• Journal of Korea Technology Innovation Society
• /
• v.11 no.2
• /
• pp.145-170
• /
• 2008

The existence of network is indeed the single most important factor that brings about new business phenomena in the new digital economy, especially in the IT industry. Network effect refers to a phenomenon that the increase in size of the network leads to increased network value and user utility. It determines the competitive structure of an industry and the performances of industry competitors (Shapiro and Varian, 1999). The phenomenon of increasing returns and winner-take-all enjoyed by the early winner in the competition can be attributed to the existence of positive feedback which increases the value of network and induces more users into join the network (Arthur, 1996; Shapiro and Varian, 1999; Song and Lee, 2003). This research attempts to shed light on the topic of innovation and competitive strategy of network-based industries. We analyze the case of the Korean mobile communications industry, in which a shift in technological paradigm from 2G to 3G brought new changes to the competitive structure of the industry. The Korean mobile communications industry makes an ideal case for analysis since it is an industry whose value is inherently dependent upon its user network. It is characterized by the typical increasing returns, in which a monopolizing player is enjoying firstmover's network effects. Because of the existence of network in the mobile communications industry, latecomers' disruptive innovations could not outcompete the incumbent's sustaining innovations. The contribution of this research lies in laying a groundwork for future studies by introducing a numerical simulation model to analyze the complexity theory and network effect.

• Journal of Global Scholars of Marketing Science
• /
• v.18 no.3
• /
• pp.27-57
• /
• 2008

Many consumers enjoy the challenge of purchasing a brand that matches well with their own values and personalities (for example, Ko et al., 2008; Ko et al., 2006). Therefore, the personalities of consumers can impact on the final selection of a brand and its brand personality in two ways: first, the consumers may incline to purchase a brand or a product that reflects their own personalities; second, consumers tend to choose a company that has similar brand personalities to those brands that are being promoted. Therefore, the objectives of this study are following: 1. Is there any empirical relationship between a consumer's personality and the personality of a brand that he or she chooses? 2. Can a corporate brand be differentiated by the brand personality? In short, consumers are more likely to hold favorable attitudes towards those brands that match their own personality and will most probably purchase those brands matching well with their personality. For example, Matzler et al. (2006) found that extraversion and openness were positively related to hedonic product value; and that the personality traits directly (openness) and indirectly (extraversion, via hedonic value) influenced brand effects, which in turn droved attitudinal and purchase loyalty. Based on the above discussion, the following hypotheses are proposed: Hypothesis 1: the personality of a consumer is related to the brand personality of a product/corporate that he/she purchases. Kuksov (2007) and Wernerfelt (1990) argued that brands as a symbolic language allowed consumers to communicate their types to each other and postulated that consumers had a certain value of communicating their types to each other. Therefore, how brand meanings are established, and how a firm communicate with consumers about the meanings of the brand are interesting topics for research (for example, Escalas and Bettman, 2005; McCracken, 1989; Moon, 2007). Hence, the following hypothesis is proposed: Hypothesis 2: A corporate brand identity is differentiated by the brand personality. And there are significant differences among companies. A questionnaire was developed for collecting empirical measures of the Big-Five personality traits and brand personality variables. A survey was conducted to the online access panel members through the Internet during December 2007 in Korea. In total, 500 respondents completed the questionnaire, and considered as useable. Personality constructs were measured using the Five-factor Inventory (NEO-FFI) scale and a total of 30 items were actually utilized. Brand personality was measured using the five-dimension scale developed by Aaker (1997). A total of 17 items were actually utilized. The seven-point Likert-type scale was the format of responses, for example, from 1 indicating strongly disagreed to 7 for strongly agreed. The Analysis of Moment Structures (AMOS) was used for an empirical testing of the model, and the Maximum Likelihood Estimation (MLE) was applied to estimate numerical values for the components in the model. To diagnose the presence of distribution problems in the data and to gauge their effects on the parameter estimates, bootstapping method was used. The results of the hypothesis-1 test empirically show that there exit certain causality relationship between a consumer's personality and the brand personality of the consumer's choice. Thus, the consumer's personality has an impact on consumer's final selection of a brand that has a brand personality matches well with their own personalities. In other words, the consumers are inclined to purchase a brand that reflects their own personalities and tend to choose a company that has similar brand personalities to those of the brand being promoted. The results of this study further suggest that certain dimensions of the brand personality cause consumers to have preference to certain (corporate) brands. For example, the conscientiousness, neuroticism, and extraversion of the consumer personality have positively related to a selection of "ruggedness" characteristics of the brand personality. Consumers who possess that personality dimension seek for matching with certain brand personality dimensions. Results of the hypothesis-2 test show that the average "ruggedness" attributes of the brand personality differ significantly among Korean automobile manufacturers. However, the result of ANOVA also indicates that there are no significant differences in the mean values among manufacturers for the "sophistication," "excitement," "competence" and "sincerity" attributes of the corporate brand personality. The tight link between what a firm is and its corporate brand means that there is far less room for marketing communications than there is with products and brands. Consequently, successful corporate brand strategies must position the organization within the boundaries of what is acceptable, while at the same time differentiating the organization from its competitors.

