• Title/Summary/Keyword: consumer choice and preference

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Implications to Consumer Preferences on Visual Image Elements of Coffee Houses (커피전문점의 시각이미지요소가 소비자 선호도에 미치는 영향)

  • Lee, Sun Hee;Woo, Nariyah
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.10 no.3
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    • pp.147-159
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    • 2015
  • One of the most important factors for the consumers to select a coffee shop is a visual factor. The analysis results of interior pale face image of the coffee house doesn't show significant differences on all the categories. It is recognized that the items affected by symbolized color are supplies and interior design. If a respondent choose a coffee house by the symbolized color, 'Starbucks' is the most memorable or want to visit place, and only one category, pocket money shows significant difference in choosing coffee houses. The investigation results say that the most memorable or want to visit coffee house by the visual icon color are 'Starbucks', 'Angelinus' and 'Caffebene', and that 'Ediya's icon color marks the characteristics of the shop very well, and 'Hollys' has the most characterful color. Resultingly, visual elements and icon colors of the shop seriously affect consumer's choice in visiting a coffee house. This study is to understand the influence of visual elements in choosing a coffee house for general customers, and it is considered that the importance of visual elements and color marketing must be recognized and developed.

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The Effect of Price Discount Rate According to Brand Loyalty on Consumer's Acquisition Value and Transaction Value (브랜드애호도에 따른 가격할인율의 차이가 소비자의 획득가치와 거래가치에 미치는 영향)

  • Kim, Young-Ei;Kim, Jae-Yeong;Shin, Chang-Nag
    • Journal of Global Scholars of Marketing Science
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    • v.17 no.4
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    • pp.247-269
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    • 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.

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Development of the breeding materials with diverse grain size and shape in japonica rice

  • Park, Hyun-Su;Shin, Woon-Chul;Baek, Man-Kee;Nam, Jeong-Kwon;Jeong, Jong-Min;Park, Seul-Gi;Kim, Choon-Song;Cho, Young-Chan;Kim, Bo-Kyeong
    • Proceedings of the Korean Society of Crop Science Conference
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    • 2017.06a
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    • pp.67-67
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    • 2017
  • We developed the breeding materials with diverse grain size and shape in japonica rice. Grain size and shape are important factors affecting consumer preference and choice. However, most of Korean japonica rice cultivars have small, short, and round grain. To diversify the grain size and shape of japonica rice, we conducted the breeding program using donor parents, Jizi1560 and Jizi1581. Jizi1560 and Jizi1581 are japonica germplasm with extremely large grain. Four crosses between the each donor parents and high yielding japonica rice cultivars, Deuraechan and Boramchan, were constructed and then anther culture method was applied. We obtained 290 doubled-haploid (DH) lines with appropriated morphological traits and selected 91 DH lines with diverse grain size and shape. The grain related-traits of the selected DH lines showed a higher diversity when compared with 319 cultivars developed by NICS (264 japonica, 13 black, and 32 Tongil type cultivars). We designated the selected DH lines, four parents, and Daeripbyeo 1, large grain japonica cultivar, as the breeding materials for further analysis. The breeding materials were classified into five groups, A to E, based on the grain-related traits. Group A (including Jizi1581) and Group B (including Daeripbyeo 1) showed similar grain width, whereas Group A exhibited longer grain length and heavier grain weight. Group C (including Deuraechan and Boramchan) showed shorter and rounder grain shape and smaller grain size than any other groups. Group D including solely Jizi1560 had extremely large grain, such as the longest grain length, width, and thickness and heaviest grain weight. Group E including only two DH lines had long and slender grain shape, so that showed the highest ratio of length to width. The grain size and shape of the breeding materials exhibited beyond the characteristics of previously developed Korean japonica cultivars. The breeding materials will be applied in the breeding programs to diversify the grain size and shape of japonica rice.

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Empirical Analysis of Consumer Behavior on the Internet Shopping Mall Choice from the Schema Perspective: Comparison Between Bricks & Clicks and Pure-Player Shopping Mall (스키마 관점에서 살펴본 인터넷 쇼핑몰 선택에 대한 소비자행동의 이해: Bricks & Clicks와 Pure-Player 인터넷 쇼핑몰 비교를 중심으로)

