• Title/Summary/Keyword: Utility cost

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The Effects of LBS Information Filtering on Users' Perceived Uncertainty and Information Search Behavior (위치기반 서비스를 통한 정보 필터링이 사용자의 불확실성과 정보탐색 행동에 미치는 영향)

  • Zhai, Xiaolin;Im, Il
    • Asia pacific journal of information systems
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    • v.24 no.4
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    • pp.493-513
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    • 2014
  • With the development of related technologies, Location-Based Services (LBS) are growing fast and being used in many ways. Past LBS studies have focused on adoption of LBS because of the fact that LBS users have privacy concerns regarding revealing their location information. Meanwhile, the number of LBS users and revenues from LBS are growing rapidly because users can get some benefits by revealing their location information. Little research has been done on how LBS affects consumers' information search behavior in product purchase. The purpose of this paper is examining the effect of LBS information filtering on buyers' uncertainty and their information search behavior. When consumers purchase a product, they try to reduce uncertainty by searching information. Generally, there are two types of uncertainties - knowledge uncertainty and choice uncertainty. Knowledge uncertainty refers to the lack of information on what kinds of alternatives are available in the market and/or their important attributes. Therefore, consumers having knowledge uncertainty will have difficulties in identifying what alternatives exist in the market to fulfil their needs. Choice uncertainty refers to the lack of information about consumers' own preferences and which alternative will fit in their needs. Therefore, consumers with choice uncertainty have difficulties selecting best product among available alternatives.. According to economics of information theory, consumers narrow the scope of information search when knowledge uncertainty is high. It is because consumers' information search cost is high when their knowledge uncertainty is high. If people do not know available alternatives and their attributes, it takes time and cognitive efforts for them to acquire information about available alternatives. Therefore, they will reduce search breadth. For people with high knowledge uncertainty, the information about products and their attributes is new and of high value for them. Therefore, they will conduct searches more in-depth because they have incentive to acquire more information. When people have high choice uncertainty, people tend to search information about more alternatives. It is because increased search breadth will improve their chances to find better alternative for them. On the other hand, since human's cognitive capacity is limited, the increased search breadth (more alternatives) will reduce the depth of information search for each alternative. Consumers with high choice uncertainty will spend less time and effort for each alternative because considering more alternatives will increase their utility. LBS provides users with the capability to screen alternatives based on the distance from them, which reduces information search costs. Therefore, it is expected that LBS will help users consider more alternatives even when they have high knowledge uncertainty. LBS provides distance information, which helps users choose alternatives appropriate for them. Therefore, users will perceive lower choice uncertainty when they use LBS. In order to test the hypotheses, we selected 80 students and assigned them to one of the two experiment groups. One group was asked to use LBS to search surrounding restaurants and the other group was asked to not use LBS to search nearby restaurants. The experimental tasks and measures items were validated in a pilot experiment. The final measurement items are shown in Appendix A. Each subject was asked to read one of the two scenarios - with or without LBS - and use a smartphone application to pick a restaurant. All behaviors on smartphone were recorded using a recording application. Search breadth was measured by the number of restaurants clicked by each subject. Search depths was measured by two metrics - the average number of sub-level pages each subject visited and the average time spent on each restaurant. The hypotheses were tested using SPSS and PLS. The results show that knowledge uncertainty reduces search breadth (H1a). However, there was no significant correlation between knowledge uncertainty and search depth (H1b). Choice uncertainty significantly reduces search depth (H2b), but no significant relationship was found between choice uncertainty and search breadth (H2a). LBS information filtering significantly reduces the buyers' choice uncertainty (H4) and reduces the negative relationship between knowledge uncertainty and search breadth (H3). This research provides some important implications for service providers. Service providers should use different strategies based on their service properties. For those service providers who are not well-known to consumers (high knowledge uncertainty) should encourage their customers to use LBS. This is because LBS would increase buyers' consideration sets when the knowledge uncertainty is high. Therefore, less known services have chances to be included in consumers' consideration sets with LBS. On the other hand, LBS information filtering decrease choice uncertainty and the near service providers are more likely to be selected than without LBS. Hence, service providers should analyze geographically approximate competitors' strength and try to reduce the gap so that they can have chances to be included in the consideration set.