• Cartoon and Animation Studies
• /
• s.6
• /
• pp.152-171
• /
• 2002

This study analyses the avatar service, which is recognized as an alternative strategy of animation industry. The research questions of this study are following: (1) How have the avatar services been developed and what are the present dominant types? (2) Which structural characteristics of e-business environment are needed for the success of avatar services? (3) What is the economic characteristics of avatar business model? To solve these research questions, the basic conditions and the structural characteristics of avatar services have been investigated. In the first place, two forms of avatar service are classified. One is the internet service site whole primary service is to provide chatting service based on avatar service. The other is the portal site in which many kinds of products and services are presented as bundles to meet the needs of internet users. So avatar service is one of bundles which those portal sites are providing with. In this study, the big five internet service sites are selected based on the profits they earned through the sales of avatar service. The result of analysis is that the pricing strategy of those big five sites is very different from those of traditional off-line markets. The pricing mechanism are based on the value which internet users endow with the avatar items, not based on the costs of making the products. Avatar is the representative informative goods. The informative goods have the original cost structures, constant fixed costs and zero marginal costs, so the providers of avatar services make much of the subjective values of consumers. The sayclub, which is the most successful avatar service site and earn the average sales of 3 billing won a month, takes the aggressive strategy of pricing avatar items at highest price in the industry. The avatar service providers which make lots of profits are planning of making differentiate the services, introducing well-known brand items and star-named items. Nevertheless, the fact that the members of the sayclub are not decreasing means that the network effect of the site is so strongly manifest. Moreover, the costs the members have paid for the avatar items are so big not as to switch from one site to the other site, it can be very costly. These switching costs are endemic in high-technology industries and digital contents industries. It can be so large that switching suppliers is virtually unthinkable, a situation known as 'lock-in'. When switching costs are substantial, competition can be intense to attract new customers, since, one they are locked in, they can be a substantial source of profit. The consumers of avatar items have switching costs if they subscribe for the new avatar service site. The switching costs can be subscription costs as well as the costs of giving up the items they already paid for. One common example of switching costs involves specialized supplies, as with inkjet printer cartridges. In this example, the switching cost is the purchase of a new printer. The market is competitive ex ante, but since cartridges are incompatible, it is monopolized dx post. So the providers of printer/cartridges set pricing printer so cheap and cartridges expensive. On the contrary, since the avatar service can be successful with the strong network effect, the providers of avatar services have to compete aggressively for new customers. So they allow the subscription at a low price(almost marginal cost) in the early market. The network effect can be maximized when the members are sufficiently growing. The providers which have the monopoly power with sufficient subscribers. begin to raise the prices over the lifetime of the product and make profits.

