• Title/Summary/Keyword: Consumer decision process

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Global Collaborative Commerce: Its Model and Procedure (글로벌 협업 전자상거래를 위한 모형 및 절차)

  • Choi, Sang-Hyun;Cho, Yoon-Ho
    • The Journal of Society for e-Business Studies
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    • v.9 no.4
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    • pp.19-36
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    • 2004
  • This paper suggests a business process between the collaborative companies that want to extend globally sales and delivery service with restricted physical branches in their own areas. The companies integrate their business processes for sales and delivery services using a shared product taxonomy table. In order to perform the collaborative processes, they need the algorithm to exchange their own products. We suggest a similar product finding algorithm to compose the product taxonomy table that defines product relationships to exchange them between the companies. The main idea of the proposed algorithm is using a multi-attribute decision making (MADM) to find the utility values of products in a same product class of the companies. Based on the values we determine what products are similar. It helps the product manager to register the similar products into a same product sub-category. The companies then allow consumer to shop and purchase the products at their own residence site and deliver them or similar products to another sites.

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Design of a Condition-based Maintenance Policy Using a Surrogate Variable (대용변수를 이용한 상태기반 보전정책의 설계)

  • Kwon, Hyuck Moo;Hong, Sung Hoon;Lee, Min Koo
    • Journal of Korean Society for Quality Management
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    • v.49 no.3
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    • pp.299-312
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    • 2021
  • Purpose: We provide a condition-based maintenance policy where a surrogate variable is used for monitoring system performance. We constructed a risk function by taking into account the risk and losses accompanied with erroneous decisions. Methods: Assuming a unique degradation process for the performance variable and its specific relationship with the surrogate variable, the maintenance policy is determined. A risk function is developed on the basis of producer's and consumer's risks accompanied with each decision. With a strategic safety factor considered, the optimal threshold value for the surrogate variable is determined based on the risk function. Results: The condition-based maintenance is analyzed from the point of risk. With an assumed safety consideration, the optimal threshold value of the surrogate variable is provided for taking a maintenance action. The optimal solution cannot be obtained in a closed form. An illustrative numerical example and solution is provided with a source code of R program. Conclusion: The study can be applied to situation where a sensor signal is issued if the system performance begins to degrade gradually and reaches eventually its functional failure. The study can be extended to the case where two or more performance variables are connected to a same surrogate variable. Also estimation of the distribution parameters and risk coefficients should be further studied.

The Strategy Development of the Restaurant Industry through the AHP Analysis: Focusing on the Digital Conversion and Non-Contact Service after COVID-19 Pandemic (AHP 기법을 활용한 외식산업의 발전 전략에 관한 연구: COVID-19 팬더믹 이후의 디지털, 비대면 전환에 대한 인식)

  • Lee, Bong-Shik;Park, Min-Jae
    • Asia-Pacific Journal of Business
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    • v.12 no.4
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    • pp.271-288
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    • 2021
  • Purpose - The purpose of this study is to identify the critical factors that restaurant management should consider strategically when making a decision after COVID-19 under the digital transformation and non-contact service expansions environment. Design/methodology/approach - The thirty six experts and managers who have 5 years or more experience in restaurant industry in Korea participate this study. The Analytic Hierarchy Process (AHP) and SER-M were used to analyze the experts' opinion Findings - As a result of the analysis, 'management environment' (0.313) showed the highest relative importance priority, followed by 'brand (0.263)', 'management characteristics (0.254)', and 'physical factors (0.17)'. And, as for the sub-factor value, 'lifestyle (0.087)', 'awareness (0.084)', 'consumer desire (0.075)', and 'loyalty (0.068)' were ranked highest among the 19 influencing critical factors. Research implications or Originality - In the case of large restaurant enterprises, it is judged that the subject(CEO, Management) is actively pursuing a strategy to acquire the necessary resources for the given environment of digital transformation and customer demand for non-contact services. On the other hand, in the case of middle and small restaurant enterprises, it seems that they are fully aware of the demand for expansion of non-contact services and the digital transformation required in the post COVID-19 era, but information technology utilization ability, usage experience, technology acceptance ability, and education and training support for this are only available to large enterprises.

Inverse Effects of Information: The Influence of Personality Congruence on Preference for High Technology Products

