• Title/Summary/Keyword: New Product Strategy

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Differential Effects of Recovery Efforts on Products Attitudes (제품태도에 대한 회복노력의 차별적 효과)

  • Kim, Cheon-GIl;Choi, Jung-Mi
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.1
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    • pp.33-58
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    • 2008
  • Previous research has presupposed that the evaluation of consumer who received any recovery after experiencing product failure should be better than the evaluation of consumer who did not receive any recovery. The major purposes of this article are to examine impacts of product defect failures rather than service failures, and to explore effects of recovery on postrecovery product attitudes. First, this article deals with the occurrence of severe and unsevere failure and corresponding service recovery toward tangible products rather than intangible services. Contrary to intangible services, purchase and usage are separable for tangible products. This difference makes it clear that executing an recovery strategy toward tangible products is not plausible right after consumers find out product failures. The consumers may think about backgrounds and causes for the unpleasant events during the time gap between product failure and recovery. The deliberation may dilutes positive effects of recovery efforts. The recovery strategies which are provided to consumers experiencing product failures can be classified into three types. A recovery strategy can be implemented to provide consumers with a new product replacing the old defective product, a complimentary product for free, a discount at the time of the failure incident, or a coupon that can be used on the next visit. This strategy is defined as "a rewarding effort." Meanwhile a product failure may arise in exchange for its benefit. Then the product provider can suggest a detail explanation that the defect is hard to escape since it relates highly to the specific advantage to the product. The strategy may be called as "a strengthening effort." Another possible strategy is to recover negative attitude toward own brand by giving prominence to the disadvantages of a competing brand rather than the advantages of its own brand. The strategy is reflected as "a weakening effort." This paper emphasizes that, in order to confirm its effectiveness, a recovery strategy should be compared to being nothing done in response to the product failure. So the three types of recovery efforts is discussed in comparison to the situation involving no recovery effort. The strengthening strategy is to claim high relatedness of the product failure with another advantage, and expects the two-sidedness to ease consumers' complaints. The weakening strategy is to emphasize non-aversiveness of product failure, even if consumers choose another competitive brand. The two strategies can be effective in restoring to the original state, by providing plausible motives to accept the condition of product failure or by informing consumers of non-responsibility in the failure case. However the two may be less effective strategies than the rewarding strategy, since it tries to take care of the rehabilitation needs of consumers. Especially, the relative effect between the strengthening effort and the weakening effort may differ in terms of the severity of the product failure. A consumer who realizes a highly severe failure is likely to attach importance to the property which caused the failure. This implies that the strengthening effort would be less effective under the condition of high product severity. Meanwhile, the failing property is not diagnostic information in the condition of low failure severity. Consumers would not pay attention to non-diagnostic information, and with which they are not likely to change their attitudes. This implies that the strengthening effort would be more effective under the condition of low product severity. A 2 (product failure severity: high or low) X 4 (recovery strategies: rewarding, strengthening, weakening, or doing nothing) between-subjects design was employed. The particular levels of product failure severity and the types of recovery strategies were determined after a series of expert interviews. The dependent variable was product attitude after the recovery effort was provided. Subjects were 284 consumers who had an experience of cosmetics. Subjects were first given a product failure scenario and were asked to rate the comprehensibility of the failure scenario, the probability of raising complaints against the failure, and the subjective severity of the failure. After a recovery scenario was presented, its comprehensibility and overall evaluation were measured. The subjects assigned to the condition of no recovery effort were exposed to a short news article on the cosmetic industry. Next, subjects answered filler questions: 42 items of the need for cognitive closure and 16 items of need-to-evaluate. In the succeeding page a subject's product attitude was measured on an five-item, six-point scale, and a subject's repurchase intention on an three-item, six-point scale. After demographic variables of age and sex were asked, ten items of the subject's objective knowledge was checked. The results showed that the subjects formed more favorable evaluations after receiving rewarding efforts than after receiving either strengthening or weakening efforts. This is consistent with Hoffman, Kelley, and Rotalsky (1995) in that a tangible service recovery could be more effective that intangible efforts. Strengthening and weakening efforts also were effective compared to no recovery effort. So we found that generally any recovery increased products attitudes. The results hint us that a recovery strategy such as strengthening or weakening efforts, although it does not contain a specific reward, may have an effect on consumers experiencing severe unsatisfaction and strong complaint. Meanwhile, strengthening and weakening efforts were not expected to increase product attitudes under the condition of low severity of product failure. We can conclude that only a physical recovery effort may be recognized favorably as a firm's willingness to recover its fault by consumers experiencing low involvements. Results of the present experiment are explained in terms of the attribution theory. This article has a limitation that it utilized fictitious scenarios. Future research deserves to test a realistic effect of recovery for actual consumers. Recovery involves a direct, firsthand experience of ex-users. Recovery does not apply to non-users. The experience of receiving recovery efforts can be relatively more salient and accessible for the ex-users than for non-users. A recovery effort might be more likely to improve product attitude for the ex-users than for non-users. Also the present experiment did not include consumers who did not have an experience of the products and who did not perceive the occurrence of product failure. For the non-users and the ignorant consumers, the recovery efforts might lead to decreased product attitude and purchase intention. This is because the recovery trials may give an opportunity for them to notice the product failure.

