• Title/Summary/Keyword: Cost Sharing

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Cooperative Sales Promotion in Manufacturer-Retailer Channel under Unplanned Buying Potential (비계획구매를 고려한 제조업체와 유통업체의 판매촉진 비용 분담)

  • Kim, Hyun Sik
    • Journal of Distribution Research
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    • v.17 no.4
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    • pp.29-53
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    • 2012
  • As so many marketers get to use diverse sales promotion methods, manufacturer and retailer in a channel often use them too. In this context, diverse issues on sales promotion management arise. One of them is the issue of unplanned buying. Consumers' unplanned buying is clearly better off for the retailer but not for manufacturer. This asymmetric influence of unplanned buying should be dealt with prudently because of its possibility of provocation of channel conflict. However, there have been scarce studies on the sales promotion management strategy considering the unplanned buying and its asymmetric effect on retailer and manufacturer. In this paper, we try to find a better way for a manufacturer in a channel to promote performance through the retailer's sales promotion efforts when there is potential of unplanned buying effect. We investigate via game-theoretic modeling what is the optimal cost sharing level between the manufacturer and retailer when there is unplanned buying effect. We investigated following issues about the topic as follows: (1) What structure of cost sharing mechanism should the manufacturer and retailer in a channel choose when unplanned buying effect is strong (or weak)? (2) How much payoff could the manufacturer and retailer in a channel get when unplanned buying effect is strong (or weak)? We focus on the impact of unplanned buying effect on the optimal cost sharing mechanism for sales promotions between a manufacturer and a retailer in a same channel. So we consider two players in the game, a manufacturer and a retailer who are interacting in a same distribution channel. The model is of complete information game type. In the model, the manufacturer is the Stackelberg leader and the retailer is the follower. Variables in the model are as following table. Manufacturer's objective function in the basic game is as follows: ${\Pi}={\Pi}_1+{\Pi}_2$, where, ${\Pi}_1=w_1(1+L-p_1)-{\psi}^2$, ${\Pi}_2=w_2(1-{\epsilon}L-p_2)$. And retailer's is as follows: ${\pi}={\pi}_1+{\pi}_2$, where, ${\pi}_1=(p_1-w_1)(1+L-p_1)-L(L-{\psi})+p_u(b+L-p_u)$, ${\pi}_2=(p_2-w_2)(1-{\epsilon}L-p_2)$. The model is of four stages in two periods. Stages of the game are as follows. (Stage 1) Manufacturer sets wholesale price of the first period($w_1$) and cost sharing level of channel sales promotion(${\Psi}$). (Stage 2) Retailer sets retail price of the focal brand($p_1$), the unplanned buying item($p_u$), and sales promotion level(L). (Stage 3) Manufacturer sets wholesale price of the second period($w_2$). (Stage 4) Retailer sets retail price of the second period($p_2$). Since the model is a kind of dynamic games, we try to find a subgame perfect equilibrium to derive some theoretical and managerial implications. In order to obtain the subgame perfect equilibrium, we use the backward induction method. In using backward induction approach, we solve the problems backward from stage 4 to stage 1. By completely knowing follower's optimal reaction to the leader's potential actions, we can fold the game tree backward. Equilibrium of each variable in the basic game is as following table. We conducted more analysis of additional game about diverse cost level of manufacturer. Manufacturer's objective function in the additional game is same with that of the basic game as follows: ${\Pi}={\Pi}_1+{\Pi}_2$, where, ${\Pi}_1=w_1(1+L-p_1)-{\psi}^2$, ${\Pi}_2=w_2(1-{\epsilon}L-p_2)$. But retailer's objective function is different from that of the basic game as follows: ${\pi}={\pi}_1+{\pi}_2$, where, ${\pi}_1=(p_1-w_1)(1+L-p_1)-L(L-{\psi})+(p_u-c)(b+L-p_u)$, ${\pi}_2=(p_2-w_2)(1-{\epsilon}L-p_2)$. Equilibrium of each variable in this additional game is as following table. Major findings of the current study are as follows: (1) As the unplanned buying effect gets stronger, manufacturer and retailer had better increase the cost for sales promotion. (2) As the unplanned buying effect gets stronger, manufacturer had better decrease the cost sharing portion of total cost for sales promotion. (3) Manufacturer's profit is increasing function of the unplanned buying effect. (4) All results of (1),(2),(3) are alleviated by the increase of retailer's procurement cost to acquire unplanned buying items. The authors discuss the implications of those results for the marketers in manufacturers or retailers. The current study firstly suggests some managerial implications for the manufacturer how to share the sales promotion cost with the retailer in a channel to the high or low level of the consumers' unplanned buying potential.

