• Journal of Distribution Science
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• v.13 no.11
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• pp.47-58
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• 2015

Purpose - This study aims to seek determinants of department store sales commission rates under consignment contracts based on transaction cost theory, the power-dependence view, and the resource-based view. A consignment contract is a unique contract where the retailer, over a given period, takes possession of goods owned by a supplier, promotes the sales of these goods, and receives a profit share from their sales. Under this contract, the supplier owns the goods until they are sold. In department stores in South Korea, over 70% of overall sales comes through consignment contracts. In other words, this is the most popular contract agreement between large retailers and vendors in South Korea. Consignment contracts yield high profits to department stores with minimal sales uncertainty, stock cost, and marketing investment. Many suppliers believe the consignment contract commission rates are too high. However, department stores disagree. They state that the commissions are not high as they generate new value for the suppliers by accumulating up-to-date merchandise and supporting various marketing programs on their behalf. Recently, consignment contracts have been critically examined and scrutinized by politicians, mass media, and the public of Korea. This study further intends to derive implications reflecting both buyer and seller perspectives as well as offer insights to policy makers in making appropriate decisions. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 164 suppliers, which currently have relationships with department stores. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. The data were analyzed using SPSS 18.0 and AMOS structural equation modeling program Results - For the transaction cost theory and the power-dependence view, the results indicated that product diversity and demand volatility had a positive impact on the sales dependence on a department store. Dependence in turn had a positive effect on the sales commission under the consignment contract. Based on the resource-based view, the department store's marketing capability, the supplier's perception toward merchandising, and supporting activities could enhance the department store's channel leadership in the buyer-seller relationship. Subsequently, the channel leadership had a positive effect on the sales commission. However, product complexity had no relationship with department store dependence. Conclusions - This is the first empirical research that investigates the determinants of sales commissions under consignment contracts in the domestic retail industry. This study reveals several theoretical and practical implications for both marketing scholars and marketers. In terms of theoretical implication, this study integrated and enlarged certain theoretical background, such as transaction cost theory, the power-dependence view, and the resource-based view, to explain the determinants of sales commissions under consignment contracts that include sales revenue. From a business management viewpoint, this research offers useful insights for policy makers by applying two different perspectives, both the manufacturer and the retailer, in terms of the sales commission issue under a consignment contract.

• The Korean Journal of Applied Statistics
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• v.29 no.3
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• pp.409-424
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• 2016

This study analyzed the causal relationship among factors that influence the purchase intensions for individual pensions which have a growing importance as a financial means after retirement. For this purpose, structural equation modeling based on the survey data (N = 928) was conducted to analyze psychological factors and financial factors comprehensively. According to empirical results of the structural equation, in the case of non-subscribers of individual pensions, potential longevity and coping efficacy influenced the purchase intensions for individual pensions fully mediated by fear and worry about longevity. Trust in insurers and risk tolerance directly influenced the purchase intensions for individual pensions. These show that trust in insurers is the most important factor in purchase intensions for individual pensions. Also, only trust in insurers give a direct impact on individual pensions in the case of individual pension subscribers. Longevity-related emotional side is expected to help in marketing activities that target potential customers signing individual pensions. In addition, trust in insurers has the greatest impact on new and additional subscriptions that represent critical efforts to improve trust in insurers.

• Journal of Korea Water Resources Association
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• v.51 no.3
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• pp.263-272
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• 2018

For the design of hydraulic structures, the design flood discharge corresponding to a specific frequency is generally used by using the design storm calculated according to the rainfall-runoff relationship. In the past, empirical equations such as rational equations were used to calculate the peak flow rate. However, as the duration of rainfall is prolonged, the outflow patterns are different from the actual events, so the accuracy of the temporal distribution of the probability rainfall becomes important. In the present work, Huff's quartile method is used for the temporal distribution of rainfall, and the third quartile is generally used. The regression equation for Huff's quadratic curve applies a sixth order polynomial equation because of its high accuracy throughout the duration of rainfall. However, in statistical modeling, the regression equation needs to be concise in accordance with the principle of simplicity, and it is necessary to determine the regression coefficient based on the statistical significance level. Therefore, in this study, the statistical significance test for regression equation for temporal distribution of the Huff's quartile method, which is used as the temporal distribution method of design rainfall, is conducted for 69 rainfall observation stations under the jurisdiction of the Korea Meteorological Administration. It is statistically significant that the regression equation of the Huff's quartile method can be considered only up to the 4th order polynomial equation, as the regression coefficient is significant in most of the 69 rainfall observation stations.

