• Title/Summary/Keyword: Potential Demand

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The Mediating Effect of Experiential Value on Customers' Perceived Value of Digital Content: China's Anti-virus Program Market (경험개치대소비자대전자내용적인지개치적중개영향(经验价值对消费者对电子内容的认知价值的中介影响): 중국살독연건시장(中国杀毒软件市场))

  • Jia, Weiwei;Kim, Sae-Bum
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.219-230
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    • 2010
  • Digital content makes big changes to our daily lives while bringing opportunities and challenges for companies. Creative firms integrate pictures, texts, videos, audios, and data by digitalization to develop new products or services and create digital experiences to promote their brands. Most articles on digital content contribute to the basic concept or development of marketing it in literature. Actually, compared with traditional value chains for common products or services, the digital content industry seems to have more potential value. Because quite a bit of digital content is free to the consumer, price is not necessarily perceived as an indicator of the quality or value of information (Rowley 2008). It becomes evident that a current theme in digital content is the issue of "value," and research on customers' perceived value of digital content is a necessity. This article argues that experiential value has an advantage in customers' evaluations of digital content. Two different but related contributions to the understanding of "value" of digital content are made here. First, based on the comparison of digital content with products and services, the article proposes two key characteristics that make experiential strategy available for digital content: intangibility and near-zero reproduction cost. On top of that, based on the discussion of the gap between company's idealized value and customer's perceived value, this article emphasizes that digital content prices and pricing of digital content is different from products and services. As a result of intangibility, prices may not reflect customer value. Moreover, the cost of digital content in the development stage may be very high while reproduction costs shrink dramatically. Moreover, because of the value gap mentioned before, the pricing polices vary for different digital contents. For example, flat price policy is generally used for movies and music (Magiera 2001; Netherby 2002), while for continuous demand, digital content such as online games and anti-virus programs involves a more complicated matter of utility and competitive price levels. Digital content companies have to explore various kinds of strategies to overcome this gap. Rethinking marketing solutions such as advertisements, images, and word-of-mouth and their effect on customers' perceived value becomes essential. China's digital content industry is becoming more and more globalized and drawing special attention from different countries and regions that have respective competitive advantages. The 2008-2009 Annual Report on the Development of China's Digital Content Industry (CCIDConsulting 2009) indicates that, with the driven power of domestic demand and governmental policy support, the country's digital content industry maintained a fast growth of some 30 percent in 2008, obviously indicating the initial stage of industry expansion. In China, anti-virus programs and other software programs which need to be updated use a quarter-based pricing policy. Customers can download a trial version for free and use it for six months or a year. If they want to use it longer, continuous payment is needed. They examine the excellence of the digital content during this trial period and decide whether to pay for continued usage. For China’s music and movie industries, as a result of initial development, experiential strategy has not been much applied, even though firms in other countries find the trial experience and explore important strategies(such as customers listening to music for several seconds for free before downloading it). For the above reasons, anti-virus program may be a representative for digital content industry in China and an exploratory study of the advantage of experiential value in customer's perceived value of digital content is done in the anti-virus market of China. In order to enhance the reliability of the survey data, this study focused on people who were experienced users of anti-virus programs. The empirical results revealed that experiential value has a positive effect on customers' perceived value of digital content. In other words, because digital content is intangible and the reproduction costs are nearly zero, customers' evaluations are based heavily on their experience. Moreover, image and word-of-mouth do not have a positive effect on perceived value, only on experiential value. That is to say, a digital content value chain is different from that of a general product or service. Experiential value has a notable advantage and mediates the effect of image and word-of-mouth on perceived value. The results of this study help provide an understanding of why free digital content downloads exist in developing countries. Customers can perceive the value of digital content only by using and experiencing it. This is also why such governments support the development of digital content. Other developing countries whose digital content business is also in the beginning stage can make use of the suggestions here. Moreover, based on the advantage of experiential strategy, companies should make more of an effort to invest in customers' experience. As a result of the characteristics and value gap of digital content, customers perceive more value in the intangible digital content only by experiencing what they really want. Moreover, because of the near-zero reproduction costs, companies can perhaps use experiential strategy to enhance customer understanding of digital content.

