• Journal of Distribution Science
• /
• v.10 no.9
• /
• pp.5-11
• /
• 2012

Purpose - The objective of the paper is to explain both the price sensitivity of international tourists to South Korea and the price sensitivity of Korean tourists to international travel. The study examines long-run equilibrium relationships and Granger causal relationships between foreign exchange rates and inbound and outbound tourism demand in South Korea. Research design/ data / methodology - The study employs monthly time series data from January 1990 to September 2010. The paper examines the long-run equilibrium relationship using the Johansen cointegration test approach after unit root tests. The short-run Granger causality was tested using the vector error correction model with the Wald test. Results - Hypothesis 1 testing whether there is a long-run equilibrium relationship between exchange rates, inbound and outbound tourism demand is supported. Hypothesis 2 testing whether exchange rates lead to a change in touristarrivals and expenditure is not supported. Hypothesis 3 testing whether exchange rates lead to a change in tourist departures and expenditure is supported. Conclusions - The findings of this study show that the impacts of tourism price competitiveness are changing quite significantly with regard to destination competitiveness. In other words, the elasticity of tourism price over tourism demand has been moderated.

• International Journal of Advanced Culture Technology
• /
• v.8 no.2
• /
• pp.270-276
• /
• 2020

In this paper, we analyze the buyer's joint pricing and lot-sizing model in a two-stage supply chain consisting of the supplier, the buyer and the customer. It is assumed that the supplier will permit a certain fixed period for settling the amount the buyer owes to him for the items supplied in order to stimulate the demand for the product. Generally, credit transactions would have a positive effect to the buyer. The availability of credit transactions from the supplier effectively reduces the cost of holding stocks for the buyer and therefore, the buyer has a lot of price options to choose his sales price for a customer in anticipation of increased the customer's demand and, as a result, it will appear to increase the buyer's inventory levels. On the other hand, in the case of decaying products in which their utility decay over time, the decaying rate with time may be expected to reduce inventory levels. In this regard, we need to analyze how much the length of credit period and the decaying rate affect the buyer's pricing and lot-sizing policy. For the analysis, we consider the situation where the customer's demand is represented as a linearly decreasing function of the buyer's sales price. From this perspective, we formulate the buyer's annual net profit and analyze the effect of the length of credit period and decaying rate of the product on the buyer's inventory policy numerically.

• The Journal of The Korea Institute of Intelligent Transport Systems
• /
• v.2 no.1 s.2
• /
• pp.85-92
• /
• 2003

Due to the expansion of freeway networks in Korea, drivers have more routes to choose. Traffic information on various alternative roadway sections and routes may help drivers choose the optimal route that minimizes travel time or cost. Traffic information on roadways is, therefore, invaluable in sense that individual drivers could reduce their travel time or cost by selecting optimal routes, and furthermore total travel cost of the system could be lowered. However, consensus about the price of traffic information that drivers are willing to pay is not made yet. Current price of traffic information is decided according to the price of similar information such as stock, weather and so on. To investigate the value of traffic information, a survey was conducted at freeway rest areas near Seoul Megalopolis area including Kyunggi Province. Eight hundred drivers who had travelled on freeway within a year were randomly selected. Purposive Quota Sampling was used. A price-response function, a relationship between price and sales, was obtained based on the survey, followed by sensitivity analysis

• Proceedings of the KSR Conference
• /
• 2000.11a
• /
• pp.48-59
• /
• 2000

In tins paper, we outlines the pricing concept that developed over the years, and illustrates how these rules apply in practice using railway fare, price discrimination in railway travel. We review tile prospective solution of rail fare system reflecting the customer need on the decision making and consider fare design structure. Specifically, we focus on the price range using the PSM(price sensitivity measure). And set up the framework for fare structure design.

• Journal of the Korean Society of Clothing and Textiles
• /
• v.22 no.5
• /
• pp.628-638
• /
• 1998

This study, the second in two part series, focuses on effect of product involvement and consumer knowledge on consumers' perceptions of six dimensions of clothing price: price -quality schema, prestige sensitivity: sale proneness, price mavenism, value consciousness, and price consciousness. Additionally, correlation between product involvement and consumer knowledge was examined. Multi-item measures of six dimensions of price, product involvement, and consumer knowledge were included in the questionnaires. The subjects were 264 college students living in Seoul, Korea. The data were collected by self-administered questionnaires and analyzed by factor analysis, regression analysis, and correlation analysis using SPSS PC. In addition, two focus group interviews were conducted to obtain qualitative data for the result interpretation. Results of this study showed that the degree of consumers' product involvement significantly affects consumers' perceptions of each price dimension except price consciousness dimension. Consumers' knowledge about clothing has a significant effect on consumers' perceptions of all price dimensions. Dimensions of product involvement and consumer knowledge were partially correlated. Marketing implications based on these results were suggested.

• The Journal of Information Technology and Database
• /
• v.6 no.2
• /
• pp.115-130
• /
• 1999

The price structure of housing market varies depending upon market price policy rather than low or high price policy because of IMF. The object of this study is to develop an analysis system for analyzing housing market and its demand. The analysis system consists of four major categories: macro index analysis, market decision analysis, housing market analysis, and consumer analysis. We model each category by using a variety of techniques such as generalized linear model, categorical analysis, bubble analysis, drill-down analysis, price sensitivity meter analysis, optimum price index analysis, profit index measurement analysis, correspondence analysis, conjoint analysis, and multidimensional scaling analysis. Seoul apartment data is analyzed to demonstrate the practical usefulness of the system.

