• Journal of the Korean Operations Research and Management Science Society
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• v.36 no.4
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• pp.17-27
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• 2011

The coupon issued by Korail (Korail's coupon) is characterized by the properties such as a discount rate, an issuing region, a selling region, and a practically discounted rate. The purpose of this study is to investigate their impacts on the redemption time using Log-Normal distribution, and to derive managerial implications for improving Korail's discount program. The result showed that the redemption time was shorter or longer depending a discount rate, an issuing region, a selling region, and a practically discounted rate.

• Journal of the East Asian Society of Dietary Life
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• v.16 no.4
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• pp.481-487
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• 2006

Coupons that restaurants are competitively issuing have considerable effects on company profits, depending on the performance of redemption rate. The purpose of the study is to identify the coupon type that consumers most prefer, among coupon types the most frequently issued restaurants, and to investigate consumers' coupon redemption rate and revisit intention based on brand familiarity. In this study, freshmen and sophomores in the 2-year colleges and the universities located in Seoul and Kyoungi province were sampled by convenience sampling, and surveyed about 3 coupon types (free meal coupon, discount rate coupon, discount price coupon) with 150 copies of questionnaire for each type, totally 450 copies randomly distributed. As a result, relationship between coupon redemption intention and revisit intention based on brand familiarity was that, the higher brand familiarity was, the higher coupon redemption intention and revisit intention were, regardless of coupon types. This study lies in that it approached to discount method, one of the coupon types, by further subdividing into discount rate and discount price, and that redemption intention and revisit intention were studied by taking account of coupon familiarity.

• Journal of Climate Change Research
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• v.4 no.2
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• pp.127-140
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• 2013

The present work analyzes the source and level of discount rate/benchmark for investment analysis on almost 4 thousand registered CDM, one of the Kyoto mechanisms, projects. As a result of analysis, the source and level of discount rate is changed as the passage of time and there are some countries that prefer certain sources and level. By project types, there is no difference among the sources but the level is not same. As the level of capital market development higher, there is a trend on changes in applying the source of discount rate, but the level is not different among groups. Finally there are no specific preferences on the sources on applying discount rate by DOE. And On analyzing, whether including China CDM projects or not influence the analysis results because China have registered a large number of projects.

• KDI Journal of Economic Policy
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• v.39 no.2
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• pp.75-98
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• 2017

This paper aims to estimate the social discount rate (SDR) rather than dig into its theoretical foundation. As SDRs can be derived by investigating both the rate of return on investment and the social time preference rate, we estimate the marginal productivity of both private and public capital and the time preference rate based on the Euler equation. In order to provide a single representative SDR, the weighted averages of the marginal productivity and time preference rate, whose weights are determined by the flow of funds data reflecting the social demand of funds, are presented. Based on the empirical results, we argue that the marginal productivity of private capital stands in the middle of the 3% range while that of public capital varies from 4.5% to 8.6%, with the time preference rate showing a decreasing trend from 3.2% in the early 2000s to 1.2% by around 2030. The single representative SDR or the weighted SDR is estimated to be approximately 3.0~4.5% and expected to continue its downward trend for the foreseeable future.

• Asia Marketing Journal
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• v.12 no.4
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• pp.55-78
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• 2011

