• Korean Management Science Review
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• v.28 no.1
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• pp.159-167
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• 2011

The theory of random utility maximization (RUM) defines the probability of an alternative being chosen as the probability of its utility being perceived as higher than those of all the other competing alternatives in the choice set (Marschak 1960). According to this theory, consumers perceive the utility of an alternative not as a constant but as a probability distribution. Over the last two decades, there have been an increasing number of studies on the effect of utility variance on choice probability. The common result of the previous studies is that as the utility variance increases, the effect of the mean value of the utility (the deterministic component of the utility) on choice probability is reduced. This study provides a theoretical investigation on the effect of utility variance on choice probability without any assumptions on the specific forms of probability distributions. This study suggests that without assumptions of the probability distribution functions, firms cannot apply the marketing strategy of maximizing choice probability (or market share), but can only adopt the strategy of maximizing the minimum or maximum value of the expected choice probability. This study applies the Chebyshef inequality and shows how the changes in utility variances affect the maximum of minimum of choice probabilities and provides managerial implications.

• Proceeding of Spring/Autumn Annual Conference of KHA
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• 1992.11a
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• pp.45-51
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• 1992

The purpose of this study was to predict the spatial housing demand of households in Seoul with the use of residential choice probabilitics. An multinomial legit model is developed using socio-demographic and housing characteristics. SAS package was utilized to estimate this model. This study used the data obtained by the Korea Rosearch Institute for Human Settlemente in 1989. The sample size was 3941 households in Seoul.The residential choice probability varicd depending upon the residential area, head age, head age, tenure and work place. The households with students were more likely to choose kangnam are. The households without young children had higher probability to choose new town near Seoul. Prime reason of this two results were considered the chi Id education and their better housing, Kangnam area was known to be the first consideration for residential choice regardless of work place. Low level of choice probability of kangman area for future residences however, was evidenced. Prime reason of such seemingly contradicting phenomenon is suspected for higher housing prices and limited affordability of people surveyed.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.16 no.3
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• pp.1806-1814
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• 2015

The strategy of distributors using a PB(Private Brand) inferior to existing PB to increase choice probability of PB arouses difficulty in terms of cost. Therefore, the aim of this study is to verify incentive and compromise effects of PB using two realistic experimental methods. Looking at the verification results, incentive and compromise effects occurred to show increase in choice probability of PB when a new GB(Generic Brand) was added to NB(National Brand) and PB of a manufacturer. In specific during experiment 1, choice probability of PB, the target, was changed when decoy brand was introduced even if there is a large difference in preference and choice probability of the competitor and target due to characteristics of NB and PB. In experiment 2, incentive effect appeared when PB of competitor was positioned as an inferior alternative to increase choice probability of the company's PB. Strategic implications on the study results, limits of this study, and future directivity were proposed.

• The Korean Journal of Community Living Science
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• v.24 no.3
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• pp.327-342
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• 2013

The purposes of this study were to explore consumer preference for the types of nutrition label of cereal products and to identify some influencing factors on purchase intention and choice probability of nutrition-labeled products. First, most of the respondents preferred the nutrition fact panel with traffic light-GDA(TL-GDA), while the nutrition fact panel only type and the nutrition fact panel with front-of-package(FOP) type were preferred by few respondents. However, consumers evaluated higher for TL-GDA type and FOP symbol type, while the nutrition fact panel only type was evaluated much lower. Second, consumer preference for label types was partially related with 'eating breakfast' and consumer evaluations of the types of labels for the nutrition fact panel only and the nutrition fact panel with FOP were found to be significantly different by gender. Lastly, both purchase intention and choice probability for nutrition-labeled products were found to be significantly influenced by information search and product attitude. In addition, choice probability was found to be significantly influenced by individual characteristics such as gender and grade. It is necessary to find the relationship between nutrition labels and consumer response as this can help consumers make a better choice of food as well as providing some useful information on consumers to the related parties such as companies and consumer organizations.

• Journal of the Korean Regional Science Association
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• v.11 no.1
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• pp.31-60
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• 1995

The distribution of economic activity over a mutually exclusive and exhaustive categorical industry-region matrix is modeled as a composition of two random components: the probability-like share distribution of jobs and the dynamic evolution of absolute aggregates. The former describes the individual activity location choice by comparing the predicted profitability of the current industry-region pair against that of all other alternatives based on the available information on industry-specific, region specific, or activity specific attributes. The latter describes the time evolution of macro-level aggregates using a dynamic reduced from model. With the seperation of micro choice behavior and macro dynamic aggregate constraint, the usual independence and identicality assumptions become consistent with the activity share distribution, hence multi-regional industrial migration can be represented by a set of probability evolution equations in a conservative Markovian from. We call this a Micro-Macro Composition Approach since the product of the aggregate prediction and the predicted activity share distribution gives the predicted activity distribution gives the predicted activity distribution which explicitly considers the underlying individual choice behavior. The model can be applied to interesting practical problems such as the plant location choice of multinational enterprise, the government industrial ploicy to attract international firms, and the optimal tax-transfer mix to influence activity location choice. We consider the latter as an example.

