• Journal of Distribution Science
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• v.20 no.6
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• pp.125-135
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• 2022

Purpose: The revenue sharing contract has been used in various industries and it is expected to coordinate the individual companies' operations in a way to improve the whole supply chain performance. This study evaluates the performance of the revenue sharing contract to find out whether this contract achieves its original goal, the supply chain coordination. Research design, data, and methodology: The profit optimization models are developed to represent two stage supply chain system with a supplier and a buyer. By using the numerical examples of the proposed mathematical models, this study examines whether this supply chain contract coordinates the supply chain system. Results: The numerical examples show that the revenue sharing contract does not make the same supply chain profit as the centralized system does. With the proper combination of the wholesale price discount rate and revenue share ratio, both manufacturer and retailer can obtain increased profits from the revenue sharing contract. Conclusions: The outcomes of the numerical analysis imply that the revenue sharing certainly improves the supply chain performance but it does not fully coordinate the supply chain system. By controlling the wholesale price and revenue share ratio, every supply chain member can be beneficiaries of this supply chain contract.

• Journal of Intelligence and Information Systems
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• v.28 no.4
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• pp.275-286
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• 2022

The metaverse platform has been gaining popularity since the pandemic. It facilitates non-face-to-face interaction among creators, users, advertisers, various forms of organizations, and itself. Such interaction has brought light to the new forms of economy, which is called the "creator economy." By providing the virtual space, easy tools, and methods, the platform allows the creators to produce value for the users in the forms of virtual items, content, and experiences. At the same time, it provides audiences to the organizations that need attention. In the course, the platform and the creators generate revenue. Among the diverse revenue sources, this study focuses on revenue generated from advertising and studies how the revenue sharing between the platform and the creator is affected by the abilities of the metaverse platform. With an analysis of the analytical model, we show that if the platform has the ability to reduce advertising avoidance, it can reduce the revenue share of the creator without discouraging the creator from making the proper effort in content creation. Also, as the platform provides effective tools and methods for quality content creation, it can reduce the revenue share of the creator without damaging the creator's required motivation. The ability of the platform in increasing advertising effectiveness helps it to reduce the revenue share of the creator as well.

• Korean Management Science Review
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• v.29 no.2
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• pp.91-103
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• 2012

Revenue management problems originated in the 1970's in the context of the airline industry have been successfully introduced in airline industries. It has started on the capacity control by booking classes for available seats, and has been recognized as a powerful tool to maximize the total revenue. Changing customer behavior and airline market environments, however, has required a new mechanism for improving the revenue. Dynamic pricing is one of innovative tools which is to adjust prices according to the market status. In this paper, we consider a dynamic pricing and seat control problem for discrete time horizon. The problem can be modeled as a stochastic programming problem. Applying the linear approximation technique and given the price set for each time, we suggest a mixed Integer Programming model to solve our problem efficiently. From the simulation results, we can find our model makes good performance and can be expanded to other comprehensive problems.

• Communications for Statistical Applications and Methods
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• v.20 no.4
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• pp.301-309
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• 2013

This paper predicts gross box office revenue for domestic films using the Korean film data from 2008-2011. We use three regression methods, Linear Regression, Random Forest and Gradient Boosting to predict the gross box office revenue. We only consider domestic films with a revenue size of at least KRW 500 million; relevant explanatory variables are chosen by data visualization and variable selection techniques. The key idea of analyzing this data is to construct the meaningful explanatory variables from the data sources available to the public. Some variables must be categorized to conduct more effective analysis and clustering methods are applied to achieve this task. We choose the best model based on performance in the test set and important explanatory variables are discussed.

• Management Science and Financial Engineering
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• v.19 no.2
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• pp.1-11
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• 2013

An interesting puzzle in business practices is that although many researchers emphasize the benefits of a revenue-sharing contract, a wholesale contract has remained to be the most common contractual form. By introducing the concept of unobservable efforts, we examine the contractual efficiency of a wholesale contract and a revenue-sharing contract. The multi-task agency model and experimental design approach are used to analyze the relationship between the contractual efficiency and parameters. A major finding of our study is that a wholesale contract coordinates unobservable efforts, while it fails to coordinate the order quantity decision. Because unobservable efforts have mixed effects on the contractual efficiency, the superiority of contract type depends on parameters. This finding implies that a wholesale contract can be a competitive contract, especially when unobservable efforts are heavily involved. Our conclusion is that the current popularity of a wholesale contract is manager's rational response to complex supply chain environments rather than irrational behaviors.

• 한국산학경영학회:학술대회논문집
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• 2004.11a
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• pp.4-22
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• 2004

The Internet provides a new distribution channel of digital contents for conventional media firms such as newspaper, magazine and encyclopedia publishers and broadcasting companies with very low marginal production and distribution cost. In comparison to traditional offline channel, there have been various revenue models in online content markets such as advertising model, subscription model, affiliation fee model, etc. In the earlier of the Internet era, most of online content firms provided their services free in order to boost offline revenue or they depend on advertising revenue sources in lieu of attaining revenue from their contents. However, as many online content firms are confronted with many difficulties in attaining revenues from online advertising model, they began to charge their contents. This paper shows why they charge their contents and explores entry conditions when conventional firms enter online content markets. And also this paper discusses managerial implications related to pricing strategies in online content markets.

