• Journal of Global Scholars of Marketing Science
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• v.19 no.4
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• pp.24-31
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• 2009

Firms produce various products that differ by function, design, color, etc. Product proliferation occurs for three different reasons. When there exist economies of scope, the unit cost for a product is lower when it is produced in conjunction with another product than when it is produced separately. Second, consumers are heterogeneous in the sense that they have different tastes, preferences, or price elasticities. A firm can earn more profit by segmenting consumers into different groups with similar characteristics. For example, product proliferation helps a firm increase profits by satisfying various consumer needs more precisely. The third reason for product proliferation is based on strategy. Producing a number of products can not only deter entry by providing few niches, but can also cause a firm to react efficiently to a low-price entry. By producing various products, a firm can reduce niches so that potential entrants have less incentive to enter. Moreover, a firm can produce new products in response to entry, which is called fighting brands. That is, when an entrant tries to attract consumers with a low price, an incumbent introduces a new lower-quality product while maintaining the price of the existing product. The drawback of product proliferation, however, is cannibalization. Some consumers who would have bought a high-price product switch to a low-price product. Moreover, it is possible that proliferation can decrease profits when a new product is less differentiated from a rival’s than is the existing product because of more severe competition. Many studies have analyzed the effect of product line rivalry in the areas of economics and marketing. They show how a monopolist can solve the problem of cannibalization by adjusting quality in a market where consumers differ in their preferences for quality. They find that a consumer who prefers high-quality products will obtain his or her most preferred quality, but a consumer who has not such preference will obtain less than his or her preferred quality to reduce cannibalization. This study analyzed the effects of product line rivalry in a duopoly market with two types of consumers differentiated by quality preference. I assume that the two firms are asymmetric in the sense that an incumbent can produce both high- and low-quality products, while an entrant can produce only a low-quality product. The effects of product proliferation can be explained by comparing the market outcomes when an incumbent produces both products to those when it produces only one product. Compared to the case in which an incumbent produces only a high-quality product, the price of a low-quality product tends to decrease in a consumer segment that prefers low-quality products because of more severe competition. Prices, however, tend to increase in a segment with high preferences because of less severe competition. It is known that when firms compete over prices, it is optimal for a firm to increase its price when its rival increases its price, which is called a strategic complement. Since prices are strategic complements, we have two opposing effects. It turns out that the price of a high-quality product increases because the positive effect of reduced competition outweighs the negative effect of strategic complements. This implies that an incumbent needs to increase the price of a high-quality product when it is also introducing a low-quality product. However, the change in price of the entrant’s low-quality product is ambiguous. Second, compared to the case in which an incumbent produces only a low-quality product, prices tend to increase in a consumer segment with low preferences but decrease in a segment with high preferences. The prices of low-quality products decrease because the negative effect outweighs the positive effect. Moreover, when an incumbent produces both kinds of product, the price of an incumbent‘s low-quality product is higher, even though the quality of both firms’ low-quality products is the same. The reason for this is that the incumbent has less incentive to reduce the price of a low-quality product because of the negative impact on the price of its high-quality product. In fact, the effects of product line rivalry on profits depend not only on changes in price, but also on sales and cannibalization. If the difference in marginal cost is moderate compared to the difference in product quality, the positive effect of product proliferation outweighs the negative effect, thereby increasing the profit. Furthermore, if the cost difference is very large (small), an incumbent is better off producing only a low (high) quality product. Moreover, this study also analyzed the effect of product line rivalry when a firm can determine product characteristics by focusing on the issue of fighting brands. Recently, Korean air and Asiana airlines have established budget airlines called Jin air and Air Busan, respectively, to confront the launching of budget airlines such as Hansung airline and Jeju air, among others. In addition, as more online bookstores have entered the market, a leading off-line bookstore Kyobo began its own online bookstore. Through fighting brands, an incumbent with a high-quality product can increase profits by producing an additional low-quality product when its low-quality product is more differentiated from that of the entrant than is its high-quality product.