• Management & Information Systems Review
• /
• v.30 no.4
• /
• pp.293-314
• /
• 2011

The current study investigated the position of future strategy analyzed from the perspective of design management in relation to 10 strategic industries implemented through 3 steps based on promising growth and advancement of Busan industries and evidence provided from a study on the development program of design industry in Busan. It elucidated the role of design industry as a key role from the perspective of design management in an age of creative revolution of futures values. It analyzed the associations between composition of future strategy and design industry in 10 strategic industries of Busan, and explained the relationships with the strategic industries. The perspective of design management involves that design as a ground of values is an industry of the future values, which performs a key strategic function and role, and a theoretical investigation examined the relationships between main functions of design management and business management. Chapter 3 organized items proposed in the design development program in Busan and examined goals and systems which become basic formation of establishment of design strategy in Busan and conditions for design industry in the associations with strategic industry. Chapter 4 described priorities of practicability by step through analyzing and grouping top 30 projects in Busan industry including meanings as key strategy, position relations, and policy priorities by analyzing elements of design management of strategic industry and describing and analyzing the concept of promoting Busan design. The theme of the present study is to change perception of design management as a key value and a condition to decide creativity industry into future industry and to evaluate vision of Busan design industry and meanings proposed as proceeding strategy. The early 21st century is an age when agrarian society has changed into industrial society is dominated by knowledge economy of the information revolution and one should prepare for the growth phase of creative innovation based on creative revolution of the 4th wave of creative society by design management which has become a center in 2000s on the whole. With the advent of creative paradigm and based on the function and role of the current creative economy age new innovation DNA of design management will be created. Design process has changed through information and knowledge-oriented trends of digital through convergence between industries from industrial design to convergence of industries, and it is expected that integrated design of value creation using information and technology will play a key role in Busan design industry development and top 10 strategic industries.

• Korean Business Review
• /
• v.18 no.1
• /
• pp.81-108
• /
• 2005

Recent market environment shows a new relationship between customer and company, which you could not observe in the past. Customers now are used to various benefits through the participation of marketing process. It is no wonder that customers visit company web site, gather a lot of information about the product on the website, and express their satisfaction and opinions about the product. Furthermore, these activities are being made ubiquitously. Despite the fact there are a lot of customer participation in the Internet environment, Customers Participation has been given little attention in the academic literature. This study explores the effect of the properties of Internet infra on customers participation. The implications of this study are as follows. First, by reviewing the literature on the performance and process of customers participation in the marketing activities, this study identifies why customers did not participate in the marketing activities under non-Internet environment. Second, this study identifies the properties of Internet infra influencing customers informative participation. Third, we suggest some managerial strategies for enhancing the performance of a company by customer participation. Consequently, we suggest managerial implications for completely different marketing strategies in response to customers participation in the marketing activities under the digital environment.

• Journal of Digital Convergence
• /
• v.16 no.5
• /
• pp.173-183
• /
• 2018

In this study, we tried to examine the effect of service quality on the current industrial product B2B trading market on the degree of sustainable purchase for employees engaged in industrial product B2B trading market. We gathered data from questionnaires from employees who worked in the industrial product B2B trading market for this research. Empirical analysis is carried out through the collected questionnaire materials and finally the research model is finally verified using reliability analysis, validity analysis, discrimination validity analysis, and structural equation model fitness test, and finally Analysis of differences between cooperating companies and vendor, analysis of differences between companies engaged in purchasing industrial materials and developers. The results of the research analysis did not positively influence the quality of the relationship with relativity satisfaction with ease of information exchange and adaptability did not have a positive influence on the quality of the relationship. However, product service exchange, product development cooperation, adaptability, correspondence, reliability had a positive influence on the quality of relationship with relation satisfaction. Relationship of parameters The satisfaction has a positive influence on the quality of the relationship, the degree of sustainable purchase, and eventually the quality of the relationship has a positive influence on each successive purchase. By using the results of this research it is possible to confirm the factors which directly or indirectly influence the strengthening of the relationship between suppliers and purchasers in the industrial material B2B trading market and provide the basis for strategy to B2B trading companies It seems to be meaningful to offer.

