• Title/Summary/Keyword: LOGIT METHOD

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Willingness to pay for eco-friendly products: case of cosmetics

  • Joung, Soon Hee;Park, Sun Wook;Ko, Yoon Jin
    • Asia Marketing Journal
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    • v.15 no.4
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    • pp.33-49
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    • 2014
  • Environmental concern has been an important issue for a few decades, and the extent of consumer demand for eco-friendly consumption has been increased. This study seeks to investigate consumers' willingness to pay (WTP) a premium for eco-friendly cosmetics. This study evaluates how much more a consumer is willing to pay for eco-friendly cosmetics and examines significant factors influencing consumers' WTP for eco-friendly cosmetics. Consumers' WTP is measured using four different ecofriendly cosmetics: low-priced skin care cosmetics, low-priced makeup cosmetics, high-priced skin care cosmetics, and high-priced makeup cosmetics. This study uses the contingent valuation method (CVM) to estimate consumer's WTP for eco-friendly cosmetics. Survey questions were designed using both dichotomous choice and payment card method of CVM. Through face to face interviews and on-line surveys, the data were collected from women between 20 and 49 years old residing in Seoul and Kyeonggi area, Korea, in May 2010. A total of 226 questionnaires (132 from interviews and 94 from on-line) were included for the analytical sample in this study. The data were analyzed using descriptive analysis, T-test and Log-Logit analysis. The findings are as follows: First, the WTP measured by dichotomous choice method was estimated using the Log-Logit analysis. The results showed that the estimated WTP for low-priced skin care cosmetics was 19,152 won, which was 27.7% higher than the reference price, 15,000 won. For low-priced makeup cosmetics, the estimated WTP was 18,524 won, and its green premium was 21.0%. The estimated WTP for high-priced skin care cosmetics was 59,128 won, which was 18.3% higher than the reference price, 50,000 won. For high-priced makeup cosmetics was 57,666 won, and its green premium was 15.3%. Second, the WTP measure by payment card method was estimated using descriptive analysis. The results showed that the respondents were willing to pay 17,955 won for low-priced skin care cosmetics, which was 19.7% higher than the reference price, 15,000 won and 17,595 won for low-priced makeup cosmetics, which was 17.3% higher than the reference price. For high-priced skin care cosmetics, the average WTP was 56,950 won which was 13.9% higher than the reference price, 50,000 won. For high-priced makeup cosmetics, the average WTP was 55,650 won, which was 11.3% higher than the reference price. Overall, the WTP was higher in order of low-priced skin care, low-priced makeup, high-priced skin care, and high-priced makeup. It means that consumers decide degree of premium based on the price and the attributes of eco-friendly products. Third, the findings showed that age, monthly income, and having children or not were statistically significant factors that influenced consumers' willingness to pay for eco-friendly cosmetics. Other explanatory variables such as education, marital status, job, purchase experience of eco-friendly products, and environmental concerns did not show any statistical significance. The major contribution of this study is the investigation of the value of green attributes of the products by using CVM. Unlike most previous researches, this research used two methods of CVM, the dichotomous choice and the payment card, so it enhanced the reliability of research. According to this study, consumers showed price sensitivity when they pay green premium. These findings can be used as useful information to establish marketing strategies for green cosmetics.

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A Study on One Factorial Longitudinal Data Analysis with Informative Drop-out

  • Lee, Ki-Hoon
    • Journal of the Korean Data and Information Science Society
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    • v.17 no.4
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    • pp.1053-1065
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    • 2006
  • This paper proposes a method in one-way layouts for longitudinal data with informative drop-out. When dropouts are informative, that is, correlated with unobserved data and/or the previous observed data, the simple imputation methods such as 'last observation carried forward' (LOCF) methods would arise the bias of the testing models. The maximum likelihood procedure combined with a logit model for the drop-out process is proposed to test treatment effects for one factorial designs and compared with LOCF method in two examples.