Recently strategic alliance between business firms has become prevalent to overcome increasing competitive threats and to supplement resource limitation of individual firms. As one of allianced sales promotion activities, a new type of discount program, so called "Alliance Card Discount", is introduced with the partnership of credit cards and loyalty cards. The program mainly pursues short-term sales growth by larger discount scheme while spends less through cost share among alliance partners. Thus this program can be regarded as cost efficient discount promotion. But because there is no solid evidence that it can really deliver profitable sales growth, an empirical study for its effects on sales and profit should be conducted. This study has two basic research questions concerning the effects of allianced discount program ; 1)the possibility of sales increase 2) the profitability of the discount driven sales. In F&B industry, sales increase mainly comes from increased guest count. Especially in family restaurants, to increase the number of guests we need to enlarge the size of visitor group (number of visitors for one group) because customers visit by group in a special occasion. And because they pay the bill by group(table), the increase of sales per table is a key measure for sales improvement. The past researches for price & discount sensitivity and reference discount rate explain that price sensitive consumers have narrow reference discount zone and make rational purchase decision. Differently from all time discount scheme of regular sales promotions, the alliance card discount program only provides the right to get discount like discount coupon. And because it is usually once a month opportunity given by the past month usage level, customers tend to perceive alliance card discount as a rare chance to get. So that we can expect customers try to maximize the discount effect when they use the limited discount opportunity. Considering group visiting practice and low visit frequency of family restaurants, the way to maximize discount effect should be the increase the size of visit group. And their sensitivity to discount and rational consumption behavior defer the additional spending for ordering high price menu, even though they get considerable amount of savings from the discount. From the analysis of sales data paid by alliance discount cards for four months, we found the below. 1) The relation between discount rate and number of guest per table is positive : 25% discount results one additional guest 2) The relation between discount rate and the spending per guest is negative. 3) However, total profit amount per table is increased when discount rate is increased. 4) Reward point accumulation & redemption did not show any significant relationship with the increase of number of guests. These results suggest that the allianced discount program substantially contributes to sales increase and profit improvement by increasing the number of guests per table. Though the spending per guest is decreased by discount rate increase, the total amount of profit per table is improved. It seems the incremental profit by increased guest count offsets the profit decrease. Additional intriguing finding is the point reward system does not have any significant impact on the increase of number of guest, even if the point accumulation & redemption of loyalty program are usually regarded as another saving offers by customers. In sum, because it is proved that allianced discount program with credit cards and loyalty cards is effective to both sales drive and profit increase, the alliance card program could be recommended as strategically buyable program.

• Journal of the Korea Fashion and Costume Design Association
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• v.13 no.1
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• pp.1-10
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• 2011

The purpose of this study was to compare consumers' post acquisition behavior by analyzing the influence of consumer involvement, product price and discount. The data were collected through a survey based on three stages: two pre-tests and a main survey conducted in the U.S and Korea. A total of 520 participants from each country were used. The results of this study are as follows. First, clothing involvement, price and discount had no difference, but there was relationship on discount rate between countries. In addition, there were gender differences in involvement between the countries, and Korea showed a significant relationship in price discount. In general, the involvement of both American and Korean students was high and women had higher involvement than men indicating that women showed more interest in clothing than men. The discount rate was higher in the U.S and had a wider range of discount than Korea. Second, consumer involvement and price discount affected the satisfaction of Korean students whereas only involvement affected the satisfaction of American students. This study will extend understanding of consumer satisfaction between Korea and the United States. With the results of this study, apparel marketers will be able to understand how consumer involvement, price and discount may influence consumer satisfaction and develop effective marketing strategies for their profit.

• Journal of Energy Engineering
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• v.23 no.4
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• pp.256-262
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• 2014

Cycle length of domestic nuclear power plants is determined by the demand-supply plan of utility company. The target cycle length is achieved by adjusting the number of feed fuel assembly and fuel enrichment. Traditionally, utility company first select the number of feed fuel assembly and then find out the fuel enrichment to achieve the special cycle length. But it is difficult to find out if this method is most economical than any other combinations of the enrichment and batch size satisfying the same cycle length. In this paper, core depletion calculation is performed to find out the optimum combination of the enrichment and batch size for given target cycle length in terms of fuel cycle cost using commercial core design code; CASMO/MASTER code. To minimize the uncertainty resulting from transition core analysis, levelized fuel cycle cost analysis was applied to the equilibrium cycle core in order to determine the optimum combination. The sensitivity study of discount rate was also carried out to analyze the levelized fuel cycle cost applicable to countries with different discount rates. From the levelized fuel cycle cost analysis results, the combination with smaller batch size and higher fuel enrichment becomes more economical as the discount rate becomes lower. On the other hand, the combination with higher batch size and lower fuel enrichment becomes more economical as the discount rate becomes higher.