Improvements in the Environmental Impact Assessment on Seawater and Sediment Qualities for Coastal Dredging Projects (연안준설 사업에 따른 해양 수질 및 퇴적물 영향평가 개선 방안)

  • Kim, Yeong-Tae;Kim, Gui-Young;Jeon, Kyeong-Am;Lee, Dae-In;Yu, Jun;Kim, Hee-Jung;Kim, In-Chul;Eom, Ki-Hyuk
    • Journal of the Korean Society of Marine Environment & Safety
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    • v.19 no.2
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    • pp.119-128
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    • 2013
  • Since the early 2000s, demand for coastal dredging projects have been significantly increased, and the dredged sediments have showed the continuing marked increases through the multiple projects with other coastal development and constructions. As significant or potential degradation of marine environment has been mounting, we checked the current situation of marine environmental impact assessment through marine water and sediment qualities in relation with dredging projects of the sea area utilization consultation statements submitted in 2011. While analysis percentages of the general items were usually higher, harmful components such as metals revealed wide variation of analysis percentages. In the event of analysis of metals, the pre-treatment process (full digestion) and analysis method were not properly implemented in accordance with the guidelines for preparation of consultation statements. Although not specified in the guidelines, verification procedures (tests of recovery efficiency and detection limit) to secure the reliability were almost ignored. As a result, most of developers did conduct poor marine environmental impact assessment on coastal dredging and related projects. We suggested that the responsible government authority should establish new detailed guidelines on the sea area utilization consultation for more strict evaluation and diagnosis of marine environment and distinctly request the developer to obey the guidelines by complementing the system of the sea area utilization consultation.

Antioxidant Activities of Citrus unshiu Extracts obtained from Different Solvents (추출용매에 따른 진피 추출물의 항산화 활성)

  • Lee, Sung-Gu;Oh, Sung-Cheon;Jang, Jae-Seon
    • The Korean Journal of Food And Nutrition
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    • v.28 no.3
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    • pp.458-464
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    • 2015
  • In this study, the total polyphenol content, electron donating ability (EDA) and inhibitory activity of glutathione S-transferase (GST) of freeze-dried Citrus unshiu extracts were examined. The Citrus unshiu extracts was obtained from four solvents such as ethyl acetate, acetone, methyl chloride and methanol, to evaluate its functional properties. Total polyphenol contents were measured in the two different extracts, and the extracts were screened for their potential antioxidant activities using tests such as electron donating ability (EDA), glutathione S-transferase (GST). The total polyphenol contents of Citrus unshiu extracts were $928.48{\pm}1.19{\mu}g\;GAE/mL$ in ethyl acetate (EA), $886.03{\pm}0.44{\mu}g\;RE/mL$ in acetone (AC), $413.08{\pm}1.39{\mu}g\;GAE/mL$ in methylene chloride (MC), $12,648.60{\pm}0.56{\mu}g\;GAE/mL$ in methanol (MeOH), respectively. Also, the total polyphenol contents of EtOH Citrus unshiu extracts were $664.64{\pm}0.74{\mu}g\;GAE/mL$ in EA, $702.67{\pm}0.85{\mu}g\;RE/mL$ in AC, $429.64{\pm}0.61{\mu}g\;GAE/mL$ in MC, $16,108{\pm}0.73{\mu}g\;GAE/mL$ in MeOH, respectively. The total polyphenol contents were significantly difference (p<0.05) between the solvents. The electron donating ability of Citrus unshiu extracts were $62.80{\pm}0.36%$ in EA, $97.43{\pm}0.51%$ in AC, $52.20{\pm}0.30%$ in MC, $97.63{\pm}0.46%$ in MeOH, respectively. Also, the electron donating ability of EtOH Citrus unshiu extracts were $51.49{\pm}0.26%$ in EA, $63.17{\pm}0.31%$ in AC, $67.68{\pm}0.55%$ in MC, $96.18{\pm}0.41%$ in MA, respectively. The electron donating ability were significantly difference (p<0.05) between the solvents. The inhibitory activity of glutathione S-transferase in Citrus unshiu extracts were $76.22{\pm}0.65%$ in EA, $31.73{\pm}0.48%$ in MC, $97.48{\pm}0.56%$ in MeOH, respectively. Also, inhibitory activity of glutathione S-transferase in EtOH Citrus unshiu extracts were $75.54{\pm}0.55%$ in EA, $73.53{\pm}0.38%$ in MC, $48.70{\pm}0.46%$ in MeOH, respectively. The inhibitory activity of glutathione S-transferase were significantly difference (p<0.05) between the solvents. These results indicated that the Citrus unshiu extracts is a high-valued food ingredient and the extraction with methanol will be useful as a nutritional source with natural antioxidant activities. Considering high consumer demand beneficial health effects, Citrus unshiu extracts can be utilized to develop functional food health- promoting and natural antioxidant agents.