• The Journal of The Korea Institute of Intelligent Transport Systems
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• v.12 no.3
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• pp.103-113
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• 2013

Shock wave model describes the propagation speed of kinematic waves in traffic flow. It was first presented by Lighthill and Whitham and has been deployed to solve many traffic problems. A recent paper pointed out that there are some traffic situations in which shock waves are not observable in the field, whereas the model predicts the existence of waves. The paper attempted to identify how such a counterintuitive conclusion results from the L-W model, and resolved the problem by deriving a new asymptotical shock wave model. Although the asymptotical model successfully eliminated the paradox of the L-W model, the validation of the new model is confined within the realm of the deceleration flow situation since the model was derived under such constraint. The purpose of this paper is to derive the remaining counter asymptotical shock wave model for acceleration traffic flow. For this, the vehicle trajectories in a time-space diagram modified to accommodate the continuously increased speed at every instant in such a way that the relationship between the spacing from the preceding vehicle and the speed of the following vehicle strictly follows Greenshield's model. To verify the validity of the suggested model, it was initially implemented to a constant flow where no shock wave exists, and the results showed that there exists no imaginary shock wave in a homogeneous flow. Numerical applications of the new model showed that the shock wave speeds of the asymptotical model for the acceleration flow tend to lean far toward the forward direction consistently. This means that the asymptotical models performs in a systematically different way for acceleration and for declaration flows. Since the output difference among the models is so distinct and systematic, further study on identifying which model is more applicable to an empirical site is recommended.

• Journal of Environmental Policy
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• v.14 no.4
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• pp.23-44
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• 2015

The policy aimed at introducing a Bonus-Malus system to reduce GHG and raise the market share of small cars is scheduled to go into effect in South Korea in 2020. Although the policy was originally planned to be enforced from 2015, the Ministry of Trade, Industry and Energy argued that the system brings low reduction effect and relative disadvantage to domestic small cars and brought arguments in 2014. As a result, the enforcement was pushed back. Related studies are mainly focused on offering statistical estimation of the policy's effect to support the arguments, and few theoretical studies were published given that there was not enough time until 2015 back then. The author approached the issue with mathematical modeling in order to give theoretical basis for sophisticated empirical studies. If car suppliers have market power and strategically set their prices, the impact of Bouns-Malus on car prices would be lower than what was originally intended. In case only a part of the car market loses its market power, the effect of the policy would be improved. Assume that the Bonus-Malus is currently at an optimal level and the car market structure is undergoing changes, then the direction of the new optimal level would depend on the elasticity of demand of each market and substitute elasticity. For example, if the car market becomes more monopolistic while the demand for big cars is elastic, demand for small cars is inelastic and substitution elasticity is low, then the new optimal level of Bonus-Malus should be higher.

• The Journal of Korean Institute of Electromagnetic Engineering and Science
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• v.25 no.3
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• pp.348-356
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• 2014

The existing effective path-length model of ITU-R has some drawbacks: The prediction error is quite large compared to domestic measurement data and it is an empirical model in which the physical characteristics of rain cells are not considered. In this paper, a theoretical model for effective path-length using the rain-cell concept was proposed and its validity was verified using the measurement data. To analyze the statistical characteristics of rain cell parameters, the weather-radar data(CAPPI) measured by Korea Meterological Administration were analyzed and the correction factor was properly introduced to fit the Chollian beacon measurement data of ETRI(Electronics and Telecommunications Research Institute). To verify the proposed effective path-length model, it was compared with the Mugunghwa No. 5 beacon data measured in Chungnam National University with the support of ADD(Agency for Defense Development). It was confirmed that the prediction results of the proposed model are in good agreement with the measurement data.

