• Title/Summary/Keyword: Overall technical efficiency

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The Effects of Online Service Quality on Consumer Satisfaction and Loyalty Intention -About Booking and Issuing Air Tickets on Website- (온라인 서비스 품질이 고객만족 및 충성의도에 미치는 영향 -항공권 예약.발권 웹사이트를 중심으로-)

  • Park, Jong-Gee;Ko, Do-Eun;Lee, Seung-Chang
    • Journal of Distribution Research
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    • v.15 no.3
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    • pp.71-110
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    • 2010
  • 1. Introduction Today Internet is recognized as an important way for the transaction of products and services. According to the data surveyed by the National Statistical Office, the on-line transaction in 2007 for a year, 15.7656 trillion, shows a 17.1%(2.3060 trillion won) increase over last year, of these, the amount of B2C has been increased 12.0%(10.2258 trillion won). Like this, because the entry barrier of on-line market of Korea is low, many retailers could easily enter into the market. So the bigger its scale is, but on the other hand, the tougher its competition is. Particularly due to the Internet and innovation of IT, the existing market has been changed into the perfect competitive market(Srinivasan, Rolph & Kishore, 2002). In the early years of on-line business, they think that the main reason for success is a moderate price, they are awakened to its importance of on-line service quality with tough competition. If it's not sure whether customers can be provided with what they want, they can use the Web sites, perhaps they can trust their products that had been already bought or not, they have a doubt its viability(Parasuraman, Zeithaml & Malhotra, 2005). Customers can directly reserve and issue their air tickets irrespective of place and time at the Web sites of travel agencies or airlines, but its empirical studies about these Web sites for reserving and issuing air tickets are insufficient. Therefore this study goes on for following specific objects. First object is to measure service quality and service recovery of Web sites for reserving and issuing air tickets. Second is to look into whether above on-line service quality and on-line service recovery have an impact on overall service quality. Third is to seek for the relation with overall service quality and customer satisfaction, then this customer satisfaction and loyalty intention. 2. Theoretical Background 2.1 On-line Service Quality Barnes & Vidgen(2000; 2001a; 2001b; 2002) had invented the tool to measure Web sites' quality four times(called WebQual). The WebQual 1.0, Step one invented a measuring item for information quality based on QFD, and this had been verified by students of UK business school. The Web Qual 2.0, Step two invented for interaction quality, and had been judged by customers of on-line bookshop. The WebQual 3.0, Step three invented by consolidating the WebQual 1.0 for information quality and the WebQual2.0 for interactionquality. It includes 3-quality-dimension, information quality, interaction quality, site design, and had been assessed and confirmed by auction sites(e-bay, Amazon, QXL). Furtheron, through the former empirical studies, the authors changed sites quality into usability by judging that usability is a concept how customers interact with or perceive Web sites and It is used widely for accessing Web sites. By this process, WebQual 4.0 was invented, and is consist of 3-quality-dimension; information quality, interaction quality, usability, 22 items. However, because WebQual 4.0 is focusing on technical part, it's usable at the Website's design part, on the other hand, it's not usable at the Web site's pleasant experience part. Parasuraman, Zeithaml & Malhorta(2002; 2005) had invented the measure for measuring on-line service quality in 2002 and 2005. The study in 2002 divided on-line service quality into 5 dimensions. But these were not well-organized, so there needed to be studied again totally. So Parasuraman, Zeithaml & Malhorta(2005) re-worked out the study about on-line service quality measure base on 2002's study and invented E-S-QUAL. After they invented preliminary measure for on-line service quality, they made up a question for customers who had purchased at amazon.com and walmart.com and reassessed this measure. And they perfected an invention of E-S-QUAL consists of 4 dimensions, 22 items of efficiency, system availability, fulfillment, privacy. Efficiency measures assess to sites and usability and others, system availability measures accurate technical function of sites and others, fulfillment measures promptness of delivering products and sufficient goods and others and privacy measures the degree of protection of data about their customers and so on. 2.2 Service Recovery Service industries tend to minimize the losses by coping with service failure promptly. This responses of service providers to service failure mean service recovery(Kelly & Davis, 1994). Bitner(1990) went on his study from customers' view about service providers' behavior for customers to recognize their satisfaction/dissatisfaction at service point. According to them, to manage service failure successfully, exact recognition of service problem, an apology, sufficient description about service failure and some tangible compensation are important. Parasuraman, Zeithaml & Malhorta(2005) approached the service recovery from how to measure, rather than how to manage, and moved to on-line market not to off-line, then invented E-RecS-QUAL which is a measuring tool about on-line service recovery. 2.3 Customer Satisfaction The definition of customer satisfaction can be divided into two points of view. First, they approached customer satisfaction from outcome of comsumer. Howard & Sheth(1969) defined satisfaction as 'a cognitive condition feeling being rewarded properly or improperly for their sacrifice.' and Westbrook & Reilly(1983) also defined customer satisfaction/dissatisfaction as 'a psychological reaction to the behavior pattern of shopping and purchasing, the display condition of retail store, outcome of purchased goods and service as well as whole market.' Second, they approached customer satisfaction from process. Engel & Blackwell(1982) defined satisfaction as 'an assessment of a consistency in chosen alternative proposal and their belief they had with them.' Tse & Wilton(1988) defined customer satisfaction as 'a customers' reaction to discordance between advance expectation and ex post facto outcome.' That is, this point of view that customer satisfaction is process is the important factor that comparing and assessing process what they expect and outcome of consumer. Unlike outcome-oriented approach, process-oriented approach has many advantages. As process-oriented approach deals with customers' whole expenditure experience, it checks up main process by measuring one by one each factor which is essential role at each step. And this approach enables us to check perceptual/psychological process formed customer satisfaction. Because of these advantages, now many studies are adopting this process-oriented approach(Yi, 1995). 2.4 Loyalty Intention Loyalty has been studied by dividing into behavioral approaches, attitudinal approaches and complex approaches(Dekimpe et al., 1997). In the early years of study, they defined loyalty focusing on behavioral concept, behavioral approaches regard customer loyalty as "a tendency to purchase periodically within a certain period of time at specific retail store." But the loyalty of behavioral approaches focuses on only outcome of customer behavior, so there are someone to point the limits that customers' decision-making situation or process were neglected(Enis & Paul, 1970; Raj, 1982; Lee, 2002). So the attitudinal approaches were suggested. The attitudinal approaches consider loyalty contains all the cognitive, emotional, voluntary factors(Oliver, 1997), define the customer loyalty as "friendly behaviors for specific retail stores." However these attitudinal approaches can explain that how the customer loyalty form and change, but cannot say positively whether it is moved to real purchasing in the future or not. This is a kind of shortcoming(Oh, 1995). 3. Research Design 3.1 Research Model Based on the objects of this study, the research model derived is