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Optimal Pricing Policy under Uncertain Product Lifetimes (불확실한 제품 수명주기를 고려한 최적가격결정 모형에 관한 연구)

  • 이훈영;주기인
    • Journal of the Korean Operations Research and Management Science Society
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    • v.25 no.2
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    • pp.23-31
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    • 2000
  • Many studies in marketing and economics have attempted to model price and sales path under the dynamic diffusion process. Most of these models have been based on a fixed product lifetime. The current business climate requiring intensive development of new products however affects the diffusion of new products and their lifetime. Many products have not enjoyed the expected life cycle at the launching stage due to intense technical development competitive reactions, and financial problems. Most diffusion models however have not taken account of the lifetime uncertainty of new product. If the products do not last over the planning horizon set by those models. the optimal price derived from them could be futile. Therefore we had better take such lifetime uncertainty into consideration when developing diffusion models, In this paper we study the impact of uncertain product lifetime on its optimal pricing path in non-competitive market. We develop an optimal pricing model under uncertain product lifetimes and conduct a simulation study to investigate their effects on the optimal pricing and corresponding sales paths. The simulation study provides some interesting findings on optimal pricing policy under uncertain product lifetime. This study could be a stepping stone for the further extended study of optimal pricing strategy with uncertain product lifetime.

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A Study on the Fast Fashion(Part I) - Focusing on Marketing Strategy - (패스트 패션(Fast Fashion)에 대한 고찰(제1보) - 마케팅 전략을 중심으로 -)

  • Kim, Sun-Hee
    • The Research Journal of the Costume Culture
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    • v.15 no.5
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    • pp.875-887
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    • 2007
  • The purpose of this study is to provide the fashion industry in Korea with materials that could enhance its international competitiveness by suggesting marketing strategies for fast fashion brands after taking product, price, place, and promotion into consideration. The product strategy should focus on developing products that accurately reflect the general market trend and consumer demand, selecting optimal materials, and pursuing internal production. This, coupled with strategic cooperation with designers, will ensure reliable quality and enhance the brand image. The pricing strategy should place greater emphasis on reducing production costs. Diverse task outsourcing and design competition, for instance, can lower the cost of design development. The place strategy should be set according to the operation of a systematic and efficient distribution system based on SPA, an automatic delivery system, sales or return system, speed control system, and a value chain that consists of horizontal business alliances. The promotion strategy should be run under the central control of the headquarters using various unique VMDs. Furthermore, online marketing campaigns, spectacular fashion shows, design competitions, catalogue marketing campaigns, and other new sales promotion schemes could all be introduced.

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하청형 중소기업의 전략적 기업혁신 -기술베이스의 동태적 다각화를 중심으로 -

  • 류태수
    • Journal of Technology Innovation
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    • v.8 no.2
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    • pp.97-117
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    • 2000
  • TOEM strategy is widely used in Japan and Korea because of the diverse advantages such as cost sharing, technology transfer, equipment lease and base technology acquisition between parent company and OEM supplier. There are, however, some disadvantages that (1)OEM suppliers are likely to be reactive to environmental changes and (2) may have difficulty in building competitive position and long-term growth. When the parent company relocates its plant to foreign countries to achieve lower labor cost or to enhance value added this change will affect directly the OEM supplier's outcome. The parent company's divestiture from existing businesses will also affect the OEM supplier. For the OEM supplier to survive in face of these strategic changes it must enter the new countries with the parent company. Alternatively, the OEM supplier must actively diversify its technologies based on its core capabilities of existing product and process technologies and seek new business arenas. The strategy of aligning its businesses with the parent company's new business strategy allows the OEM supplier to share the new market while it requires the OEM supplier to develop core capabilities. In Korea many small and medium sized OEM suppliers are dependent on a few large companies. For the industry structure in Korea where industry concentration is extremely high OEM suppliers should move away from the past strategy, where they are dependent on the parent company's low profitability businesses. They should actively enter new businesses for which parent companies enter to achieve long-term growth.

