• Title/Summary/Keyword: Channel strategy

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The Impact of Market Environments on Optimal Channel Strategy Involving an Internet Channel: A Game Theoretic Approach (시장 환경이 인터넷 경로를 포함한 다중 경로 관리에 미치는 영향에 관한 연구: 게임 이론적 접근방법)

  • Yoo, Weon-Sang
    • Journal of Distribution Research
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    • v.16 no.2
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    • pp.119-138
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    • 2011

  • Internet commerce has been growing at a rapid pace for the last decade. Many firms try to reach wider consumer markets by adding the Internet channel to the existing traditional channels. Despite the various benefits of the Internet channel, a significant number of firms failed in managing the new type of channel. Previous studies could not cleary explain these conflicting results associated with the Internet channel. One of the major reasons is most of the previous studies conducted analyses under a specific market condition and claimed that as the impact of Internet channel introduction. Therefore, their results are strongly influenced by the specific market settings. However, firms face various market conditions in the real worlddensity and disutility of using the Internet. The purpose of this study is to investigate the impact of various market environments on a firm's optimal channel strategy by employing a flexible game theory model. We capture various market conditions with consumer density and disutility of using the Internet.

    shows the channel structures analyzed in this study. Before the Internet channel is introduced, a monopoly manufacturer sells its products through an independent physical store. From this structure, the manufacturer could introduce its own Internet channel (MI). The independent physical store could also introduce its own Internet channel and coordinate it with the existing physical store (RI). An independent Internet retailer such as Amazon could enter this market (II). In this case, two types of independent retailers compete with each other. In this model, consumers are uniformly distributed on the two dimensional space. Consumer heterogeneity is captured by a consumer's geographical location (ci) and his disutility of using the Internet channel (${\delta}_{N_i}$).
    shows various market conditions captured by the two consumer heterogeneities.
    (a) illustrates a market with symmetric consumer distributions. The model captures explicitly the asymmetric distributions of consumer disutility in a market as well. In a market like that is represented in
    (c), the average consumer disutility of using an Internet store is relatively smaller than that of using a physical store. For example, this case represents the market in which 1) the product is suitable for Internet transactions (e.g., books) or 2) the level of E-Commerce readiness is high such as in Denmark or Finland. On the other hand, the average consumer disutility when using an Internet store is relatively greater than that of using a physical store in a market like (b). Countries like Ukraine and Bulgaria, or the market for "experience goods" such as shoes, could be examples of this market condition. summarizes the various scenarios of consumer distributions analyzed in this study. The range for disutility of using the Internet (${\delta}_{N_i}$) is held constant, while the range of consumer distribution (${\chi}_i$) varies from -25 to 25, from -50 to 50, from -100 to 100, from -150 to 150, and from -200 to 200.
    summarizes the analysis results. As the average travel cost in a market decreases while the average disutility of Internet use remains the same, average retail price, total quantity sold, physical store profit, monopoly manufacturer profit, and thus, total channel profit increase. On the other hand, the quantity sold through the Internet and the profit of the Internet store decrease with a decreasing average travel cost relative to the average disutility of Internet use. We find that a channel that has an advantage over the other kind of channel serves a larger portion of the market. In a market with a high average travel cost, in which the Internet store has a relative advantage over the physical store, for example, the Internet store becomes a mass-retailer serving a larger portion of the market. This result implies that the Internet becomes a more significant distribution channel in those markets characterized by greater geographical dispersion of buyers, or as consumers become more proficient in Internet usage. The results indicate that the degree of price discrimination also varies depending on the distribution of consumer disutility in a market. The manufacturer in a market in which the average travel cost is higher than the average disutility of using the Internet has a stronger incentive for price discrimination than the manufacturer in a market where the average travel cost is relatively lower. We also find that the manufacturer has a stronger incentive to maintain a high price level when the average travel cost in a market is relatively low. Additionally, the retail competition effect due to Internet channel introduction strengthens as average travel cost in a market decreases. This result indicates that a manufacturer's channel power relative to that of the independent physical retailer becomes stronger with a decreasing average travel cost. This implication is counter-intuitive, because it is widely believed that the negative impact of Internet channel introduction on a competing physical retailer is more significant in a market like Russia, where consumers are more geographically dispersed, than in a market like Hong Kong, that has a condensed geographic distribution of consumers.
    illustrates how this happens. When mangers consider the overall impact of the Internet channel, however, they should consider not only channel power, but also sales volume. When both are considered, the introduction of the Internet channel is revealed as more harmful to a physical retailer in Russia than one in Hong Kong, because the sales volume decrease for a physical store due to Internet channel competition is much greater in Russia than in Hong Kong. The results show that manufacturer is always better off with any type of Internet store introduction. The independent physical store benefits from opening its own Internet store when the average travel cost is higher relative to the disutility of using the Internet. Under an opposite market condition, however, the independent physical retailer could be worse off when it opens its own Internet outlet and coordinates both outlets (RI). This is because the low average travel cost significantly reduces the channel power of the independent physical retailer, further aggravating the already weak channel power caused by myopic inter-channel price coordination. The results implies that channel members and policy makers should explicitly consider the factors determining the relative distributions of both kinds of consumer disutility, when they make a channel decision involving an Internet channel. These factors include the suitability of a product for Internet shopping, the level of E-Commerce readiness of a market, and the degree of geographic dispersion of consumers in a market. Despite the academic contributions and managerial implications, this study is limited in the following ways. First, a series of numerical analyses were conducted to derive equilibrium solutions due to the complex forms of demand functions. In the process, we set up V=100, ${\lambda}$=1, and ${\beta}$=0.01. Future research may change this parameter value set to check the generalizability of this study. Second, the five different scenarios for market conditions were analyzed. Future research could try different sets of parameter ranges. Finally, the model setting allows only one monopoly manufacturer in the market. Accommodating competing multiple manufacturers (brands) would generate more realistic results.