    . 3.2 Hypotheses 3.2.1 The Hypothesis of On-line Service Quality and Overall Service Quality The relation between on-line service quality and overall service quality I-1. Efficiency of on-line service quality may have a significant effect on overall service quality. I-2. System availability of on-line service quality may have a significant effect on overall service quality. I-3. Fulfillment of on-line service quality may have a significant effect on overall service quality. I-4. Privacy of on-line service quality may have a significant effect on overall service quality. 3.2.2 The Hypothesis of On-line Service Recovery and Overall Service Quality The relation between on-line service recovery and overall service quality II-1. Responsiveness of on-line service recovery may have a significant effect on overall service quality. II-2. Compensation of on-line service recovery may have a significant effect on overall service quality. II-3. Contact of on-line service recovery may have a significant effect on overall service quality. 3.2.3 The Hypothesis of Overall Service Quality and Customer Satisfaction The relation between overall service quality and customer satisfaction III-1. Overall service quality may have a significant effect on customer satisfaction. 3.2.4 The Hypothesis of Customer Satisfaction and Loyalty Intention The relation between customer satisfaction and loyalty intention IV-1. Customer satisfaction may have a significant effect on loyalty intention. 3.2.5 The Hypothesis of a Mediation Variable Wolfinbarger & Gilly(2003) and Parasuraman, Zeithaml & Malhotra(2005) had made clear that each dimension of service quality has a significant effect on overall service quality. Add to this, the authors analyzed empirically that each dimension of on-line service quality has a positive effect on customer satisfaction. With that viewpoint, this study would examine if overall service quality mediates between on-line service quality and each dimension of customer satisfaction, keeping on looking into the relation between on-line service quality and overall service quality, overall service quality and customer satisfaction. And as this study understands that each dimension of on-line service recovery also has an effect on overall service quality, this would examine if overall service quality also mediates between on-line service recovery and each dimension of customer satisfaction. Therefore these hypotheses followed are set up to examine if overall service quality plays its role as the mediation variable. The relation between on-line service quality and customer satisfaction V-1. Overall service quality may mediate the effects of efficiency of on-line service quality on customer satisfaction. V-2. Overall service quality may mediate the effects of system availability of on-line service quality on customer satisfaction. V-3. Overall service quality may mediate the effects of fulfillment of on-line service quality on customer satisfaction. V-4. Overall service quality may mediate the effects of privacy of on-line service quality on customer satisfaction. The relation between on-line service recovery and customer satisfaction VI-1. Overall service quality may mediate the effects of responsiveness of on-line service recovery on customer satisfaction. VI-2. Overall service quality may mediate the effects of compensation of on-line service recovery on customer satisfaction. VI-3. Overall service quality may mediate the effects of contact of on-line service recovery on customer satisfaction. 4. Empirical Analysis 4.1 Research design and the characters of data This empirical study aimed at customers who ever purchased air ticket at the Web sites for reservation and issue. Total 430 questionnaires were distributed, and 400 were collected. After surveying with the final questionnaire, the frequency test was performed about variables of sex, age which is demographic factors for analyzing general characters of sample data. Sex of data is consist of 146 of male(42.7%) and 196 of female(57.3%), so portion of female is a little higher. Age is composed of 11 of 10s(3.2%), 199 of 20s(58.2%), 105 of 30s(30.7%), 22 of 40s(6.4%), 5 of 50s(1.5%). The reason that portions of 20s and 30s are higher can be supposed that they use the Internet frequently and purchase air ticket directly. 4.2 Assessment of measuring scales This study used the internal consistency analysis to measure reliability, and then used the Cronbach'$\alpha$ to assess this. As a result of reliability test, Cronbach'$\alpha$ value of every component shows more than 0.6, it is found that reliance of the measured variables are ensured. After reliability test, the explorative factor analysis was performed. the factor sampling was performed by the Principal Component Analysis(PCA), the factor rotation was performed by the Varimax which is good for verifying mutual independence between factors. By the result of the initial factor analysis, items blocking construct validity were removed, and the result of the final factor analysis performed for verifying construct validity is followed above. 