• Title/Summary/Keyword: Price Differentiation

Search Result 129, Processing Time 0.027 seconds

The Effect of Product Involvement on Consumer Purchase Process (제품관여(製品關輿)가 소비자(消費者) 과정(過程)에 미치는 영향(影響))

  • Young, Jung-Moon
    • Korean Business Review
    • /
    • v.11
    • /
    • pp.101-122
    • /
    • 1998
  • This study is to analyze the effect of product involvement on consumer purchase process. From review on previous involvement literatures, enduring product involvement can be defined as "a person's arousal and motivational state activated by product on the basis of his basic value, objective and ego-relevance." To evaluate the effect of involvement on product purchase process, 11 hyphotheses concerning behavioral aspects which is expected to comprise consumer purchase process and to be influenced by degree of involvement were constructed: prepurchase information search, alternative brand comparision, utilization of product attribute, brand differentiation, brand commitment, product knowledge, influence of reference group, dependence on price, price awareness, cognitive dissonance and purchase optimization. Hyphotheses are tested with data from 388 housewives through 20 item involvement scale developed with multi-dimensional perspective on involvement. The scale successfully provides rank order of 8 selected products expected to cover the spectrum of product involvement: formal clothes, coffee, washing machine, shampoo, perfume, detergent, soft drink, pain-reliever as the order of product involvement. Major findings of this study are as follow. First of all, incresed differences were found in hihg involvement product like formal clothes with respect to the degree of prepurchase information search, alternative brand comparision, utilization of product attribute, influence of reference group in any method of analysis. Secondly, invlovement should be interpreted as a consumer characteristic rather than a product one. This means that consumers involve themselves with products, instead products themselves do not have any involvement.

  • PDF

Dynamic Analysis of the Effect of Network Externality in Vertically Differentiated Market (수직적으로 차별화된 시장 하에서 망외부성이 미치는 영향에 대한 동태적 분석)

  • Cho, Hyung-Rae;Rhee, Minho
    • Journal of Korean Society of Industrial and Systems Engineering
    • /
    • v.42 no.2
    • /
    • pp.1-8
    • /
    • 2019
  • Network externalities are essentially dynamic in that the value consumers feel about a product is affected by the size of the existing customer base that uses that product. However, existing studies on network externalities analyzed the effects of network externalities in a static way, not dynamic. In this study, unlike previous studies, the impact of network externalities on price competition in a vertically differentiated market is dynamically analyzed. To this end, a two-period duopoly game model was used to reflect the dynamic aspects of network externalities. Based on the game model, the Nash equilibria for price, sales volume, and revenue were derived and numerically analyzed. The results can be summarized as follows. First, if high-end product has strong market power, the high-end product vendor takes almost all benefits of the network externality. Second, when high-end product has strong market power, the low-end product will take over most of the initial sales volume increase. Third, when market power of high-end product is not strong, it can be seen that the effects of network externalities on the high and low-end products are generally proportional to the difference in quality. Lastly, if there exists a strong network externality, it is shown that the presence of low-end product can be more profitable for high-end product vendor. In other words, high-end product vendor has incentive to disclose some technologies for the market entrance of low-end product, even if it has exclusive rights to the technologies. In that case, however, it is shown that the difference in quality should be maintained significantly.

The Effect of College Students' Motivation to Purchase Used Clothing Products on Repurchase Intention (대학생의 중고 의류 제품 구매 동기가 재구매 의도에 미치는 영향)

  • Hye-Jung Seok;Shin-Hyun Cho
    • Journal of the Korea Fashion and Costume Design Association
    • /
    • v.25 no.1
    • /
    • pp.49-63
    • /
    • 2023
  • The purpose of this study is to investigate the current status and motives of buying second-hand clothing among university students and to suggest a plan to activate second-hand clothing transactions. In order to discover the effect of the buying motives on the purchasing of second-hand clothing, 112 university students who have purchased second-hand clothing over the past six months were surveyed and their responses were used for analysis. As a result of the analysis, it was found that design differentiation, habitual use, and economical factors had a meaningful effect on the purchase of second-hand clothes. Second-hand clothes have a positive environmental perception, but that perception did not impact the purchasing of second-hand clothes. It is necessary to raise the awareness and social movement around second-hand clothing and teach consumers the environmental benefits and sustainability of second-hand clothing. An activation plan for the second-hand clothing market is: 1. Proposes various market subdivisions that meet the characteristics and tastes of consumers that lead to the purchase of used clothing. In this study, two economic factors were found among the buying motives. The first is purchasing second-hand clothing at a very low price, and the second is finding luxurious expensive items or unique values at a lower price. Therefore, it is necessary to find various markets segments that suit consumer tastes by checking consumer characteristics and detailed factors. 2. Nurture second-hand clothing processing brands for the diversification of the second-hand clothing market. 3. There is an urgent need for quality classification, quality assurance, and the standardization of second-hand clothing. This study is meaningful in that it explored the possibility of having a positive effect on activating the second-hand clothing market.

