• Journal of the Korean Data and Information Science Society
• /
• v.23 no.2
• /
• pp.365-374
• /
• 2012

Weather derivatives designed to manage casual changes of weather, as opposed to catastrophic risks of weather, are relatively a new class of financial instruments. There are still many theoretical and practical challenges to the effective use of these instruments. The objective of this paper is to develop a pricing approach for valuing weather derivatives and presents a case study that is practical enough to be used by the risk managers of electrical utility firms. Utilizing daily average temperature data of Guangzhou, China from $1^{st}$ January 1978 to $31^{st}$ December 2010, this paper adopted a univariate time series model to describe weather behavior dynamics and calculates equilibrium prices for weather futures and options for an electrical utility firm in the region. The results imply that the risk premium is an important part of derivatives prices and the market price of risk affects option values much more than forward prices. It also demonstrates that weather innovation as well as weather risk management significantly affect the utility's financial outcomes.

• Journal of Distribution Science
• /
• v.16 no.12
• /
• pp.57-68
• /
• 2018

Purpose - The development of technologies lead the volume of sale on online market increase but an off-line shopping center is still a core component in the omni-channel strategy. It is generally thought that high-level retailtainment on brick and mortar store affects purchase intentions positively, but some previous studies dispute that and have reported that retailtainment does not affect purchase intentions. So we have studied the additional factors' effect - the nature of purchase and utility - with retailtainment. Research design, data, and methodology - There are 8 treatment groups which were assigned by the method of retailtainment (high vs. low), nature of purchase (essential vs. non-essential), and utility (acquisition vs. transaction). A total of 240 subjects (office workers = 163, 68%; undergraduates = 77, 32%; average age = 30s; female = 39%) were divided into groups and exposed to one of the eight scenarios. Participant's purchase intention was the dependent, and ANOVA and L-matrix were used to analyze for main and interactive effects between factors. Results - First, the main effect and interactive effect between retailtainment and the nature of purchase are significant. We also found that the contrast between essential and non-essential at low-level retailtainment is higher than that of high-level retailtainment. Second, in the case of retailtainment and utility, transaction utility under high-level retailtainment affects purchase intentions positively. Third, between the nature of the purchase and utility, the main effect of the nature of purchase and the interactive effect is significant, but the main effect of utility is not significant. In the case of non-essential goods, the purchase intention was high when transaction utility was provided but in the case of essential goods, acquisition utility increased purchase intentions. Finally, when transaction utility is given, purchase intentions of essential goods increase under low retailtainment, and the purchase intentions of non-essential goods increase under high retailtainment. Conclusions - When customers buy essential goods, discounts decrease purchase intentions. During the season for bargain sales, purchase intentions increase when retailtainment of essential goods is low, and retailtainment of non-essential goods is high.

• Journal of the Korean Home Economics Association
• /
• v.43 no.10 s.212
• /
• pp.115-124
• /
• 2005

The purposes of this study were, 1) to examine the conceptual structure of shopping value and service quality as perceived by women in their 50's and 60's, and 2) to investigate the effects of shopping value and service quality on consumer satisfaction of these women. The results mal provide insights related to the silver market in South Korea. Data were obtained for 286 women in their 50's and 60's living in metropolitan areas in South Korea, and analyzed using factor analysis, Cronbach's alpha, and regression. The results showed that service quality was composed of Facilities Service, Product Service, Salespersons' Service and Policy Service. Shopping values perceived by elderly consumers consisted of two factors: Hedonic Shopping Value, and Utility Shopping Value. Elderly consumers perceived Hedonic Value by Salespersons' Service and Utility Value by Policy Service. Salespersons' Service of a store was the most important variable for elderly consumers' satisfaction. The finding suggest that a store's Salespersons' Service is important in predicting elderlv corlsumers' purchase behavior, and they give insight into the development of strategies to be utilized in promotion planning. Implications and drawn for the information useful to consumer behavior researchers and retailers of the silver market.

• Journal of Energy Engineering
• /
• v.8 no.2
• /
• pp.265-271
• /
• 1999

In recent years, the electric utility industry in Korea has undergone fast change. Private power generation has been introduced by competitive bidding to improve economic efficiency and to strengthen the competitive generation market. In these private generation projects, the yearly pattern of purchase price between the utility and IPPs is very important. Currently, the levelized payment schedule is applied to capacity payment, and price escalation rates are reflected to energy payment. In this paper, we Proposed different patterns of payment and analyzed the outcomes. As a result, we found possibility of applying the partial front-loading pattern in Korean market to share the risk of the long-term business. And, the importance of discount rate is also found.

