• Title/Summary/Keyword: Price Differentiation

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Price Perception and Consumer Behavior - Focused on the Price of Automobile Fuel - (가격 인지와 소비자 행동 -자동차 연료 가격을 중심으로-)

  • Shim Young
    • Journal of the Korean Home Economics Association
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    • v.43 no.1 s.203
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    • pp.115-128
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    • 2005
  • The purpose of this study was to examine the association between consumer's price perception and the price information searching behavior. For this, hypotheses were suggested and tested with a sample of 383 consumers. The results were as follows: the hypotheses were supported in part. The perception of the existence of a standard price, the existence of price differentiation, the degree of price differentiation, and the price appropriateness were all associated with the price information searching behavior. The perception of the existence of price differentiation, and the degree of price differentiation were associated with the transference behavior after price checking, and the perception of the existence of price differentiation, the degree of price differentiation, and the price fairness were associated with the place selection behavior.

Price Competition in Horizontal and Vertical Differentiation : Focusing on the WiBro and HSDPA (수직적.수평적 차별화 시장에서의 서비스 요금전략 : 와이브로와 HSDPA 서비스를 중심으로)

  • Kim, Dow-Han
    • Korean Management Science Review
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    • v.26 no.3
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    • pp.67-78
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    • 2009
  • In this paper, I analyze the mobile broadband services market characterized by vertical and horizontal differentiation. Vertical differentiation as service quality differentiation is based on the transmission speed of mobile internet service and horizontal differentiation as spatial differentiation is based on the service coverage. Theoretical explanations for the competitive price policy have been developed in the game context of WiBro which represent the high quality within the limited service coverage and HSDPA which represent relatively low quality with nation-wide service. When the WiBro has a mobile broadband service quality advantage and the difference in quality is sufficiently low, the price of WiBro with limited service coverage is relatively lower than that of HSDPA. This occurs because the advantage of WiBro's vertical service differentiation is offset by the disadvantage of horizontal differentiation. The difference in the quality of mobile internet service, however, is not too high, the price of WiBro is relatively higher than that of HSDPA. Moreover, when the service quality of WiBro is sufficiently high, the low quality HSDPA service faces no demand.

Location Value and Price Leadership in a Product Differentiation Model

  • Ku, Hyeon-Mo;Lee, Sang-Ho
    • Management Science and Financial Engineering
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    • v.13 no.2
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    • pp.99-116
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    • 2007
  • This paper considers the value of location in a linear city model and examines the product differentiation equilibrium of duopoly providing different benefits to consumers. We show that if the value of location is small, symmetric location equilibrium occurs where two firms follow the maximal differentiation principle. However, as the value of location increases, asymmetric location equilibrium occurs where the low-value-location firm moves to the high-value-location firm and thus adjusted maximal differentiation principle holds. We also investigate two different price leadership model and demonstrate the relationship between the value of location and the role of price leadership. In particular, we show that when the location value is high, the price leadership by high-value-location firm will appear as a unique equilibrium.

Spatial Price Competition in the Korean Retail Gasoline Market

  • Kim, Donghun;Lee, Jiyon
    • Environmental and Resource Economics Review
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    • v.23 no.4
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    • pp.553-581
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    • 2014
  • This paper analyzes competition among service stations in the Korean gasoline market. We consider spatial differentiation as a source of product differentiation as well as the characteristics of the stations and vertical contracts between refiners and retailers as factors causing changes in equilibrium prices in the Korean gasoline retail market. The effect of the government's price disclosure policy on the retail market competition is also analyzed. Moran's I test indicates that the prices of neighboring gas stations are spatially correlated in the market. It is also found that gasoline prices for vertically integrated stations are much lower than those for independent stations. In addition, unbranded stations charge lower prices than branded stations but also induce branded stations to price more competitively. Meanwhile, the government's price disclosure policy did intensify price competition in the retail gasoline market. It is inferred that the price disclosure policy contributed to retailers gaining more bargain power in price negotiation with refiners, causing an eventual increase in retail prices.

ASP 매출 변화에 관한 동태적 분석: SD 기법을 활용한 버전 차별화 전략을 중심으로

  • Kim, Sang-Jun;Lee, Jin-Su;Lee, Sang-Geun
    • 한국경영정보학회:학술대회논문집
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    • 2008.06a
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    • pp.454-471
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    • 2008
  • This study suggests the dynamic pricing model which reveals the organic relationship between ASP (Application Service Provider) price and the related factors, using system dynamics methodology. Basically, we applied the law of supply and demand for analyzing price changes. Then, we deducted ASP price, focusing on fixed cost and variable cost. We also researched the customer's buying behavior according to version differentiation policy. In the version policy, we set up the proposition about customer's satisfaction and willingness-to-pay, using option system. As a result, this research designed the simulation model which analyzes the changes of the sales according to version differentiations and customer's willingness-to-pay. Through this research, we can find effective version differentiation strategies. This paper also found that the larger the number of package, the greater the demand and customer's willingness-to-pay. The increase of the number of package causes the increase of the sales. The increase of the sale is not exactly relative to the number of package. Drawing S-curve, the sales was increased. This dynamic pricing model suggests the ground that the ASP price changes based on the existing version differentiation theory and the demand of customers can affect the changes of the sales. We expect that this model suggests a clear standard of ASP pricing by combining real cases.