A study on the use of a Business Intelligence system : the role of explanations (비즈니스 인텔리전스 시스템의 활용 방안에 관한 연구: 설명 기능을 중심으로)

  • Kwon, YoungOk
    • Journal of Intelligence and Information Systems
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    • v.20 no.4
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    • pp.155-169
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    • 2014
  • With the rapid advances in technologies, organizations are more likely to depend on information systems in their decision-making processes. Business Intelligence (BI) systems, in particular, have become a mainstay in dealing with complex problems in an organization, partly because a variety of advanced computational methods from statistics, machine learning, and artificial intelligence can be applied to solve business problems such as demand forecasting. In addition to the ability to analyze past and present trends, these predictive analytics capabilities provide huge value to an organization's ability to respond to change in markets, business risks, and customer trends. While the performance effects of BI system use in organization settings have been studied, it has been little discussed on the use of predictive analytics technologies embedded in BI systems for forecasting tasks. Thus, this study aims to find important factors that can help to take advantage of the benefits of advanced technologies of a BI system. More generally, a BI system can be viewed as an advisor, defined as the one that formulates judgments or recommends alternatives and communicates these to the person in the role of the judge, and the information generated by the BI system as advice that a decision maker (judge) can follow. Thus, we refer to the findings from the advice-giving and advice-taking literature, focusing on the role of explanations of the system in users' advice taking. It has been shown that advice discounting could occur when an advisor's reasoning or evidence justifying the advisor's decision is not available. However, the majority of current BI systems merely provide a number, which may influence decision makers in accepting the advice and inferring the quality of advice. We in this study explore the following key factors that can influence users' advice taking within the setting of a BI system: explanations on how the box-office grosses are predicted, types of advisor, i.e., system (data mining technique) or human-based business advice mechanisms such as prediction markets (aggregated human advice) and human advisors (individual human expert advice), users' evaluations of the provided advice, and individual differences in decision-makers. Each subject performs the following four tasks, by going through a series of display screens on the computer. First, given the information of the given movie such as director and genre, the subjects are asked to predict the opening weekend box office of the movie. Second, in light of the information generated by an advisor, the subjects are asked to adjust their original predictions, if they desire to do so. Third, they are asked to evaluate the value of the given information (e.g., perceived usefulness, trust, satisfaction). Lastly, a short survey is conducted to identify individual differences that may affect advice-taking. The results from the experiment show that subjects are more likely to follow system-generated advice than human advice when the advice is provided with an explanation. When the subjects as system users think the information provided by the system is useful, they are also more likely to take the advice. In addition, individual differences affect advice-taking. The subjects with more expertise on advisors or that tend to agree with others adjust their predictions, following the advice. On the other hand, the subjects with more knowledge on movies are less affected by the advice and their final decisions are close to their original predictions. The advances in predictive analytics of a BI system demonstrate a great potential to support increasingly complex business decisions. This study shows how the designs of a BI system can play a role in influencing users' acceptance of the system-generated advice, and the findings provide valuable insights on how to leverage the advanced predictive analytics of the BI system in an organization's forecasting practices.

Development of Market Growth Pattern Map Based on Growth Model and Self-organizing Map Algorithm: Focusing on ICT products (자기조직화 지도를 활용한 성장모형 기반의 시장 성장패턴 지도 구축: ICT제품을 중심으로)