• Journal of the military operations research society of Korea
• /
• v.27 no.1
• /
• pp.10-27
• /
• 2001

This paper deals with the application of PRICE model in estimating the proper acquisition cost for weapon budgeting phase. The PRICE(Parametric Review of Information for Costing and Evaluation) Hardware model is a computerized method for deriving cost estimates of electronic and mechanical hardware assemblies and systems. The model can be used in obtaining not only initial cost estimates in conceptual phase, but also detailed cost estimates in budgeting phase depending on available historical and empirical data. We analyzed first step cost estimate parameters and derived cost equations using PRICe output dta. Using weight and complexity, We can find cost variation. Sensitivity analysis shows that cost increases exponentially as complexity increases exponentially as complexity increases. We estimated KAAV\`s (Korea Amphibious Assault Vehicle) production cost using the PRICE model and compare with engineering cost estimates which is based on actual production data submitted by the production company. The result shows that tow estimates are close within $\pm2%$ differences.

• Journal of Distribution Science
• /
• v.18 no.1
• /
• pp.95-105
• /
• 2020

Purpose: Will more expensive gifts be more pleasurable and appreciated? This is a general expectation of gift-givers. According to the previous study on Americans (Flynn and Adams 2009), recipients tend to appreciate gifts regardless of their price. It indicates that there is an interaction effect between position (giving / receiving) and gift price. This study expands the previous study and aims to answer the following two questions: "Are such an interaction effect observed in Korean, too?" and "What types of people prefer expensive gifts?" Research design, data, and methodology: Study 1 of the current research repeated the Study 3 of Flynn and Adams (2009), with an iPod (high-priced gift condition) and a music CD (low-priced gift condition). That is, a 2 (gift price: high / low) x 2 (position: giver / receiver) between-group design was used. Study 2 used gift certificates of 100,000 won (high-priced gift condition) and 5,000-won gift (low-priced gift condition). Unlike the previous study that measured only one dependent variable (gratitude), this study added five more dependent variables in an attempt to exclude alternative explanations, such as endowment effects or emotional conflicts. This study also measured individualism / collectivism, face sensitivity, and materialism to explore the types of people who prefer expensive gifts. Results: The interaction effect between gift price and position on the level of appreciation was not significant. Meanwhile the main effect of gift price and of position were significant. The gift-recipient was more appreciative than the gift-givers' expectation regardless of the price of gifts. To investigate individual differences, individualism/collectivism, face sensitivity, and materialism were examined, but none of these variables were significantly related to the preference for expensive gifts. Respondents who received gift certificates in Study 2 were less grateful than those who received iPods or music CDs in Study 1. Conclusions: This study found that Koreans tend to be more grateful if they receive expensive gifts, in contrast to the Flynn and Adams (2009)'s study with Americans. In addition, gift-recipients appreciated more than givers' expectation and were more grateful when they received tangible products rather than gift certificates.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2006.11a
• /
• pp.142-146
• /
• 2006

This paper considers a SCM issue concerned with an integrated problem of inventory control and dynamic pricing strategies when demands are price and time dependent. The associated price markdowns are conducted for inventory control in a two-layer market consisting of retailer and outlet as in fashion apparel market. The objective function consists of revenue terms (sales revenue and salvage value) and purchasing cost term. Specifically, decisions on price markdowns and order quantity are made to maximize total profit in the supply chain so as to have zero inventory level at the end of the sales horizon. To solve the proposed problem, a gradient method is applied, which shows an optimal decision on both the initial inventory level and the discount pricing policy. Sensitivity analysis is conducted on the demand parameters and the final comments on the practical use of the proposed model are presented.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.40 no.1
• /
• pp.131-143
• /
• 2017

As the number of tourists visiting Seoul are continuously increasing, the demand of an integrative tour pass is also increasing. However, only a few tour passes are available for the tourists in Seoul. In this paper, we propose a new tour pass called "Seoul Landmark Pass" targeting foreign individual travelers and investigate the marketability of the proposed tour pass. For the configuration of the Seoul Landmark Pass we listed 17 candidate attractions charging entrance fee in Seoul, referring to e-guidebook on Visit Seoul web site. Among them we selected 6 attractions using the checklist with the attributes that foreign tourists would prefer. We also performed SWOT analyzes on existing tour passes to determine the benefits to be included in the proposed tour pass. To investigate the marketability of the proposed tour pass we have surveyed the foreign individual tourists in Seoul. Using the survey data, we have analyzed the intent of purchase by age, visiting period, visiting purpose, frequency of visit, and nationality to identify target customers. The results show that the intent of purchase is high among the Chinese tourists at the age of twenties who visited Seoul for the first time or second times. Also, the individual tourists prefer to bundle T-money card with the proposed tour pass. Finally, we have provided a brief review of the Price Sensitivity Measurement (PSM) method and applied PSM to determine the acceptable price range and the optimal price of the proposed tour pass. The optimal price of the proposed tour pass is determined at 53,000 won including T-money card.