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An Analysis on Situation and Causes of Strategic Alliance Major Container Liner Company in the World (세계 주요 컨테이너 해운기업의 전략적 제휴의 현황과 그 생성원인에 관한 연구)

  • Lee, Tae-Woo;Kim, Kwang-Hee;Lee, Kwang-Hee
    • Journal of the Korean Institute of Navigation
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    • v.21 no.3
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    • pp.1-18
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    • 1997
  • From the beginning of 1990s , also in the shipping industry, especially liner shipping industry competition has been more intensive and difference of the service quality among shipping companies has been learned . On the other hand, a shipping company has some limitations to do its international mission for itself just by broadening service area. For this reason, the necessity for the global strategi alliance among the shipping companies, which is orginally aimed at sharing of facilities and organixation, has been developed. Through strategic alliance, liner shipping companies do not need to input the additional capitals to increase the material assets such as vessel capacity and spread the risk by the enlargement of the market. Also, they can secure the competitive edge through efficient utilizaton of assets. The purpose of strategic alliance of Hanjin Shipping Ltd., can be summarized as follows ; broadening of service area, cost reduction through vessel sharing, realization of rationalized shipping service by terminal and equipment or facilities sharing. Liner strategic alliances are agreement among liner companies to pol their equipment , andterminals for joint operations and services in which each alliance partner continues to serve its market using jointly operated or used inland feeders,inland terminals, port terminals, and mainline fleets of ship as well as joint pools of containers and equipment. Strategic alliances are generally more formal agreements than consortia and impose longer term and far reaching obligation on their members. It also acts as one in developing and advancing the strategic aims of the alliance members. The most important objective for liner strategic alliances is cost reduction and improvement in capital asset utilization. Main aims of strategic alliance drawn in this paper, can be enumerated follows : 1. improvements in service frequency and quality : 2. improvements in vessel and equipment utilization and thereby reductions in fixed and variable cost ; 3. improvements in market shares and high value cargo booking ; 4. reductions in intermodal storage and port terminal throughput costs ; 5. improvements in negotiating powers with ports and feeder transport providers ; 6. reduction in financial and other fixed costs such as insurance; 7. coordination and integration of MIS and EDI systems and service for greater efficiency and market penetration ; and, 8. improvements in logistic chain management and economic of scale by equipment depot, terminal, and vessel sharing.

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Web based File Transmission System using HTML5 (HTML5를 활용한 웹 기반 파일 전송 시스템)

  • Kim, Yu-Doo;Kim, Mo-Han;Moon, Il-Young
    • Journal of Advanced Navigation Technology
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    • v.16 no.6
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    • pp.968-974
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    • 2012
  • After launched various smart devices such as smart phone and tablet PC, people who using smart devices are provided various services. Especially, contents sharing technology is utilized in any devices. But current contents sharing systems are made on various versions for various smart devices. These methods will be raising cost for development of application. Therefore it must using web technology for reducing cost. In this paper, we had analyzed performance of file transmission using web technology and compared with application based system.

Implementation of Web Service for the E_Commerce Database Processing (전자상거래의 DB처리를 위한 웹 서비스 구현)

  • 황하응;김정홍;이상조
    • Journal of the Korea Society of Computer and Information
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    • v.7 no.4
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    • pp.168-173
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    • 2002
  • According to the rapid growth of Internet service, electronic commerce usage scale is growing every year. It requires the method of vitalizations of electronic commerce through reducing the software development cost and making easy of data construction. Web service, which is adapting distributed technology based on internet supports the infrastructure of reducing the software development cost through software sharing. As the shared software modules access the same data, they can reference the same data on the other site. In this paper, we designed and implemented database Processing module of the electronic commerce program using web service technology, which can make easy of site construction and sharing database. Implemented database processing module supports data selection modification insertion deletion and searching. Using this functions we showed product item information could be shared among the other electronic commerce sit.

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Determinants of selecting a doctor in specialized medical institutions and general hospitals (종합전문요양기관과 종합병원의 선택진료 결정요인)

  • An, Byeung-Ki;Park, Jae-Yong
    • Health Policy and Management
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    • v.21 no.4
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    • pp.599-616
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    • 2011
  • This research was performed to investigate the determination factors of medical service to cover the fee for selecting a doctor which is one of the most important causes of debilitating national health insurance in Korea. Data was from Korea Health Panel and analyzed by Dutton(1986)'s medical service model which was an extended Anderson Model and was widely used in the researches on determination factors of medical service. The results were as follows; In the determinants of selecting a doctor in specialized medical institutions and general hospitals, patients with serious diseases selected doctors more often than other patients. By industrial accident compensation insurance law and enforcement ordinances, insurance covers the fee of selecting a doctor in the hospitals appointed by Labor Welfare Corporation for the patients in critical conditions under industrial accident compensation insurance, while health insurance patients pay the fee themselves for selecting a doctor in all cases. It is suggested that patients with serious diseases proved by medical opinion be provided with health care insurance in selecting a doctor and that the health insurance benefit coverage be enhanced by staged lowering of patient's cost-sharing.