  • Park, Do-Hyung;Chung, Jaekwon;Chung, Yeo Jin;Lee, Dongwon
    • Journal of Intelligence and Information Systems
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    • v.20 no.4
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    • pp.1-23
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    • 2014
  • Market forecasting aims to estimate the sales volume of a product or service that is sold to consumers for a specific selling period. From the perspective of the enterprise, accurate market forecasting assists in determining the timing of new product introduction, product design, and establishing production plans and marketing strategies that enable a more efficient decision-making process. Moreover, accurate market forecasting enables governments to efficiently establish a national budget organization. This study aims to generate a market growth curve for ICT (information and communication technology) goods using past time series data; categorize products showing similar growth patterns; understand markets in the industry; and forecast the future outlook of such products. This study suggests the useful and meaningful process (or methodology) to identify the market growth pattern with quantitative growth model and data mining algorithm. The study employs the following methodology. At the first stage, past time series data are collected based on the target products or services of categorized industry. The data, such as the volume of sales and domestic consumption for a specific product or service, are collected from the relevant government ministry, the National Statistical Office, and other relevant government organizations. For collected data that may not be analyzed due to the lack of past data and the alteration of code names, data pre-processing work should be performed. At the second stage of this process, an optimal model for market forecasting should be selected. This model can be varied on the basis of the characteristics of each categorized industry. As this study is focused on the ICT industry, which has more frequent new technology appearances resulting in changes of the market structure, Logistic model, Gompertz model, and Bass model are selected. A hybrid model that combines different models can also be considered. The hybrid model considered for use in this study analyzes the size of the market potential through the Logistic and Gompertz models, and then the figures are used for the Bass model. The third stage of this process is to evaluate which model most accurately explains the data. In order to do this, the parameter should be estimated on the basis of the collected past time series data to generate the models' predictive value and calculate the root-mean squared error (RMSE). The model that shows the lowest average RMSE value for every product type is considered as the best model. At the fourth stage of this process, based on the estimated parameter value generated by the best model, a market growth pattern map is constructed with self-organizing map algorithm. A self-organizing map is learning with market pattern parameters for all products or services as input data, and the products or services are organized into an $N{\times}N$ map. The number of clusters increase from 2 to M, depending on the characteristics of the nodes on the map. The clusters are divided into zones, and the clusters with the ability to provide the most meaningful explanation are selected. Based on the final selection of clusters, the boundaries between the nodes are selected and, ultimately, the market growth pattern map is completed. The last step is to determine the final characteristics of the clusters as well as the market growth curve. The average of the market growth pattern parameters in the clusters is taken to be a representative figure. Using this figure, a growth curve is drawn for each cluster, and their characteristics are analyzed. Also, taking into consideration the product types in each cluster, their characteristics can be qualitatively generated. We expect that the process and system that this paper suggests can be used as a tool for forecasting demand in the ICT and other industries.

'Open Skies' Agreements and Access to the 'Single' European Sky;Legal and Economic Problems with the European Court of Justice's Judgment in 'Commission v. Germany'(2002) Striking Down the 'Nationality Clause' in the U.S.-German Agreement (항공(航空) 자유화(自由化)와 '단일(單一)' 유럽항공시장(航空市場) 접근(接近);유럽사법재판소(司法裁判所)의 미(美) ${\cdot}$ 독(獨) 항공운수협정(航空運輸協定)상 '국적요건(國籍要件)' 조항(條項)의 공동체법(共同體法)상 '내국민대우(內國民待遇)' 규정 위반(違反) 관련 '집행위원회(執行委員會) 대(對) 독일연방(獨逸聯邦)' 사건 판결(判決)(2002)의 문제점을 중심으로)