A study on Convergence Weapon Systems of Self propelled Mobile Mines and Supercavitating Rocket Torpedoes (자항 기뢰와 초공동 어뢰의 융복합 무기체계 연구)

  • Lee, Eunsu;Shin, Jin
    • Maritime Security
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    • v.7 no.1
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    • pp.31-60
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    • 2023
  • This study proposes a new convergence weapon system that combines the covert placement and detection abilities of a self-propelled mobile mine with the rapid tracking and attack abilities of supercavitating rocket torpedoes. This innovative system has been designed to counter North Korea's new underwater weapon, 'Haeil'. The concept behind this convergence weapon system is to maximize the strengths and minimize the weaknesses of each weapon type. Self-propelled mobile mines, typically placed discreetly on the seabed or in the water, are designed to explode when a vessel or submarine passes near them. They are generally used to defend or control specific areas, like traditional sea mines, and can effectively limit enemy movement and guide them in a desired direction. The advantage that self-propelled mines have over traditional sea mines is their ability to move independently, ensuring the survivability of the platform responsible for placing the sea mines. This allows the mines to be discreetly placed even deeper into enemy lines, significantly reducing the time and cost of mine placement while ensuring the safety of the deployed platforms. However, to cause substantial damage to a target, the mine needs to detonate when the target is very close - typically within a few yards. This makes the timing of the explosion crucial. On the other hand, supercavitating rocket torpedoes are capable of traveling at groundbreaking speeds, many times faster than conventional torpedoes. This rapid movement leaves little room for the target to evade, a significant advantage. However, this comes with notable drawbacks - short range, high noise levels, and guidance issues. The high noise levels and short range is a serious disadvantage that can expose the platform that launched the torpedo. This research proposes the use of a convergence weapon system that leverages the strengths of both weapons while compensating for their weaknesses. This strategy can overcome the limitations of traditional underwater kill-chains, offering swift and precise responses. By adapting the weapon acquisition criteria from the Defense force development Service Order, the effectiveness of the proposed system was independently analyzed and proven in terms of underwater defense sustainability, survivability, and cost-efficiency. Furthermore, the utility of this system was demonstrated through simulated scenarios, revealing its potential to play a critical role in future underwater kill-chain scenarios. However, realizing this system presents significant technical challenges and requires further research.

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The Mediating Effect of Experiential Value on Customers' Perceived Value of Digital Content: China's Anti-virus Program Market (경험개치대소비자대전자내용적인지개치적중개영향(经验价值对消费者对电子内容的认知价值的中介影响): 중국살독연건시장(中国杀毒软件市场))