• Journal of the Korean Operations Research and Management Science Society
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• v.17 no.2
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• pp.15-23
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• 1992

This paper dvelops an inventory model with partial backorders considering both inflation rate and discount rate under the situation of deterministic demand and lead time and then make an economic analysis. Especially, the inventory model with partial backorders provided here is the inventory model minimizing annual total cash outflows, which is extended by the addition of inflation rate and discount rate into "Inventory Model with Partial Bakorders" of Park [6]. An iterative solution procedure is developed to find an optimal inventory policy. To provide guidelines for economic analysis of inventory model with partial backorders, sensitivity analysis for selected values of parameters is performed.performed.

• Asia pacific journal of information systems
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• v.23 no.2
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• pp.1-20
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• 2013

Social commerce has been gaining explosive popularity, with typical examples of the model such as Groupon and Level Up. Both local business owners and consumers can benefit from this new e-commerce model. Local business owners have a chance to access potential customers and promote their products in a way that could not have otherwise been easily possible, and consumers can enjoy discounted offerings. However, questions have been increasingly raised about the value and future of the social commerce model. A recent survey shows that about a third of 324 business owners who ran a daily-deal promotion in Groupon went behind. Furthermore, more than half of the surveyed merchants did not express enthusiasm about running the promotion again. The same goes for the case in Korea, where more than half of the surveyed clients reported no significant change or even decrease in profits compared to before the use of social commerce model. Why do local business owners fail to exploit the benefits from the promotions and advertisements through the social commerce model and to make profits? Without answering this question, the model would fall under suspicion and even its sustainability might be challenged. This study aims to look into problems in the current social commerce transactions and provide implications for the social commerce model, so that the model would get a foothold for next growth. Drawing on justice theory, this study develops theoretical arguments for the effects of transaction characteristics on consumers' distributive justice and purchase intention in the social commerce. Specifically, this study focuses on two characteristics of social commerce transactions-the discount rate and the purchase rate of products-and investigates their effects on consumers' perception of distributive justice for discounted transactions in the social commerce and their perception of distributive justice for regular-priced transactions. This study also examines the relationship between distributive justice and purchase intention. We conducted an online experiment and gathered data from 115 participants to test the hypotheses. Each participant was randomly assigned to one of nine manipulated scenarios of social commerce transactions, which were generated based on the combination of three levels of purchase rate (high, medium, and low) and three levels of discount rate (high, medium, and low). We conducted MANOVA and post-hoc ANOVA to test hypotheses about the relationships between the transaction characteristics (purchase rate and discount rate) and distributive justice for each of the discounted transaction and the regular-priced transaction. We also employed a PLS analysis to test relations between distributive justice and purchase intentions. Analysis results show that a higher discount rate increases distributive justice for the discounted transaction but decreases distributive justice for the regular-priced transaction. This, coupled with the result that distributive justice for each type of transaction has a positive effect on the corresponding purchase intention, implies that a large discount in the social commerce may be helpful for attracting consumers, but harmful to the business after the promotion. However, further examination reveals curvilinear effects of the discount rate on both types of distributive justice. Specifically, we find distributive justice for the discounted transaction increases concavely as the discount rate increases while distributive justice for the regular-priced transaction decreases concavely with the dscount rate. This implies that there exists an appropriate discount rate which could promote the discounted transaction while not hurting future business of regular-priced transactions. Next, the purchase rate is found to be a critical factor that facilitates the regular-priced transaction. It has a convexly positive influence on distributive justice for the transaction. Therefore, an increase of the rate beyond some threshold would lead to a substantial level of distributive justice for the regular-priced transaction, threrby boosting future transactions. This implies that social commerce firms and sellers should employ various non-price stimuli to promote the purchase rate. Finally, we find no significant relationship between the purchase rate and distributive justice for the discounted transaction. Based on the above results, we provide several implications with future research directions.

• Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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• v.22 no.2
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• pp.19-25
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• 2008

In this paper, we have proposed a new market transformation policy to improve the existing rate discount program for the mid-night demand. The rate discount program for the mid-night demand is designed to relieve day-time demand and grow night-time demand since 1985. From this program, customer can save their electricity bills and at the same time electric utilities increase the load factor and utilization rate for the base-load generators such as nuclear and coal. Since this program has been introduced however, many economic problem has been brought out. This paper, therefore, has suggested new market transformations to resolve this problem, whereby economic loss can be shrink while all the interested party can minimize their individual benefits.