• The Journal of Information Systems
• /
• v.26 no.3
• /
• pp.119-147
• /
• 2017

Purpose In an online e-commerce environment without face-to-face contact between the seller and the buyer, the attitudes of consumers differ greatly depending on which framing strategy is applied, even in cases when the benefits of the deals represent the same value. The purpose of this study is to explore the effects of price-framing and message-framing strategies on consumer attitudes through an experimental analysis in the context of online travel product purchasing. This study suggests a research model based on prospect theory and prior literature on price-framing and message-framing strategies. Design/methodology/approach The experiment was structured as a 2 (discount price presentation: 'Won' vs. '%') ${\times}$ 2 (discount level: low vs. high) ${\times}$ 2 (time-limit message: none vs. one) mixed design. The research hypotheses were tested in a study of 200 undergraduate and graduate students assigned randomly and distributed evenly to each of the eight cells. Findings The findings indicate that consumer attitudes become more favorable when the '%' discount, higher discount rate, and time-limit message are presented. However, no significant interaction effect is found between the discount price presentation and the discount level/time-limit message. This study has a theoretical implication in that it extends the scope of research by examining the influence of framing strategies on experience goods such as online travel products. Moreover, this study can provide managers with more specific guidelines when establishing framing strategies in the context of purchasing online travel products.

• Asia Marketing Journal
• /
• v.6 no.3
• /
• pp.143-156
• /
• 2004

This case intorduced E-mart's business philosophy and vision, analyzed E-mart's outline of marketing strategy, and discussed its performance and future task. E-mart took the role of market pioneer by developing discount store market in Korea. It's mission was to provide substantial benefits to the customers by selling quality products at the lowest price in the market. For this purpose, E-mart has conducted a slogan of 'everyday low price discount store-E-mart'. Objective of E-mart's brand strategy was to be No. 1 discount store in Korea or to be a representative brand in the discount store market. To achieve this objective, E-mart has conducted various efforts such as construction of national network, realization of the lowest price, formation of the most reliable discount store image, establishment of competitive edge and so on. E-mart settled a new model for discount store in Korea and took the lead in expanding market potential. With these efforts, E-mart has maintained secure position as a leading company in the discount store market.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.19 no.2
• /
• pp.45-56
• /
• 1994

This paper the profit maximizing order quantity model to the symmetric oligopoly consisting of sellers of a homogeneous product who compete with each other for the same potential buyers. Buyers are classified by type, each selecting an optimal purchase quantity in response to the nonlinear quantity discount pricing schedule given by the sellers. Symmetric equilibrium and the economic quantities that sellers must determine are analysed in a Cournot framework, which explicitly depend on the number of sellers. Economic implications are obtianed from the optimality conditions based on themarket share paraments which are used to characterize the competitior's marketing strategy.

• Communications for Statistical Applications and Methods
• /
• v.4 no.2
• /
• pp.491-496
• /
• 1997

For the survival data analysis of no covariate the discount survival model is proposed to estimate the time-varying hazard rate and the survival function recursively. In comparison with the covariate case it provide the distributionally explicit evolution of hazard rate between time intervals under the assumption of a conjugate gamma distribution. Also forecasting of the hazard rate in the next time interval is suggested, which leads to the forcecasted survival function.

• Industrial Engineering and Management Systems
• /
• v.12 no.2
• /
• pp.95-102
• /
• 2013

It is difficult to determine an appropriate discount price for daily perishable products to increase profit from a long-term standpoint. Even if the discount pricing is efficient to increase profit of the day, consumers memorize the sales price and they might hesitate to purchase the product at a regular price the following day. The authors discussed the inventory clearance pricing for a single period in our previous study by constructing a mathematical model to derive an optimal sales price to maximize the expected profit by considering the reference price effect of demand. This paper extends the discussion to handle the discount pricing for multiple periods. A mathematical analysis is first conducted to reveal the properties on an objective function, which is the present value of total expected profits for multiple periods. An algorithm is then proposed to derive an optimal price for asymmetric consumers. Numerical experiments investigate the characteristics of the objective function and optimal pricings.