• International Commerce and Information Review
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• v.16 no.5
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• pp.319-342
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• 2014

In this paper, we aim to advance our knowledge about factors influencing rapid globalization of firms in Korea. Through analysing empirically, this study focuses on the effect of technology competencies and marketing competencies and network in Korea rapid globalization. The subject of this study was foreign subsidiaries that entered in korea to expand their business overseas. This study are examined by the sample of 186 foreign subsidiaries operating in Korea. The empirical results from structural equation modeling and regression analysis. Our findings show that marketing competencies, technological competencies and network are key drivers of rapid globalization in Korea market. Meanwhile, we also find that marketing competencies related to overseas market development in B2C foreign subsidiaries and technology competencies related to overseas market development in B2B foreign subsidiaries. And it was revealed in the path analysis using AMOS model that the relevancy of the study model was higher for B2C foreign subsidiaries than B2B foreign subsidiaries and the explanatory power(statistic index) revealed to be 31.9% higher for B2C foreign subsidiaries than B2B foreign subsidiaries in the effect relation on the rapid globalization in Korea market. Company type (B2C/B2B) was revealed moderating factor on the rapid globalization. Our study confirmed that marketing, technological competencies and network of firms effects on the rapid globalization in Korea.

• Korean journal of communication and information
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• v.26
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• pp.291-326
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• 2004

This study explores the process within which whereas the majority of Korean people agree on the principle of the unification policy, the opinions about the concrete policy alternatives related to the principle do not converge. To account for this phenomenon, a.k.a. 'the principle-policy puzzle in public opinion', this study constructs and tests a covariance structural model with the explanatory variables such as political knowledge, political ideology, authoritarian personality, social distance, and the evaluation of the president. In addition, the interaction effects of the interpretive frames regarding the unification policy and political knowledge along with the main effects of socio-demographic variables are tested to explain the degree to which people show the gap between the agreements on the unification principle and policy alternatives. A sample of 600 Seoul people are recruited to provide the data for the analysis of structural equation modeling. Ie was found that the proposed model receives empirical supports from the data. In particular, political knowledge and authoritarian personality play key roles in accounting for the complex process of public opinion in the 'principle-policy puzzle'. The findings were discussed in terms of the representations of the Engagement policy in the mass media and the public perception of them.

• The Journal of Society for e-Business Studies
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• v.14 no.4
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• pp.95-118
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• 2009

Virtual community, which is formed on the internet, is expected to serve the needs of members for communication, information, and knowledge sharing. The executives of organizations should consider operating strategy of virtual community as a new innovation or knowledge pool since members share knowledge. However, many virtual community have failed due to members' low willingness to engage and furthermore to share knowledge with other members. Thus, there is a need to understand and foster the determinants of members' loyalty in virtual community. The objective of this study is to develop an integrated model designed to investigate and explain the relationships between contextual factors, personal perceptions of virtual community, usefulness, ease of use, familiarity, members' trust, reputation, community trust, attitude, satisfaction and loyalty. Empirical data was collected from 286 internet users and tested using structural equation modeling to verify the fit of the hypothetical model. The results show that the usefulness, familiarity significantly influences attitude and members' trust is significantly influence the community trust. And I confirmed that ease of use and attitude play the role of determinants in making the satisfaction, community trust and reputation influence the satisfaction that have the direct effect to making the loyalty. The results of the study can be used to identify the loyalty in virtual community. By investigating the impacts of contextual factors and personal perceptions on virtual community, the integrated model better explains behavior than other proposed models. This study might help executives of virtual communities and organizations to manage and promote community trust, attitude, satisfaction to stimulate members' willingness to revisit the community and futhermore enhance their virtual community loyalty.

• Journal of dental hygiene science
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• v.13 no.1
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• pp.1-12
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• 2013

This study aims to measure oral health knowledge and practice level among dental clinic patients, and examine their relationships with decayed, missing and filled teeth (DMF) index and the oral health-related quality of life (QOL). Empirical data have been collected from 311 patients through structured questionnaires and dental examinations conducted in Busan area. According to the analysis of causal relationship, oral health knowledge turned out to have a direct effect on oral health practices, which exerted both direct and indirect effects on DMF index and oral health-related QOL. While DMF index directly affected the oral health-related QOL, oral health knowledge proved to have only an indirect effect on DMF index and oral health-related QOL, mediated by oral health practices. Considering all these findings, effective oral health education and other intervention programs should focus on motivating people to participate in the active practices of desirable oral health behaviors, which will lead to the prevention of oral diseases and the subsequent improvement in the QOL.