• Journal of Distribution Science
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• v.16 no.12
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• pp.13-21
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• 2018

Purpose - Because it is not possible to assess the quality of service products before experiencing them, one feature of a service product is quality uncertainty; hence consumers may react sensitively to pricing. It is necessary to investigate how different pricing strategies affect consumer purchase intention depending on the level of service quality uncertainty. Research design, data, and methodology - The authors have investigated the potential impact of the level of service quality uncertainty, price discount rate and presentation method on consumer purchase intention. A play was selected as an experimental stimulus, and Vietnamese consumers were surveyed to verify the hypotheses. Results - When uncertainty regarding service quality is low, consumer purchase intention is higher when the price discount rate is high or when the price is low. When uncertainty regarding service quality is high, if the normal price, discount rate, and discounted price are presented simultaneously, consumer purchase intention is higher when the price discount rate is low, but when only the discounted price is presented, purchase intention is higher when the price discount rate is high. Conclusions - The results of this study can provide valuable practical implications for pricing for service products with quality uncertainty.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.40 no.4
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• pp.137-146
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• 2017

For the competitive business environment under purchase dependence, this paper proposes a new approximate calculation of order fill rate which is a probability of satisfying a customer order immediately using the existing inventory. Purchase dependence is different to demand dependence. Purchase dependence treats the purchase behavior of customers, while demand dependence considers demand correlation between items, between regions, or over time. Purchase dependence can be observed in such areas as marketing, manufacturing systems, and distribution systems. Traditional computational methods have a difficulty of the curse of dimensionality for the large cases, when deriving the stationary joint distribution which is utilized to calculate the order fill rate. In order to escape the curse of dimensionality and protect the solution from diverging for the large cases, we develop a greedy iterative search algorithm based on the Gauss-Seidel method. We show that the greedy iterative search algorithm is a dependable algorithm to derive the stationary joint distribution of on-hand inventories in the retailer system by conducting a comparison analysis of a greedy iterative search algorithm with the simulation. In addition, we present some managerial insights such as : (1) The upper bound of order fill rate can be calculated by the one-item pure system, while the lower bound can be provided by the pure system that consists of all items; (2) As the degree of purchase dependence declines while other conditions remain same, it is observed that the difference between the lower and upper bounds reduces, the order fill rate increases, and the order fill rate gets closer to the upper bound.

• The Journal of the Korea institute of electronic communication sciences
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• v.8 no.2
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• pp.301-306
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• 2013

The Ratio of APT jeonse to purchase price was still rising. The interaction of APT Purchase and Jeonse price indices by region analysis in order to analyze this phenomenon, and results were summarized as follows. First, because the regional APT purchase and jeonse prices appears the rise and fall differently by region, regional polarization was deepening. Second, the recently real estate market was analyzed the province's booming real estate and the downturn of the metropolitan area. So, the ratio of APT jeonse to purchase price was continued to rise. Finally, the Ratio of APT jeonse to purchase price changing rate is (+) increased if the APT purchase price changing rate is larger then the APT purchase price changing rate and smaller then is (-) decreased.

• Asia pacific journal of information systems
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• v.23 no.2
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• pp.1-20
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• 2013