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Joint analysis of binary and continuous data using skewed logit model in developmental toxicity studies (발달 독성학에서 비대칭 로짓 모형을 사용한 이진수 자료와 연속형 자료에 대한 결합분석)

  • Kim, Yeong-hwa;Hwang, Beom Seuk
    • The Korean Journal of Applied Statistics
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    • v.33 no.2
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    • pp.123-136
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    • 2020
  • It is common to encounter correlated multiple outcomes measured on the same subject in various research fields. In developmental toxicity studies, presence of malformed pups and fetal weight are measured on the pregnant dams exposed to different levels of a toxic substance. Joint analysis of such two outcomes can result in more efficient inferences than separate models for each outcome. Most methods for joint modeling assume a normal distribution as random effects. However, in developmental toxicity studies, the response distributions may change irregularly in location and shape as the level of toxic substance changes, which may not be captured by a normal random effects model. Motivated by applications in developmental toxicity studies, we propose a Bayesian joint model for binary and continuous outcomes. In our model, we incorporate a skewed logit model for the binary outcome to allow the response distributions to have flexibly in both symmetric and asymmetric shapes on the toxic levels. We apply our proposed method to data from a developmental toxicity study of diethylhexyl phthalate.

An Experimental Study on Optimal Space Rate of Letters within Road Sign (도로표지내 글자간 적정 여백률에 관한 실험적 연구)

  • Lee, Gi-Yeong;Yu, Tae-Ho;Lee, Gun-Sang;O, Yeong-Tae
    • Journal of Korean Society of Transportation
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    • v.24 no.6 s.92
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    • pp.21-32
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    • 2006
  • The purpose of this study is to determine the economical standard for road signs by verifying the difference in driver's legibility time with respect to the spacing of letters on the toad signs. Laboratory simulations were conducted to confirm the difference in legibility time for six target signs of different spacing. Also. a binary logit model was used to find the main factors, which could lower the rate if misreading. This model involves not only a simple enlargement of signs but also a suitable match of letters and signs along with the optimal spacing of the text letters on the road signs to increase the legibility of the sign. The result of this study verified the importance of spacing in road signs and Proved itself to be an effective method to determine the future standard for the road signs.

Analysis of Choice model for EV Charger Types and willingness to pay for Charging Rate based on Logit model (로짓모형을 이용한 전기자동차 충전시설 선택모형 및 충전요금 지불의사 분석 연구)

  • Byun, Wan Hee;Lee, Kihong;Kee, Ho Young
    • The Journal of The Korea Institute of Intelligent Transport Systems
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    • v.12 no.4
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    • pp.56-65
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    • 2013
  • The word is endeavoring to reduce greenhouse gases with the sense of crisis caused by the continuous climate change. As a method to decrease greenhouse gases, motors driven by fossil fuels are being substituted by EV in the field of transportation. Meanwhile, for the spread of EV, charging installations are divided into general charging type and quick charging type. Also, charging amount and time are main factors to decide charging pay. But, because the opportunity coast for the charging time varies depending on the private situations, it is very important to understand exact phenomenon for the spread of EV charging installations and charging pay policy. Therefore this paper suggested the choice model of charging installation and time value in various situations by using Logit model to make clear the relationship between a choice of charging installation, charging time and willingness to pay for charge.

Assessment of the Willingness to Pay for Forest Management in the Upstream for Water Quality Improvement within the Han River Watershed (수질개선을 위한 한강 수계 상류지역 산림관리 지불의사금액 추정)

  • Kim, Dong-Hyun;Kim, Chul-Sang;Lee, Ho-Sang;Park, Kyung-Seok;Mun, Ji-Min;Jeon, Hyon-Sun
    • Journal of Environmental Policy
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    • v.14 no.2
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    • pp.49-72
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    • 2015
  • Forests in the upstream contributed to improve the quality of water resources for the residents downstream. However, upon structural examination of how the Han River Watershed Management Fund was spent, it became apparent that the fund was not spent toward forest management in the upstream. An additional budget must be allocated if the Watershed Management Committee is to contribute to the management of the upstream forests with such awareness. Therefore, the aim of the study was to assess the willingness to pay and to calculate of budget for forest management in the upstream for water quality improvement. Three hundred surveys on watershed beneficiaries were conducted using biased sampling method. The result was analyzed with conditional logit model and mixed logit model. Forest management, a target variable, was found to have statistical significance. Based on this result, the size of the expected budget was estimated to be minimum 20,526 million won to maximum 20,928 million won.