• Journal of Digital Convergence
• /
• v.16 no.11
• /
• pp.221-230
• /
• 2018

Most of researchers and business futurists agree that traditional organizational designs are inadequate for coping with today's turbulent and increasingly networked world. Executives in small firms find that their organizations must tap into an extended network of partners to achieve the scale and power needed to succeed in industries dominated by large, global firms. As they attempt to build lean yet agile businesses, these executives are finding that they no longer rely on gut instinct alone. Neither can they simply copy organizational model that worked in the past. They must understand how organizational design choices influence operational efficiency and flexibility and, even more important, how to best align the organization with the environment and the strategy chosen to quickly and effectively sense and respond to opportunities and threats This research examines the capabilities required to build businesses that can survive and prosper in today's fast-faced and uncertain environment. The insights presented in this research have emerged from over 30 years of work with hundreds of executives and entrepreneurs as they struggled to build businesses that could cope with the demands of a rapidly changing, networked global economy. The insights from this research suggest that IT is an important enabler for developing the best capabilities required for success.

• Journal of Digital Convergence
• /
• v.20 no.5
• /
• pp.227-232
• /
• 2022

This study is an exploratory study on the sustainable management of MICE events, and was conducted using the FGI method. Twelve experts in the MICE field, industry, and academia were selected as the subjects of the study. The reason is that understanding and specialty of those targets provides research reliability and validity. The study period was 3 months from June to August 2021. As a result, it is very important to prepare a sustainable development strategy in the MICE industry, and in particular, the need for guidelines to be practiced during event operation from the organizer's point of view was derived. In addition, to derive items that can be used in practice based on the theoretical basis, and it was necessary to derive research results using internationally recognized Sustainable Development Goals (UNSDGs) and sustainable MICE research developed in the fields of tourism and MICE. Therefore, through the verification of such experts in the field of MICE, theoretical and practical guidelines from the perspective of the organizer that can be used when holding MICE were developed. The results of the study will provide implications for establishing more effective strategies for hosting sustainable MICE events in the future.

• Journal of Digital Convergence
• /
• v.20 no.5
• /
• pp.547-557
• /
• 2022

The numbers of occurrences and the amount of spills of marine oil pollution have increased, and accordingly, it is necessary to secure additional control capabilities. Therefore, it was intended to present an empirical basis for improving the overall idle capacity through the relocation of control ships existing in each region. First, the marine pollution index was derived and the control capability compared to the marine pollution index of each region was compared to examine the appropriateness of the deployment of control ships. The marine oil pollution risk index was derived by multiplying the nine items that cause marine pollution by the weight derived by experts. We checked the control capacity (A) compared to the marine pollution risk index (F) for each sea area. Mokpo (F:13.4, A:1.9), Busan (F:14.3, A:6.4), and Yeosu (F:21.5, A:16.6) are the areas that lack control capabilities compared to the marine pollution risk index. On the other hand, the areas that have room for control compared to the marine pollution risk index for each sea area are Masan (F: 5.9, A:13.3), Gunsan (F:1.7, A:8.3), and Jeju (F:2.7, A:6.9). Therefore, for improving the standardized control capacity proportional to the risk of marine pollution nationwide, it is suggested that the control ships of Masan, Gunsan, and Jeju should be relocated to Mokpo, Busan, and Yeosu, which lack control capacity.

• Journal of Digital Policy
• /
• v.3 no.2
• /
• pp.1-14
• /
• 2024

The purpose of this study was to analyze the effect of SNS marketing characteristics on hair shop image formation and visit intention in the hair beauty industry. SNS marketing is a strategy to carry out marketing activities through interaction with customers, information provision, information trust, and playfulness using modern social media platforms. It was intended to analyze how these characteristics of SNS marketing affect the formation of hair shop images and visit intention to customers in the hair beauty industry. For the study, a total of 307 customers with experience using hair-related SNS were surveyed. The questionnaire included items related to SNS marketing characteristics, hair shop images, and visit intention, and the collected data was statistically analyzed using SPSS 26.0. The results of the research problem were derived by applying analysis methods such as frequency analysis, factor analysis, reliability analysis, correlation analysis, simple regression analysis, multiple regression analysis, and mediated regression analysis. As a result of the study, it was found that information provision, information reliability, playfulness, and interaction, which are characteristics of SNS marketing, have a positive effect on the formation of hair shop images. In addition, it was confirmed that the hair shop image had a positive effect on the intention to visit. In addition, it was found that the hair shop image plays a mediating role between the SNS marketing characteristics and the intention to visit. This provides important insights that can improve image formation and customer visit intention in the hair beauty industry through SNS marketing.