• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2009.06a
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• pp.173-174
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• 2009

For container shipping company, fuel oil prise is a considerable expense. In the last 3 years, fuel oil prises have risen considerably. An increasing fuel oil prise in container shipping, in the short term, is only partially compensated through surcharges and will therefore affect earnings negatively. This paper deals with the impact of increasing fuel oil price and capital costs for vessels on the number of vessels on the Asia-Europe trade. As per result of 'H' carrier's operation in 2008, there were no cost difference between 8 and 9 vessels operation in case the fuel oil price is USD 169/tons while adopt USD 31,818 as fixed cost. We can expect that the fuel oil price will not be decreased under USD 200 $/Ton on the basis of current high oil price phenomenon. When the fuel oil price is over USD 200 $/ton, therefore, 9 vessels operation is more economic than 8 vessel operation even if the fixed cost is over USD 35,000.

• Journal of Energy Engineering
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• v.26 no.2
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• pp.80-92
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• 2017

This paper attempts to estimate the diesel fuel demand function in Korea using panel data panel data of 16 major cities or provinces which consist of diesel demands, diesel market prices and gross value added from the year 1998 to 2015. I apply panel GLS(generalized least square) model, fixed effect model, random effect model and dynamic panel model to estimating the parameters of the diesel fuel demand function. The results show that short-run price elasticities of the diesel fuel demand are estimated to be -0.2146(panel GLS), -0.2886(fixed effect), -0.2854(random effect), -0.1905(dynamic panel) respectively. And short-run income elasticities of the diesel fuel demand are estimated to be 0.7379(panel GLS), 0.4119(fixed effect), 0.7260(random effect), 0.4166(dynamic panel) respectively. The short-run price and income elasticities explain that demand for diesel fuel is price- and income-inelastic. The long-run price and income elasticities are estimated to be -0.4784, 1.0461 by dynamic panel model, which means that demand for diesel fuel is price-inelastic but income-elastic in the long run. In addition I apply dummy variable model to estimate the effect of 16 major cities or provinces on diesel demands. The results show that diesel demands is affected 10 regions on the basis of Seoul.

• Journal of Information Technology Applications and Management
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• v.14 no.2
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• pp.97-115
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• 2007

The present paper investigates the technological and conceptional characteristics of peering and transit in internet interconnection. Especially, the market with two ISP competing for customers is modeled and the outcome with peering is compared with transit. This paper also analyze the congestion effects on retail price and network capacity. When there is congestion effects occurring from network sharing, the retail price is increased and the fixed fee is decreased with the degree of congestion. Finally, the optimal access charge assuring the socially optimal retail price and network capacity is derived.

• Proceedings of the CALSEC Conference
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• 2004.02a
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• pp.112-116
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• 2004

· Dynamic Pricing vs. Fixed Pricing Auctions make both buyers and sellers engage in the price discovery process, Auctions of various kinds will replace the fixed pricing model that now pervades much of the web(pmitted)

• Journal of the Korean Society for Library and Information Science
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• v.49 no.4
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• pp.289-315
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• 2015

The Fixed book price policy, a portion of publication and printing promotion act applied from February 2003 in the South Korea, is a system of fixed book prices that administered by a government body. The publishing industries had been attempted to lower the discount rate and to extend the application scope. The amendment for the attempts was passed in April 2014, and implemented from November 2014. From the library point of view, this amendment caused a reduction of buying library materials. For this reason, the agenda about expansion of material budget in libraries has been recognized as the alternative. The purpose of this study is to analyze the stance and role of libraries as actors in the policy process. Based on this, this study also attempt to identify usefulness and improvement point of Policy Network Model. For this purpose, this study identifies actor's internal characteristics as an improvement point that previous studies did not identified.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.57 no.4
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• pp.576-581
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• 2008

Electricity Market in Korea can't provide locational price signal through energy price because energy market is CBP(Cost Based Pool) using uniform price. Generators don't want to locate in a densely populated load area(like the metropolitan area). Because they are paid more fixed cost in metropolitan area. This situation has loss and congestion occurred in power system. However energy market without price signal can't lead generator to the metropolitan. So, market participants should be provided price signal through the transmission price instead of energy price. This paper proposes transmission pricing method considering reliability cost in order to offer price signal. Also, it proposes the method to allocate the transmission cost to each transmission line user through a fair and a reasonable manner. The transmission price is decided by the reliability value of each line. If a transmission line of high reliability value is broke, users using that line will get a loss and a discomfort. So, it is fair that users using a transmission line of high reliability value pay more than the other users. Also, it is reasonable that a transmission line owner get paid more form users using that line.

• Journal of the Korean Society of Clothing and Textiles
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• v.43 no.1
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• pp.154-166
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• 2019

Consumers believe it is more profitable to buy products at a discount price than at a fixed price. However, consumers who miss an opportunity for a discount would experience regret; consequently, they may also forgo a purchase despite experiencing regret if a subsequent opportunity was no more attractive than the initial one. This phenomenon has been conceptualized as inaction inertia. In this study we investigate if consumers showed behavior of inaction inertia under the situation of fashion products purchase as well as if price and involvement had a moderating effect on product purchase. The following are the results of the research based on an empirical investigation. First, according to the results of influence of inaction inertia on purchase intention, respondents exposed to scenario of experiencing similar price discount in the past, both under high-price situations and low-price situations, made statistically fewer responses than those exposed to situations without such experience; therefore, effect of inaction inertia could be confirmed. Second, the moderating effect of product price on relationships between inaction inertia and purchase intention was not statistically significant.