• Health Policy and Management
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• v.8 no.1
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• pp.183-202
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• 1998

This study is to investigate patient's choice of health care and the demand for Korean traditional medicine care in rural areas in 1995. It tried to evaluate the effect of out-of-pocket expenditure, travel time, and waiting time on improving care-seeking and substituting clinical medicine for pharmacy care and Korean traditional medicine care in rural areas. The statistical model of this study is conditional logit to estimate effects of choice-specific and individual-specific characteristics on the choice of type of services. This study used, as explanatory variables, average out-of-pocket payment, travel time, and waiting time of services required to use the services. The model was empirically tested using data from 1995 Korean National Health Survery. The results showed that rural Koreans responded to out-of pocket payment and travel time. Increases of out-of-pocket payment and travel time decreased the probability to choose care in rural Korea. Rural Koreans were more likely to seek care than others with low out-of-pocket payment and travel time. The probability of choosing Korean traditional medicine were higher among the members of the households with higher education level and older persons, while they were lower in the households with large family than others compared with the probabilities of choosing public health facilities. The result of this study implies that policy on use of health care in rural Korea can be focused in managing travel time and out-of-pocket payment.

• Current Photovoltaic Research
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• v.10 no.4
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• pp.121-132
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• 2022

The need for floating photovoltaic is being emphasized to expand renewable energy but low residents' acceptance is a major obstacle to the deployment of floating photovoltaic. Using the discrete choice experiment, this study analyzed the preferences for community-based floating photovoltaic projects and proposed a method to increase the residents' acceptance of floating photovoltaic projects. The estimates of the marginal willingness to accept (MWTA) of the distance, the coverage ratio, the landscape, the project owner (public institution), and the project owner (large company) are -0.69%p/km, 0.13%p/%p, -0.57%p, -2.95%p, -1.73%p, respectively. According to the result of simulation analysis, the residents' acceptance is significantly higher when the project is operated by a public institution, with a choice probability of 58%, than when the project is operated by a private company, with a choice probability of 29%, 12% for a large and small company, respectively. In addition, as a result of the analysis of the expected returns, the results show that the closer the distance from the residence to the power plant, the higher the expected return.

• Journal of Korea Society of Industrial Information Systems
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• v.2 no.2
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• pp.219-228
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• 1997

The Fano metric is the maximum likelihood decoding choice for convlutional code for binary symmetric channel. The Fano metric assumes that it has previous knowledge of channel error probability. However, the bit errors in real channel occur in bursts and the channel error probability can not be known exactly. Thus, the Fano metric is not the maximum likelihood choice for bursty-noise channel. In this paper universal metri which dose not require the previous knowlege of the channel transition probability is used for sequential decoding. It is shown that the complexity of the universal is much less than that of the Fano metric bursty-noise channel, since it is estimated on a branch by branch basis.

• Journal of the Korean Data and Information Science Society
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• v.14 no.2
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• pp.209-216
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• 2003

Contingent valuation method (CVM) is a main evaluation method of nonmarket goods for which markets either do not exist at all or do exist only incompletely; an example is environmental good. A dichotomous choice approach, the most popular type of CVM in environmental economics, employs binary discrete choice models as statistical estimation models. In this paper, we propose a semiparametric dichotomous choice CVM method using local linear model of Fan and Gijbels (1996) in which probability distribution of error term is specified parametrically but latent structural function is specified nonparametrically. The computation procedures of the proposed method are illustrated with a simple design of simulations.

• Journal of the Korean Institute of Landscape Architecture
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• v.28 no.1
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• pp.19-28
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• 2000

The purposes of this study are two folds: a) to introduce conjoint choice model to research the choice behavior of theme park users, and b) to suggest the strategies to strengthen the competitiveness of theme parks. The major four theme parks in Seoul metropolitan areas were selected as study areas. A leading polling agency was employed to select 432 respondents by probability sampling and to conduct face-to-face interview. Both alternative generating and choice set generating fractional factorial design were conducted simultaneously to meet the necessary and sufficient conditions for calibration of the conjoint choice model. Dummy coding was used to represent the attribute levels, and the alternative-specific model was calibrated. The goodness-of-fit of the model was quite satisfactory($\rho$$^2$=0.47950), and most parameters values had to expected sign and magnitude. Car was preferred transport mode to shuttle bus for visiting theme parks ; however the most ideal attribute levels only were estimated significantly. Most attribute levels of shuttle bus were estimated significantly except the Dream Land, which is the least attractive park among study areas. Simulation results showed that the shuttle bus was a mode worth providing to switch the current car dominant visiting pattern of theme parks, which will be one the effective strategies to attract more patrons, especially for potential users adjacent to parks. Several ideals were suggested for future researches, in terms of utilization of more general utility function and new base alternative, and inclusion of more salient attributes such as constraints in the model.