Comparison of Environment, Growth, and Management Performance of the Standard Cut Chrysanthemum 'Jinba' in Conventional and Smart Farms

  • Roh, Yong Seung;Yoo, Yong Kweon
    • Journal of People, Plants, and Environment
    • /
    • v.23 no.6
    • /
    • pp.655-665
    • /
    • 2020
  • Background and objective: This study was conducted to compare the cultivation environment, growth of cut flowers, and management performance of conventional farms and smart farms growing the standard cut chrysanthemum, 'Jinba'. Methods: Conventional and smart farms were selected, and facility information, cultivation environment, cut flower growth, and management performance were investigated. Results: The conventional and smart farms were located in Muan, Jeollanam-do, and conventional farming involved cultivating with soil culture in a plastic greenhouse, while the smart farm was cultivating with hydroponics in a plastic greenhouse. The conventional farm did not have sensors for environmental measurement such as light intensity and temperature and pH and EC sensors for fertigation, and all systems, including roof window, side window, thermal screen, and shading curtain, were operated manually. On the other hand, the smart farm was equipped with sensors for measuring the environment and nutrient solution, and was automatically controlled. The day and night mean temperatures, relative humidity, and solar radiation in the facilities of the conventional and the smart farm were managed similarly. But in the floral differentiation stage, the floral differentiation was delayed, as the night temperature of conventional farm was managed as low as 17.7℃ which was lower than smart farm. Accordingly, the harvest of cut flowers by the conventional farm was delayed to 35 days later than that of the smart farm. Also, soil moisture and EC of the conventional farm were unnecessarily kept higher than those of the smart farm in the early growth stage, and then were maintained relatively low during the period after floral differentiation, when a lot of water and nutrients were required. Therefore, growth of cut flower, cut flower length, number of leaves, flower diameter, and weight were poorer in the conventional farm than in the smart farm. In terms of management performance, yield and sales price were 10% and 38% higher for the smart farm than for the conventional farm, respectively. Also, the net income was 2,298 thousand won more for the smart farm than for the conventional farm. Conclusion: It was suggested that the improved growth of cut flowers and high management performance of the smart farm were due to precise environment management for growth by the automatic control and sensor.

A Study on Production and Marketing Survey for Management Analysis of Fruit Grower by LISA (환경농업에 의한 과주재배자의 경영분석을 위한 생산, 유통실태 조사연구)

  • 박흥섭;박준근;박용서
    • Korean Journal of Organic Agriculture
    • /
    • v.5 no.1
    • /
    • pp.1-17
    • /
    • 1996
  • As the conventional farming emphasizes the productivity and the quantity produced, large amount of agricultural chemicals have been used. As a result, natural environment and human health are critical issues in recent years in Korea. Reflecting these problems, many farmers have begun to practice the LISA(low input sustainable agriculture) voluntarily across the country. In this study, a survey was made to 13 apple producers who have been producing the fruits by practicing the LISA, and wanted to analyze the production and marketing information in order to suggest the improvement strategies for the sustainable agriculture. Some of the improvement strategies were suggested as follows ; First, advance payment to the LISA apple growers should be supplied in order to make it easier for the financially burdened producers. Also, some kind of means should be developed to prepare the equipments/machineries to make the organic fertilizers. Price differentiation should be utilized in marketing the products, and mass marketing channels for the LISA products should be provided for them. Public quality guaranty is badly needed in order to accelerate the marketing. Finally, stronger producer organizations should be organized and subsidized by the government because those organizations are playing an important role in developing the LISA.

  • PDF

The Value Innovation Strategy of the Korean Manufacturing Companies (한국기업의 가치혁신 전략 : 제조업을 중심으로)

  • Chung, Kyu-Suk
    • Journal of Korean Society for Quality Management
    • /
    • v.38 no.1
    • /
    • pp.10-19
    • /
    • 2010
  • The competitive strategies of the Korean manufacturing companies have changed from the "cost leadership" strategy in the early developing stage since 1960's to the "stuck in the middle" position since 1990's in the face of emerging new cost leaders as the Chinese companies. The data on the strategic contents of the Korean manufacturing companies show that their strategies are seeking the value innovation through not only quality improvement but also cost reduction altogether rather than selecting one on the trade-off relation between the both competitive dimensions. Their strategic actions seem to be seeking the operational efficiencies through all the value chain activities rather than the strategic effectiveness by selecting and focusing on the specific competitive dimension, which is considered as a typical strategic approach. Their strategy seems to be non-strategic in the general sense. But their non-strategically looking behaviors can be reasonable enough for their sandwiched competitive position between the global quality leaders and following cost leaders. This paper explains why their strategies can be right through the theoretical explanations by using the quality-price elasticity approaches for the consumer behaviors. We can call their strategic activities as the value innovation strategy.