  • Jia, Weiwei;Kim, Sae-Bum
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.219-230
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    • 2010
  • Digital content makes big changes to our daily lives while bringing opportunities and challenges for companies. Creative firms integrate pictures, texts, videos, audios, and data by digitalization to develop new products or services and create digital experiences to promote their brands. Most articles on digital content contribute to the basic concept or development of marketing it in literature. Actually, compared with traditional value chains for common products or services, the digital content industry seems to have more potential value. Because quite a bit of digital content is free to the consumer, price is not necessarily perceived as an indicator of the quality or value of information (Rowley 2008). It becomes evident that a current theme in digital content is the issue of "value," and research on customers' perceived value of digital content is a necessity. This article argues that experiential value has an advantage in customers' evaluations of digital content. Two different but related contributions to the understanding of "value" of digital content are made here. First, based on the comparison of digital content with products and services, the article proposes two key characteristics that make experiential strategy available for digital content: intangibility and near-zero reproduction cost. On top of that, based on the discussion of the gap between company's idealized value and customer's perceived value, this article emphasizes that digital content prices and pricing of digital content is different from products and services. As a result of intangibility, prices may not reflect customer value. Moreover, the cost of digital content in the development stage may be very high while reproduction costs shrink dramatically. Moreover, because of the value gap mentioned before, the pricing polices vary for different digital contents. For example, flat price policy is generally used for movies and music (Magiera 2001; Netherby 2002), while for continuous demand, digital content such as online games and anti-virus programs involves a more complicated matter of utility and competitive price levels. Digital content companies have to explore various kinds of strategies to overcome this gap. Rethinking marketing solutions such as advertisements, images, and word-of-mouth and their effect on customers' perceived value becomes essential. China's digital content industry is becoming more and more globalized and drawing special attention from different countries and regions that have respective competitive advantages. The 2008-2009 Annual Report on the Development of China's Digital Content Industry (CCIDConsulting 2009) indicates that, with the driven power of domestic demand and governmental policy support, the country's digital content industry maintained a fast growth of some 30 percent in 2008, obviously indicating the initial stage of industry expansion. In China, anti-virus programs and other software programs which need to be updated use a quarter-based pricing policy. Customers can download a trial version for free and use it for six months or a year. If they want to use it longer, continuous payment is needed. They examine the excellence of the digital content during this trial period and decide whether to pay for continued usage. For China’s music and movie industries, as a result of initial development, experiential strategy has not been much applied, even though firms in other countries find the trial experience and explore important strategies(such as customers listening to music for several seconds for free before downloading it). For the above reasons, anti-virus program may be a representative for digital content industry in China and an exploratory study of the advantage of experiential value in customer's perceived value of digital content is done in the anti-virus market of China. In order to enhance the reliability of the survey data, this study focused on people who were experienced users of anti-virus programs. The empirical results revealed that experiential value has a positive effect on customers' perceived value of digital content. In other words, because digital content is intangible and the reproduction costs are nearly zero, customers' evaluations are based heavily on their experience. Moreover, image and word-of-mouth do not have a positive effect on perceived value, only on experiential value. That is to say, a digital content value chain is different from that of a general product or service. Experiential value has a notable advantage and mediates the effect of image and word-of-mouth on perceived value. The results of this study help provide an understanding of why free digital content downloads exist in developing countries. Customers can perceive the value of digital content only by using and experiencing it. This is also why such governments support the development of digital content. Other developing countries whose digital content business is also in the beginning stage can make use of the suggestions here. Moreover, based on the advantage of experiential strategy, companies should make more of an effort to invest in customers' experience. As a result of the characteristics and value gap of digital content, customers perceive more value in the intangible digital content only by experiencing what they really want. Moreover, because of the near-zero reproduction costs, companies can perhaps use experiential strategy to enhance customer understanding of digital content.

Comparative Analysis of the Use of Leisure Resources and Leisure Activity According to the Execution of Forty-hour-a-week Working System: Based on 2012 Survey on National Leisure Activity (근로자의 주 40시간 근무제 시행 유무에 따른 여가자원 이용 및 여가활동 비교분석: 2012년 국민여가활동 조사 결과를 기초로)

  • Bark, Min-Jeng;Yoon, So-Young
    • Journal of Family Resource Management and Policy Review
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    • v.17 no.4
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    • pp.19-37
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    • 2013
  • From the perspective of labor welfare, forty-hour-a-week working system:(FWS) has been an important goal throughout world, and in fact, advanced countries implemented this a long time ago. However, there are differences in opinions concerning FWS; some people emphasizes the improvement in life quality, while others point out that this measure increases the cost of wages and has limited effectiveness. Thus, discussions about the success of FWS have emerged from diverse perspectives; One thing that should be made clear before debating FWS is that reducing laborers' working hours is already a global trend, and Korea, also intends to extend it. Therefore, in order to maximize the benefits resulting from the execution of the system and to identify measures that can be used to solve the problems related to FWS, it is necessary to consider actual laborers' use of leisure resources and whether they have increased or decreased as a result of FWS. It is also necessary to look at the differences in workers' leisure activity with and without the system. To evaluate and diagnose FWS's political effect from the perspective of laborers' leisure satisfaction and improvements in life quality, this study examines differences in leisure expenses, leisure hours, use of and demand for leisure resources such as leisure space, and types of leisure activity, according to the execution of FWS, This research is based on the "2012 Survey on National Leisure Activity" conducted by the Ministry of Culture, Sports and Tourism. In addition, through analysis of the differences in leisure satisfaction and happiness levels, the study intends to confirm the necessity of executing FWS and ensuring that the system is in use. The study results can be briefly summed up as followa:: First, regarding the general findings of the study, a significant result was shown in terms of the execution of FWS according to income level. The finding that the execution of FWS works differently according to the working environment or life quality reassures us of the common notion in society that working environment or life quality may differ in relation to social characteristics. The utility of weekday leisure hours did not indicate a statistically significant difference, but in terms of weekend leisure hours, laborers practicing FWS had an additional 30 minutes of leisure time than those who did not. Furthermore, regarding leisure expenses, laborers practicing FWS indicated more monthly average leisure expenses or expected leisure expenses. In relation to leisure activity, those working at a company executing FWS engaged in culture and art activities more frequently than those working at the companies that did not. On the other hand, those working at companies without FWS indicated more hobbies, amusement activities, rest, and other activities than those working at the companies with FWS. In terms of vacation experience, those working at companies with FWS had more vacation time than those working at companies without it; on average, they had longer vacations by 1.64 days. Regarding their leisure life satisfaction and happiness level, those working at companies with FWS indicated higher satisfaction and greater happiness than those working at companies without it. The findings mentioned above represent the preliminary results of this paper, and the remainder of the research will provide more detailed analysis results and suggestions corresponding to them.