Externality Cost of Capital Investment in Limited Commitment (불완전한 금융계약하에서의 자본투자의 외부성에 관한 연구)

  • Chien, Yili;Lee, Junsang
    • KDI Journal of Economic Policy
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    • v.34 no.2
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    • pp.17-40
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    • 2012
  • We study externality costs of capital investment under limited commitment. We solve for the constrained efficient allocation with a limited commitment environment and find positive externality costs of capital investment provided that full-risk-sharing is not feasible. In a decentralized version of limited commitment environment, a one unit increase of capital investment by an agent increases all individuals' autarky values in the economy and generates externality costs in the economy. This externality cost provides a rationale for positive capital taxation even in the absence of government expenditure. In order to internalize this costs, the government use a positive rate of linear capital tax in the decentralized economy.

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A Non-cooperative Game Theoretic Approach to Dust and Sand Storm in North East Asia

  • Song, Yang-Hoon
    • Journal of Environmental Policy
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    • v.6 no.3
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    • pp.91-114
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    • 2007
  • The cooperative cost sharing scheme for Dust and Sand Storm(DSS) in North East Asia, as suggested in Song and Nagaki(2007), may not be feasible due to possible defection(s) of participating countries. If non-cooperative strategies are more plausible, Nash equilibrium can suggest possible outcomes of the cost sharing game. The result from the continuous strategy model shows that there exists an infinite number of Nash equilibrium such that the summation of investment from each country is always equal to the required budget of the ADS pilot project. It is also discussed that the discrete strategy model points to only 3 Nash equilibria in continuous strategy game outcome and the cooperative game solution may be just one of the infinite equilibria.

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Medical Services for Cesarean Section Cases in One DRG Pilot Study Hospital (질병군별 포괄수가제(DRG 지불제도) 시범사업에서 제왕절개산모의 의료서비스 - 서울시내 한 종합병원을 대상으로 -)

  • Lee, Kwi-Jin;Yu, Seung-Hum
    • Korea Journal of Hospital Management
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    • v.4 no.2
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    • pp.21-40
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    • 1999
  • One Diagnosis Related Group(DRG) pilot study participating hospital was measured and analyzed to see if there were any changes after the DRG program. It was implemented in consideration of medical service utilization, hospital charges, and non-covered medical service charges by insurance in all Cesarean section cases by reviewing medical records for 3 years, including 1 year before pilot study as well as 1 and 2 years after, respectively. The results were as follows: First, the use of intramuscular antibiotics decreased statistically significantly, whereas intravenous use did not. Second, the administration period and charges of antianemic medication decreased significantly, where the prescription was appropriate. Third, the length of hospital stay decreased statistically significantly. Fourth, there were significant statistical differences in cost sharing between the insured and the insurer: cost sharing of the insured was reduced, whereas the share of the insurer increased. However, there was no change in the quality of care. Fifth, there were no statistically significant changes in the Cesarean section rate. As a result, if the fee schedule is reasonably high, hospitals can provide quality care. This DRG pilot study resulted expected outcomes: by paying a higher fee schedule than fee-for-service, then hospitals can provide quality care to their patients and increase hospital profits.

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An analysis on the network performance for VoD services using multicast (멀티캐스트를 이용한 VoD 서비스망의 성능 분석)

  • 백남균;정수환;민병준
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.25 no.6A
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    • pp.918-926
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    • 2000
  • A huge storage and broad bandwidth are required to provide subscribers with VoD services. Hence, there is a huge amount of cost in establishing networks for VoD services. To determine how to reduce the cost, a number of studies involving such as distributed server systems, multicasting, program caching, stream sharing, are currently in progress. In this paper, a request criterion for multicast service and the ratio of required bandwidth for unicast to multicast are generated. The effect of multicast service on network bandwidth, server bandwidth, and buffer size was analyzed and validated through computer simulation. The results of this study could be applied to efficient designing networks for VoD services.

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Data Access Control Scheme Based on Blockchain and Outsourced Verifiable Attribute-Based Encryption in Edge Computing

  • Chao Ma;Xiaojun Jin;Song Luo;Yifei Wei;Xiaojun Wang
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.17 no.7
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    • pp.1935-1950
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    • 2023
  • The arrival of the Internet of Things and 5G technology enables users to rely on edge computing platforms to process massive data. Data sharing based on edge computing refines the efficiency of data collection and analysis, saves the communication cost of data transmission back and forth, but also causes the privacy leakage of a lot of user data. Based on attribute-based encryption and blockchain technology, we design a fine-grained access control scheme for data in edge computing, which has the characteristics of verifiability, support for outsourcing decryption and user attribute revocation. User attributes are authorized by multi-attribute authorization, and the calculation of outsourcing decryption in attribute encryption is completed by edge server, which reduces the computing cost of end users. Meanwhile, We implemented the user's attribute revocation process through the dual encryption process of attribute authority and blockchain. Compared with other schemes, our scheme can manage users' attributes more flexibly. Blockchain technology also ensures the verifiability in the process of outsourcing decryption, which reduces the space occupied by ciphertext compared with other schemes. Meanwhile, the user attribute revocation scheme realizes the dynamic management of user attribute and protects the privacy of user attribute.