• Asia Marketing Journal
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• v.12 no.2
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• pp.1-25
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• 2010

Motion pictures are so typical experience goods that consumers tend to look for more credible information. Hence, movie audiences consider movie viewers' reviews more important than the information provided by the film distributor. Recently many portal sites allow consumers to post their reviews and opinions so that other people check the number of consumer reviews and scores before going to the theater. There are a few previous researches studying the electronic word of mouth(eWOM) effect in the movie industry. They found that the volume of eWOM influenced the revenue of the movie significantly but the valence of eWOM did not affect it much (Liu 2006). The goal of our research is also to investigate the eWOM effects in general. But our research is different from the previous studies in several aspects. First, we study the eWOM effect in Korean movie industry. In other words, we would like to check whether we can generalize the results of the previous research across countries. The similar econometric models are applied to Korean movie data that include 746,282 consumer reviews on 439 movies. Our results show that both the valence(RATING) and the volume(LNMSG) of the eWOM influence weekly movie revenues. This result is different from the previous research findings that the volume only influences the revenue. We conjectured that the difference of self construal between Asian and American culture may explain this difference (Kitayama 1991). Asians including Koreans have more interdependent self construal than American, so that they are easily affected by other people's thought and suggestion. Hence, the valence of the eWOM affects Koreans' choice of the movie. Second, we find the critical defect of the previous eWOM models and, hence, attempt to correct it. The previous eWOM model assumes that the volume of eWOM (LNMSG) is an independent variable affecting the movie revenue (LNREV). However, the revenue can influence the volume of the eWOM. We think that treating the volume of eWOM as an independent variable a priori is too restrictive. In order to remedy this problem, we employed a simultaneous equation in which the movie revenue and the volume of the eWOM can affect each other. That is, our eWOM model assumes that the revenue (LNREV) and the volume of eWOM (LNMSG) have endogenous relationship where they influence each other. The results from this simultaneous equation model showed that the movie revenue and the eWOM volume interact each other. The movie revenue influences the eWOM volume for the entire 8 weeks. The reverse effect is more complex. Both the volume and the valence of eWOM affect the revenue in the first week, but only the volume affect the revenue for the rest of the weeks. In the first week, consumers may be curious about the movie and look for various kinds of information they can trust, so that they use the both the quantity and quality of consumer reviews. But from the second week, the quality of the eWOM only affects the movie revenue, implying that the review ratings are more important than the number of reviews. Third, our results show that the ratings by professional critics (CRATING) had negative effect to the weekly movie revenue (LNREV). Professional critics often give low ratings to the blockbuster movies that do not have much cinematic quality. Experienced audiences who watch the movie for fun do not trust the professionals' ratings and, hence, tend to go for the low-rated movies by them. In summary, applied to the Korean movie ratings data and employing a simultaneous model, our results are different from the previous eWOM studies: 1) Koreans (or Asians) care about the others' evaluation quality more than quantity, 2) The volume of eWOM is not the cause but the result of the revenue, 3) Professional reviews can give the negative effect to the movie revenue.

• Industrial Engineering and Management Systems
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• v.8 no.4
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• pp.221-227
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• 2009

There are customer services jointly provided by two facilities so that each customer will complete the course made up of both facilities' sub-services. The two facilities are assumed invested respectively by an infrastructure owner and one subordinate facility owner, whose partnership is built on their capital investments. This paper presents a mathematical model of Stackelberg competition between the two facility owners to derive their optimal Nash equilibrium. In this study, each facility owner's profit is consisted of fixed revenue fractions of sold services, operating costs (including depreciation cost) and maintenance costs of her facility. The maintenance costs of one facility are incurred both by failures and deterioration due to usage. Moreover, for both facilities, failures are rectified immediately by minimal repairs and preventive maintenance is carried out at a fixed time epoch. Additional assumptions are also employed to develop the model such as customer arrivals are manipulated to follow a Poisson process, and each facility's lifetime is independently Weibull-distributed. The Stackelberg game proceeds as follows. At the first stage of decision making process, the infrastructure owner (acting as a leader) decides the allocation of revenue shares based on her self-interest. After observing the allocation of revenue shares, the subordinate facility owner determines her own optimal price of services. This paper investigates actions and reactions of the two partners in the system. Then analytical conditions are proposed to achieve a unique optimal Nash equilibrium. Finally, some suggestions for further research are discussed.

• Journal of the Korea Institute of Information and Communication Engineering
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• v.7 no.4
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• pp.589-597
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• 2003

This paper discusses revenue model of digital TV broadcast service(D-TV) and presents the basic framework for integrated strategy of applications. Also this paper presents the cases of D-TV in the frame of integrated model. The broadcasting operators should focus on interactive advertising and revenue generation utilizing customer participation. Also, they should utilize the strengths as a platform operator. The contents provider should be concerned about the retail revenue rather than commission revenue. The middle ware provider should develop new interactive D-TV service rather than system use fee or consulting fee.

• Journal of Environmental Science International
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• v.23 no.4
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• pp.707-713
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• 2014

The purpose of this article is analyzing the economic impacts of abnormal climate on total revenue of red pepper in Korea, with employing the equilibrium displacement model. Our simulation results show the rate of yield change, price change, and total revenue change according to the climate change scenarios. In th case of by RCP 8.5 Scenario, red pepper production volume would be expected to decrease by 77.2% compared to 2012 while price increasing by 29.6%. As a result, total revenue to be returned to farmers would be reduced by 47.6% than it was in 2012. In contrast, total revenue would be expected to decline by 29.6% according to RCP 4.5 scenario.