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The Development of the Sustainability Appraisal Indicators for Clean Development Mechanism(CDM) Projects by Multi-Criteria Analysis(MCA) (청정개발체제(CDM)사업의 지속가능성평가 지표 개발 -다 기준분석법(MCA)을 활용하여-)

  • Yang, Chun-Seung;Park, Sung-Hwan;Park, Jung-Gu
    • Journal of Environmental Policy
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    • v.8 no.2
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    • pp.83-118
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    • 2009
  • Clean Development Mechanism(CDM) projects under the Kyoto Protocol have two objectives. One is to assist the Parties included in Annex I in achieving compliance with their quantified emission limitation and reduction commitments in cost-effective ways by allowing them to implement emission reduction projects in Non-Annex I countries and receive CERs, which will offset their reduction commitments. The other is to assist Parties not included in Annex I in achieving sustainable development and technology transfers through investments by Annex I countries. However, in reality, it is said that the former objective is achievable but the latter is not. In this light, this article suggests sustainability appraisal criteria applicable for Korea. Among various methodologies, we used the 'multi-attributes utility theory(MAUT)'; one of the 'multi-criteria analysis (MCA)' methodologies judged to be the most practical and relevant. Based on the guidelines of the MAUT methodology, we identified sustainability criteria that meet the guidelines. We took two tracks, the first to find the preferences of Korean experts, and the other to check foreign cases. In all, 37 preliminary criteria were suggested to Korean experts and each criterion was scored, from between 1 and 3, in terms of relevance, possibility of real improvement, easiness of data collection, and preferences. We combined foreign cases and the results of a survey conducted in Korea and selected 12 core criteria and 10 additional criteria. After that, all the criteria were converted into indicators. The indicators were applied to a CDM project for case study. We chose the "Sihwa Tidal Power Project", which is currently the biggest tidal power plant in the world. Twelve core indicators and 3 additional indicators were applied. In order to weight each indicator, the 'analytical hierarchy process (AHP)' was used. A total of 30 experts were asked to suggest weights and 21 answered. Among them, only 14 respondents were proven to meet the consistency ratio. We analyzed the 14 responses through Expert Choice and the CDM project was scored (+)53.082. In addition, sensitivity analysis was undertaken with the result of (+)44.667 to (+)65.522. As a result of this study, it was proven that this project would contribute to the sustainable development of Korea.

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Calcium Removal from Effluent of Electronics Wastewater Using Hydrodynamic Cavitation Technology (수리동력학적 캐비테이션을 이용한 전자폐수 처리수에 함유된 칼슘저감에 관한 연구)

