• 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.

• Journal of the Korean Society of Clothing and Textiles
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• v.40 no.1
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• pp.97-113
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• 2016

This study develops pant patterns using body shape, measurement and shell mesh data to decide optimal women's pants according to styles with excellent size, fit and shape for different individuals and silhouettes. Standard landmarks, lines, triangles and structures were set on a 3D scanned lower body shell to represent women in their twenties and flattened as a 2D pattern. Patterns were created and analyzed according to culotte, formal, slacks and tight type considering crotch shape, location of the crotch point, and adjusting waist darts. Flattened patterns were rotated to compare existing methods. The crease lines were then set through the hip protrusion point and compared. The main factor of the pant pattern were extracted, total rise, crotch depth, crotch width, angle of center line, shape of the center line curve, the thigh width, the amount of waist dart, and crease line position. With going tight style from the culotte, the fits are closer to the figure with minimized thigh circumference, the dart amount decreases, the crotch depth increases, the crotch extensions were shorter, and the angle of the center back increased. The total rise is U shape for culotte and is closer to V shape as the silhouette tightens. T-test of appearance evaluation of the developed pant pattern were conducted after analyzing measurements and shapes of each styles. The results of the developed patterns were superior to existing patterns in accordance to hip line between body and pants as well as appearance evaluation. We found systematic mechanisms among pattern factors that create various pant silhouettes. Evidence on classification of the silhouettes of traditional types of pants were explained objectively through the process of playing out 3D forms.

• Journal of the Korean Society of Clothing and Textiles
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• v.33 no.6
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• pp.860-868
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• 2009

To provide adequate fit for women over a range of sizes, the grading process should reflect their body dimensions. Current methods of creating sized garments are not addressing the need for a good or even an adequate fit for the easy-order system. This study suggests a grading rule allocating system that can improve the appropriateness of clothing for uniform easy-order system. Also, the study proposes a bi-directional grading method subdivided to horizontal and vertical direction. The grading rule allocating system suggested the size increments which improve the fitness of uniform. Using the 5th Size Korea data, the crosstabulation was conducted with 1305 females in the age group $20{\sim}49$ years, and the size increments including $155\sim165$ of height section and $79\sim94$ of bust section, was selected for easy-order system. Also, the bi-directional grading method subdivided in horizontal and vertical direction was followed by factor analysis based on the circumference and height. And the grading rules were calculated by regression analysis.

• Journal of Intelligence and Information Systems
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• v.8 no.1
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• pp.119-139
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• 2002

In electronic catalogs, each item is represented as an independent unit while the parts of the item can be composed of a higher level of functionality. Thus, the search for this kind of product database is limited to the retrieval of most similar standard commodities. However, many industrial products need to configure optional parts to fulfill the required specifications. Since there are many paths in finding the required specifications, we need to develop a search system via the configuration process. In this system, we adopt a two-phased approach. The first phase finds the most similar template, and the second phase adjusts the template specifications toward the required set of specifications by the Constraint and Rule Satisfaction Problem approach. There is no guarantee that the most similar template can find the most desirable configuration. The search system needs backtracking capability, so the search can stop at a satisfied local optimal satisfaction. This framework is applied to the configuration of computers and peripherals. Template-based reasoning is basically the same as case-based reasoning. The required set of specifications is represented by a list of criteria, and matched with the product specifications to find the closest ones. To measure the distance, we develop a thesaurus of values, which can identify the meaning of numbers, symbols, and words. With this configuration, the performance of the search by configuration algorithm is evaluated in terms of feasibility and admissibility.

• The Journal of the Convergence on Culture Technology
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• v.10 no.3
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• pp.891-899
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• 2024

The Fourth Industrial Revolution is centered on a personalized demand fulfillment economy and is all about transformation and flexible processing that can deliver what customers want in real time across space and time. This paper implements the construction and operation of a packaging platform that can instantly procure the required packaging products based on real-time orders and evaluates its performance. The components of customer satisfaction are flexible and dependent on the situation which requires efficient management of enterprise operational processes based on an e-SCM platform. An OMS optimized for these conditions plays an important role in maximizing and differentiating the efficiency of a company's operations and improving its cost advantage. OMS is a system of mass customization that provides efficient MOT(Moment of Truth) logistics services to meet the eco-friendly issues of many individual customers and achieve optimized logistics operation goals to enhance repurchase intentions and sustainable business. OMS precisely analyzes the collected data to support information and decision-making related to efficiency, productivity, cost and provide accurate reports. It uses data visualization tools to express data visually and suggests directions for improvement of the operational process through statistics and prediction analysis.