  • Park, Hyun-Jin
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.15 no.1
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    • pp.38-53
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    • 2007
  • In a seminal judgment of November 2002 (Case C-476/98) relating to the compatibility with Community laws of the 'nationality clause' in the 1996 amending protocol to the 1955 U.S.-German Air Services Agreement, the European Court of Justice(ECJ) decided that the provision constituted a measure of an intrinsically discriminatory nature and was thus contrary to the principle of national treatment established under Art. 52 of the EC Treaty. The Court, rejecting bluntly the German government' submissions relying on public policy grounds(Art. 56, EC Treaty), seemed content to declare and rule that the protocol provision requiring a contracting state party to ensure substantial ownership and effective control by its nationals of its designated airlines had violated the requirement of national treatment reserved for other Community Members under the salient Treaty provision. The German counterclaims against the Commission, although tantalizing not only from the perusal of the judgment but from the perspective of international air law, were nonetheless invariably correct and to the point. For such a clause has been justified to defend the 'fundamental interests of society from a serious threat' that may result from granting operating licenses or necessary technical authorizations to an airline company of a third country. Indeed, the nationality clause has been inserted in most of the liberal bilaterals to allow the parties to enforce their own national laws and regulations governing aviation safety and security. Such a clause is not targeted as a device for discriminating against the nationals of any third State. It simply acts as the minimum legal safeguards against aviation risk empowering a party to take legal control of the designated airlines. Unfortunately, the German call for the review of such a foremost objective and rationale underlying the nationality clause landed on the deaf ears of the Court which appeared quite happy not to take stock of the potential implications and consequences in its absence and of the legality under international law of the 'national treatment' requirement of Community laws. Again, while US law limits foreign shareholders to 24.9% of its airlines, the European Community limits non-EC ownership to 49%, precluding any ownership and effective control by foreign nationals of EC airlines, let alone any foreign takeover and merger. Given this, it appears inconsistent and unreasonable for the EC to demand, $vis-{\grave{a}}-vis$ a non-EC third State, national treatment for all of its Member States. The ECJ's decision was also wrongly premised on the precedence of Community laws over international law, and in particular, international air law. It simply is another form of asserting and enforcing de facto extraterritorial application of Community laws to a non-EC third country. Again, the ruling runs counter to an established rule of international law that a treaty does not, as a matter of principle, create either obligations or rights for a third State. Aside from the legal problems, the 'national treatment' may not be economically justified either, in light of the free-rider problem and resulting externalities or inefficiency. On the strength of international law and economics, therefore, airlines of Community Members other than the designated German and U.S. air carriers are neither eligible for traffic rights, nor entitled to operate between or 'free-ride' on the U.S. and German points. All in all and in all fairness, the European Court's ruling was nothing short of an outright condemnation of established rules and principles of international law and international air law. Nor is the national treatment requirement justified by the economic logic of deregulation or liberalization of aviation markets. Nor has the requirement much to do with fair competition and increased efficiency.

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유청단백질로 만들어진 식품포장재에 관한 연구

  • Kim, Seong-Ju
    • 한국유가공학회:학술대회논문집
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    • 2002.04a
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    • pp.59-60
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    • 2002
  • Edible films such as wax coatings, sugar and chocolate covers, and sausage casings, have been used in food applications for years$^{(1)}$ However, interest in edible films and biodegradable polymers has been renewed due to concerns about the environment, a need to reduce the quantity of disposable packaging, and demand by the consumer for higher quality food products. Edible films can function as secondary packaging materials to enhance food quality and reduce the amount of traditional packaging needed. For example, edible films can serve to enhance food quality by acting as moisture and gas barriers, thus, providing protection to a food product after the primary packaging is opened. Edible films are not meant to replace synthetic packaging materials; instead, they provide the potential as food packagings where traditional synthetic or biodegradable plastics cannot function. For instance, edible films can be used as convenient soluble pouches containing single-servings for products such as instant noodles and soup/seasoning combination. In the food industry, they can be used as ingredient delivery systems for delivering pre-measured ingredients during processing. Edible films also can provide the food processors with a variety of new opportunities for product development and processing. Depends on materials of edible films, they also can be sources of nutritional supplements. Especially, whey proteins have excellent amino acid balance while some edible films resources lack adequate amount of certain amino acids, for example, soy protein is low in methionine and wheat flour is low in lysine$^{(2)}$. Whey proteins have a surplus of the essential amino acid lysine, threonine, methionine and isoleucine. Thus, the idea of using whey protein-based films to individually pack cereal products, which often deficient in these amino acids, become very attractive$^{(3)}$. Whey is a by-product of cheese manufacturing and much of annual production is not utilized$^{(4)}$. Development of edible films from whey protein is one of the ways to recover whey from dairy industry waste. Whey proteins as raw materials of film production can be obtained at inexpensive cost. I hypothesize that it is possible to make whey protein-based edible films with improved moisture barrier properties without significantly altering other properties by producing whey protein/lipid emulsion films and these films will be suitable far food applications. The fellowing are the specific otjectives of this research: 1. Develop whey protein/lipid emulsion edible films and determine their microstructures, barrier (moisture and oxygen) and mechanical (tensile strength and elongation) properties. 2. Study the nature of interactions involved in the formation and stability of the films. 3. Investigate thermal properties, heat sealability, and sealing properties of the films. 4. Demonstrate suitability of their application in foods as packaging materials. Methodologies were developed to produce edible films from whey protein isolate (WPI) and concentrate (WPC), and film-forming procedure was optimized. Lipids, butter fat (BF) and candelilla wax (CW), were added into film-forming solutions to produce whey protein/lipid emulsion edible films. Significant reduction in water vapor and oxygen permeabilities of the films could be achieved upon addition of BF and CW. Mechanical properties were also influenced by the lipid type. Microstructures of the films accounted for the differences in their barrier and mechanical properties. Studies with bond-dissociating agents indicated that disulfide and hydrogen bonds, cooperatively, were the primary forces involved in the formation and stability of whey protein/lipid emulsion films. Contribution of hydrophobic interactions was secondary. Thermal properties of the films were studied using differential scanning calorimetry, and the results were used to optimize heat-sealing conditions for the films. Electron spectroscopy for chemical analysis (ESCA) was used to study the nature of the interfacial interaction of sealed films. All films were heat sealable and showed good seal strengths while the plasticizer type influenced optimum heat-sealing temperatures of the films, 130$^{\circ}$C for sorbitol-plasticized WPI films and 110$^{\circ}$C for glycerol-plasticized WPI films. ESCA spectra showed that the main interactions responsible for the heat-sealed joint of whey protein-based edible films were hydrogen bonds and covalent bonds involving C-0-H and N-C components. Finally, solubility in water, moisture contents, moisture sorption isotherms and sensory attributes (using a trained sensory panel) of the films were determined. Solubility was influenced primarily by the plasticizer in the films, and the higher the plasticizer content, the greater was the solubility of the films in water. Moisture contents of the films showed a strong relationship with moisture sorption isotherm properties of the films. Lower moisture content of the films resulted in lower equilibrium moisture contents at all aw levels. Sensory evaluation of the films revealed that no distinctive odor existed in WPI films. All films tested showed slight sweetness and adhesiveness. Films with lipids were scored as being opaque while films without lipids were scored to be clear. Whey protein/lipid emulsion edible films may be suitable for packaging of powder mix and should be suitable for packaging of non-hygroscopic foods$^{(5,6,7,8,)}$.