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A Study of R&D Strategy-Environmental Factors-Performances of the Academia in the Information and Telecommunication Industry: An Analysis of ITRC Projects (정보통신산업에 있어서 대학의 연구전략-영향요인-성과에 관한 연구: ITRC사업 중심으로)

  • Lee, Young-Duck
    • Journal of Korea Technology Innovation Society
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    • v.11 no.4
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    • pp.431-449
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    • 2008
  • I analyzed the relationships among motives, strategies, and performances of the university-initiated R&D activities in the Information Technology Research Center(ITRC) Projects. I suggested a research model and 3 hypothesis about them through analysis of a lot of literatures. And I also made an empirical test on the hypothesis through statistical methods. The data which were used in this analysis were gathered through a questionnaire survey to the head of R&D projects in the ITRCs. I would make several useful suggestions to the head of university's ITRCs and the policy makers. Firstly, the type of university's R&D strategy were influenced from several motives such as technology development and acquisition, co-utilizations of research facilities, and utilization and rearing of the expertise. Secondly, to select an optimal type of R&D strategy, the university should considered the efficient methods which were related to forecasting market size of new product and new technology, and to using the useful information on technology development, and to securing the expertise. Thirdly, the researcher and manager of ITRCs had to recognize the correct forecast of future market size of new product and new technology and a useful information about technology development, as the most important factors in improving performances of R&D projects. Lastly, They had to make an effort of getting the efficient methods to secure the expertise, research facilities, and rational compensation system.

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An Empirical Study on the New Product Development in the Organization (신제품 개발에 대한 조직 내 인식 실증연구)

  • Seo, Yong-Mo;Cho, Han-Jin
    • Journal of the Korea Convergence Society
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    • v.8 no.3
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    • pp.205-214
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    • 2017
  • The purpose of this study is to identify the perceptions of organizational members in new product development. This study suggested the successful new product development through the awareness among CEO and other members of the recognition of various factors that appear in the process of new product development by technical-oriented venture companies. Other members were more competitive in the technical area than CEO and were recognized as important strategic factors. As perceived market environment, perception of macro-environment is perceived by other members to be sensitive technical environment and economic factors, and law part is recognized as important. Recognition in a micro-environment has been associated with higher perceptions of employees and competitors, and siliar perceptions of marketing strategy and supplier relationships. This study suggested strategies for successful new product development by reducing the difference of perception between communication and environment of new products by SEMs and venture companies.

UTILIZING COUPLING STRATEGY TO GENERATE A NEW SIMPLE 7D HYPERCHAOTIC SYSTEM AND ITS CIRCUIT APPLICATION

  • Saad Fawzi Al-Azzawi
    • Communications of the Korean Mathematical Society
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    • v.39 no.2
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    • pp.547-562
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    • 2024
  • By utilizing coupling the strategy in the 5D Sprott B system, a new no equilibrium 7D hyperchaotic system is introduced. Despite the proposed system being simple with twelve-term, including solely two cross product nonlinearities, it displays extremely rich dynamical features such as hidden attractors and the dissipative and conservative nature. Besides, this system has largest Kaplan-Yorke dimension compared with to the work available in the literature. The dynamical properties are fully investigated via Matlab 2021 software from several aspects of phase portraits, Lyapunov exponents, Kaplan-Yorke dimension, offset boosting and so on. Moreover, the corresponding circuit is done through Multisim 14.2 software and preform to verify the new 7D system. The numerical simulations wit carryout via both software are agreement which indicates the efficiency of the proposed system.

Factory Automation(FA) in Korea firms and Development Strategy (한국산업의 공장자동화와 발전전략)

  • 이근희;안문영
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.14 no.23
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    • pp.71-100
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    • 1991
  • Investment in FA facilities has been accerelated since 1986, turning point by labor strife in Korea firms. Most commonly adopted automation tech, in their manufacturing process consists of NC. Robotics, PLC, CAD/CAM now on and further confused system oriented FMS, CIM, etcs. undergoing. But for all their remarkable notices in manufacturing systems, The competitive position on product cost, quality, shorten delivery and profit has never been recovered in global swing market. To make some empirical suggestions with a view to competitive strategy of Korea firms by FA, to the conclusion largely FA tech. adoption can be justified only when its application on new product productions and improved the structure of products comparatively. Because of when it was applied in old production process. The effectiveness is very doubtful to the lacks of consistent and integrate manufacturing policy with the strategy of the fim and their poor standardization level in shop floors.

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