• Journal of Global Scholars of Marketing Science
• /
• v.18 no.2
• /
• pp.223-252
• /
• 2008

In this study, we attempt to propose a choice-based diffusion model with switching cost, which can be used to forecast the dynamic substitution and competition among previous and new products at both individual-level and aggregate level, especially when market data for new products is insufficient. Additionally, we apply the proposed model to the empirical case of substitution and competition among Analog Cable TV that represents previous fixed charged broadcasting service and Digital Cable TV and Internet Protocol TV (IPTV) that are new ones, verify the validities of our proposed model, and finally derive related empirical implications. For empirical application, we obtained data from survey conducted as follows. Survey was administered by Dongseo Research to 1,000 adults aging from 20 to 60 living in Seoul, Korea, in May of 2007, under the title of 'Demand analysis of next generation fixed interactive broadcasting services'. Conjoint survey modified as follows, was used. First, as the traditional approach in conjoint analysis, we extracted 16 hypothetical alternative cards from the orthogonal design using important attributes and levels of next generation interactive broadcasting services which were determined by previous literature review and experts' comments. Again, we divided 16 conjoint cards into 4 groups, and thus composed 4 choice sets with 4 alternatives each. Therefore, each respondent faces 4 different hypothetical choice situations. In addition to this, we added two ways of modification. First, we asked the respondents to include the status-quo broadcasting services they subscribe to, as another alternative in each choice set. As a result, respondents choose the most preferred alternative among 5 alternatives consisting of 1 alternative with current subscription and 4 hypothetical alternatives in 4 choice sets. Modification of traditional conjoint survey in this way enabled us to estimate the factors related to switching cost or switching threshold in addition to the effects of attributes. Also, by using both revealed preference data(1 alternative with current subscription) and stated preference data (4 hypothetical alternatives), additional advantages in terms of the estimation properties and more conservative and realistic forecast, can be achieved. Second, we asked the respondents to choose the most preferred alternative while considering their expected adoption timing or switching timing. Respondents are asked to report their expected adoption or switching timing among 14 half-year points after the introduction of next generation broadcasting services. As a result, for each respondent, 14 observations with 5 alternatives for each period, are obtained, which results in panel-type data. Finally, this panel-type data consisting of $4{\ast}14{\ast}1000=56000$observations is used for estimation of the individual-level consumer adoption model. From the results obtained by empirical application, in case of forecasting the demand of new products without considering existence of previous product(s) and(or) switching cost factors, it is found that overestimated speed of diffusion at introductory stage or distorted predictions can be obtained, and as such, validities of our proposed model in which both existence of previous products and switching cost factors are properly considered, are verified. Also, it is found that proposed model can produce flexible patterns of market evolution depending on the degree of the effects of consumer preferences for the attributes of the alternatives on individual-level state transition, rather than following S-shaped curve assumed a priori. Empirically, it is found that in various scenarios with diverse combinations of prices, IPTV is more likely to take advantageous positions over Digital Cable TV in obtaining subscribers. Meanwhile, despite inferiorities in many technological attributes, Analog Cable TV, which is regarded as previous product in our analysis, is likely to be substituted by new services gradually rather than abruptly thanks to the advantage in low service charge and existence of high switching cost in fixed charged broadcasting service market.

• Journal of Korean Society of Transportation
• /
• v.28 no.2
• /
• pp.65-75
• /
• 2010

When the cost-benefit analysis is applied for social discount rate(SDR), the choice of SDR to be used in analysis is critical. One of the important issues when public investment project evaluate what is the SDR theory, so there have studied about SDR and no exact answer it so far. In this study, there are three of SDR theories that be estimated social time preference rate, social investment returns and the weighted average method from 1990s, 2000 to 2003 and 2004 to 2008.. First, social time preference method computes consumer's interest rate and the model of Pearce and Ulph(1999). Second, social investment returns method computes private returns of capital. Third, the weighted average method computes the model of Squire, L., Herman G. van der Tak(1975) and private consumption expense and the private investment expense. SDR is estimated in the rage between 2.4% and 3.9% from 2004 to 2008. It is not appropriate that the interest rate was unstable. But it is consider for social equity from present to future generations. Considering this things, downward need to the value of current SDR 5.5%.

• Journal of Global Scholars of Marketing Science
• /
• v.18 no.3
• /
• pp.27-57
• /
• 2008