  • Park, Jin-Young;Kim, Sun-Jip;Lee, Yong-Woo;Lee, Jae-Jin;Hwang, Kyu-Won;Lee, Won-Kwon
    • Journal of Korean Society of Environmental Engineers
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    • v.29 no.6
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    • pp.715-721
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    • 2007
  • Residual calcium concentration is high, in general, at the effluent of the fluoride removal process in the electronics industry manufacturing semiconductor and LCD. To increase the stability of the membrane process incorporated for reuse of wastewater, the residual calcium is required to be pre-removed. Hyperkinetic Vortex Crystallization(HVC) process was installed in the electronics industry manufecturing semi conductor as a pilot scale for accelerating calcification of calcium ion. Compared to the conventional soda ash method, the 31% higher calcium removal efficiency was achieved when HVC was applied at the same sodium carbonate dosage. In order to maintain the economic calcium removal target of 70% preset by manufacturer, the dosing concentration of the soda ash was 530 mg/L based on influent flowrate. The seed concentration in the reactor was one of the critical factors and should be maintained in the range of $800\sim1,200mg$ SS/L to maximize the calcium removal efficiency. The calcite production rate was 0.30 g SS/g $Na_2CO_3$ in the average. The economic HVC passing time of the mixture was in the range of $2\sim5$ times. Relatively, stable calcium concentration was maintained in the range of $30\sim72$ mg/L(average 49 mg/L) although the calcium concentration in the feed was severely fluctuated with $74\sim359$ mg/L(average 173 mg/L). The HVC process was characterized as environment-friendly technology reducing chemical dosage and chemical sludge production and minimizing maintenance cost.

Triple Detector SPECT Imaging with $^{99m}Tc-DMSA$ in Adult Patients with Urinary Tract Infection (성인 요로 감염 환자에서 $^{99m}Tc-DMSA$ 삼중검출기 SPECT 영상의 유용성)

  • Ryu Jin-Sook;Bae, Won-Gyu;Moon Dae-Hyuk;Lee, Myung-Hae;Kim, Soon-Bae,;Park, Su-Kil;Park, Jung-Sik;Hong, Chang-Gi D.;Cho, Kyung-Sik
    • The Korean Journal of Nuclear Medicine
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    • v.26 no.2
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    • pp.290-298
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    • 1992
  • Although early diagnosis of urinary tract infection is important, the radiologic evaluation is still controversial because of the low sensitivity and the lack of cost-effectiveness. This study was carried out to evaluate the clinical utility of high resolution triple head $^{99m}Tc-DMSA$ SPECT imaging in urinary tract infection. We prospectively performed $^{99m}Tc-DMSA$ planar and SPECT imaging, ultrasound of kidney (US), intravenous pyelography (IVP) and voiding cystourethrography (VCU) in all 60 adult patients with UTI [26 with first episode of acute pyelonephritis (APN), 22 with recurrent APN, and 12 persistent asymptomatic pyuria] and 25 normal persons. To assess reversibility of the renal cortical defect (RCD), $^{99m}Tc-DMSA$ SPECT was repeated 1 to 8 months later in those patients with abnormal initial findings. Overall detection rate of $^{99m}Tc-DMSA$ SPECT imaging was 83% (50/60), but planar, US, IVP and VCU showed abnormal findings in 68%, 28%, 32% and 13%, respectively. 25 out of 27 patients with normal or single RCD were all normal in other radioligic studies. Only two patients showed vesicoureteral reflux (VUR) on VCU (grade I) and mild hydronephrosis on IVP. But, high proportion of those with multiple RCD showed abnormal findings on US (17/33), IVP (18/33), and VCU (7/33): 67% in any of these 3 studies. Especially, 3 out 7 patients with VUR showed multiple RCD on $^{99m}Tc-DMSA$ SPECT without any abnormality on IVP or US. 25 normal persons showed normal findings in all studies except one false positive finding on $^{99m}Tc-DMSA$ SPECT imaging. Follow-up $^{99m}Tc-DMSA$ SPECT was done in 28 patients (13 with single RCD, 15 with multiple RCD). All 13 patients with single RCD showed improvement. Those with multiple RCD presented improvement in 4, no change in 10, and aggravation in 1 on follow-up studies. With these results, we conclude: 1) $^{99m}Tc-DMSA$ SPECT imaging is superior to planar imaging, US, IVP or VCU in detection of renal lesion in urinary tract infection. $^{99m}Tc-DMSA$ SPECT is useful as a initial diagnostic tool in adult patients with urinary tract infection. 2) The multiple RCD on $^{99m}Tc-DMSA$ SPECT represent the high probability of irreversible tissue change and need of extensive urological work-up.

