• Journal of Global Scholars of Marketing Science
• /
• v.20 no.2
• /
• pp.219-230
• /
• 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.

• KDI Journal of Economic Policy
• /
• v.13 no.4
• /
• pp.91-116
• /
• 1991

Market liberalization progressing simultaneously with high and rapidly rising domestic wages has created an adverse business environment for domestic firms. Korean firms are losing their international competitiveness in comparison to firms from LDC(Less Developed Countries) in low-tech industries. In high-tech industries, domestic firms without government protection (which is impossible due to the liberalization policy and the current international status of the Korean economy) are in a disadvantaged position relative to firms from advanced countries. This paper examines the division of roles between the private sector and the government in order to achieve a successful structural adjustment, which has become the impending industrial policy issue caused by high domestic wages, on the one hand, and the opening of domestic markets, on the other. The micro foundation of the economy-wide structural adjustment is actually the restructuring of business portfolios at the firm level. The firm-level business restructuring means that firms in low-value-added businesses or with declining market niches establish new major businesses in higher value-added segments or growing market niches. The adjustment of the business structure at the firm level can only be accomplished by accumulating firm-specific managerial assets necessary to establish a new business structure. This can be done through learning-by-doing in the whole system of management, including research and development, manufacturing, and marketing. Therefore, the voluntary cooperation among the people in the company is essential for making the cost of the learning process lower than that at the competing companies. Hence, firms that attempt to restructure their major businesses need to induce corporate-wide participation through innovations in organization and management, encourage innovative corporate culture, and maintain cooperative labor unions. Policy discussions on structural adjustments usually regard firms as a black box behind a few macro variables. But in reality, firm activities are not flows of materials but relationships among human resources. The growth potential of companies are embodied in the human resources of the firm; the balance of interest among stockholders, managers, and workers of the company' brings the accumulation of the company's core competencies. Therefore, policymakers and economists shoud change their old concept of the firm as a technological black box which produces a marketable commodities. Firms should be regarded as coalitions of interest groups such as stockholders, managers, and workers. Consequently the discussion on the structural adjustment both at the macroeconomic level and the firm level should be based on this new paradigm of understanding firms. The government's role in reducing the cost of structural adjustment and supporting should the creation of new industries emphasize the following: First, government must promote the competition in domestic markets by revising laws related to antitrust policy, bankruptcy, and the promotion of small and medium-sized companies. General consensus on the limitations of government intervention and the merit of deregulation should be sought among policymakers and people in the business world. In the age of internationalization, nation-specific competitive advantages cannot be exclusively in favor of domestic firms. The international competitiveness of a domestic firm derives from the firm-specific core competencies which can be accumulated by internal investment and organization of the firm. Second, government must build up a solid infrastructure of production factors including capital, technology, manpower, and information. Structural adjustment often entails bankruptcies and partial waste of resources. However, it is desirable for the government not to try to sustain marginal businesses, but to support the diversification or restructuring of businesses by assisting in factor creation. Institutional support for venture businesses needs to be improved, especially in the financing system since many investment projects in venture businesses are highly risky, even though they are very promising. The proportion of low-value added production processes and declining industries should be reduced by promoting foreign direct investment and factory automation. Moreover, one cannot over-emphasize the importance of future-oriented labor policies to be based on the new paradigm of understanding firm activities. The old laws and instititutions related to labor unions need to be reformed. Third, government must improve the regimes related to money, banking, and the tax system to change business practices dependent on government protection or undesirable in view of the evolution of the Korean economy as a whole. To prevent rational business decisions from contradicting to the interest of the economy as a whole, government should influence the business environment, not the business itself.

• Journal of Digital Convergence
• /
• v.16 no.2
• /
• pp.103-115
• /
• 2018

The potential competitiveness for new routes and resources has been theoretically discussed with regards to the Arctic route but is gradually becoming a reality as global warming increases. In June of 2017, China officially included the Northern Sea Route (NSR) as part of the Belt and Road Initiative (BRI), and major countries' interests in the NSR are greatly expanding. This paper presents the general characteristics of the NSR, NSR development in China, the expected relationship between the NSR and the BRI, and this relationship's implications for Korea. The NSR has poor facilities and information infrastructure and is not economically viable for commercial navigation due to its high-cost conditions compared to competitive routes. In order to explore the Arctic and develop the NSR, large-scale projects must be funded over a long period of time; this has caused major difficulties in development. However, as the NSR is included in the BRI, there could be an opportunity to utilize BRI funds, such as Asian Infrastructure Investment Bank (AIIB). Further, China's NSR development and the NSR development of partner countries, such as Korea, should be further stimulated. As Korea has strengths in terms of its shipbuilding technology and geographical location, which is located at the core of the NSR, Korea would have chances to expand the economic cooperation and business opportunities with China and Russia.

