• Title/Summary/Keyword: Information Costs

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Examining the Effect of Online Switching Cost on Customers' Willingness to Pay More

  • Kim, Hee-Woong;Gupta, Sumeet;Lee, So-Hyun
    • Asia pacific journal of information systems
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    • v.23 no.1
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    • pp.21-43
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    • 2013
  • Internet vendors are gradually realizing the importance of "locking-in" online customers in order to ensure profitability. Erection of switching barriers increases customers'lock-in and in turn may result in their willingness to pay price-premium for the same service. However, raising customer lock-in online is difficult because search costs are very low. Therefore, this study examines the effect of switching barriers (customer satisfaction, perceived value and relative advantage) on switching costs and the effect of switching costs on customer's willingness to pay more. Since switching costs and consequent relationships may depend upon the type of product therefore the research model in this study is examined for both search products and experience products. Data is collected through an online survey from two websites (one each for search product and experience product). The empirical results show the key role of switching costs in customers' willingness to pay more and the relationships among the four constructs. The theoretical and practical implications of this study are also discussed.

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A Study on Acceptance Promotion of Information Systems under the Semi-Mandatory Circumstance: From the Perspective of Switching Costs Applied to the KMS of a Public Organization (반강제적 환경에서 정보시스템 의존에 미치는 영향요인 연구: 공공기관 KMS 활용 사례와 전환비용의 매개적 역할을 중심으로)

  • Seo, Hyun-Sik;Song, In-Kuk
    • The Journal of Information Systems
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    • v.21 no.2
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    • pp.45-71
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    • 2012
  • The purpose of the study is to propose the plans promoting IS acceptances under the circumstances where the IS usage is semi-mandatory. Since the IS usage is critical to secure the organization's competitiveness, many researchers have endeavored to investigate the factors in promoting IS acceptance. While TAM(Technology Acceptance Model) has been generally applied under the voluntary circumstance, under the mandatory circumstance did many researchers come to realized the limit of applying the TAM on IS acceptance. This resulted in various research trials to identify the IS acceptance under the mandatory circumstance. However, no research to promoting IS acceptance under the recommend circumstance where the corresponding users are recommend to the IS rather than alternative systems exits. The study applied the concept of switching costs to the research model, identified users' acceptance variations, and finally proposed the promotion plans for IS acceptance. The findings illustrate that IS dependence levels tend to be increased when both user satisfactions from a psychological perspective and monetary benefits from an economic perspective make the switching costs higher. The study stresses that organizations should provide information systems which reduce users' time, costs, and endeavors in performing their tasks, rather than require to use them by compulsion.

A Device Authentication Mechanism Reducing Performance Cost in Mobile P2P Networks

  • Jeong, Yoon-Su;Kim, Yong-Tae;Shin, Seung-Soo;Lee, Sang-Ho
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.7 no.4
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    • pp.923-948
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    • 2013
  • The main concern in mobile peer-to-peer (P2P) networks is security because jamming or eavesdropping on a wireless link is much easier than on a wired one and such damage can be incurred without physical access or contact. In particular, authentication has increasingly become a requirement in mobile P2P environments. This paper presents a new mutual authentication mechanism which requires less storage space and maintains a high level of security in mobile P2P networks. The proposed mechanism improves efficiency by avoiding the use of centralized entities and is designed to be agile in terms of both reliability and low-cost implementation. The mechanism suggested in the simulation evaluates the function costs occurring in authentication between the devices under mobile P2P network environment comparing to existing method in terms of basic operation costs, traffic costs, communications costs, storage costs and scalability. The simulation results show that the proposed mechanism provides high authentication with low cryptography processing overhead.

The Product Standard Costs System Constructionby Group and Application of Small and Medium Business (중소기업의 제품그룹별 표준원가시스템 구축 및 활용)

  • Kim, Pan-Soo
    • Journal of the Korea Safety Management & Science
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    • v.13 no.3
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    • pp.153-168
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    • 2011
  • In medium and small firm, the management system which is simple and where there is a practicality is required Ill)re than the management system which is complicated and minute of the centered around large company so that the introduction of the standard costs can be activated and it can be usefully used as a tool of management decisions. A difference between the standard costs introduction plan proposed in this paper and the preexistance study literature are as follows. In this paper, by breaking from the whole cost accounting aiming at all item, that is the traditional introduction method, and presenting the product cost accounting method by group the standards setting object was minimized and simplified. In this way, if the standards setting object is simplified, it is quick at the perimeter environment change as the little man power and flexibly it corresponds to and the cost information calculation which is exact with the setting up and maintenance of the efficient cost standard becomes available. As a result of applying for real through S corp., the usability of the method that the standard costs introduction method proposed in this paper produced the standard costs relatively short within period, it manages was verified. And the standard costs introduction method proposed in this paper went by the various cost information for each products, the management class did the management will decision which was objective and reasonable in the putting first.