4.3 Hypothesis Testing 4.3.1 Hypothesis Testing by the Regression Analysis(SPSS) 4.3.2 Analysis of Mediation Effect To verify mediation effect of overall service quality of and , this study used the phased analysis method proposed by Baron & Kenny(1986) generally used. As shows, Step 1 and Step 2 are significant, and mediation variable has a significant effect on dependent variables and so does independent variables at Step 3, too. And there needs to prove the partial mediation effect, independent variable's estimate ability at Step 3(Standardized coefficient $\beta$eta : efficiency=.164, system availability=.074, fulfillment=.108, privacy=.107) is smaller than its estimate ability at Step 2(Standardized coefficient $\beta$eta : efficiency=.409, system availability=.227, fulfillment=.386, privacy=.237), so it was proved that overall service quality played a role as the partial mediation between on-line service quality and satisfaction. As
    shows, Step 1 and Step 2 are significant, and mediation variable has a significant effect on dependent variables and so does independent variables at Step 3, too. And there needs to prove the partial mediation effect, independent variable's estimate ability at Step 3(Standardized coefficient $\beta$eta : responsiveness=.164, compensation=.117, contact=.113) is smaller than its estimate ability at Step 2(Standardized coefficient $\beta$eta : responsiveness=.409, compensation=.386, contact=.237), so it was proved that overall service quality played a role as the partial mediation between on-line service recovery and satisfaction. Verified results on the basis of empirical analysis are followed. First, as the result of , it shows that all were chosen, so on-line service quality has a positive effect on overall service quality. Especially fulfillment of overall service quality has the most effect, and then efficiency, system availability, privacy in order. Second, as the result of , it shows that all were chosen, so on-line service recovery has a positive effect on overall service quality. Especially responsiveness of overall service quality has the most effect, and then contact, compensation in order. Third, as the result of and , it shows that and all were chosen, so overall service quality has a positive effect on customer satisfaction, customer satisfaction has a positive effect on loyalty intention. Fourth, as the result of and , it shows that and all were chosen, so overall service quality plays a role as the partial mediation between on-line service quality and customer satisfaction, on-line service recovery and customer satisfaction. 5. Conclusion This study measured and analyzed service quality and service recovery of the Web sites that customers made a reservation and issued their air tickets, and by improving customer satisfaction through the result, this study put its final goal to grope how to keep loyalty customers. On the basis of the result of empirical analysis, suggestion points of this study are followed. First, this study regarded E-S-QUAL that measures on-line service quality and E-RecS-QUAL that measures on-line service recovery as variables, so it overcame the limit of existing studies that used modified SERVQUAL to measure service quality of the Web sites. Second, it shows that fulfillment and efficiency of on-line service quality have the most significant effect on overall service quality. Therefore the Web sites of reserving and issuing air tickets should try harder to elevate efficiency and fulfillment. Third, privacy of on-line service quality has the least significant effect on overall service quality, but this may be caused by un-assurance of customers whether the Web sites protect safely their confidential information or not. So they need to notify customers of this fact clearly. Fourth, there are many cases that customers don't recognize the importance of on-line service recovery, but if they would think that On-line service recovery has an effect on customer satisfaction and loyalty intention, as its importance is very significant they should prepare for that. Fifth, because overall service quality has a positive effect on customer satisfaction and loyalty intention, they should try harder to elevate service quality and service recovery of the Web sites of reserving and issuing air tickets to maximize customer satisfaction and to secure loyalty customers. Sixth, it is found that overall service quality plays a role as the partial mediation, but now there are rarely existing studies about this, so there need to be more studies about this.