• Korean Journal of Environmental Agriculture
• /
• v.29 no.4
• /
• pp.374-380
• /
• 2010

This experiment was carried out to investigate the effect of light qualities and lighting types provided by LED Chamber System which designed by Rural Development Administration on growth and development of Chrysanthemum (Dendranthema grandiflorum L., cv. 'Cheonsu') plantlet cultured in vitro. The explants of single-node cuttings were exposed to monochromic or mixture radiation of blue, red, or green under continuous and intermittent lighting for 42 days. The intermittent lighting of 20 sec. on and off per minute significantly stimulated shoot elongation with lower number of internodes compared with continuous lighting treatments. However, continuous blue, red, or green light gave greater dry weight comparing the intermittent lighting, and the lowest weight was recorded at the continuous fluorescent lamp. Otherwise, the plantlet growth in dry weight or leaf area was inhibited by the green light controlled at 50 times intermittence but internode elongation was significantly increased. These results showed that the plantlets were successfully grown under the LED Chamber System controlled with different light qualities and lighting types. Quantitative growth of the plantlets was improved under the shorter photoperiod with a intermittent lighting cycle compared with continuous lighting using fluorescent lamps. It is concluded that the growth and development of in vitro plantlets such as single-node cuttings can be achieved by the controlling of light quality or lighting type during the photoperiod per day with a lower electric cost compared with conventional continuous lighting system.

• The Journal of Fisheries Business Administration
• /
• v.51 no.3
• /
• pp.1-15
• /
• 2020

The Korean government has been carrying out the marine ranch development project since 1998 with the purpose of responding to the decrease in coastal fishery resources and fishery income, preparing a systematic management system for the sustainable use of fishery resources and realizing advanced fisheries power by expanding and upgrading fisheries resource development projects. In addition, the government established the Korea Fisheries Resources Agency and promoted projects for the protection and management of fishery resources by increasing basic productivity by artificially creating marine forests in areas where whitening events occur. Since the project of building marine ranches and marine forests requires immense government financial support, it is important to estimate the economic value and thoroughly evaluate the feasibility of the project. In this paper, the project of non-market economic value of the development of marine ranches and the development of marine forests was estimated. CVM (Contingent Valuation Method) was applied as a methodology for benefits estimation. Prior to the analysis, a one-on-one interview survey was conducted with participation of 512 residents and 514 residents respectively for the project of creating a marine ranch and developing a marine forest. A DBDC (Double-Bounded Dichotumous Choice) model was applied in the WTP (Willingness To Pay) analysis model and the socioeconomic variables of the surveyor, such as sex, age, education and income, were reflected in the model. The economic benefits from the two projects, namely, building of marine ranches and developing marine forests were estimated to be equal to 4,608 won and 7,772 won per household per year, respectively. According to the results of the survey, it seems that respondents think that marine forests are more valuable than marine ranches. This is as a result of ordinary citizens' thought that the marine ranches are more cost-effective than the marine forests. The benefits estimated through this study can be used for analysis of economic feasibility prior to carrying out the project of building marine ranches and developing marine forests, and are considered to be the valuable for policy-making purposes and finding social and economic consensus.

• Journal of agricultural medicine and community health
• /
• v.32 no.3
• /
• pp.139-153
• /
• 2007

Injury in agriculture is a serious public health issue with a major impact on the lives of Korean farmers. It is one of the leading causes of death and is also a major cause of longand short-term disability. In 2001, the social cost of one accident in agricultural machinery was estimated as 97.7-97.8 million won that is 4 fold of farm household income in Korea. Effective prevention and control of injuries requires a system of surveillance that monitors the incidence of injuries, their causes, treatment and outcomes. This requires an integrated system of data collection, analysis and interpretation and communication. Creating effective injury surveillance system in Korea requires to establish a framework for a national agenda. Discussions regarding the development of the framework should address, but not be limited to issues related to Data Holdings and Linkages; Capacity and Skills; Communication; Interconnection; and Surveillance Products. Ideally, an injury surveillance system would meet the information requirements across all sectors, while allowing each to have the ongoing information it needs for its policy and programming needs. This study was carried out to develop a surveillance system of agricultural injuries in Korea. Study subjects were residents who lived in a typical agricultural area (Yangpyung area in Kyung-gi province). The main data sources were reports of village headmen, compared with data of 'National Emergency Management Agency', 'National Health Insurance Corporation', 'Insurance of National Agricultural Cooperative', and 'Emergency Medical Centers'. Each data were reviewed to validate the strengths and weaknesses.