• Journal of the Korean Society of Clothing and Textiles
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• v.32 no.10
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• pp.1535-1547
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• 2008

The purpose of this research Is to inquire into the aspects of consumers' perception of age and their lifestyle and to reveal the effect of variability in spending behaviors themselves. A survey was carried out regarding the consumers of the new elderly generation aged 55 and above. 561 respondents were surveyed. residing in Seoul and Metropolitan areas. Factor analysis from the exploratory reconnaissance, Cronbach's $\alpha$, K-average community and multivariate analysis, multi-recurrence and crossing analysis($\chi^2$ verified), were used for statistics analysis. In conclusion, the cognitive age only shared a marginal relationship with lifestyle, most people in their forties stood out in this part of the research. The change of the cognitive age and lifestyle of the new elderly generation is expected to be a variable in the clothing purchasing behavior in the future. As the population of the new elderly generation increases, there is a need for changing views towards the new elderly generation and there is no doubt that it is a main target within marketing trends in the elderly generation industry.

• The Journal of Industrial Distribution & Business
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• v.8 no.7
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• pp.31-38
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• 2017

Purpose - This study aims to elucidate the status of women as consumers and observe their consumption trends in relation to culture. Research design, data, and methodology - Past studies of women as consumers were observed and their consumer behaviors were noted. The stigma of women in society and how it has impacted the market industries were examined. Additionally, the role of culture in consumerism for women were also reviewed and elucidated. Results - The stereotypical roles that are placed in women in society are still prevalent for the marketing industry and is reflected in their businesses. Additionally, the role of culture plays a significant role in the consumer behaviors of women and thus businesses should understand its intricate differences between countries. Fashion industry is one that plays a prominent role in women's consumerism and the impact of culture has a prominent impact on women's consumer habits as well. Conclusions - Additional studies should be conducted to understand the consumerisms of women in the marketing industry. Businesses should also be aware of the vastly different cultural norms of various countries and tailor to their preferences. Only through a thorough examination and understanding of the consumer behavior in women will markets be able to flourish and gain solid ground in global businesses.

• Journal of the East Asian Society of Dietary Life
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• v.27 no.2
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• pp.185-193
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• 2017

The objective of this research was to determine the current consumer interest toward Korean Kimchi and identify the preferred sensory characteristics of Kimchi using qualitative consumer studies on Chinese consumers. Five different sessions of focus group interview (FGI) were conducted (n=39). The FGI session was designed to determine 1) current knowledge and interest as well as usage level of Korean-style Kimchi, 2) interests toward different Korean Kimchi based on appearance and tasting evaluation. Based on the results, radish was the most accepted ingredient for Kimchi among Chinese consumers, as it resembles the sensory characteristics of Chinese-style Kimchi. The sensory characteristics driving consumer preferences towards radish-based Kimchi included crunchy texture, and just-about-right sweet and spicy flavor. Thinly sliced radish was the most accepted shape of radish-based Kimchi. The current study provides practical information for product development of Kimchi targeted for Chinese.

• Journal of the Korean Society of Clothing and Textiles
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• v.20 no.1
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• pp.43-53
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• 1996

This study was initiated to investigate (1) the current sizing system for mail-order clothing, (2) consumers' preference for sizing systems, and (3) consumers' satisfaction with garment size. The apparel items and the sizes available at various mail-order companies in Korea were also reviewed. This investigation of consumers' preferences for various size description systems includes a survey of 410 men and women who had purchased garments by mail-order. The data were analyzed by Statistical Analysis System/pc. The major results are as follows; 1. The sizing system of mail-order clothing was different by garment items. The number of apparel sizes available for mail-order purchasing was three or less. The most mail∼order garments were labeled by the numerical size codes of body girth nleasurements or letter code (S, M, L). 2. The size description system most prefered by female subjects(N : 360) was the numerical size code of a body measurement(55.4%). The combination of bust-hips-height measurements size codes were prefered by 13.3% . The pictogram was least premiered by the subjects. 3. The apparel items that subjects wanted to buy using mail-order were underwear, home -weat and night-wear. The heavy users of mail-order purchasing, however, also wanted to purchase expensive garments requiring precise fit. The subjects aged from 20's to 80's wanted to purchase childern's wear by mail. 4. The desire for diversity of garment item and size of mail-order apparel was relatively high. The subjets also wanted to purchase special size garments by mail-order, e. g., garment sizes for full or tall figure.