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  • A Study on the Dynamic Charateristics for Control of Gas-Fueled industrial Gas Boiler(I) (산業용 GAS 보일러의 動特性에 관한 硏究 (I))

    • 임종한;이종원
      • Transactions of the Korean Society of Mechanical Engineers
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      • v.16 no.5
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      • pp.965-973
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      • 1992
    • Boilers, which are considered to be one of the basic equipment in industry, consume large potion of nation's petroleum and their demand is growing everyday. In recent, the technology improvement in production of high efficiency boilers and their effective utilization is needed for design of boiler which steam condition is the large capacity of high temperature and high pressure. It is necessary that boiler control system be studied for high efficiency, high reliability and smooth operation. The control of drum pressure and water level particularly becomes an important task for greater accuracy with the avail ability of boiler operation. To achieve this aim, dynamic analysis of a boiler is accomplished by choosing a boiler as a model. Transfer function thus obtained is made a comparison of measurement with reckoning to technical design data. The results of comparison makes it possible to verify thermodynamical analysis on the dynamic behavior of the overall system.

    Patent Trend and Characteristics of Major Companies in the Field of Seismic Nodal System (탄성파 탐사 무선 수진기 특허동향 및 주요 기업의 기술 분석)

    • Park, Jung Kyu
      • Journal of the Korean Society of Mineral and Energy Resources Engineers
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      • v.55 no.6
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      • pp.635-648
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      • 2018
    • This study analyzed patent trends of seismic nodal systems and the technical characteristics of core patents of three major companies, including Fairfield, Sercel, and Wireless Seismic, to examine the focus of technology development of each company. From the analysis, the patent application growth rate of seismic nodal systems has steadily increased since early to mid-2000s and has recently shown a higher growth rate. Over the same period, the patent application growth rate of the three major companies examined was higher than that of the global trend, and patent infringement cases was also examined to evaluate market competition in this field. Analysis of the technical characteristics of the three companies' 33 core patents showed that they are generally focused on seismic signal detection. Sub-technologies included improved reliability of data acquisition, data transmission efficiency, and overall operating of the seismic nodal system. New entrants in field of technology development or manufacturing of seismic nodal systems where the market is growing must closely analyze the contents of major companies' products and patents to prevent possible patent disputes or duplicate research.

