the volatility using Range-Based volaility it is better to estimate with 90 trading period or over 90 days.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.11 no.2
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• pp.233-247
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• 2016

Local food industry has been spreading all over the world. Korea is also actively applying and developing local food industry. However, relatively high distribution cost in Korean agricultural market is hindering its further growth. Distribution cost has close relation with shipping distance. Raised distribution cost brings major impacts not only on quality and price of products but also on greenhouse gas(carbon dioxide) emissions. Therefore, it is necessary to find a solution for inefficient distribution system of the local food industry to reduce overall cost and greenhouse gas. In this study, we present a location selection model for local food regional center using Analytic Hierarchy Process. The location of local food regional hub center is decided based on expert opinions on five factors: accessibility, quality, population, size of area, and shipping distance. The relative importance of the five factors has been concluded as follows: quality (0.430) ${\gg}$ population (0.262) ${\gg}$ travel distance (0.201) ${\gg}$ accessibility (0.075) ${\gg}$ and area (0.033). We apply and analyze the environmental management system model for Local food industry to develop the regional hub center site selection criteria and to analyze the effects of greenhouse gas emissions in the local food industry. This study, by applying and analyzing the environmental management system of the local food industry, is believed to be a valuable asset for managing greenhouse gas emission in the local food industry. Also, the data will be used for the autonomous local food industry's direct sales stall management. Eventually, this study will contribute so greatly to the local food industry's competitiveness that even large distribution companies will give way for the local food industry.

• Journal of Distribution Science
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• v.13 no.9
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• pp.37-45
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• 2015

Purpose - This paper's aim is to investigate whether or not gross profitability explains the cross-sectional variation of the stock returns in the Korean stock market. Gross profitability is an alternative profitability measure proposed by Novy-Marx in 2013 to predict cross-sectional variation of stock returns in the US. He shows that the gross profitability adds explanatory power to the Fama-French 3 factor model. Interestingly, gross profitability is negatively correlated with the book-to-market ratio. By confirming the gross profitability premium in the Korean stock market, we may provide some implications regarding the well-known value premium. In addition, our empirical results may provide opportunities for the fund distribution industry to promote brand new styles of funds. Research design, data, and methodology - For our empirical analysis, we collect monthly market prices of all the companies listed on the Korea Composite Stock Price Index (KOSPI) of the Korea Exchanges (KRX). Our sample period covers July1994 to December2014. The data from the company financial statementsare provided by the financial information company WISEfn. First, using Fama-Macbeth cross-sectional regression, we investigate the relation between gross profitability and stock return performance. For robustness in analyzing the performance of the gross profitability strategy, we consider value weighted portfolio returns as well as equally weighted portfolio returns. Next, using Fama-French 3 factor models, we examine whether or not the gross profitability strategy generates excess returns when firmsize and the book-to-market ratio are controlled. Finally, we analyze the effect of firm size and the book-to-market ratio on the gross profitability strategy. Results - First, through the Fama-MacBeth cross-sectional regression, we show that gross profitability has almost the same explanatory power as the book-to-market ratio in explaining the cross-sectional variation of the Korean stock market. Second, we find evidence that gross profitability is a statistically significant variable for explaining cross-sectional stock returns when the size and the value effect are controlled. Third, we show that gross profitability, which is positively correlated with stock returns and firm size, is negatively correlated with the book-to-market ratio. From the perspective of portfolio management, our results imply that since the gross profitability strategy is a distinctive growth strategy, value strategies can be improved by hedging with the gross profitability strategy. Conclusions - Our empirical results confirm the existence of a gross profitability premium in the Korean stock market. From the perspective of the fund distribution industry, the gross profitability portfolio is worthy of attention. Since the value strategy portfolio returns are negatively correlated with the gross profitability strategy portfolio returns, by mixing both portfolios, investors could be better off without additional risk. However, the profitable firms are dissimilar from the value firms (high book-to-market ratio firms); therefore, an alternative factor model including gross profitability may help us understand the economic implications of the well-known anomalies such as value premium, momentum, and low volatility. We reserve these topics for future research.

