• The Journal of Economics, Marketing and Management
• /
• v.11 no.2
• /
• pp.23-32
• /
• 2023

Purpose: This study examines the effect of full information disclosure on seller profit when there exists information asymmetry between sellers and buyers, focusing on the risk averseness of buyers. By investigating the interaction between product quality and perceived risk through online sales data, we attempt to figure out the incentive structure of full information disclosure specifically when buyers are risk-averse, so that we can suggest more feasible information disclosure strategy to sellers. Research design, data and methodology: Our empirical model analyzes the sales data of collectible goods from a major online seller using Poisson regression. In our model, we have specifically considered risk-averseness of buyers by estimating the interaction effect between the product quality and perceived risk on seller profit, aiming for a more precise empirical analysis on sellers' incentive structure of full disclosure. Results: Our empirical analysis strongly supports the effect of interaction between product quality and perceived risk, showing that the incentive for full disclosure is much stronger when product quality is higher, and vice versa. Therefore, sellers are strongly encouraged to voluntarily reveal product weaknesses when their product quality is higher than average, while it is more profitable to hide any product defects when quality claim is lower than average. Conclusions: This study supports the related literature by confirming economic incentives for full disclosure, and also supplements and strengthens previous studies by presenting that the effect of interaction between product quality and perceived risk strongly affects seller profit. Our unique finding supports both mandatory disclosure and voluntary disclosure arguments and presents practical implications to marketing managers by suggesting that seller's incentive for revealing weaknesses depends on the level of seller's product quality.

• Health Policy and Management
• /
• v.14 no.1
• /
• pp.44-64
• /
• 2004

As of 1 July 2000 a big reform was introduced into the Korean health care system: the separation between prescribing and dispensing of drugs (SPD reform). There was, however, a big financial stake associated with pharmaceuticals, particularly before the reform, because physicians as well as pharmacists were allowed to purchase drugs at much lower costs than the insurance reimbursement. In this respect, this study focuses on the change in income and profit of both doctor's clinics and pharmacies after the reform. Data from National Health and Nutritional Survey by the ministry of health and welfare were used to estimate the income or expenditure that are financed by out-of-pocket payment of the patients, while national health insurance data etc. were used for the estimation of the income or expenditure that is financed by insurers. Average annual income per doctor's clinic increased from 299 million won to 338 million won for the three years between 1998 and 2001, whereas average annual income per pharmacy increased enormously from 60 million won to 305 million won for the same period. Average annual 'profit' increase per each doctor's clinic caused by the reform itself was estimated to range from 50 to 83 million won, while that per each pharmacy, from 23 to 87 million won. In sum, while both doctor's clinics and pharmacies are beneficiaries of the SPD reform, its positive impact is particularly prominent on the latter.

• Journal of Korean Institute of Industrial Engineers
• /
• v.21 no.3
• /
• pp.387-396
• /
• 1995

For situations where there are several markets with different profit/cost structures, an economic two-sided screening procedure using a correlated variable is developed. It is assumed that the performance variable and the screening variable are jointly normally distributed. A profit model is constructed which involves selling price, cost incurred by imperfect quality, and screening inspection cost. Methods of finding the optimal screening procedure are presented and numerical examples are given.

• Management & Information Systems Review
• /
• v.9
• /
• pp.65-80
• /
• 2002

As the growth of Internet business, many web sites have been developed their own Internet business strategies. Yet, many web sites have difficulties to make profit. In this paper, an economic model is developed to analyze web sites' quality and pricing strategies when they initiate their services as free services and develop advertising services and other charged services. By analyzing the economic model, optimal quality and prices was found. And by analyzing the optimal strategy, I found that web sites should properly decide their market share on initial customer. Finally, the importance of web sites' productivity to make profit is emphasized.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.17 no.1
• /
• pp.113-126
• /
• 1992

It is discussed how a supplier should design a quantity discount pricing schedule for multiple buyers. It is emphasized that nor only the supplier's surplus but also each buyer's surplus resultant from quantity discount should be considered in designing price schedule. It is shown that if the supplier's quantity pricing schedule is based on his/her profit function, each buyer's surplus may be maximized. And it is also shown that when the supplier's main benefit comes from the reduced number of setups, the incremental discount schedule satisfies the requirement. Formulas to determine values of parameters of the incremental discount schedule are provided.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.13 no.21
• /
• pp.25-28
• /
• 1990

In this paper we consider the one-period inventory model in which it is required to determine the selling quantity which maximizes the probability of realizing a predetermined level of profit L. The Assumptions used in this paper are willing to accept the rel life considerations, which are thestochasic supply, the discounted selling price and the discounted purchasing cost for the over-supply etc.