    Training Strategics for Future Farmers in Japan (농업인력증대를 위한 영농후계자 육성전략-일본의 사례를 중심으로-)

    • Sim, Jai-Sung
      • The Journal of Natural Sciences
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      • v.11 no.1
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      • pp.119-130
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      • 1999
    • As Japanese economy has been well developed, the manpower problem of farmland has also become one of the largest and the most crucial issues in the overall agricultural policy of the Japanese Government. Particularly, the energetic younger generation and a core of agricultural labor force, has drastically decreased, while the weak older generation has increased. The severity of manpower shortage in agricultural sector led to create a farmer training programs which had been vigorously begun by the Yamagata Prefecture, and a center for promoting local autonomy. The major purpose of education for enhancement of status of future farmers as well as the welfare of core farmhousehold is to provide them with technical of vocational education to give training to those who want to become agricultural technicians, rural leaders of practical farmers Educational program for future and young farmers put emphasis on practical trainings which are directly applied to proper farm management. As a supporting policy for promoting future farmers' activities, Prefecture-level supports were strengthened to develop technical capability, managerial and supervisory ability, and the ability to lead organized activity so that the farm youth may operate modern farms with higher efficiency and greater specialization. Political consideration was also made to develop a rich sense of farm management as well as the adaptability necessary to introduce technical and managerial innovations. Methological measurements on how the Korean government has to do for solving the problem of agricultural manpower facing in farmland in Korea were noted.

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    Analyzing the Effect of COVID-19 on the Operational Efficiency of Asia's Major Container Ports: A Data Envelopment Analysis (COVID-19 위기가 아시아 주요 컨테이너항만의 운영효율성에 미치는 영향)

    • KIM, Tae-Hyung;CHOI, Sang-Duk
      • Journal of the Korean Society of Marine Environment & Safety
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      • v.27 no.6
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      • pp.763-774
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      • 2021
    • The COVID-19 virus has generated major shockwaves in all spheres of human life since its outbreak. Maritime transport (both cargo and passenger) is one of the industries most heavily affected, yet over 80% of the world cargo is transported by sea. This study analyzes maritime port operational efficiencies before and after the start of the COVID-19 pandemic to determine whether the pandemic has caused major differences in the operational efficiencies of many leading Asian maritime container ports via data envelopment analysis (DEA). The results of both the CCR and BCC models reveal that overall, efficiency during the COVID-19 pandemic has been higher than before the pandemic despite a few inefficiencies. This implies that the pandemic has so far not has major consequences for the operational efficiency of maritime ports. However, two ports (Busan and Guangzhou) should adjust the scale sizes and technical capacities of their operations to improve performance.

    Efficiency and Productivity of Seven Large-sized Shipbuilding Firms in Korea (국내 대형조선업계의 효율성 및 생산성 분석)

    • Park, Seok-Ho
      • Journal of Korea Port Economic Association
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      • v.26 no.4
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      • pp.188-206
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      • 2010
    • Data Envelopment Analysis(DEA) is an operations research-based method for measuring the performance efficiency of decision units that are characterized by multiple inputs and outputs. DEA has been applied successfully as a performance evaluation tool in many fields. However, it has not been extensively applied in the shipbuilding industry. This paper applied the input-oriented DEA model, and Malmquist indices to the 7 shipbuilding firms to measure the efficiency and productivity changes during the period of 2004 to 2009. The Malmquist indices will be decomposed into three components such as pure efficiency change, scale efficiency change, and technical change. The empirical results show the following findings. First, the DEA findings indicate that main source of inefficiency is scale rather than pure technical. Second, the Malmquist indices show that an overall decrease in productivity.

    Module-Type Switching Rectifier for Cathodic Protection of Underground and Maritime Metallic Constructions (지하매설 및 해양 금속구조물 음극방식용 모듈 타입 스위칭 정류기)

    • 문상호;김보경;김인동;노의철;권영원;정성우;임헌호
      • The Transactions of the Korean Institute of Power Electronics
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      • v.7 no.6
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      • pp.570-578
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      • 2002
    • Cathodic protection is widely used to prevent corrosion of steel materials buried in the underground and sea. As a rectifier for cathodic protection, the conventional phase-controlled rectifiers have been used so far in spite of such shortcomings as large volume, heavy weight and floor power factor. In order to overcome such disadvantages, this paper proposes a new module-type switching rectifier for cathodic protection, which is composed of two parts, namely, AC/DC converter and module- type DC/DC converter. The AC/DC converter is a single-phase IGBT PWM rectifier, thus resulting in almost unity power factor and controlled DC output voltage. The module-type DC/DC converter operates under ZVS/ZCS switching condition to permit high frequency switching operation. It enables to use high-frequency transformer for electrical isolation, thus reducing volume and weight of overall system and improving system efficiency. It should be anticipated that the proposed rectifier techniques apply to the similar technical areas.