• Journal of Information Technology Applications and Management
• /
• v.16 no.4
• /
• pp.93-107
• /
• 2009

This study investigated consumer preferences for Internet medical information service in China using the multi-attribute utility theory. The multi-attribute utility theory is a compositional approach for modeling consumer preferences wherein researchers calculate the overall service utility by summing up the evaluation results for each attribute. We found that Chinese Internet medical information users consider the availability of information and quick response to be the most important attributes. Further, they think that the comment feature is less important as compared to other attributes such as costs and updates. In addition, we found that the Internet users having more Internet experience consider these attributes to be more important as compared to the people who are just beginning to surf the Internet. For any successful Internet business, Internet marketers should assess individual-level preference and accordingly organize a fresh campaign. As of now, Internet marketers need estimation methods to predict the market performance of new services in many different business environments. We believe that the multi-attribute utility theory is a useful approach in this regard.

• Korean Management Science Review
• /
• v.30 no.1
• /
• pp.167-181
• /
• 2013

We investigate the dynamic asset allocation problem under inflation risk when the wealth of an investor is constrained with minimum requirements. To capture the investor's risk preference, the CRRA utility function is considered and he maximizes his expected utility at predetermined date of the refund by participation in the financial market. The financial market is supposed to consist of three kinds of financial instruments which are a risk free asset, a risky asset, and an index bond. The role of an index bond is managing inflation risk represented by price process. The optimal wealth and the optimal asset allocation are derived explicitly by using the method to get the European call option pricing formula. From the numerical results, it is confirmed that the investments on index bond is high when the investor's wealth level is low. However, as his wealth increases, the investments on index bond decreases and he invests on risky asset more. Furthermore, the minimum wealth constraint induces lower investment on risky asset but the effect of the constraints is reduced as the wealth level increases.

• Journal of applied mathematics & informatics
• /
• v.23 no.1_2
• /
• pp.293-310
• /
• 2007

Recently a risk measure pricing and hedging is replacing a utility-based maximization problem in the literature. In this paper, we treat the optimal problem of risk measure pricing and hedging in the friction market, i.e. in the presence of transaction costs. The risk measure pricing is also verified with the contexts in the literature.

• Information Systems Review
• /
• v.15 no.3
• /
• pp.111-128
• /
• 2013

Conventions play important roles as tools for effective marketing. It will be able to understand the changes of particular industry's market, develop a new market and potential clients, and get a chance such as strategic network constructing. To support effective viewing of visitors, conventions have introduced a variety of ubiquitous computing technologies. This study introduces a case of applying the Utility Tag-based convention service system at the Cosmetics & Beauty Expo, Osong Korea 2013. The Utility Tag-based convention service system is constructed total three systems: (1) NFC Tag Management System; allowing effective access and management of NFC tags in various locations and objects, (2) Information Provide System; allowing participating vendors to manage information they want to provide information to visitors, and (3) Utility Tags; providing a variety of service to visitors for effective viewing in exhibition/convention space. This study first explores literature review and applying case related to ubiquitous computing in this field and introduces Applying an Utility Tag-based convention service system. In addition, we analyze visitors' behaviors and association rules by take advantage of collected touch data, present various possible for applications of the Utility Tag-based convention service system.

• Journal of the Korean Society of Clothing and Textiles
• /
• v.33 no.4
• /
• pp.519-530
• /
• 2009

The purpose of this study is to investigate the effects of the prior knowledge, the market position and negative information of the alliance apparel product on consumer attitude including preference, purchase intent and utility. Smart wear with MP3 was selected for the alliance apparel product. Negative information was manipulated into two types-product related and brand related negative information. 251 subjects participated for the study. For the data analysis, reliability test and three way analysis of variance were conducted. The results showed that when the partner brand has the higher market position, subjects with high prior knowledge revealed preference for the alliance apparel product more. When the partner brand has the higher market position, the subjects who were given the negative information on the alliance apparel product reported preference and utility more than the ones who were given the negative information on the company. The findings of the study imply that apparel industries should make an effort to establish the positive corporate image as well as to produce high quality apparel product. Also marketers should provide consumers with the knowledge about brand new alliance apparel product.

• KIEE International Transactions on Power Engineering
• /
• v.5A no.4
• /
• pp.403-411
• /
• 2005

At present, the Cournot model is one of the most commonly used theories to analyze the gaming situation in an oligopoly type market. However, several problems exist in the successful application of this model to the electricity market. The representative one is obtaining the inverse demand curve able to be induced from the relationship between market price and demand response. In the Cournot model, each player offers their generation quantity to obtain maximum profit, which is accomplished by reducing their quantity compared with available total capacity. As stated above, to obtain the probable Cournot equilibrium to reflect the real market situation, we have to induce the correct demand function first of all. Usually the correlation between price and demand appears over the long-term through statistical data analysis (for example, regression analysis) or by investigating consumer utility functions of several consumer groups classified as residential, industrial, and commercial. However, the elasticity has a tendency to change continuously according to the total market demand size or the level of market price. Therefore it should be updated as the trading period passes by. In this paper we propose a method for inducing and updating this price elasticity of demand function for more realistic market equilibrium.