  • Chung, Nam-Ho;Lee, Kun-Chang
    • Asia pacific journal of information systems
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    • v.17 no.4
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    • pp.165-186
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    • 2007
  • With the advent of a wide variety of Internet shopping malls, consumers can choose a best appealing shopping mall from among the Bricks-and-Clicks and Pure-Player malls. Pure-Players launched their operation grandiosely with the early stage of Internet use in 1995. However, after the burst of Dot-com company bubbles in 1997, Pure-Players introduce various types of business models to meet potential needs of consumers. While Pure-Players suffer skeptical views from market analysts as well as consumers, traditional offline companies learned important lessons from Dot-com companies collapse phenomena, and expanded their business channels into online in the name of Bricks-and-Clicks. Nowadays, Bricks-and-Clicks successfully establish in the market as one of reliable business partners among consumers. Therefore, it is no surprise that recent competitions between Bricks-and Clicks and Pure-Players become fiercer than ever to attract potential customers to their websites. In this situation, consumers can choose a shopping mall to their best satisfaction. Consumers can enjoy both offline and online options for shopping because Bricks-and Clicks provide both offline and online channels to consumers, which is compared with Pure-Players offering only online channel. Offline channel is unique in providing consumers with chances to touch and feel target products and services. Meanwhile, online channel is considered very viable and convenient shopping options for consumers. In this respect, it is easily assumed that consumers will show different online shopping behavior when they have to choose either Bricks-and-Clicks mall or Pure-Player mall for the sake of shopping. Remaining research issue in this case is how much consumers' schema would influence online shopping behavior between Bricks-and-Clicks and Pure-Players. Basically, schema is a framework for synthetic information recognition that individual consumers have and is very characteristic in that it focuses not on fragmentary facts but on the combination of various causes affecting results. Consumers' schema is closely represented by trust, structural assurance, and perceived relative advantage towards a specific type of shopping mall. In literature, there exist a lot of studies comparing Bricks-and-Clicks and Pure-Players. However, there is no study to pursue the analysis of consumer behaviors comparing Bricks-and Clicks and Pure-Players from the schema perspective. Therefore, this study aims to investigate this research gap. Empirical analysis is adopted by garnering valid questionnaires from 514 Internet shopping mall users. 237 were mainly using Bricks-and-Clicks for shopping, while 277 were found to visit Pure-Players for shopping. PLS was applied to analyze the survey data to verify the proposed research hypotheses. Findings from the empirical test results are as follows. First, consumers perceive more trust and relative advantage in Pure-Players, comparing with Bricks-and-Clicks. This result is against widely-accepted perception that Bricks-and-Clicks would be perceived by consumers as more trustworthy and relatively advantageous because they have offline reputation and stores. Therefore, it becomes more obvious that Internet is becoming daily necessaries, and consumers increasingly feel very comfortable in using the Internet for their own personal purposes. Second, consumers have firm faith in transaction safety, regardless Bricks-and-Clicks and Pure-Players. This seems due to the fact that most of shopping malls showing dubious transaction safety have no place in the market. In a nutshell, empirical results tell us that Pure-Players will grow very much in the future, to the extent that consumers perceive no difference in comparison with Bricks-and-Clicks. Besides, consumers' schema accumulated through trust and perceived relative advantage plays crucial role in determining consumer behavior.

Estimating the Switching Cost in the Korean Residential Electricity Market Using Discrete Choice Model (이산선택모형을 이용한 주거용수용가의 전력서비스 전환비용 추정)

  • Lee, Jongsu;Lee, Dongheon;Lee, Jeong-Dong;Park, Yuri
    • Environmental and Resource Economics Review
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    • v.13 no.2
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    • pp.219-243
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    • 2004
  • Generally, electricity market has monopoly market structure because of need of enormous investment for infrastructure. However, the introduction of competition in network industry as electricity is a tendency of the world with decreasing the effects of economy of scale due to the advancement of technology. Now, electricity industry restructuring is in progress but the competition in electricity retail market is not in force yet in Korea. Whether a effective competition exist or not is very important to policy decision maker who drive restructuring, but there are small numbers of quantitative researches on that. In this study, we estimated the effectiveness of competition in the electricity retail market through switching costs. If switching costs are high, consumers actually can be locked in incumbent firm in spite of introduction of competition. Therefore switching is a critical factor to determine effectiveness of competition and to estimate the size of switching costs quantitatively can proffer the information about whether the competition in the electricity retail market is effective or not in the future. We estimated switching costs using consumer' stated-preference data by conjoint analysis. In according to estimation results, the cost of switching process is not so high, but the relative brand loyalty of an incumbent company is significantly high. And the price is considered as the most important factor choosing an electric service commodity. Based on the empirical results, it is possible to analyze the relationship between suppliers' competitiveness resulted from management efficiency and customers' switching possibilities. The paper therefore provides guidance for suppliers in deciding to enter into retail competition and for policy makers in introducing retail competition. And it has a significance of estimating the switching costs directly.

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