• Journal of Global Scholars of Marketing Science
• /
• v.17 no.4
• /
• pp.247-269
• /
• 2007

In recent years, one of the major reasons for the fierce competition amongst firms is that they strive to increase their own market shares and customer acquisition rate in the same market with similar and apparently undifferentiated products in terms of quality and perceived benefit. Because of this change in recent marketing environment, the differentiated after-sales service and diversified promotion strategies have become more important to gain competitive advantage. Price promotion is the favorite strategy that most retailers use to achieve short-term sales increase, induce consumer's brand switch, in troduce new product into market, and so forth. However, if marketers apply or copy an identical price promotion strategy without considering the characteristic differences in product and consumer preference, it will cause serious problems because discounted price itself could make people skeptical about product quality, and the changes of perceived value might appear differently depending on other factors such as consumer involvement or brand attitude. Previous studies showed that price promotion would certainly increase sales, and the discounted price compared to regular price would enhance the consumer's perceived values. On the other hand, discounted price itself could make people depreciate or skeptical about product quality, and reduce the consumers' positivity bias because consumers might be unsure whether the current price promotion is the retailer's best price offer. Moreover, we cannot say that discounted price absolutely enhances the consumer's perceived values regardless of product category and purchase situations. That is, the factors that affect consumers' value perceptions and buying behavior are so diverse in reality that the results of studies on the same dependent variable come out differently depending on what variable was used or how experiment conditions were designed. Majority of previous researches on the effect of price-comparison advertising have used consumers' buying behavior as dependent variable. In order to figure out consumers' buying behavior theoretically, analysis of value perceptions which influence buying intentions is needed. In addition, they did not combined the independent variables such as brand loyalty and price discount rate together. For this reason, this paper tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception. And we provided with theoretical and managerial implications that marketers need to consider such variables as product attributes, brand loyalty, and consumer involvement at the same time, and then establish a differentiated pricing strategy case by case in order to enhance consumer's perceived values properl. Three research concepts were used in our study and each concept based on past researches was defined. The perceived acquisition value in this study was defined as the perceived net gains associated with the products or services acquired. That is, the perceived acquisition value of the product will be positively influenced by the benefits buyers believe they are getting by acquiring and using the product, and negatively influenced by the money given up to acquire the product. And the perceived transaction value was defined as the perception of psychological satisfaction or pleasure obtained from taking advantage of the financial terms of the price deal. Lastly, the brand loyalty was defined as favorable attitude towards a purchased product. Thus, a consumer loyal to a brand has an emotional attachment to the brand or firm. Repeat purchasers continue to buy the same brand even though they do not have an emotional attachment to it. We assumed that if the degree of brand loyalty is high, the perceived acquisition value and the perceived transaction value will increase when higher discount rate is provided. But we found that there are no significant differences in values between two different discount rates as a result of empirical analysis. It means that price reduction did not affect consumer's brand choice significantly because the perceived sacrifice decreased only a little, and customers are satisfied with product's benefits when brand loyalty is high. From the result, we confirmed that consumers with high degree of brand loyalty to a specific product are less sensitive to price change. Thus, using price promotion strategy to merely expect sale increase is not recommendable. Instead of discounting price, marketers need to strengthen consumers' brand loyalty and maintain the skimming strategy. On the contrary, when the degree of brand loyalty is low, the perceived acquisition value and the perceived transaction value decreased significantly when higher discount rate is provided. Generally brands that are considered inferior might be able to draw attention away from the quality of the product by making consumers focus more on the sacrifice component of price. But considering the fact that consumers with low degree of brand loyalty are known to be unsatisfied with product's benefits and have relatively negative brand attitude, bigger price reduction offered in experiment condition of this paper made consumers depreciate product's quality and benefit more and more, and consumer's psychological perceived sacrifice increased while perceived values decreased accordingly. We infer that, in the case of inferior brand, a drastic price-cut or frequent price promotion may increase consumers' uncertainty about overall components of product. Therefore, it appears that reinforcing the augmented product such as after-sale service, delivery and giving credit which is one of the levels consisting of product would be more effective in reality. This will be better rather than competing with product that holds high brand loyalty by reducing sale price. Although this study tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception, there are several limitations. This study was conducted in controlled conditions where the high involvement product and two different levels of discount rate were applied. Given the presence of low involvement product, when both pieces of information are available, it is likely that the results we have reported here may have been different. Thus, this research results explain only the specific situation. Second, the sample selected in this study was university students in their twenties, so we cannot say that the results are firmly effective to all generations. Future research that manipulates the level of discount along with the consumer involvement might lead to a more robust understanding of the effects various discount rate. And, we used a cellular phone as a product stimulus, so it would be very interesting to analyze the result when the product stimulus is an intangible product such as service. It could be also valuable to analyze whether the change of perceived value affects consumers' final buying behavior positively or negatively.