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A Study on marketing strategy for the Brand-name of Korea's Meat in the globalization Era (세계화에 따른 한우브랜드의 마케팅전략에 관한 연구)

  • Yim, Ki-Heung
    • International Commerce and Information Review
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    • v.10 no.3
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    • pp.391-406
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    • 2008
  • Recently, U.S. beef completely is opened and a point of present time, beef import market is increased, the high branding and high quality of Korea's beef cattle is urgent for a brand-name of Korea's Meat got competitive superiority in world market. Also, for that situation, Producers and Distributors request successful marketing strategy establishment and in the concrete, I present a counterplan strategy based on 4P(price, product differentiation, sales promotion, distribution) strategy.

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A Study on the Improvement of Price Structure of Multi-regional Water Supply System in Korea (국내 광역상수도 요금제도의 개선 방향에 관한 연구)

  • Kim, Yeon-Bae;Heo, Eun-Nyeong;Kim, Tae-Yu;Kim, Wan-Gyu
    • Journal of Korea Water Resources Association
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    • v.32 no.5
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    • pp.537-545
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    • 1999
  • This study examines three counterplans for the improvement in price structure of Korean multi-regional water supply system. First, price differentiation between industrial and residential water uses is analyzed using several pricing methods. It has been estimated that the industrial water price by the Ramsey pricing method is needed to be two to two and half times higher than the price of residential water to achieve maximum social welfare. Second, peak-load pricing is then studied to seek for the effectiveness of seasonal differentiation in water price. It has been found that consideration of dam facilities and their functions is the key factor for the effectiveness of the seasonal differentiation in water price. Finally, the discussion about the introduction of contract pricing system to the multi regional water supply system to achieve optimal investment plan for the future water demand is presented. We has found that the introduction of contract pricing system will greatly increase the efficiency in future investment plan of the multi-regional water supply system.

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Economical Meaning and Problem concerning Industrial Differentiation of Laver Industry (김 산업의 산업적 분화가 가지는 경제적 의의와 문제점)

  • Kim, Byung-Ho;Lim, Dong-Hoon;Yi, Ju-Hyun
    • The Journal of Fisheries Business Administration
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    • v.47 no.1
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    • pp.47-61
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    • 2016
  • This study is aimed to analyze economical meaning and problems on the industrial differentiation of Korean laver industry. Based on the surveyed data, the export value of korean laver has increased over 28 times for last 20 years($10 million to $300 million) and the separation of farming and processing was an important success factor of rapid growth of korean laver industry. However, the result of the survey shows that the farming profit is 534.1 won out of the total price for a bunch of dried laver, 3,566.3 won. So, farming profit counts for just 15 percent of total price. In contrast, the processing profit is 1,143.5 won and it is 32.1 percent of total price. This means that laver farmers are not being guaranteed their profit properly. This phenomenon is occurred due to lower status of first-hand processors(which produce dried laver) to second-hand processors(which produce seasoned laver) due to advanced payment given by second-hand processors. So, fist-hand processors should provide their product in the price which was designated by second-hand processors. Besides, despite of many business risks caused from climate change and environmental pollution, the market price of raw laver has steadily decreased. For sustainable prosperity of korean laver industry, imbalance on korean laver industry concerning profit sharing is need to be changed. In future, self-processing of dried laver in fishery household and enhancing the role of The Fisheries Cooperative Union in laver industry can be considered.

A Study on the Changes of Planning Factors of Apartment Houses in Newspaper Advertisements - Focused on the comparison in times of deregulation of the price ceiling - (신문광고에 나타난 아파트 계획요소의 변화에 관한 연구 - 분양가 자율화 전.후의 비교를 중심으로 -)

  • Park, Joo-Yeon;Kim, Yu-Hee;Yoo, Chang-Geun;Cho, Yong-Joon
    • Journal of the Korean housing association
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    • v.17 no.6
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    • pp.73-81
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    • 2006
  • This study focused on the fact that changes of policies have influence on housing culture of Korea and analyzed changes in apartment houses planning since the deregulation of the price ceiling through newspaper advertisement. The research compared and analyzed advertisements of apartment houses sales appeared in the 'Gwangju Il-Bo' daily newspaper from 1990 to 2003 by planning factors. : The results are as follows. Reliability and economy were important factors in deciding apartment before the deregulation of the price ceiling policy, but as apartment houses were merchandised after the deregulation of the price ceiling policy, brand of enterprise and image of apartment houses were highlighted more. In the environment of apartment complex, the concerns of location after the deregulation of the price ceiling policy were more increased than before its policy and it means emphasis on living environment for better life. The apartment housing unit and building showed change of the apartment housing unit plan considering residents, high quality of interior design and high-tech and differentiation of equipment since the deregulation of the price ceiling policy. The ground space has been parked or afforested and the underground space is used for parking lot as a part of environment-friendly in the apartment complex planning. The deregulation of the price ceiling policy made brand, image, high-grade and differentiation, and got many changes in the planning side of the apartment sales advertisement.

Characteristics of Exports of Korean TV Dramas : Focused on Types of TV Right, Exportation Price, Differentiation between Countries (국내 지상파 방송드라마 해외 판매 특성 : 판권 유형, 거래 단가, 국가 간 차이를 중심으로)

  • Lee, Moon-Haeng
    • The Journal of the Korea Contents Association
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    • v.15 no.6
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    • pp.136-147
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    • 2015
  • In this study, we research for characteristics of exportation of Korean TV dramas during 10 years. During this decade, media environment has been changed significantly : platforms have been increased and viewing attitude have been also changed. We will find out these changes in TV exportation : types of TV rights, price per countries, frequency of trade per countries, etc. For this, export records of 2 Korean TV stations from 2005 to 2014 have been obtained. As a result, export countries have been diversed, price have been increased and types of TV rights also have been various.