Social commerce has been gaining explosive popularity, with typical examples of the model such as Groupon and Level Up. Both local business owners and consumers can benefit from this new e-commerce model. Local business owners have a chance to access potential customers and promote their products in a way that could not have otherwise been easily possible, and consumers can enjoy discounted offerings. However, questions have been increasingly raised about the value and future of the social commerce model. A recent survey shows that about a third of 324 business owners who ran a daily-deal promotion in Groupon went behind. Furthermore, more than half of the surveyed merchants did not express enthusiasm about running the promotion again. The same goes for the case in Korea, where more than half of the surveyed clients reported no significant change or even decrease in profits compared to before the use of social commerce model. Why do local business owners fail to exploit the benefits from the promotions and advertisements through the social commerce model and to make profits? Without answering this question, the model would fall under suspicion and even its sustainability might be challenged. This study aims to look into problems in the current social commerce transactions and provide implications for the social commerce model, so that the model would get a foothold for next growth. Drawing on justice theory, this study develops theoretical arguments for the effects of transaction characteristics on consumers' distributive justice and purchase intention in the social commerce. Specifically, this study focuses on two characteristics of social commerce transactions-the discount rate and the purchase rate of products-and investigates their effects on consumers' perception of distributive justice for discounted transactions in the social commerce and their perception of distributive justice for regular-priced transactions. This study also examines the relationship between distributive justice and purchase intention. We conducted an online experiment and gathered data from 115 participants to test the hypotheses. Each participant was randomly assigned to one of nine manipulated scenarios of social commerce transactions, which were generated based on the combination of three levels of purchase rate (high, medium, and low) and three levels of discount rate (high, medium, and low). We conducted MANOVA and post-hoc ANOVA to test hypotheses about the relationships between the transaction characteristics (purchase rate and discount rate) and distributive justice for each of the discounted transaction and the regular-priced transaction. We also employed a PLS analysis to test relations between distributive justice and purchase intentions. Analysis results show that a higher discount rate increases distributive justice for the discounted transaction but decreases distributive justice for the regular-priced transaction. This, coupled with the result that distributive justice for each type of transaction has a positive effect on the corresponding purchase intention, implies that a large discount in the social commerce may be helpful for attracting consumers, but harmful to the business after the promotion. However, further examination reveals curvilinear effects of the discount rate on both types of distributive justice. Specifically, we find distributive justice for the discounted transaction increases concavely as the discount rate increases while distributive justice for the regular-priced transaction decreases concavely with the dscount rate. This implies that there exists an appropriate discount rate which could promote the discounted transaction while not hurting future business of regular-priced transactions. Next, the purchase rate is found to be a critical factor that facilitates the regular-priced transaction. It has a convexly positive influence on distributive justice for the transaction. Therefore, an increase of the rate beyond some threshold would lead to a substantial level of distributive justice for the regular-priced transaction, threrby boosting future transactions. This implies that social commerce firms and sellers should employ various non-price stimuli to promote the purchase rate. Finally, we find no significant relationship between the purchase rate and distributive justice for the discounted transaction. Based on the above results, we provide several implications with future research directions.

• Agribusiness and Information Management
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• v.6 no.2
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• pp.1-12
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• 2014

HMR is a home-style food product designed for convenience and cooked outside the home leaving out cumbersome cooking process and consumed at home. The present paper aims to find out factors that influence the consumption of HMR by analyzing data on food consumption during the 3 years between December 2010 and November 2013. Following the classification of Costa et al. (2001), this study categorized HMR products as 3 types as follows: C1 (ready to eat), C2 (ready to heat) and C3 (ready to cook), and examined factors affecting purchase rate and per capita purchase price for each type of HMR product. The results of our analysis show that only the purchase rate of C3 products was influenced by whether the purchaser was housewife with job or not. For those who do not live together with parents, per capita purchase price for HMR was high; and the more they ate out, the higher the purchase rate of HMR was.

• Journal of Korean Society for Quality Management
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• v.37 no.3
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• pp.74-82
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• 2009

This article presents a six sigma project for improving purchase conversion rate in mobile game site. The project was carried out based on DMAIC process. First, a defect rate is defined as low purchase conversion rate. In addition, 60-days purchase data was analyzed and it is shown that the defects level was 2.48 sigma level. In this study, in order to raise the sigma level, six personalization services were used in the mobile game site. Six factors were determined based on FDPM(Functional Deployment Process Map), fishbone chart, linear regression analysis, effort-performance matrix, and so on. The sigma level of defects has improved from 2.48 to 2.93.

• Journal of the Korean Operations Research and Management Science Society
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• v.41 no.2
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• pp.35-51
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• 2016

This paper proposes a new approximate approach to calculate the order fill rate and the probability of filling an entire customer order immediately from the shelf in a business environment under purchase dependence characterized by customer purchase patterns observed in such areas as marketing, manufacturing systems, and distribution systems. The new approximate approach divides customer orders into item orders and calculates fill rates of all order types to approximate the order fill rate. We develop a greed iterative search algorithm (GISA) based on the Gauss-Seidel method to avoid dimensionality and prevent the solution divergence for larger instances. Through the computational analysis that compares the GISA with the simulation, we demonstrate that the GISA is a dependable algorithm for deriving the stationary joint distribution of on-hand inventories in the type-K pure system. We also present some managerial insights.