• Journal of Distribution Science
• /
• v.10 no.2
• /
• pp.29-41
• /
• 2012

This paper undertakes a conceptual review of transaction cost to broaden the understanding of the transaction cost analysis (TCA) approach. More than 40 years have passed since Coase's fundamental insight that transaction, coordination, and contracting costs must be considered explicitly in explaining the extent of vertical integration. Coase (1937) forced economists to identify previously neglected constraints on the trading process to foster efficient intrafirm, rather than interfirm, transactions. The transaction cost approach to economic organization study regards transactions as the basic units of analysis and holds that understanding transaction cost economy is central to organizational study. The approach applies to determining efficient boundaries, as between firms and markets, and to internal transaction organization, including employment relations design. TCA, developed principally by Oliver Williamson (1975,1979,1981a) blends institutional economics, organizational theory, and contract law. Further progress in transaction costs research awaits the identification of critical dimensions in which transaction costs differ and an examination of the economizing properties of alternative institutional modes for organizing transactions. The crucial investment distinction is: To what degree are transaction-specific (non-marketable) expenses incurred? Unspecialized items pose few hazards, since buyers can turn toalternative sources, and suppliers can sell output intended for one order to other buyers. Non-marketability problems arise when specific parties' identities have important cost-bearing consequences. Transactions of this kind are labeled idiosyncratic. The summarized results of the review are as follows. First, firms' distribution decisions often prompt examination of the make-or-buy question: Should a marketing activity be performed within the organization by company employees or contracted to an external agent? Second, manufacturers introducing an industrial product to a foreign market face a difficult decision. Should the product be marketed primarily by captive agents (the company sales force and distribution division) or independent intermediaries (outside sales agents and distribution)? Third, the authors develop a theoretical extension to the basic transaction cost model by combining insights from various theories with the TCA approach. Fourth, other such extensions are likely required for the general model to be applied to different channel situations. It is naive to assume the basic model appliesacross markedly different channel contexts without modifications and extensions. Although this study contributes to scholastic research, it is limited by several factors. First, the theoretical perspective of TCA has attracted considerable recent interest in the area of marketing channels. The analysis aims to match the properties of efficient governance structures with the attributes of the transaction. Second, empirical evidence about TCA's basic propositions is sketchy. Apart from Anderson's (1985) study of the vertical integration of the selling function and John's (1984) study of opportunism by franchised dealers, virtually no marketing studies involving the constructs implicated in the analysis have been reported. We hope, therefore, that further research will clarify distinctions between the different aspects of specific assets. Another important line of future research is the integration of efficiency-oriented TCA with organizational approaches that emphasize specific assets' conceptual definition and industry structure. Finally, research of transaction costs, uncertainty, opportunism, and switching costs is critical to future study.

• Journal of Digital Convergence
• /
• v.10 no.5
• /
• pp.105-116
• /
• 2012

This thesis is surveying the notions and the countermeasures of the farmers, who produce environmental-friendly crops, on a market and buyers. It ultimately tries to find out ways to increase the sale and the consumption of environmental-friendly crops from the side of the farmers. In chapter 2, analyzing the reality of consuming environmental-friendly crops and consumers inclinations. Also, on the basis of this, in chapter 3, I demonstrate how environmental-friendly producers countermeasures for the consumers are. I try to analyze the trust of the consumer buying environmental-friendly crops, which have been pointed out as a decisive factor for environmental-friendly crops by a lot of researchers, and analyze producers methods dealing with consumers approach to consume environmental-friendly crops. Regarding ways of the reconsideration about the trust, I have shown the problems about the quality authentication, forming consumers trust, and the ways of the consumer management. For the channel and method of the sale I have scrutinized not only a farmers notion about an internet homepage and his or her use but also producers principal sales route, cognition, and correspondence about it. Finally, I have examined the counter plans of the producer to increase sale and to facilitate consumption.