Comparative Analysis of Purchasing Motives, Fitting Satisfaction, and Mending Behaviors of School Uniform among Middle and High School Students (중.고등학생의 대기업과 중소기업 교복에 대한 구매동기, 치수만족도, 수선행동 비교)

  • Kim, Deuk-Ha;Kim, Kug-Hee;Seok, Hye-Jung
    • Journal of the Korean Home Economics Association
    • /
    • v.47 no.6
    • /
    • pp.39-49
    • /
    • 2009
  • The purpose of this study were to compare school uniforms made in major and minor companies. Especially, purchasing motives, fitting satisfaction, and mending behaviors of school uniform were compared by middle and high school students. The most evident difference was exhibited in purchasing motive. Brand preference was the most important criterion in purchasing motive from a major company, while good pricing was the most important criterion in purchasing motive from a minor company. Apart from purchasing motive, purchasing behaviors such as fitting satisfaction, mending and mended part of school uniforms were not significantly different in relation to sex, grade, and type of company. These results indicate that major companies should consider lowering their prices and also adopt a high quality strategy for school uniform production. Minor companies need to identify areas of differentiation between themselves and larger companies, and produce niche market products that are for appealing to teenagers with a tendency to orient towards brands instead of quality. Furthermore, mature teenagers as consumers of school uniforms are receptive towards competition for reasonable price.

Customer Purchasing Attitude towards Inter/Intra-industry Alliance Based on the Technological Level of Industries

  • OH, Yoojin
    • Journal of Distribution Science
    • /
    • v.17 no.7
    • /
    • pp.77-86
    • /
    • 2019
  • Purpose - This paper examines customers' perception on intra-industry and inter-industry alliance, then compares customer purchasing attitude towards alliance product according to whether it is from high-tech or low-tech industry. Research design, data, and methodology - We used qualitative research methodology of in-depth interviews and focus group interviews. Results - Customers expect products from inter-industry alliance to be highly innovative but also to be inferior in technology. In high-tech industries, since technology is more important than differentiation, inter-industry alliance was negatively evaluated whereas intra-industry alliance elicited positive customer purchasing attitude. Conversely, in low-tech industry where novelty outweighs technology, inter-industry alliance earned positive evaluation. However, for intra-industry alliance, customers' evaluation varied depending on whether both partners share similar prestige and price range. When partners were not similar to each other, customers' perception were positive for less prestigious and pricey brand, but in the reverse case, perception were negative. Conclusions - This research focused on customers' perception and attitude by adopting qualitative methodology while other alliance studies are mostly based on quantitative research. This study provides managers with partner selecting guidelines considering the type of industry, and whether the goal is to enhance novelty or technology.

Changes in Japan Healthcare System and New Directions of Hospital Management (일본 의료시스템의 변화와 병원 경영의 새로운 방향)

  • Inoue, Takahiro;Hada, Masashi;Yuzawa, Atsuko;Lee, Sei-Hoon;Kwon, Young-Dae
    • Korea Journal of Hospital Management
    • /
    • v.13 no.4
    • /
    • pp.101-118
    • /
    • 2008
  • Japanese national health expenditure was 8.0% of GDP in 2004, and it was lower than average of OECD countries. But it has increased rapidly in recent years. Japan has relatively many acute care beds and high-price medical equipments, and the average length of stay is long. Japanese government is trying healthcare reform to contain healthcare expenditure, increase the efficiency of management and improve the quality of healthcare. As healthcare policies for hospitals such as DPC (Diagnosis Procedure Combination) for acute care beds, reduction of long-term care beds, and functional differentiation and liaison among healthcare institutions are implemented, the number of hospitals in financial difficulties is increasing. The serious situation urges hospitals to adapt to changes and search new directions of management. They need to establish and implement appropriate positioning strategy, and increase management efficiencies. Korean healthcare system has similarities with Japanese in many aspects. The recent reform and changes in Japanese healthcare system and hospitals give suggestions to Korean hospitals as to how they can prepare for environmental changes and improve management.

  • PDF

Development of highly sensible wool mixed fabric with conjugated texturing and yarn dyeing technologies

  • Park, Joon-Soo;Seo, Mal-Yong
    • Proceedings of the Korean Society of Dyers and Finishers Conference
    • /
    • 2009.03a
    • /
    • pp.229-230
    • /
    • 2009
  • Recently the demand for wool has been gradually decreasing due to global warming, oil depletion, Coolbiz campaign to reduce CO2 emission, and preference for business casual wear, while the price for wool materials has been constantly increasing. Wool, characterized by the natural touch and unique sensibility, is considered as one of the best natural materials, including silk. For wool, currently Korea almost depends on import from foreign countries. Therefore, 100% wool products cannot be competitive in terms of pricing and current trend. To secure sustaining competitiveness in the fiber market, it is required not only to develop new wool materials that enable expression of new sensibility that cannot be expressed by conventional wool fibers, but also to pursue differentiation of fundamental sensibility and functionality by highlighting advantages for wool as a natural fiber but by reducing its disadvantages through dominant conjugation with synthetic fibers. This study attempted to improve the technology of differentiating wool-like synthetic fibers such as polyester and combine technology with sensibility through mixing with wool materials. It also aimed to develop wool-like stretch materials and pre-treating and yarn dyeing technologies that enable fabrics to main natural wool-like touch and stretch, and ultimately to develop wool mixed fabrics that have new sensibility and functionality.

  • PDF