• Journal of Fisheries and Marine Sciences Education
• /
• v.27 no.6
• /
• pp.1812-1821
• /
• 2015

In this study, we evaluate the eco-efficiency for recycling processes of Busan Resources Recycling Center for each year from 2010-2012. It analyze the impact of global warming on the power consumption by Life Cycle Assessment. Also calculate the economic value by net profit components those are sales amount and electric charge in accordance with the process operation. On the basis of these results, each of the eco-efficiency Factor analysis and dynamics analysis of 2011 and 2012 as the base year to 2010 are performed. As a result, the impact of global warming in all the recycling processes is increased by increasing power consumption 2010-2012. But net profit is decreased. In addition, the eco-efficiency of all the recycling processes is decreased and analysis result of the eco-efficiency trends is located on the Fully non Eco-efficiency (--) level. Therefore, all the recycling processes are necessary improvement for power consumption reducing and net profit increasing to further the environmental and economically sustainable direction.

• Food Quality and Culture
• /
• v.1 no.1
• /
• pp.58-61
• /
• 2007

The purpose of this study was to develop an effective cost control model for university foodservice operations by analyzing student satisfaction, as well as foodservice income statements for operational characteristics. The specific objectives were to examine the satisfaction of students for various foodservice quality dimensions, to determine the financial activities performed in foodservice operations by operational type, to examine their income statement data, and lastly, to compare the student satisfaction for foodservice quality with the financial data of the income statements. A total of 545 students from one university answered a satisfaction survey. The one-year income statements of three union foodservices (self-operated, small-scale contracted, and large-scale contracted) at the same university were analyzed. The results showed that the self-operated union foodservice had lower student satisfaction scores and higher food and labor cost ratios. The small-scale contract management foodservice data indicated the highest student satisfaction scores and the lowest food and labor cost ratios. The large-scale contract management foodservice data showed medium scores when comparing the three union foodservice operations. Overall, by comparing the satisfaction scores and operational profits, the small-scale union foodservices showed the highest satisfaction scores and profit.

• Journal of the Korea Safety Management & Science
• /
• v.16 no.3
• /
• pp.327-333
• /
• 2014

Changes in the business environment in which intense and sustained growth and survival must meet a variety of customer needs (Q, C, D) and business side of the enterprise for profit structure reformation is absolutely necessary for innovation activities. So far, management of innovation in method BPR, PI, OVA, 6 Sigma, Strategic Purchasing, PPM, SCM etc. are being introduced. However, they have a limit of partial optimization and improvement-oriented techniques. So this paper studied the TPI(Total Profit Innovation) application in order to derive empirical methodology to maximize profitability for the domestic S foundry factory. To this end, long-term gains through structural analysis and intensity analysis to ensure continued growth and profitability strategy are devised through management Innovation analysis. And improvement projects was presented to solve main issues of five categories(Inventory, Sales Mix, Cost, Quality Cost, Skill and Work-load) We will expect the office productivity improvement and financial performance improvement and then continually accumulate and review the results.

• Journal of Distribution Science
• /
• v.20 no.5
• /
• pp.119-127
• /
• 2022

Purpose: The purpose of this study is to analyze the Cost-Effectiveness Analysis (CEA) of wholesale and retail brokerage businesses in Korea. And give managerial implications and contribute to academics. Research design, data and methodology: This research empirically analyzes the relationship between expenses and business performance. As for business performance, this research considered two financial performances; sales and profit. As for antecedent variables, this research measured three cost investment expenses; human resource management (HRM), marketing (MKT) and corporate social responsibility (CSR). This research used frequency analysis, correlation analysis, stepwise regression analysis and curve estimation analysis. Results: The result shows that HRM and CSR positive significant influence on sales yet marketing negatively significant influence on sales. And for profit, HRM and CSR give a positive significant influence. However, marketing's influence was not significant. According to curve estimation analysis, the relation between individual cost and performance, best functional relation was all quadratic functions. Some results show ∩ shape and others show shape. Conclusions: Based on this study result, implications for practical management to Wholesale and Retail Brokerage companies in Korea. And the contribution to academics is expected. Also, based on the limitation of this study, future research is suggested.