• Journal of the Korean Society for Marine Environment & Energy
• /
• v.15 no.1
• /
• pp.38-46
• /
• 2012

This study carried out current status, characteristics, and problems of coastal environment management on semi-enclosed Masan Bay in Korea and suggests cost-effective and eco-friendly water quality management policy. The pollutants from terrestrial sources into the Bay have apparently environmental pollution problems, such as eutrophication, red tide, and hypoxia. The carrying capacity of the Bay is estimated by hydrodynamic model and ecosystem model, material circulation including bivalve in ecosystem is analyzed by the growth model of bivalve. The resulting reduction in the input load was found to be 50~90%, which is unrealistic. When the efficiency of water quality improvement through bivalve farming was assessed based on the autochthonous COD, 30.7% of the total COD was allochthonous COD and 69.3% was autochthonous COD. The overall autochthonous COD reduction rate by bivalve aquaculture farm was found to be about 6.7%. This study indicate that bivalve farming is about 31% less expensive than advanced treatment facilities that remove both nitrogen and phosphorous.

• Journal of the Korean Society of Marine Environment & Safety
• /
• v.17 no.3
• /
• pp.245-255
• /
• 2011

Korea ship management industry originated from overseas seamen employment business since 1963 in the Republic of Korea. Recently, new trend of shipping business has developed in a separate way with ship's ownership and management, that is, cargo business which is in charge of shipowner and practical affairs for ship operation which is in charge of specialized ship management company. Ship Management Industry is being focused as a new development engine with the anticipation of continuous development over 10% a year leading a competitiveness and saving cost in the world market. Therefore, "Draft Ship Management Industry Development Act" was suggested by the shipping business group and academic scholars as a result of continuous research for a long time. This was also submitted to the national assembly for adoption as a national law. The purpose of this paper is to make a contribution to the development of Korea ship management industry through the consideration of each article of this draft Act implications and suggestion of legal and institutional improvements. The result of this study will ultimately contribute to the growth of the Korean ship management industry and enhance their business scope internationally. For the above mentioned purpose, I focus on nurturing and supporting Korea ship management industry, and accreditation of superior ship management industry, etc. within the scope of the submitted draft act.

• Journal of Korea Port Economic Association
• /
• v.35 no.1
• /
• pp.139-162
• /
• 2019

In the case of Korea, policy support for shipping companies is limited, and the financial support should address the scale and period of support. Comprehensive measures are needed to boost the chances of reviving the industry. In order to secure competitiveness, the shipping companies need to make continuous efforts, prepare for the future by strengthening environmental regulations, and ensure that they have the ability to be flexible in their responses. The shipbuilding industry witnessed some improvement last year amid severe recession, but reforms are needed to address external and internal structural problems; further, to gain the characteristics of future leading industries, it is necessary to secure core technologies, as well as differentiated and specialized industrial competitiveness among rival countries through joint government intervention and joint R&D investment. Taking these steps will ensure that it has environment-friendly vessels and economic shipbuilding capabilities. The competitiveness of Busan Port should enable the utilization of the geopolitical characteristics of East Asia and contribute to: regional economic revitalization; development of its status as hub port; and securing the position of developed countries in East Asian logistics. For this purpose, it is necessary to establish a strategy to: expand the usability of shipowners/carriers; improve the quality of port operations; improve the portability of the smart system; expand the port of mega-ocean carriers; speed up port operations; and create low-cost ports. The establishment of a network of four countries will also require long-term global linkages. For example, there is a need to establish a logistics network between Eurasia and the European region, which will use the Russian Land Bridge System, as well as that of China.

• Journal of Digital Convergence
• /
• v.17 no.8
• /
• pp.229-235
• /
• 2019

As the demand for broadband multimedia including the Internet explosively increases, the advancement of the subscriber network is becoming the biggest issue in the telecommunication industry due to the surge of data traffic caused by the emergence of new services such as smart phone, IPTV, VoIP, VOD and cloud services. In this paper, we have developed WDM(Wavelength Division Multiplexing)-PON(passive optical network) based on the 1-Gigabit Reach Externder (RE) technique to reduce optical core. Particularly, in order to strengthen the market competitiveness, we considered low cost, miniaturization, integration technique, and low power of optical parts. In addition, we have developed a batch system by integrating all techniques for reliability, remote management through the development of transmission distance extension and development of capacity increase of optical line by using RE technology in existing PON network. Based on system interworking with existing commercial 1G PON devices, it can be worthy of achievement of wide nationalization and optical core reduction by using this developed system. Based on these results, we are studying development of 10G PON technology.