• The Journal of Fisheries Business Administration
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• v.27 no.1
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• pp.91-107
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• 1996

The paper examines the dividend on purchase and revolving funds system of fisheries cooperatives, and discusses how to reform the current revolving funds system. In general, there are two types of dividend that fisheries cooperatives pay to their members : (1) dividend on capital and (2) dividend on purchase or patronage dividend. During the last 5 years from 1990 to 1994, the rate of total dividend ranged from 7.5% to 8.6%. The average rate of dividend on capital and dividend on purchase are 7.3% and 0.5%, respectively. On average, the level of dividend on capital is almost 15 times as high as that of dividend on purchase. Since the dividend on purchase is supposed to be reinvested into capital by the Articles of the cooperatives, it is paid only if there are additional funds available after the payment of dividend on capital and is regarded as the secondary type of dividend. For this reason, even though most of fisheries cooperatives pay the dividend on capital, only a small number of cooperatives pay the patronage dividend. This means that most of cooperatives cannot materialize the managerial function of dividend on purchase to improve their operational efficiency under the current system of revolving funds. Therefore, the paper suggests that in the long run, the system of revolving funds should be reformed in the way that revolving funds could serve to complement equity capital for only a fixed time, after which they are repaid to members.

• Journal of Families and Better Life
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• v.25 no.2 s.86
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• pp.23-36
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• 2007

Or this research, it was investigated the differences in the pro-environmental behaviors in purchase, use and management, and disposal of clothing by socio-demographic characteristics and other variables. In addition, it was classified Korean consumers into several comsumer groups based on the different purchase behavior style, and then investigated the difference among these consumer groups in purchase, use and management, and disposal of clothing in light of the pro-environmental behavior. The following is the summary of the main results. First, consumers with high income and ha41g a lot of clothing were less likely to purchase used-clothing while consumers who were non-married and in low-income status were more likely to rent clothing. In additions, female, married consumers, and consumers with less-educated were more likely to manage their clothing frequently. Second, it was classified consumers into several groups based on the different purchase behavior style, these were "rational purchasing", "saving-money purchasing", "regretting for their purchasing", and "over-purchasing". Third, "saving-money purchasing" group showed a high expenditure rate in the purchase of used-clothing but a low rate in "over-purchasing" group. The frequency of management of clothing was the highest in the group of "over-purchasing" and the next in the group of "saving-money purchasing". The group of "over-purchasing" were more likely to show irrational decision-making style, manage and disposal their clothing frequently, "saving-money purchasing" purchased used-clothing frequently, and the level of management of clothing were less in the group of "regretting for their purchasing".

• Journal of the Korea Fashion and Costume Design Association
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• v.14 no.2
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• pp.185-198
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• 2012

This study aims to find out the influential factors and the relative power of these factors on the clothing purchase decision in internet shopping mall. For this purpose, this study surveyed 500 male and female consumers in their 20's~40's for empirical analysis who have ever purchased clothing through internet shopping malls. Respondents are selected using the convenience sampling through internet survey in August 2011. For statistical analysis descriptive statistics, reliability analysis, factor analysis and regression analysis are carried out using SPSS for Windows 12.0. The results are as follows. First, purchase decision is significantly affected by the expressional/physical properties of the product and product pictures. Second, purchase decision is significantly affected by the usefulness of shopping mall and the importance of purchase. Third, in consumer related factors, product value awareness, reliability of shopping mall, clothing involvement, psychological/economical perceived risks and age affect purchase decision. Fourth, in the regression analysis of the above significant variables on purchase decision, the order of power of these influential factors is expressional/physical properties of product, the importance of purchase, product picture, age and clothing involvement. The results of this study will help internet fashion enterprises to handle the variables of product, shopping mall, and consumer related for enhancing the purchase rate.