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Air Sampling and Isotope Analyses of Water Vapor and CO2 using Multi-Level Profile System (다중연직농도시스템(Multi-Level Profile System)을 이용한 수증기와 이산화탄소 시료채취 및 안정동위원소 조성 분석)

  • Lee, Dong-Ho;Kim, Su-Jin;Cheon, Jung-Hwa;Kim, Joon
    • Korean Journal of Agricultural and Forest Meteorology
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    • v.12 no.4
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    • pp.277-288
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    • 2010
  • The multi-level $H_2O/CO_2$ profile system has been widely used to quantify the storage and advection effects on energy and mass fluxes measured by eddy covariance systems. In this study, we expanded the utility of the profile system by accommodating air sampling devices for isotope analyses of water vapor and $CO_2$. A pre-evacuated 2L glass flask was connected to the discharge of an Infrared Gas Analyzer (IRGA) of the profile system so that airs with known concentration of $H_2O$ and $CO_2$ can be sampled. To test the performance of this sampling system, we sampled airs from 8 levels (from 0.1 to 40 m) at the KoFlux tower of Gwangneung deciduous forest, Korea. Air samples in the 2L flask were separated into its component gases and pure $H_2O$ and $CO_2$ were extracted by using a vacuum extraction line. This novel technique successfully produced vertical profiles of ${\delta}D$ of $H_2O$ and ${\delta}^{13}C$ of $CO_2$ in a mature forest, and estimated ${\delta}D$ of evapotranspiration (${\delta}D_{ET}$) and ${\delta}^{13}C$ of $CO_2$ from ecosystem respiration (${\delta}^{13}C_{resp}$) by using Keeling plots. While technical improvement is still required in various aspects, our sampling system has two major advantages over other proposed techniques. First, it is cost effective since our system uses the existing structure of the profile system. Second, both $CO_2$ and $H_2O$ can be sampled simultaneously so that net ecosystem exchange of $H_2O$ and $CO_2$ can be partitioned at the same temporal resolution, which will improve our understanding of the coupling between water and carbon cycles in terrestrial ecosystems.

Right of disposition of cargo and Air waybill (송하인의 운송물 처분청구권과 항공화물운송장)

  • Nam, Hyun-Sook;Choi, June-Sun
    • The Korean Journal of Air & Space Law and Policy
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    • v.30 no.2
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    • pp.177-199
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    • 2015
  • Commerce enriches human life enriched and within commerce, transportation of cargo is arguably the most important in business transactions. Traditionally, marine transport has been major commercial transaction, but carriage cargo by air is on the increase. While the fare for freight in comparison with that of ocean is higher, air freight has many benefits that justify the higher shipping fee; lower insurance premium, packing charges, inventory control, cost management and especially speed. Therefore, air freight transport is accumulating gradually. An air waybill(AWB) is needed in the air transport flow. It is a nonnegotiable security, so the holder cannot transfer of a right to a third party. Some scholars suggest that a negotiable AWB is needed. However, it seems nearly impossible to do so; an e-AWB use shows a gain in numbers, even if it has not met expectations. Going forward, it would appear reasonable to conduct a follow-up study on the utility and legal problem for e-AWB. After sending goods, the consignor has the right of disposition of cargo in some cases, and more research is necessary, because it is related to change of ownership and a trade settlement. According to WATS (World Airlines Transport Statistics), the Korean Air took third place in international freight in 2014, and fifth in total, domestic and international to great acclaim. However, there is a lack of research supporting the business showing. It is hope that more studies on e-AWB, stoppage in transit, and a risk of outstanding amount, etc. connect to develop Korean air freight industry.