  • Sohn, Yong Seok;Kim, Sung Eun
    • Asia Marketing Journal
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    • v.14 no.4
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    • pp.167-188
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    • 2013
  • In today's society with its emphasis on unlimited information access, control of available information about high-technology products is often vital to their success. When a product is released, consumers may initially be attracted through information about its remarkable internal and external features. They may also perceive a degree of congruence between their own personalities and the product image as more information becomes available over time. Consumers' changing impressions of the product may influence personality congruence negatively or positively. These changes and their effects on preference for high-technology products are the focus of this paper. A survey was given to a sample of 206 students at K University to investigate the degree to which consumer behavior can be influenced by personality congruence. The need for clear and definite product knowledge in this process and the effect of product information on preference were also investigated. Three analyses were conducted. The results of Analysis 1 showed the influence of personality congruence on preference for high-technology products. Judgments about personality congruence were based on non-compensatory rather than compensatory information processing. The respondents considered certain aspects of a product's personality rather than the product as a whole when making preference decisions. The results of Analysis 2 indicated that when less information was available about a product, consumers who perceived high personality congruence with the product tended to have higher preference for it compared to those who perceived low personality congruence with the product. On the other hand, when consumers were given more information, no difference was observed in the impact of personality on preference between perceived high and low personality congruence. Lastly, the results of Analysis 3 showed that when consumers with high need for closure (NFC) perceived high congruence between their own personalities and a product, objective information regarding the product was not used in decision-making: instead, judgments about the product were based on perceived personality congruence. On the other hand, high-NFC consumers who perceived low personality congruence between themselves and the product tended to require more information about the product in order to give it a positive evaluation. In contrast, low-NFC consumers who perceived high personality congruence felt comfortable with large amounts of information. For low-NFC consumers who perceived low congruence, the level of information had no influence on preference.

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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 Effects of After-purchase Feedback About Customer Service Quality on Purchase Process - Focusing on Internet Shopping Mall - (고객 서비스 품질에 대한 구매 후기 댓글이 구매과정에 미치는 영향 - 인터넷 쇼핑몰을 중심으로 -)

    • Shin, Chang-Nag;Kim, Young-Ei;Park, Young-Kyun
      • Journal of Distribution Research
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      • v.14 no.1
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      • pp.27-44
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      • 2009
    • This research classified the customer service factor of on-line shopping mall into tangibility, reliability, responsiveness, and empathy and analyzed the effect that the factors affect to consumer's purchase and re-purchase. If we present suggestions on the basis of these results of study, we would provide next two points: First, purchasers have utilized online shopping mall who pursued free from hard sell that being done in off-line and convenience of purchase affected more by reliability and responsiveness such as the fame of shopping mall that visit, reliability of security, and quick product search than the Customer of After-purchase Feedback influence for online purchasers decision factor out of consumer's purchase and re-purchase by on-line shopping mall customer service factor. Second, This study analyzed that online re-purchaser recognized the Customer of After-purchase Feedback factor high and built their loyalty through friendly emotion of on-line shopping mall and satisfaction of shopping mall service, and recommendation. In addition, they behave themselves as an affirmative messenger that is role of the Customer of After-purchase Feedback that make active opinion presentation and participation through community by important adjustment impact that empathy factor of on-line shopping mall customer service.

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    Digital Stress of Consumers in Using Digital Goods (디지털 제품 관련 소비자 스트레스에 관한 연구)

    • Kim, Jung-Eun;Yeo, Jung-Sung
      • Journal of Families and Better Life
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      • v.25 no.3 s.87
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      • pp.119-135
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      • 2007
    • The purpose of this study is to find out the level of digital stress that people experience and to investigate the effects of socio-economic variables on that. To collect data, structured questionnaire was developed and 1,200 questionnaires were distributed through internet. There were 2 dimensions in this study to examine digital stress. First dimension was about the devices themselves: computers and the other digital goods. Second dimension was about the time digital stress occurring in consumers' decision-making process: purchasing and using. Based on Yeo&Kim(2004), sub-dimensions of purchasing and using aspects were chosen. 5 sub-dimensions in purchasing side were new technology, cost, variety of alternatives, warranty service, and informational problem 6 sub-dimensions in using field were mal(or impaired)-functioning. physical aspects, immaturity in use, pressure to use, addiction to use, and informational problem. As independent variables, sex, age, educational level, digitalization acceptability and computer usability were used. The overall level of digital stress was around the average point which was not as high as expected. Digital stress of purchasing was higher than that of using. First, in purchasing aspects, the level of digital stress was relatively high in cost, variety of alternatives and warranty service. Hence, clear communications with consumers about the distinctive aspects and cost of digital devices in market are needed. Secondly, in using side, mal-functioning and physical aspects were relatively more powerful stressors. In the other words, the more serious problems were not from the characteristics of individual consumers but from those of products. Producers should put their best efforts to reduce imperfection (defectiveness) and develop user-friendly digital devices. Also, users' individual efforts to overcome the problems that can be solved privately are necessary. Finally, it was discovered that sex and computer usability were very important variables on digital stress. To extend computer usability of consumers and get over digital illiteracy, it is essential to expand the paths to give chances for people to contact with computers and other digital goods. Still there are lots of people whore computer-illiterate or low-skilled at computers. In policies or educational programs made by government, communities, or schools, more attention should be paid to the digitally vulnerable groups.