Many consumers enjoy the challenge of purchasing a brand that matches well with their own values and personalities (for example, Ko et al., 2008; Ko et al., 2006). Therefore, the personalities of consumers can impact on the final selection of a brand and its brand personality in two ways: first, the consumers may incline to purchase a brand or a product that reflects their own personalities; second, consumers tend to choose a company that has similar brand personalities to those brands that are being promoted. Therefore, the objectives of this study are following: 1. Is there any empirical relationship between a consumer's personality and the personality of a brand that he or she chooses? 2. Can a corporate brand be differentiated by the brand personality? In short, consumers are more likely to hold favorable attitudes towards those brands that match their own personality and will most probably purchase those brands matching well with their personality. For example, Matzler et al. (2006) found that extraversion and openness were positively related to hedonic product value; and that the personality traits directly (openness) and indirectly (extraversion, via hedonic value) influenced brand effects, which in turn droved attitudinal and purchase loyalty. Based on the above discussion, the following hypotheses are proposed: Hypothesis 1: the personality of a consumer is related to the brand personality of a product/corporate that he/she purchases. Kuksov (2007) and Wernerfelt (1990) argued that brands as a symbolic language allowed consumers to communicate their types to each other and postulated that consumers had a certain value of communicating their types to each other. Therefore, how brand meanings are established, and how a firm communicate with consumers about the meanings of the brand are interesting topics for research (for example, Escalas and Bettman, 2005; McCracken, 1989; Moon, 2007). Hence, the following hypothesis is proposed: Hypothesis 2: A corporate brand identity is differentiated by the brand personality. And there are significant differences among companies. A questionnaire was developed for collecting empirical measures of the Big-Five personality traits and brand personality variables. A survey was conducted to the online access panel members through the Internet during December 2007 in Korea. In total, 500 respondents completed the questionnaire, and considered as useable. Personality constructs were measured using the Five-factor Inventory (NEO-FFI) scale and a total of 30 items were actually utilized. Brand personality was measured using the five-dimension scale developed by Aaker (1997). A total of 17 items were actually utilized. The seven-point Likert-type scale was the format of responses, for example, from 1 indicating strongly disagreed to 7 for strongly agreed. The Analysis of Moment Structures (AMOS) was used for an empirical testing of the model, and the Maximum Likelihood Estimation (MLE) was applied to estimate numerical values for the components in the model. To diagnose the presence of distribution problems in the data and to gauge their effects on the parameter estimates, bootstapping method was used. The results of the hypothesis-1 test empirically show that there exit certain causality relationship between a consumer's personality and the brand personality of the consumer's choice. Thus, the consumer's personality has an impact on consumer's final selection of a brand that has a brand personality matches well with their own personalities. In other words, the consumers are inclined to purchase a brand that reflects their own personalities and tend to choose a company that has similar brand personalities to those of the brand being promoted. The results of this study further suggest that certain dimensions of the brand personality cause consumers to have preference to certain (corporate) brands. For example, the conscientiousness, neuroticism, and extraversion of the consumer personality have positively related to a selection of "ruggedness" characteristics of the brand personality. Consumers who possess that personality dimension seek for matching with certain brand personality dimensions. Results of the hypothesis-2 test show that the average "ruggedness" attributes of the brand personality differ significantly among Korean automobile manufacturers. However, the result of ANOVA also indicates that there are no significant differences in the mean values among manufacturers for the "sophistication," "excitement," "competence" and "sincerity" attributes of the corporate brand personality. The tight link between what a firm is and its corporate brand means that there is far less room for marketing communications than there is with products and brands. Consequently, successful corporate brand strategies must position the organization within the boundaries of what is acceptable, while at the same time differentiating the organization from its competitors.

• Journal of Energy Engineering
• /
• v.25 no.4
• /
• pp.93-102
• /
• 2016

Vehicle-to-Grid (V2G) system, bi-direction power trading technology, enables drivers possessing electric vehicle to sell the spare electricity charged in the vehicle to power distribution company. The drivers gain profit by charging electricity in the day time of high electricity rate. In this regard, the government is preparing the policies of building and supporting V2G infrastructure and demanding the potential consumers' preference for the V2G system. This paper attempts to analyze the consumers' preference using the data from obtained a survey of randomly selected 1,000 individuals. To this end, choice experiment, an economic technique, is employed here. The attributes considered in the study are residual amount of electricity, electricity trading hours, required plug-in time, and price measured as an amount additional to current gasoline vehicle price. The multinomial logit model, which requires the assumption of 'independence of irrelevant alternatives', is applied but the assumption could not be satisfied in our data. Thus, we finally utilized nested logit model which does not require the assumption. All the parameter estimates in the utility function are statistically significant at the 10% level. The estimation results show that the marginal willingness to pay (MWTP) for one hour increase in electricity trading hours is estimated to be KRW 1,601,057. On the other hand, a one percent reduction in residual amount of electricity and one hour reduction in required plug-in time in V2G system are computed to be KRW -91,911 and -470,619, respectively. The findings can provide policy makers with useful information for decision-making about introducing and managing V2G system.

• Journal of the East Asian Society of Dietary Life
• /
• v.26 no.1
• /
• pp.1-10
• /
• 2016

The purpose of this study was to investigate the need to develop foods for the elderly based on their food preferences. A one-to-one survey method was used for data collection, and the survey was conducted on 165 elderly people (male: 47, female: 118) attending senior welfare centers in Seoul. The results of this study show that the preferred cooking method was steaming rather than stir-frying. Vegetables (4.24), fruits (4.22), Kimchi (3.87), fish (3.83), tofu (3.81), rice-cakes (3.65), dairy products/eggs (3.47), meat (3.45), noodles (3.44), seafood (3.44), poultry (3.23), bread/cookies (3.10) showed high preferences in order (p<0.05). The respondent's chewing & swallowing degree were "Not uncomfortable chew" 31.5%, "Hard food, and a big food is a little difficult to intake". 37%, "Hard food, and a big food is difficult to intake" 11.5%, "Small food, and soft foods can intake" 11.5%, and "It is difficult to intake solid food" 1.2%. Foods that were difficult to chew were meat 28.3%, seafood 15.2%, vegetables 15.2%, nuts 14.1%, fruits 12.0%, Kimchi 8.7%, and other 6.5%. For respondents, the most important factors affecting choice of elderly foods were flavor (48.5%), hygiene (43.0%), and nutrition (36.4%). The elderly wanted "Ready to eat (RTE)" 53.9%, "Ready to heat (RTH)" 15.8%, "Ready to cook (RTC)" 21.2%, and 'Fresh cut product" 9.1%.