The Effects of Virtual Reality Advertisement on Consumer's Intention to Purchase: Focused on Rational and Emotional Responses (가상현실(Virtual Reality) 광고가 소비자 구매의도에 미치는 영향: 이성적인 반응과 감성적인 반응의 통합)

  • Cha, Jae-Yol;Im, Kun-Shin
    • Asia pacific journal of information systems
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    • v.19 no.4
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    • pp.101-124
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    • 2009
  • According to Wikipedia, virtual reality (VR) is defined as a technology that allows a user to interact with a computer-simulated environment. Due to a rapid growth in information technology (IT), the cost of virtual reality has been decreasing while the utility of virtual reality advertisements has dramatically increased. Nevertheless, only a few studies have investigated the effects of virtual reality advertisement on consumer behaviors. Therefore, the objective of this study is to empirically examine the effects of virtual reality advertisement. Compared to traditional online advertisements, virtual reality advertisement enables consumers to experience products realistically over the Internet by providing high media richness, interactivity, and telepresence (Suh and Lee, 2005). Advertisements with high media richness facilitate consumers' understanding of advertised products by providing them with a large amount and a high variety of information on the products. Interactivity also provides consumers with a high level of control over the computer-simulated environment in terms of their abilities to adjust the information according to their individual interests and concerns and to be active rather than passive in their engagement with the information (Pimentel and Teixera, 1994). Through high media richness and interactivity, virtual reality advertisements can generate compelling feelings of "telepresence" (Suh and Lee, 2005). Telepresence is a sense of being there in an environment by means of a communication medium (Steuer, 1992). Virtual reality advertisements enable consumers to create a perceptual illusion of being present and highly engaged in a simulated environment, while they are in reality physically present in another place (Biocca, 1997). Based on the characteristics of virtual reality advertisements, a research model has been proposed to explain consumer responses to the virtual reality advertisements. The proposed model includes two dimensions of consumer responses. One dimension is consumers' rational response, which is based on the Information Processing Theory. Based on the Information Processing Theory, product knowledge and perceived risk are selected as antecedents of intention to purchase. The other dimension is emotional response of consumers, which is based on the Attitude-Structure Theory. Based on the Attitude-Structure Theory, arousal, flow, and positive affect are selected as antecedents of intention to purchase. Because it has been criticized to have investigated only one of the two dimensions of consumer response in prior studies, our research model has been built so as to incorporate both dimensions. Based on the Attitude-Structure Theory, we hypothesized the path of consumers' emotional responses to a virtual reality advertisement: (H1) Arousal by the virtual reality advertisement increases flow; (H2) Flow increases positive affect; and (H3) Positive affect increases intension to purchase. In addition, we hypothesized the path of consumers' rational responses to the virtual reality advertisement based on the Information Processing Theory: (H4) Increased product knowledge through the virtual reality advertisement decreases perceived risk; and (H5) Perceived risk decreases intension to purchase. Based on literature of flow, we additionally hypothesized the relationship between flow and product knowledge: (H6) Flow increases product knowledge. To test the hypotheses, we conducted a free simulation experiment [Fromkin and Streufert, 1976] with 300 people. Subjects were asked to use the virtual reality advertisement of a cellular phone on the Internet and then answer questions about the variables. To check whether subjects fully experienced the virtual reality advertisement, they were asked to answer a quiz about the virtual reality advertisement itself. Responses of 26 subjects were dropped because of their incomplete answers. Responses of 274 subjects were used to test the hypotheses. It was found that all of six hypotheses are accepted. In addition, we found that consumers' emotional response has stronger impact on their intention to purchase than their rational response does. This study sheds much light into practical implications for both IS researchers and managers. First of all, while most of previous research has analyzed only one of the customers' rational and emotional responses, we theoretically incorporated and empirically examined both of the two sides. Second, we empirically showed that mediators such as arousal, flow, positive affect, product knowledge, and perceived risk play an important role between virtual reality advertisement and customer's intention to purchase. In addition, the findings of this study can provide a basis of practical strategies for managers. It was found that consumers' emotional response is stronger than their rational response. This result indicates that advertisements using virtual reality should focus on the emotional side, and that virtual reality can be served as an appropriate advertisement tool for fancy products that require their online advertisements to give an impetus to customers' emotion. Finally, even if this study examined the effects of virtual reality advertisement of cellular phone, its findings could be applied to other products that are suited for virtual experience. However, this research has some limitations. We were unable to control different kinds of consumers and different attributes of products on consumers' intention to purchase. It is, therefore, deemed important for future research to control the consumer and product types for more reliable results. In addition to the consumer and product attributes, other variables could affect consumers' intention to purchase. Thus, the future research needs to find ways t control other variables.