• Journal of Fisheries and Marine Sciences Education
• /
• v.13 no.1
• /
• pp.1-18
• /
• 2001

The purpose of this research was to develop curricula for the department of marine products marketing in fisheries high schools. The specific objectives were as follows; 1) To investigate the demand of students, teachers in fisheries high schools, and workers in marine products marketing for the educational program. 2) To analyze the jobs of the marine products marketing fields. 3) To develop curricula for the department of marine products marketing on the basis of the theoretical background and the result of the objective 1) and 2). In order to achieve these objectives, domestic and foreign literatures, research reports, and theses were referred to in order to know the academic classification of fisheries economics and curricula of junior colleges and universities were collected and analyzed. To achieve the first objective, the degree of the students' knowledge of marine products marketing through fisheries management textbook was investigated. And the questionnaire survey of the demand was conducted on the subject of professors at the departments of fisheries management, teachers in the charge of the related courses and those who work for marine products marketing-related firms. The questionnaire was composed of 22 items about the knowledge of marine products marketing and 27 items about the job capacity. To achieve the second objective, the occupations were surveyed on the subjects of the works who work for marine products marketing. They were sampled randomly among the marine products buyers, wholesalers, auctioneers and salespersons. The results of this research were as follows; Taking grades and credits at each subject were made out on the consultation of the experts in marine products marketing. The curriculum of the professional subjects related to marine products marketing in fisheries high schools is suggested as follows; General Fisheries(10th grade, 6 credits, curricular discretionary class), General Oceanography(10th grade, 4 credits, curricular discretionary class), Fisheries Marine Transportation Information(11th grade, 8-12 credits), Marine Products Marketing(11th grade, 8-12 credits), Fishery Sale and Management(11th grade, 8-12 credits), General Fisheries Management(11th grade, 6-8 credits), Accounting Principle(11th grade, 4-6 credits), Marine Products Processing(12th grade, 4-8 credits), Commercial Law(12th grade, 4-6 credits), Management Practice(12th grade, 4-6 credits), Computer Practical Business(12th grade, 4-6 credits), Marketing(12th grade, 4-8 credits), General Marketing Management(12th grade, 6-8 credits), Marketing Information Practical Business(12th grade, 4-6 credits) Marketing Management I(12th grade, 4-6 credits), Marketing Management II(12th grade, 4-6 credits). If this curriculum is adopted, it will meet the demands of the educational aims and the industrial society.

• Journal of Distribution Science
• /
• v.7 no.3
• /
• pp.49-69
• /
• 2009

With the proliferation of electronic commerce, online transactions have become a norm. Its enormous potential, however, can be truly realized if consumers feel comfortable facing invisible sellers over the Internet, a virtual business channel. Trust has been identified as a key component in many e-Commerce studies. The purpose of this study is to find out which factors play a major role in building buyer trust and how the build-up trust affects buyer's purchase intention in online used car transactions. Based on the information asymmetry, TAM (Technology Acceptance Model), and the trust theory, our research model includes factors such as a buyer's propensity-to-trust, institutional characteristics (inspection and warranty policy), word-of-mouth referral, perceived size, and perceived benefits as independent variables. The model also includes trust as a mediate variable, purchase intention as a dependent variable, and perceived quality risk as a moderate variable. The research model is tested by analyzing 448 sample data gathered from used car websites. The result shows that the trust has significant effects on the online purchase intention, and institutional characteristics have been identified as one of the most significant factors for trust building in used car websites. For those who perceive quality risk high, actual purchasing behavior occurs only when they have trust on the used car websites, indicating that trust plays a vital role as a mediate variable. This study suggests that buyer trust on the used car websites is important to increase buyer's online purchase behavior.

• Korean Journal of Construction Engineering and Management
• /
• v.17 no.3
• /
• pp.108-115
• /
• 2016

The price determinant for land investment depends on the internal information process and subjective decision making by management in general. Accordingly, the systematic frame to determine the feasibility of investment price to the public residential land for multi-housing development by private sector has not been proposed. The purpose of this study is to explore the frame to determine the investment price for public residential land from the perspectives of land attribute and apartment market factor. Multiple regression has been implemented to confirm the eligibility of proposed model. Research findings indicate that the land area, floor area ratio, coverage ratio, location have been identified as the total land cost determinant, and for the determinants for floor area land cost, the ratio of apartment, sale price, rent price, etc, have been identified. This research intends to provide the basis for land providers to predict the land value as a raw material in market and present the indicators for land buyers to review the price adequacy for the investment.