    Economic Feasibility Analysis of Developing Marine Environmental Risk Assessment and Management Technology (해양환경 위해성 평가 및 관리 기술개발사업의 경제성 분석)

    • Park, Sun-Young;Nam, Jung-Ho;Yoo, Seung-Hoon
      • Journal of Korea Technology Innovation Society
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      • v.16 no.1
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      • pp.20-40
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      • 2013
    • A project of developing marine environmental risk assesment and management technology was proposed to improve the level of marine environmental management research. This paper attempts to measure the non-market benefits of the project. To this end, the dichotomous choice contingent valuation method is used. In particular, recently proposed one and one-half bounded model is applied. The model can reduce the potential for response bias comparing to the double bounded model while maintaining much of its efficiency. Moreover, in order to deal with zero WTP observations, a spike model is adjusted for our data. A survey of randomly selected 600 households was implemented and the respondents were asked in person-to-person interviews about how they would be willing to pay for implementing the project. Respondents overall accepted the contingent market and were willing to contribute a significant amount (2,663 won), on average, per household per year. The aggregate value of the project in the nation amounts to approximately 46.3 billion won per year. The figure 2.16 of cost-benefit ratio shows that economic validity of this technical development.

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    A Study on Simultaneous Adjustment of GNSS Baseline Vectors and Terrestrial Measurements

    • Nguyen, Dinh Huy;Lee, Hungkyu;Yun, Seonghyeon
      • Journal of the Korean Society of Surveying, Geodesy, Photogrammetry and Cartography
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      • v.38 no.5
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      • pp.415-423
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      • 2020
    • GNSS (Global Navigation Satellite System) is mostly used for high-precise surveys due to its accuracy and efficiency. But this technique does not always fulfill the demanding accuracy in harsh operational environments such as urban canyon and forest. One of the remedies for overcoming this barrier is to compose a heterogeneous surveying network by adopting terrestrial measurements (i.e., distances and angles). Hence, this study dealt with the adjustment of heterogeneous surveying networks consisted of GNSS baseline vectors, distances, horizontal and vertical angles with a view to enhancing their accuracy and so as to derive an appropriate scheme of the measurement combination. Reviewing some technical issues of the network adjustments, the simulation, and experimental studies have been carried out, showing that the inclusion of the terrestrial measurements in the GNSS standalone overall increased the accuracy of the adjusted coordinates. Especially, if the distances, the horizontal angles, or both of them were simultaneously adjusted with GNSS baselines, the accuracy of the GNSS horizontal component was improved. Comparing the inclusion of the horizontal angles with those of the distances, the former has been more influential on accuracy than the latter even though the same number of measurements were employed in the network. On the other hand, results of the GNSS network adjustment together with the vertical angles demonstrated the enhancement of the vertical accuracy. As conclusion, this paper proposes a simultaneous adjustment of GNSS baselines and the terrestrial measurements for an effective scheme that overcomes the limitation of GNSS control surveys.

    A Stochastic Bilevel Scheduling Model for the Determination of the Load Shifting and Curtailment in Demand Response Programs

    • Rad, Ali Shayegan;Zangeneh, Ali
      • Journal of Electrical Engineering and Technology
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      • v.13 no.3
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      • pp.1069-1078
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      • 2018
    • Demand response (DR) programs give opportunity to consumers to manage their electricity bills. Besides, distribution system operator (DSO) is interested in using DR programs to obtain technical and economic benefits for distribution network. Since small consumers have difficulties to individually take part in the electricity market, an entity named demand response provider (DRP) has been recently defined to aggregate the DR of small consumers. However, implementing DR programs face challenges to fairly allocate benefits and payments between DRP and DSO. This paper presents a procedure for modeling the interaction between DRP and DSO based on a bilevel programming model. Both DSO and DRP behave from their own viewpoint with different objective functions. On the one hand, DRP bids the potential of DR programs, which are load shifting and load curtailment, to maximize its expected profit and on the other hand, DSO purchases electric power from either the electricity market or DRP to supply its consumers by minimizing its overall cost. In the proposed bilevel programming approach, the upper level problem represents the DRP decisions, while the lower level problem represents the DSO behavior. The obtained bilevel programming problem (BPP) is converted into a single level optimizing problem using its Karush-Kuhn-Tucker (KKT) optimality conditions. Furthermore, point estimate method (PEM) is employed to model the uncertainties of the power demands and the electricity market prices. The efficiency of the presented model is verified through the case studies and analysis of the obtained results.