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    • A Study on the Factors influencing Consumer's Choice of Smartphone Purchase Channel in Multichannel Environments - Focusing on the consumer's shopping orientations (멀티채널 환경에서 스마트폰 구매시 소비자의 채널선택에 영향을 미치는 요인에 관한 연구 - 소비자의 쇼핑성향을 중심으로)

    • Kim, Jung-A;Goo, Jayoung James
      • Journal of Digital Convergence
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      • v.18 no.6
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      • pp.255-269
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      • 2020

    • This paper aims to analyze the factors influencing consumer's choice of smartphone purchase channel in multichannel environments. Recently, smartphone purchase channels are becoming more complex and diverse. A smartphone with a short purchase cycle is a product applying advanced technology, the research of this topic would be significant. The major findings of this study are as follows. First, depending on the consumer's shopping orientation, the consumer group was classified into three groups of preference 1. Active shopping, 2. Convenient shopping, and 3. Rational shopping. Second, it was analyzed that the consumer's shopping orientation influenced the decisions of the information search channel and the purchase channel. Third, there was a significant difference between the search and purchase channels in the three groups. Finally, in the channel experience, there was a significant difference in price satisfaction by group. The results of these studies are expected to provide practical implications for establishing a customized multi-channel strategy. This study provides a desirable model for research on smartphone purchase channels.

    • https://doi.org/10.14400/JDC.2020.18.6.255 인용 PDF KSCI

    Artificial Neural Network with Firefly Algorithm-Based Collaborative Spectrum Sensing in Cognitive Radio Networks

    • Velmurugan., S;P. Ezhumalai;E.A. Mary Anita
      • KSII Transactions on Internet and Information Systems (TIIS)
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      • v.17 no.7
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      • pp.1951-1975
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      • 2023

    • Recent advances in Cognitive Radio Networks (CRN) have elevated them to the status of a critical instrument for overcoming spectrum limits and achieving severe future wireless communication requirements. Collaborative spectrum sensing is presented for efficient channel selection because spectrum sensing is an essential part of CRNs. This study presents an innovative cooperative spectrum sensing (CSS) model that is built on the Firefly Algorithm (FA), as well as machine learning artificial neural networks (ANN). This system makes use of user grouping strategies to improve detection performance dramatically while lowering collaboration costs. Cooperative sensing wasn't used until after cognitive radio users had been correctly identified using energy data samples and an ANN model. Cooperative sensing strategies produce a user base that is either secure, requires less effort, or is faultless. The suggested method's purpose is to choose the best transmission channel. Clustering is utilized by the suggested ANN-FA model to reduce spectrum sensing inaccuracy. The transmission channel that has the highest weight is chosen by employing the method that has been provided for computing channel weight. The proposed ANN-FA model computes channel weight based on three sets of input parameters: PU utilization, CR count, and channel capacity. Using an improved evolutionary algorithm, the key principles of the ANN-FA scheme are optimized to boost the overall efficiency of the CRN channel selection technique. This study proposes the Artificial Neural Network with Firefly Algorithm (ANN-FA) for cognitive radio networks to overcome the obstacles. This proposed work focuses primarily on sensing the optimal secondary user channel and reducing the spectrum handoff delay in wireless networks. Several benchmark functions are utilized We analyze the efficacy of this innovative strategy by evaluating its performance. The performance of ANN-FA is 22.72 percent more robust and effective than that of the other metaheuristic algorithm, according to experimental findings. The proposed ANN-FA model is simulated using the NS2 simulator, The results are evaluated in terms of average interference ratio, spectrum opportunity utilization, three metrics are measured: packet delivery ratio (PDR), end-to-end delay, and end-to-average throughput for a variety of different CRs found in the network.

    • https://doi.org/10.3837/tiis.2023.07.012 인용 PDF HTML

    Communication Sequence Determination for Lead Vehicle Control in a Platoon via Remote Control Station

    • Park, Jae-Weon;Fang, Tae-Hyun
      • 제어로봇시스템학회:학술대회논문집
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      • 2002.10a
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      • pp.41.6-41
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      • 2002

    • In this paper, we present a remote control strategy for vehicles moving in an intelligent Vehicle Highway System(IVHS). We study a method for optimal off-line scheduling of a limited communication channel that is used for lead vehicle control in a platoon. The deviated distance from the desired trajectory is used for defining a cost functional that measures the performance of the system with communication constraints in relation to the desired system without communication constraints. The optimal communication sequence is obtained by simulations.