• The Korean Journal of Financial Management
• /
• v.22 no.2
• /
• pp.165-187
• /
• 2005

This paper tries to investigate the relationships among stock return volatility, time-varying risk premium and Korea Discount. Using Korean Composite Stock Price Index (KOSPI) return from January 4, 1980 to August 31, 2005, this study finds possible links between time-varying risk premium and Korea Discount. First of all, this study classifies Korean stock returns during the sample period by three regime-switching volatility period that is to say, low-volatile period medium-volatile period and highly-volatile period by estimating Markov-Switching ARCH model. During the highly volatile period of Korean stock return (09/01/1997-05/31/2001), the estimated time-varying unit risk premium from the jump-diffusion GARCH model was 0.3625, where as during the low volatile period (01/04/1980-l1/30/1985), the time-varying unit risk premium was estimated 0.0284 from the jump diffusion GARCH model, which was about thirteen times less than that. This study seems to find the evidence that highly volatile Korean stock market may induce large time-varying risk premium from the investors and this may lead to Korea discount.

• The Journal of Fisheries Business Administration
• /
• v.29 no.2
• /
• pp.199-216
• /
• 1998

An economic appraisal of a proposed marine ranching project is analysed using capital budgeting model such as net present value(NPV) and internal rate of return( IRR) as well as sensitivity analysis and goal seeking model. Of the factors for economic appraisal, direct benefits are to be determined by estimated harvest, prices and costs incurred by catching fishes, and indirect benefits include the additional economic effect of recreational fishing. And judging the worth of these project options depends upon the choice of discount rate of which 8.5% is recommended here. On the basis of estimated production, prices and costs the project is expected to yield NPV=615 million won and IRR=8.8%, which is quite accepted for an economic feasibility, under the first scenario, and NPV= -127 million won and IRR=7.93%, which is rejected, under the second scenario. Sensitivity analysis has been performed by calculating the switching value and sensitivity indicator in respect of the main project parameters. The results suggest that the project NPV and IRR are especially sensitive to fishes(rock fish and other rock fish) prices and fixed costs. Finally goal seeking analysis is carried out in order to reach a desired level of performance like NPV=0 in respect of the amount of hatchery-reared juverniles, the prices and the discount rate.

• Journal of applied mathematics & informatics
• /
• v.5 no.1
• /
• pp.133-133
• /
• 1998

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2002.05a
• /
• pp.378-384
• /
• 2002

In this paper, we propose a mixed integer optimization approach for solving the inventory problem with variable lead time, reorder point, crashing cost and price -quantity discount. Chang and Chang[15] study a continuous review inventory model in which lead time is a decision variable under price-quantity discount. However, their study cannot find the optimal solution due to the flaws in the modeling and the solution procedure. We present a complete procedure to find the optimal solution for the model. In addition to the above contribution, we also apply the minimax distribution free approach to the model to devise a practical procedure which can be used without specific information on demand distribution.

• Journal of Korean Society for Quality Management
• /
• v.46 no.4
• /
• pp.797-820
• /
• 2018

Purpose: It is to seek for an appropriate cost rate analysis methodology of credit card value propositions in Korea. For this issue, it is claimed that methodologies based on probability distribution is more suitable than methodologies based on data-mining. The analysis model constructed for the cost rate estimation is called VCPM model. Methods: The model includes two major variables denoted as S and P. S is monthly credit card usage amount. P stands for the proportion of usage amount at special merchants over the whole monthly usage amount. The distributions assumed for P are positively skewed distributions such as exponential, gamma and lognormal. The major inputs to the model are also derived from S and P, which are E(S) and the aggregate proportion of usage amount at special merchants over the total monthly usage amount. Results: When the credit card's value proposition is general discount, the VCPM model fits well and generates reasonable cost rate(denoted as R). However, it seems that the model does not work well for other types of credit cards. Conclusion: The VCPM model is reliable for calculating cost rate for credit cards with positively skewed distribution of P, which are general discount card. However, another model should be built for cards with other types of distributions of P.