• Information Systems Review
• /
• v.23 no.4
• /
• pp.87-102
• /
• 2021

Smart cities are attracting attention as a new economic growth engine based on new technologies and means to solve side effects of urbanization such as a surge in energy consumption, deepening environmental pollution, and an increase in crime rates. In particular, as demand for non-face-to-face services increases due to COVID-19, the role of smart cities that can provide various online and offline non-face-to-face services is becoming more important. Therefore, this study defined smart city non-face-to-face services based on literature research on the concept and underlying technology of smart city, and analyzed consumer utility for each service using Conjoint analysis. In particular, differences in user preferences between Sejong City and Busan City, which are currently designated as national smart city pilot cities in Korea, were compared and analyzed, and based on the derived results, measures to improve the competitiveness of smart city services were suggested.

• Journal of the Korea Society of Computer and Information
• /
• v.28 no.4
• /
• pp.151-163
• /
• 2023

This study aims to explore the perceptions of MZ's on eco-friendly consumption and their preferences for eco-friendly souvenirs. The top reasons for buying upcycling products include design, price, differentiation, and environmentalism, with design having the most influence on product purchase. Design is also a top consideration when buying upcycling souvenirs. Regarding environmental issues, they were most aware of the seriousness of environmental pollution and thought that recycling of fashion products was necessary. When it comes to eco-friendly fashion purchasing behaviors, the most common choice is to buy clothes that will last longer than those that are in fashion. Upcycling products are more likely to be purchased when there is a concern for the environment or an interest in eco-friendly products. In addition, those who have purchased upcycling products are more likely to be aware of and interested in eco-friendly fashion products and recycling of fashion products. Women are more likely than men to be concerned about environmental issues, and women are also more likely to be aware of upcycling souvenirs. In future research, it would be useful to study the relationship between upcycling products, environmental issues, consumer behavior, and upcycling souvenirs.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.12 no.10
• /
• pp.4328-4336
• /
• 2011

The aim of this study is to find changes of the attributes that influence the purchase of cut roses during recent five years(2007~2011) and suggest some implications on ways to promote cut roses marketing. For this purpose, a survey was conducted through the Internet among 1,100 randomly chosen people living in Seoul, Inchon and Gyeonggi Province in 2011. A total of 1,023 valid replies were received for the analysis of the survey which was carried out by the subsidiary consulting firm. The survey panels and estimation models to analyze changes of consumers' preference attributes during recent five years are same to them of Kim, et al.(2007). That is, empirical analysis tools such as ordered probit model, multinomial logit model, and conjoint analysis were used according to Kim, et al.(2007). This paper suggests several policy implications to set up the target market of cut roses and marketing mix strategy to specify the best 4P(product, price, place and promotion).

• International Area Studies Review
• /
• v.15 no.1
• /
• pp.571-583
• /
• 2011

We use the properties of competitive location equilibrium to study the relationship between the demand for education and the choice of primary residential location. Consumers can work and live in a comparatively high wage place where there are few education opportunities, or live in a place where education is available and commute to work. If education and employment are each location-specific, there are pooling equilibria in which consumers locate according to their preference for education. In general, the stronger the taste for education, the greater the attraction of living close to the education site and the lower the demand for other goods, including housing. Exploring the effects of the model parameters on the spatial distribution of consumers, we find that a higher frequency of trips taken to the education site, a shorter distance between the work place and the education site, or a greater out-of-pocket education cost each leads to a wider range of consumer types selecting to reside at the education location. We also find that a higher wage lowers the range of consumers who select to live near the education site.

• Journal of Korean Home Economics Education Association
• /
• v.23 no.3
• /
• pp.91-119
• /
• 2011

The purpose of this study was to suggest the framework reflecting the interests of students in practical problems and social issues regarding perennial problems which correspond to the characteristics and goals of the 2007 revised curriculum. This study was carried into a literature review and 406 questionnaires, filled out by the 9th grade middle school students in Seoul and Gyeonggi province, were used for analysis. The main results of this study are summarized as follows: First, six perennial problems are ascertained, Next, the middle school students were most interested in 27 items of practical problems such as mapping out their career path, self-improvement and interpersonal relations. And finally, the middle school students' important social interests are adolescence issues, job preference bias, career choice, suicide and addiction to computer, appearance and money management behavior, house ownership and conspicious consumption, and lack of time to spend with family. This study suggested the framework which corresponds to the characteristics and goals of the 2007 revised curriculum.