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    Re-illumination of VOC analysis

    • Bae SungMin
      • Proceedings of the Korean Society for Quality Management Conference
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      • 2004.04a
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      • pp.633-638
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      • 2004

    • Main purpose of existing VOC (the voice of customer) analysis is suppressing the VOC occurrence. But, in real situation, it is impossible to reduce the VOC occurrence to the zero level. Company's strategy to decrease specific customer complaints may cause another customer's complaints increase. Especially, in a financial industry, customer complaints are directly connected with company's profit. That is, the VOC from their profitable customer, product and channel is major concern of companies. In this paper, 1 reveal the relationship between CRM (customer relationship management) activity and VOC analysis and various analysis methods.

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    Optimal Design of Arrayed Waveguide Grating

    • Jung, Jae-Hoon
      • Journal of the Optical Society of Korea
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      • v.8 no.3
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      • pp.99-103
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      • 2004

    • This paper describes the optimal design of an AWG spectrum to meet various specifications and improve some physical parameters. The objective function is the norm of the difference between design parameters and target values. To obtain the design parameters, the Fourier model is employed and the design variables arc spacing of array waveguide, width of array waveguide, optical path difference, and focal length. The (1+1) Evolution Strategy is employed as the optimization tool. The optimization procedure is applied to a 16-channel AWG and the optimized design variables will considerably improve the system performance.

    • https://doi.org/10.3807/JOSK.2004.8.3.099 인용 PDF KSCI

    The strategy for the fabrication of oxide TFTs with excellent device stabilities: The novel oxide TFT

    • Jeong, Jae-Kyeong;Park, Jin-Seong;Mo, Yeon-Gon;Kim, Hye-Dong
      • 한국정보디스플레이학회:학술대회논문집
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      • 2009.10a
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      • pp.1047-1050
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      • 2009

    • The two approaches to improve the stability of oxide TFTs are described. First approach is the optimization of device architecture including MIS structure and passivation layer using conventional InGaZnO semiconductor channel layer. Second approach is to develop the new kinds of oxide semiconductor materials, which is very robust and stable against the gate bias stress and thermal stress.

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    Cross-Layer Analysis of Wireless TCP/ARQ Systems over Correlated Channels

    • Wu Yi;Niu Zhisheng;Zheng Junli
      • Journal of Communications and Networks
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      • v.7 no.1
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      • pp.45-53
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      • 2005

    • In this paper, we present a cross-layer analysis of wireless TCP systems over correlated channels. The effects of error correlation on the behavior of link retransmission strategy and the end-to-end throughput of TCP layer are investigated. Based on the cross-layer analysis, an efficient refinement of link layer protocol is proposed by consciously utilizing the information of channel correlations, which leads to the performance improvement of wireless TCP systems.

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    A Study of Marketing Channels of Korean Electronic Consumer Goods in China (중국 가전제품 유통시장의 현황분)

    • 김상용;김상균
      • Journal of Distribution Research
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      • v.6 no.1
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      • pp.37-56
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      • 2001

    • We analyze the fast changing Chinese electronic consumer goods market based on the Korean manufacturer's case. We suggest the Korean manufacturer to implement the systematic management of integrated marketing in China with segmenting and focusing strategies. Also, we suggest two layer marketing channel strategy in China.

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    A Simulation Study on the Transfer Effects of Decision Rights in a Supply Chain (공급사슬에서 의사결정권한의 이전효과에 대한 시뮬레이션 연구)

    • 박병인
      • Korean Management Science Review
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      • v.19 no.2
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      • pp.221-235
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      • 2002

    • Many people are getting more and more interested in the value of information sharing in a supply chain in proportion to the development of information technology in these days. In spite of much interest in the value of shared information, the related studies concluded that the effect of only sharing information strategy between upper and lower level is not large However, many related companies want to link each channel members in the supply chain with on-line to expect to reduce the cost by means of information sharing. This study wants to evaluate the alternative strategy to reduce more related costs than only sharing information strategy. This paper analyzed that how much the total supply chain cost is to change in the case of a transfer of decision rights from the lower (retailers) to the upper level (depot, vendor) in a supply chain. The decision rights mean the rights of being able to decide when to order, how much to order, where to order, and what mode to transport or distribute, etc. in a supply chain. By the experimental simulation study to the simple case, the strategy to share only information took the low effect of 1～2%, but the strategy to transfer the decision lights from the lower to the upper member had larger effect of about 5%. However. for the strategies to work well, it needs to cooperate closely among each supply chain members, and the fruits from the transfer of decision rights in a supply chain are allocated to each chain members reasonably Therefore, there needs to study in the future not only the exact transfer effect of decision rights, but the reasonable allocation method of the fruits among the chain members.

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