• Korea Journal of Hospital Management
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• v.14 no.3
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• pp.23-48
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• 2009

The purpose of this study was to provide criteria which help executives to make decisions through the analysis of profitability of ultrasonography conducted in each medical department. In order to achieve such purpose, the study conducted break-even analyses on three medical departments of a university hospital in which has used ultrasonography was largely conducted in diagnosing diseases and performing surgeries. The research was carried out from January to June 2008. The data necessary for calculating cost, were collected using by computerized data. The results of the study were summarized as follows. 1. The Cost structure of each medical department: The Cost of ultrasonography was divided into direct cost and indirect cost through the categorization by cost object. Labor cost accounted for the largest portion of the direct cost with 69.3% in the department of obstetrics and gynecology, 67.4% in the department of radiology and 58.2% in the cardiac ultrasonography center, which followed by the depreciation cost of ultrasonography equipment. The calculation of the average material cost of each ultrasonographic test by medical test found that the cardiac ultrasonography center took first place with 2,355 won, followed by the department of obstetrics and gynecology with 266 won and the department of radiology with 233 won. As for the power cost of ultrasonography equipment, the department of radiology took fist place with 442,000 won. The power cost, however, did not affect much the cost price, because it accounted for only a small portion of the cost. As for indirect cost, the cardiac ultrasonography center ranked first with 7,156,000 won. Building depreciation cost accounted for the largest portion of the indirect cost. 2. Break-even analysis: Under the supposition that cost price can be divided into fixed cost and variable cost, a break-even analysis was conducted using the cost price confirmed through the cost structure of each medical department. As for the average customary charge of ultrasonography test conducted in each medical department, the department of obstetrics and gynecology charged 24,627 won, the department of radiology 53,179 won and the cardiac ultrasonography center 65,174 won. According to these results, the charges of ultrasonography test imposed by the department of radiology and the cardiac ultrasonography center wre enough to surpass break-even levels, but the charge imposed by the department of obstetrics and gynecology was not enough to offset the cost price. In conclusion, labor cost accounted for the largest proportion of cost price of ultrasonography test conducted in diagnosing diseases and performing surgeries in medical departments, followed by the fixed cost of ultrasonographic equipment depreciation cost. In medical department where the current charge of ultrasonography test turned out not to offset cost price through the break-even analysis of ultrasonographic equipment, ways to reduce fixed cost which accounts for the largest proportion of the cost price should be sought. Even medical departments whose current charge of ultrasonography test is enough to surpass break-even level are required to work for efficient management and cost reduction to continuously generate profits.

• Journal of Information Technology Applications and Management
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• v.29 no.2
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• pp.17-25
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• 2022

Although the two types of currencies compete, the possibility of a virtual currency price bubble is diagnosed by assuming an economic model with currencies (won, virtual currency) that are intrinsically worthless. The won is supplied by the central bank to achieve the price stability target, while the supply of virtual currency increases by a fixed number. According to the basic price theory equation, as a simple proposition, cryptocurrency prices form a Martin Gale process [Schilling and Uhlig, 2019, p.20]. Based on the existing theoretical proposition, we applied the variance ratio verification method [Linton and Smetanina, 2016] and a simple technical chart method for empirical analysis. For the purpose of this study, the possibility of a bubble was empirically analyzed by analyzing the price volatility formed in the Korean virtual currency market over the past year, and brief policy implications for this were presented.

• Journal of Distribution Science
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• v.11 no.4
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• pp.61-72
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• 2013

Purpose - It is widely accepted that the process of developing marketing strategy is composed of three steps: market segmentation, target market selection and positioning. However, mass marketing strategy based on cost reduction through economies of scale and standardized products, can be also an effective strategic option. Many marketing scholars including Theodore Levitt emphasize the importance of applying the mass production concept to various industries including service industries. Especially, in times of economic downturn, the capability of providing consumers with low-priced, value products can be an important source of competitive advantage, as well as the ability of providing high-priced premium products. Marketers should decide whether they will implement mass marketing strategy or target marketing strategy. The present study theoretically shows that firms should understand the target customers' price elasticity as well as the firm's cost structure in order to make such a strategic decision. Research design, data, and methodology - Instead of implementing an empirical study, this study provides a theoretical(mathematical) investigation on the effect of consumers' price elasticity on a firm's optimal price level, profit, sales volume, revenue, and cost. The results are mostly deduced from derivative calculations and several graphs are utilized to represent the results on the relationships between the variables under study. Results - The analytical results suggest that it is more profitable for a firm to adopt the segment/target marketing strategy (more specifically the differentiation strategy) when the degree of consumers' heterogeneity is high and the proportion of the fixed cost in the total cost is low. On the other hand, if the degree of consumers' heterogeneity is low and the fixed cost is high, it is better to adopt the mass marketing strategy or the cost leadership strategy. The strategy of concentrating on a single target market will be effective when consumers' needs are highly heterogeneous but the fixed cost is high. Any of the three types of generic strategies proposed my Porter(1980, 1985) can be applied when both the consumers' heterogeneity and the fixed cost are low. This study also proposes the contribution-margin-based method for developing the optimal pricing strategy. Conclusions - One of the primary roles of marketers is to find a proper compromise between the two conflicting goals of maximizing customer satisfaction and minimizing cost. In order to do so, he or she should understand the characteristics of the target customers as well as the cost structure of the firm. In addition to the theoretical analyses, this study discusses several business cases and explains how superior companies find the optimal compromise position between these two goals and dominate the market. One of the radical changes recently taking place in business arena is the reduction of production and distribution costs of both physical goods and information due to the advancement and the wide diffusion of information technology. The cost reduction combined with lowered priced elasticity incurred by customized products and services, will enable many firms to adopt the mass customization strategy.