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Performance Evaluation of Hydrocyclone Filter for Treatment of Micro Particles in Storm Runoff (Hydrocyclone Filter 장치를 이용한 강우유출수내 미세입자 제거특성 분석)

  • Lee, Jun-Ho;Bang, Ki-Woong;Hong, Sung-Chul
    • Journal of Korean Society of Environmental Engineers
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    • v.31 no.11
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    • pp.1007-1018
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    • 2009
  • Hydrocyclone is widely used in industry, because of its simplicity in design, high capacity, low maintenance and operational cost. The separation action of a hydrocyclone treating particulate slurry is a consequence of the swirling flow that produces a centrifugal force on the fluid and suspended particles. In spite of hydrocyclone have many advantage, the application for treatment of urban stormwater case study were rare. We conducted a laboratory scale study on treatable potential of micro particles using hydrocyclone filter (HCF) that was a combined modified hydrocyclone with perlite filter cartridge. Since it was not easy to use actual storm water in the scaled-down hydraulic model investigations, it was necessary to reproduce ranges of particles sizes with synthetic materials. The synthesized storm runoff was made with water and addition of particles; ion exchange resin, road sediment, commercial area manhole sediment, and silica gel particles. Experimental studies have been carried out about the particle separation performance of HCF-open system and HCF-closed system. The principal structural differences of these HCFs are underflow zone structure and vortex finder. HCF was made of acryl resin with 120 mm of diameter hydrocyclone and 250 mm of diameter filter chamber and overall height of 800 mm. To determine the removal efficiency for various influent concentrations of suspended solids (SS) and chemical oxygen demand (COD), tests were performed with different operational conditions. The operated maximum of surface loading rate was about 700 $m^3/m^2$/day for HCF-open system, and 1,200 $m^3/m^2$/day for HCF-closed system. It was found that particle removal efficiency for the HCF-closed system is better than the HCF-open system under same surface loading rate. Results showed that SS removal efficiency with the HCF-closed system improved by about 8~20% compared with HCF-open system. The average removal efficiency difference for HCF-closed system between measurement and CFD particle tracking simulation was about 4%.