• The Journal of the Korea Contents Association
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• v.11 no.2
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• pp.446-456
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• 2011

The purpose of the study is to understand the characteristics of consumers and to provide useful information for the wine vendors to make future sales strategy and a marketing plan according to the origin of the imported wine thorough the factors influencing consumer preferences and purchase intentions. The questionnaires were distributed to consumers who had purchased wine and 224 was collected then analysed. As a result, the origin of the wine had a significant effects on quality and risk perception when consumers evaluate products. Also, the origin of the wine had a significant on consumer's purchase intention.

• Fashion & Textile Research Journal
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• v.12 no.1
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• pp.109-113
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• 2010

Since July 2007, the government has banned the use of the existing non-legal measurement units, and has forced us to use the unified legal measurement. Therefore, the existing clothing size unit also has been changed into centimeter dimensions from inches. However, consumers have been familiar to used to the traditional inches unit. So they have the confusion to directly survey the size table sign for clothing or to contact the employee when purchasing clothing. By the current size table sign the customers can compare the inches unit and centimeters unit, but they are difficult to see it. Therefore, there is necessary to improve the size table sign by the way that can be easy to be found and seen by consumers is given to the clothing corners. In this research, three improved size table signs were developed. And they were evaluated by the consumers in terms of preferences and awareness of them. Eventually, the best size table sign was selected. From this result, if the large-discount mart use the best improved size table sign on behalf of the current one, the problems of existing size table sign will overcome and improve customer satisfaction.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.947-953
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• 2020

The main purpose of this study is to find the factors affecting the consumer goods buyers' choice on e-commerce sites in Vietnam. By using the quantitative method, the paper examines the theoretical research model and tests four hypotheses. The sample was drawn from the population of e-commerce sites in Vietnam comprising about 1,000 respondents. This study used the questionnaire method to collect primary data to test the hypotheses. Data analysis of the questionnaire was done using SPSS. The results show that there is a correlation between personal preferences of consumers on colors and brands and their actual final choice on e-commerce sites in Vietnam. The most important factor affecting the consumer goods buyers' choice on e-commerce in Vietnam is the brand of E-commerce site, following by the color and position. Among all educational groups, respondents with a Master degree pay the biggest attention to the site's color attribute, and those with a Bachelor degree pay more attention to the brand attribute. Women pay much more attention to the location of the products on the screen than men, as do consumers with a PhD degree, over respondents with a Bachelor or Master degree, and foreigners over Vietnamese consumers.

• Journal of the Korean Data and Information Science Society
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• v.23 no.1
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• pp.161-170
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• 2012

As insurance consumers' needs have been diversified and subdivided, it is increasingly important to grasp their preferences by characteristics and properties. Even though changer in sales channels and marketing conditions of insurance require to analyze what consumers take serious views to purchase, it is difficult to devise marketing strategies since not many concrete studies have been done in this field. A questionnaire survey was carried out to learn detailed information about basic disposition and buying patterns of insurance consumers. Applying efficient statistical techniques and then utilizing a model for securing new customers, this study attempts to explore a plan for rapid growth and successive establishment of bancassurance.

• Journal of the Korean Society of Clothing and Textiles
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• v.28 no.8
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• pp.1112-1120
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• 2004

The visual environment of the store is a very important factor to attract consumers into the store and make consumers purchase products. Therefore retailers should have concerns about store environments to differentiate their stores from other stores. Thus this study focused on visual environment of the store influencing consumer behavior. The concrete purpose of this study was to identify preferences of store environments and store types by consumer traits. First, the store choice criteria factors were examined and through the cluster analysis, several consumer groups were constructed. And then the visual environment factors of the store that consumers perceived important were identified and the visual environment factors of the store preferred by consumer groups were examined. Finally, store types preferred by consumer groups were examined. The findings of this study can assist store designers and retailers to set up a store environment or visual marketing strategies.