• Journal of Cadastre & Land InformatiX
• /
• v.46 no.2
• /
• pp.283-296
• /
• 2016

This paper aims to analyze characteristic by the cities focused on the ratio of new apartment resale that is one of the apartment unit sale market, which has been increased recently. To do so, this study examined characteristics of population, housing, residential, and economical with 162 cities and counties and performed multiple regression analysis with dependent variable, ratio of new apartment resale. As a result. the factors affecting the ratio of new apartment resale are 7variables, regional apartment rate, population increasing rate, a mount of sell in lots, housing rent price (Jeonse price) rate compared to average apartment sale price, single-person households increasing rate, apartment subscription rate and number of buyers in the area. Thus, this study showed that the factors affecting characteristic by the regions are ordered characteristics of residential, population and rate of sale and dealing. Based on this result, this study will be basic data for policy of government and development of apartment sales system and for end user to activate resale in apartment sales market.

• Journal of Intelligence and Information Systems
• /
• v.8 no.1
• /
• pp.103-117
• /
• 2002

Recently, many researchers have developed applications for automated contract and negotiation using agent technologies on electronic commerce. Especially, they have tried to study negotiation mechanism applying agent instead of buyers and sellers. Traditional researches, however, often had limitations. In the researches of automated negotiation, the agents had to negotiate with the other agents for a simple negotiation issue because the mechanisms were naive. In the researches of negotiation by user interaction, the agents did not have supported the procedures and methodologies for making the automated negotiation but only supported the users by providing communication environment during the negotiation process by users. In this paper, we propose efficient negotiation model using the modified negotiation model of the game theory. In the proposed model, the agents negotiate automatically with the partner agent and make good benefits by the strategic method during the negotiation process. Each agent makes negotiation issues with user's requirements and exchanges its suggestion alternatively in each step of the negotiation process. The agent evaluates degree of satisfaction for the opposite's suggestion and uses it in the next step of suggestion. To find out the negotiation strategies of opposite side, the agent uses teaming by weights of issues. As a result, the agent improves each own benefits for the contract and reduces the unbalance of its benefits through the proposed negotiation mechanism. We implement the negotiating agents according to the proposed mechanism and prove the efficiency of the proposed model by various experimentation.

• Information Systems Review
• /
• v.12 no.3
• /
• pp.49-73
• /
• 2010

The lack of customer satisfaction and trust remains a key barrier to electronic commerce. From the standpoint of online merchants, it is critical to build consumer trust by lessening sources of apprehensions and uneasiness associated with online transactions. This paper explores the relationships between customer satisfaction and intermediary's trustworthiness factors in B2C e-marketplaces. It also aims at examining the effects of consumer characteristics, including propensity to trust and Internet shopping self-efficacy, upon trust and purchase intentions. To meet the research objectives, an empirical study has been conducted by surveying 223 active e-marketplace buyers in Korea. The findings of the present research indicate that customer satisfaction positively affects all the three attributes of trustworthiness (i.e., competence, benevolence, and integrity), and more specifically it has a quite strong association with benevolence. In addition, propensity to trust has no significant influence on trust or purchasing intentions, and only affects benevolence and integrity with no direct effect on competence. Finally, Internet shopping self-efficacy was found to affect both trust and purchasing intentions, suggesting that e-marketplaces seek an online strategy designed to strengthen loyalty for customers with high self-efficacy, while they use a strategy to improve the usability and usefulness of their website to attract customers with low self-efficacy. The paper concludes with implications and directions for future research.

• Journal of Korea Society of Industrial Information Systems
• /
• v.8 no.3
• /
• pp.76-84
• /
• 2003

Software agents reduce human involvement to a certain extent by automating routine tasks. However, most of agents have assisted with only a few steps in the multi-steps process of electronic transactions. In order to help users with the important steps in the electronic transactions, software agents need to persuade other parties to act in particular ways. While negotiations have many shapes and forms, this paper focuses on a particular class of negotiation, that is competitive business environment based negotiation. For negotiation with other parties in this contort, it is necessary for autonomous agents to consider environmental variables-the number of competitors, the number of negotiation parties, the maximum time by which they must finish their jobs, and user's preferences. Previous negotiation decision functions for the automated negotiation have used only time or the static numbs of negotiating parties as negotiation criteria, although competitive business environment should include potential competitors who can snatch negotiation parties away. This paper attempts to evaluate the performance of a negotiation decision function that considers the potential competitors in competitive market environment as well as that of a negotiation decision function that does not. For this evaluation, this study adopts the electronic marketplace as an application domain because many buyers and sellers compete for limited resources in the marketplace.