The significance of proxies for agency costs under different governance approaches

  • Shin, Yang-Gyu;Reddy, Krishna
    • Journal of the Korean Data and Information Science Society
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    • v.21 no.2
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    • pp.327-333
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    • 2010
  • This study examines the impact different proxies of agency costs have on companies under different governance approaches. The two specific proxies of agency costs used include: (i) the ratio of operating expenses to annual sales; and (ii) the ratio of annual sales to total assets. Our study is based on earlier works of Ang et al. (2000) and Fleming et al. (2005). A comparison of results for small unlisted companies both in US and Australia indicate that agency cost measures have statistically: (1) different result under rule-based governance mechanisms; and (2) the same results under principle-based governance mechanisms. Our findings support the view that the effectiveness different measures of agency cost is dependent on country specific governance facto as well as on the governance approaches adopted. Our results offer insights to both practitioners and policy makers regarding the usefulness of different proxies of agency costs when companies adopt principle-based corporate governance approaches versus rule-based approaches.

Intelligent Intrusion Detection Systems Using the Asymmetric costs of Errors in Data Mining (데이터 마이닝의 비대칭 오류비용을 이용한 지능형 침입탐지시스템 개발)

  • Hong, Tae-Ho;Kim, Jin-Wan
    • The Journal of Information Systems
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    • v.15 no.4
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    • pp.211-224
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    • 2006
  • This study investigates the application of data mining techniques such as artificial neural networks, rough sets, and induction teaming to the intrusion detection systems. To maximize the effectiveness of data mining for intrusion detection systems, we introduced the asymmetric costs with false positive errors and false negative errors. And we present a method for intrusion detection systems to utilize the asymmetric costs of errors in data mining. The results of our empirical experiment show our intrusion detection model provides high accuracy in intrusion detection. In addition the approach using the asymmetric costs of errors in rough sets and neural networks is effective according to the change of threshold value. We found the threshold has most important role of intrusion detection model for decreasing the costs, which result from false negative errors.

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4G Adoption : A Survey of Vietnam Market

  • Tapanainen, Tommi;Dao, Trung Kien;Nguyen, Thanh Hien;Nguyen, Thi Thanh Hai
    • Journal of Information Technology Applications and Management
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    • v.26 no.1
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    • pp.1-19
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    • 2019
  • The aim of this study is to assess the impacts of service properties, price expectancy, social influences, and switching costs on adoption intention of 4G in Vietnam. The research model was established by the theory of diffusion of innovation, technology acceptance model, service quality, social influences and switching costs. The result from customers using telecommunication services in Vietnam shows that adoption intention of 4G is affected directly by perceived usefulness, personal innovativeness, price expectancy, social influences, prior service quality and switching costs. Whereas, switching costs have negative effect on adoption intention. Other factors such as personal innovativeness, perceived ease of use and prior service quality have an indirect effect on adoption intention of 4G.

Analysis on the Accuracy of Building Construction Cost Estimation by Activation Function and Training Model Configuration (활성화함수와 학습노드 진행 변화에 따른 건축 공사비 예측성능 분석)

  • Lee, Ha-Neul;Yun, Seok-Heon
    • Journal of KIBIM
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    • v.12 no.2
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    • pp.40-48
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    • 2022
  • It is very important to accurately predict construction costs in the early stages of the construction project. However, it is difficult to accurately predict construction costs with limited information from the initial stage. In recent years, with the development of machine learning technology, it has become possible to predict construction costs more accurately than before only with schematic construction characteristics. Based on machine learning technology, this study aims to analyze plans to more accurately predict construction costs by using only the factors influencing construction costs. To the end of this study, the effect of the error rate according to the activation function and the node configuration of the hidden layer was analyzed.

Factors Affecting Individuals' Intentions to Discontinue Social Network Services Use

  • Kyungja Park;Joon Koh
    • Asia pacific journal of information systems
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    • v.28 no.1
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    • pp.19-35
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    • 2018
  • This study uses the concepts of mental accounting and coupling in consumption to demonstrate a systematic relationship between behavioral costs, sunk costs, coupling, and user intention to discontinue social network services (SNS) use. An analysis of 213 SNS users found that coupling and sunk costs are two major factors that influence an individual's intention to discontinue SNS use. An interesting finding of this study is that the perception of coupling is created by behavioral costs in the context of an SNS. This finding implies that the source of cost perception when perceiving coupling may differ depending on whether the product or service is traditional or web-based. These results contribute to an expansion of the theoretical discussion of individual-level discontinuance intention after adopting SNS by conceptualizing the perception of coupling.

IDENTIFICATION OF SOME FAILURE COSTS AND THEIR PERCEIVED ROOT CAUSES IN CONSTRUCTION

  • Saad Al-Jibouri;Martijn Oude Vrielink
    • International conference on construction engineering and project management
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    • 2009.05a
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    • pp.184-189
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    • 2009
  • In 2008 the total estimated failure costs in the Netherlands was estimated to be 11.4% of the industry's turnover compared to 7.7% seven years earlier. Failure costs can be the consequence of rework as a result of failure to conform to the product requirements and specifications or due to inefficient processes and bad management practices. Many construction companies however are unaware of the exact nature of these costs, their root causes or how to control them. This paper describes work carried out in the Netherlands to identify the different types of failure costs in construction and their root causes. The research described builds on previous findings by another research institution and expands it to include information collected from project cases and a survey of a number of project managers in the construction industry. The paper describes the analysis of the results from cases and the survey to identify the root causes of failure costs. Research shows, for example, that many failure costs are related to the client taking late decisions and making changes to the project requirements.

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