• The Korean Journal of Financial Management
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• v.27 no.2
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• pp.85-114
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• 2010

Using the financial institutions that have adopted performance-based stock option plan, this paper examines whether performance-based executive stock options improves effectively firm value. Over the period 2002~2005, we investigate short-term and long-term effects of the performance-based stock options on stock price. The empirical results are summarized as follows. First, the announcement of plain vanilla stock options generates no significant effects on firm value. Meanwhile, the announcement of performance-based stock options results in negative and significant abnormal returns, which is contrary to the expectation. In addition, we find that there are strong, significant and negative announcement effects when banks grant performance-based stock options. Secondly, there is no significant difference between the long-term performance of the sample granting stock options and that of the benchmarks, which is similar to the findings of the previous research. Also, we fail to get any evidence that performance-based stock option awards have improved the long-term firm value.

• The Journal of the Korea Contents Association
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• v.13 no.1
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• pp.456-466
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• 2013

The most important thing to develop real estate asset would be a feasibility study. To secure feasibility of development projects, reducing and minimizing the cost of land and construction also would be the important thing. To analyze optimal land-value for real estate development projects, I have collected 204 balance sheets of development projects in South Korea. With the help of statistical technology, I could have selected useful data from those balance sheets. After detailed analysis of statistical data, I could have reached conclusion that the most important factor to earning rate would be land cost per unit ground area under the constraint of given sale price. So far the main pattern of feasibility study of development projects was land cost and construction cost. However, by this study, I have found a new fact that construction cost has little effect to earning rate and land cost per unit ground area is the most effect to earning rate especially in residential facilities rather than commercial ones.

• Proceedings of the Korea Water Resources Association Conference
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• 2011.05a
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• pp.20-20
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• 2011

The purpose of this research aims to evaluate the emergence of new business mode in the Chinese water market since the mid-2000s - Transfer-Operate-Transfer(TOT) Projects. The study pays special attention to the case of the Hefei Wangxiaoying Wastewater Treatment TOT Project, which was awarded to the consortium of Berlin Water International and its Chinese partner in late 2004. The consortium secured an exclusive operating right for 23 years on the basis of a TOT scheme and would take responsibility of all the profits and losses in the operation of the plant. The total investment for the transfer amounted to RMB 491 million(US$70 million). The price was more than 288% of the original value, RMB 170 million (US$24 million). The project can be regarded as a successful case because of the following three causes. First, the Hefei government followed a series of standardized procedures in the international bidding, which ignited best-performed international players' competition for the project. Second, the project will bring in cutting-edge operation skills and management know-how. Third, the government succeeded in raising public asset values, and thanks to this, the government is able to consider other similar projects not only in the water sector but also other sectors in public utility services. Nevertheless, Berlin Water's point of view, there are several challenges. First, the company took a risk to pay such a large amount of cash to the Hefei government. Although such premium can be recouped in the operation period of 23 years, whether or not the company would be able to recover the initial investment and realize profits is in question due to an uncertainty of socio-political circumstances in China. Second, Berlin Water should expect a steep rise of water tariffs over the contract period in order to get the investment back. Water pricing is still a sensible matter to Chinese authorities, and therefore, it is uncertain if such rise of water tariffs would be possible. Third, the TOT mode leads to creation of a large amount of cash to government officials, which might have caused corruption between those who are involved in TOT deals. Then, the final contract fee would soar, which often results in the burden of normal customers. As discussed, the TOT mode has drawn much attention of foreign investors as a new alternative to enter into the Chinese water market. But it is important to note that foreign investors should be aware of possible risks in water TOT projects, which reflects some features of the Chinese political economy landscape and social norms. The Hefei case indicates that benefits can overshadow risks in TOT projects, which will continue to attract foreign investors that are dedicated to establishing their strongholds in the Chinese water market.

• Cartoon and Animation Studies
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• s.45
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• pp.283-298
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• 2016

Design is a fatal factor to differentiate and survive one product from the other in fierce competition of the market, when other conditions such as price or quality makes no much difference. Among many marketing tools, package design is known as a direct communication that visualizes and forms the very initial brand image of a product. Package design is not only for packing, transporting, storing and loading but for engraving the brand image in a consumers' mind and lead them to purchasing. One of recent package design trands is various ways of using character, not just as a printed image on the surface but as a part of three dimensional structure of package. If it succeed, the package design could give out the secondary fun and impact to the consumers. The package design with an effective character is itself a great marketing tool and valuable design asset, which can bring a further profit to the company. Especially, character-package can be a powerful and effective marketing method for various local products, in needs of further publication and sales with limited cost. It should motivate the sales of the products by grabbing their attention and taken as a souvenir. This research takes a character package as a useful marketing method for a local brand in Jeonju, South Korea, and tries to design a three dimensional package using its own character. Through the process, the research aims to propose an important design strategy for repositioning or enhancing an existing brand.