    An Empirical Study on Consumers' Dissatisfaction, Attribution and Complaint Behavior (소비자의 구매 후 불만족과 귀인 및 불평행동에 대한 실증적 연구)

    • In-Kon, Koh
      • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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      • v.19 no.3
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      • pp.69-79
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      • 2024
    • Companies should resolve consumer dissatisfaction and increase brand loyalty by actively identifying the factors of consumer dissatisfaction and proactively responding to expected complaint behavior to induce repurchase. This is a management goal that should be pursued in common regardless of the size of the company. The specific purpose of this study is to find out whether the degree of dissatisfaction differs depending on whether or not consumers' expected performance before purchase and the actual perceived performance after purchase is compared, whether the degree of dissatisfaction affects the type of complaint behavior, which is a subsequent behavior, and whether the attributable behavior has a moderating effect in this process and whether the persistence of the result and the controllability of the cause act as a factor that determines the attribution position. In particular, compared to general companies, venture companies are more likely to overload the information processing ability of managers and are likely to make various irrational errors in decision making, so this study has important academic and practical implications. As a result of the analysis, the negative inconsistency group had the highest degree of dissatisfaction, and the higher the degree of inconsistency, the higher the dissatisfaction. The attributable behavior of unsatisfied consumers had a moderating effect on the degree of dissatisfaction, and the dissatisfaction was significantly higher in the external attributable group than the internal attributable group, which was statistically significant. On the other hand, the persistence of the result had a statistically significant effect on the attribution position, but the controllability of the cause was not. The degree of attributable behavior and dissatisfaction did not affect the type of complaining behavior, showing limited influence. Along with the interpretation of these results, this study presents various implications, especially for small and medium-sized/venture companies that provide new durable products.

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    An Exploratory Study on the Buying Decision-making Process of Automobile Books (자동차전문서적 구매의사 결정과정에 관한 탐색적 연구)

    • Kim, Kil-Hyun;Ha, Kyu-Soo
      • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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      • v.6 no.3
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      • pp.1-18
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      • 2011
    • Publication Industry of scientific technology is showing tendency of decreasing in sales, which clearly draws down curve since 2000. The printing culture is declining whether it is because of trend avoiding pure science or technological science and engineering, advancement of mass media or increasing frequency of using internet. Nevertheless, researcher considered car industry in publication industry as a life-long purpose for study. For this reason, the researcher tried to find the variables of the marketing which give impact on the customers such as student group and consumer who buys cars, when buying professional books. The found variables are expected to have a huge impact on the publication industry of professional books. As a result of research, in the area of the vision and motive, most said that they have "chosen a major in car because they liked car in usual base." In the stage of recognizing the problem, they buy the books when it is inevitably necessary. In the stage of searching for the information, they get information from advertisements, friends, professors, internet or sales clerk in book stores. In the stage of evaluation, they look for the title and the publication date of the books. In addition, in the stage of deciding purchase, "buy immediately" was the most frequent answer while impulsive purchase is the least frequent answer. In the stage of evaluating after purchase, many of them mostly are satisfied with their purchase.

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    Impact of a Brand Image Matching with the Advertising Model on Price Fairness Perceptions: Focus on Sports Advertising (브랜드 이미지와 광고모델의 일치성이 가격공정성 지각에 미치는 영향 : 스포츠 광고를 중심으로)

    • Hwang, Hee-Joong;Shin, Seung-Ho
      • Journal of Distribution Science
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      • v.10 no.3
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      • pp.43-50
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      • 2012
    • This study sets out to examine how a brand image that matches the advertising model has a positive impact on brand attitude and price fairness perceptions. We reviewed the constructs on the basis of previous studies and each of the concepts has been redefined. One such concept, "image congruence," refers to the harmony, fitness, and matching quality of images. For example, how well celebrity advertising model is matches the brand image shows image congruence. Results are summarized as follows: First, the congruence of brand image and sports advertising model has no significant impact on brand attitude certainty and persistence. Second, the individual's brand attitude certainty and brand attitude persistence has a positive impact on the perceptions of price fairness. Third, the congruence of brand image and sports advertising model has a positive impact on the perceptions of price fairness. The first and the third results suggest that the positive impact on the price fairness perceptions is temporary but it has insignificant effects on the formation of brand attitude causing ongoing purchases. In other words, in order to influence consumers' long-term confidence on the brand, improving the quality of products or services has to precede promotional strategies such as advertising. When an advertising model is inappropriate for the brand image, consumers perceive product price changes as a negative issue in the short term. However, in the long term, attitude formation such as consumers' repurchase intentions and word of mouth will be not affected. The second result suggests that an already existing positive brand attitude can contribute more positively to change the perceptions of price fairness. In particular, attitude persistence has greater influence than attitude certainty on the price fairness. It suggests that persistence issues such as the trading period and the frequency of transactions must be managed and controlled because they are more important than the certainty issues such as strength of belief or trust. For example, when a commercial model for expensive sporting goods matches up with the brand image, consumer feels less pressure on the price changes. However, it does not determine the consumer's repeated purchases or sustainable transactions and it also has no absolute impact on the brand trust. In other words, consumer brand attitude should be recognized and approached as a routine strategy in view of the result that it is of great value as a causal variable in the process of consumer decision-making.

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