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Estimating Price Elasticities of Domestic Air Transport Demand by Stated Preference Technique (Staled Preference 방법론에 의한 국내선 항공수요의 가격탄력성 추정)

  • 이성원;이영혁;박지형
    • Journal of Korean Society of Transportation
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    • v.18 no.1
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    • pp.27-34
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    • 2000
  • This study analyzes the price elasticities of airline Passenger demand through the 'Stated Preference' technique which uses survey data. Because the domestic airfare has been regulated by the government. it is not easy to derive Price elasticity through the usual regression analysis with aggregate data and thus a special methodology is required for elasticity estimation. Therefore, in this study we estimated the Price elasticities of domestic air passenger demand and the modal share change rates to the alternative modes with logit model and sample enumeration method, by analyzing the survey data on air Passengers' demand behavior about the mode choice between air-rail. air-bus, and air-car. As the results, the estimated price elasticities are in the range of -0.6~-0.9, and rail is mainly chosen as an alternative mode. bus is chosen Partly, and car is barely used.

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Development of the Prediction Method for Hospital Bankruptcy using a Hierarchical Generalized Linear Model(HGIM) (HGLM을 적용한 병원 도산 예측방법의 개발)

  • Noh, Maeng-Seok;Chang, Hye-Jung;Lee, Young-Jo
    • Korea Journal of Hospital Management
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    • v.6 no.2
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    • pp.22-36
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    • 2001
  • The hospital bankruptcy rate is increasing, therefore it is very important to predict the bankruptcy using the existing hospital management information. The hospital bankruptcy is often measured in year intervals, called grouped duration data, not by the continuous time elapsed to the bankruptcy. This study introduces a hierarchical generalized linear model(HGLM) for analysis of hospital bankruptcy data. The hazard function for each hospital may be influenced by unobservable latent variables, and these unknown variables are usually termed as random effects or frailties which explain correlations among repeated measures of the same hospital and describe individual heterogeneities of hospitals. Practically, the data of twenty bankrupt and sixty profitable hospitals were collected for five years, and were fitted to HGLM. The results were compared with those of the logit model. While the logit model resulted only in the effects of explanatory variables on the bankruptcy status at specific period, the HGLM showed variables with significant effects over all observed years. It is concluded that the HGLM with a fixed ratio and a period of total asset turnrounds was justified, and could find significant within and between hospital variations.

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Factors affecting consumers' preferences for US beef

  • Yoo, Jeongho;Kim, Sounghun;Yoo, Juyoung
    • Korean Journal of Agricultural Science
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    • v.45 no.4
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    • pp.905-916
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    • 2018
  • The purpose of this study was to analyze factors affecting US beef consumption intention in the future, to identify the causes of US beef import growth and to derive implications and strategies for domestic beef producers. Since the KORUS FTA was signed in 2012, US beef imports in 2017 totaled 379,064 tons, an annual increase of 3.5 percent. US beef imports have been steadily increasing due to cuts in FTA tariffs and changes in consumer preferences. The data used in this study utilized a sample of 3,290 grocery purchasers from the Korea Rural Economic Institute's 2016 Food Consumption Behavior Survey. The analytical method used the Ordered Logit Model to analyze what factors influence a consumer's subjective evaluation. As a result, the major factors affecting US beef consumption intention in the future are price, taste and safety. In particular, it has to do with the recent surge in U.S. imports of good-tasting chilled meat. Because chilled meat does not differentiate the market from Hanwoo beef produced in Korea, it is necessary to have differentiated taste and low price through cost reduction. By age and family group, people aged 30 - 40 years and single-person households are the main consumption group. As a result of this study, it is necessary to establish marketing strategies for producers such as rational pricing, safety, taste promotion, and small-scale sales to extend the demand for Hanwoo beef in the younger generation to enhance the competitiveness of the domestic beef market.

Investigation on the Health Inequality in China (중국 건강불평등 현상에 대한 고찰)

  • Xue, Mi;Lim, Jae Young
    • International Area Studies Review
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    • v.20 no.2
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    • pp.175-194
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    • 2016
  • In this study, we aimed to identify the impact of socioeconomic characteristics on the health status of Chinese, which suggests that there might be the phenomena of health inequality in China. We used the year 2000, 2004 and 2009 pooled cross-sectional data of China Health and Nutrition Survey (CHNS), and utilized the Ordinary Least Square model (OLS) and Ordered Logit Estimation Method for this purpose. Empirical results showed that socioeconomic status and year dummy variables have a meaningful impact on Chinese health status. Therefore, we conclude that the phenomenon of health inequality has existed in China since 2000.