Policy Study on Korean Retail Micro Business (국제 비교를 통한 소매업 소상공인 현황과 정책적 시사점)

  • Suh, Yong Gu;Kim, Suk Kyung
    • Journal of Distribution Research
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    • v.17 no.5
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    • pp.39-57
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    • 2012
  • The unabated influx of micro businesses has turned the Korean retailing market to a rat race, which causes severe financial distress for micro business owners due to heavy competition. The woes of these micro business owner's are exacerbated by the presence of large scale distributors such as Super Supermarket(SSM) and large discount stores. In summary, the Korean retail market is overburdened an uneconomically viable. Retailing has low barriers to entry which attracts unskilled labor or those with little capital. These start-ups have low opportunity costs since they would make low wages elsewhere in the economy. Thus, these owners are content with relatively low returns on their investment. These 'subsistence ventures' are maintained for economical viability rather than economic growth. These 'subsistence ventures' intensifies competition among small-scale businesses. The presence of large retail corporations also aggravates the situation. The recent stagnation of the economy has worsened the retail market in Korea. The overwhelming competition solidifies the coarse structural system and the prolonged economic sluggishness has increased the risk of insolvency for micro business owners. As the economy continues to stagnate, the imminent risk in retailing market will rise up to surface threatening economic stability. More systematic inflows and outflows of retailers are required in order to redress this structural problem. It has been empirically shown that the self-employment rate is high in Korea compared to other OECD countries. To draw the comparison of self-employment rate by industry, Korea shows high rates among transportation, whole sale, retail, education, lodging, and restaurants. In the case of the transportation and education service sectors, this high rate can be explained by the idiosyncratic nature of Korean culture. In the transportation sector, political policies favor private cap service and private freight carriers. In the education service sector, Koreans put particular emphasis on education that leads to many private institutions that outnumber other OECD countries. For these singular reasons, Korea maintains high micro business, self-employed rates particularly in retailing. A comparable nation is Japan, with its similar social, economic, cultural environment among OECD countries. Unlike Korea, Japan has much lower rates of micro business which continues to decrease. Also Korean retailers are much more destitute than Japanese. The fundamental problem of Korean retailing is the involuntary exit of these 'subsistence ventures,' micro businesses with low margins, in which a small drop in demand can lead to financial difficulties for the owner. This problem will be exacerbated when Korean babyboomers retire and join the micro business ventures. The first priority in order to cope with the severity of oversupply in retailing is to provide better opportunities for the potential self-employers. There should be viable alternatives to subsistent ventures. Strengthening the retirement program, scrutiny of exit process, reconfiguration of policy funds are the recommendations.

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Evaluation of Web Service Similarity Assessment Methods (웹서비스 유사성 평가 방법들의 실험적 평가)

  • Hwang, You-Sub
    • Journal of Intelligence and Information Systems
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    • v.15 no.4
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    • pp.1-22
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    • 2009
  • The World Wide Web is transitioning from being a mere collection of documents that contain useful information toward providing a collection of services that perform useful tasks. The emerging Web service technology has been envisioned as the next technological wave and is expected to play an important role in this recent transformation of the Web. By providing interoperable interface standards for application-to-application communication, Web services can be combined with component based software development to promote application interaction and integration both within and across enterprises. To make Web services for service-oriented computing operational, it is important that Web service repositories not only be well-structured but also provide efficient tools for developers to find reusable Web service components that meet their needs. As the potential of Web services for service-oriented computing is being widely recognized, the demand for effective Web service discovery mechanisms is concomitantly growing. A number of techniques for Web service discovery have been proposed, but the discovery challenge has not been satisfactorily addressed. Unfortunately, most existing solutions are either too rudimentary to be useful or too domain dependent to be generalizable. In this paper, we propose a Web service organizing framework that combines clustering techniques with string matching and leverages the semantics of the XML-based service specification in WSDL documents. We believe that this is one of the first attempts at applying data mining techniques in the Web service discovery domain. Our proposed approach has several appealing features : (1) It minimizes the requirement of prior knowledge from both service consumers and publishers; (2) It avoids exploiting domain dependent ontologies; and (3) It is able to visualize the semantic relationships among Web services. We have developed a prototype system based on the proposed framework using an unsupervised artificial neural network and empirically evaluated the proposed approach and tool using real Web service descriptions drawn from operational Web service registries. We report on some preliminary results demonstrating the efficacy of the proposed approach.

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