• Journal of the Korean Society of Clothing and Textiles
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• v.24 no.4
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• pp.498-509
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• 2000

This study is designed to find out the effects of price on the consumers'perceived quality, value and purchase willingness of clothing in order to get the basic information that is needed in helping clothing manufacturer's strategy for merchandising promotion on price. This study was conducted by means of a questionnaire survey of university students in seoul. SAS program was used for analysis. The conclusions of this study as follow: first, with respect to the price level of clothing, consumers evaluate the perceived quality of high-price case higher than that of low-price case, and evaluate the perceived value and purchase willingness of low-price case higher than those of high-price case. Second, with respect to the brand name level of clothing, consumers evaluate the perceived quality, perceived value and purchase willingness of well-known brand case higher than those of unknown brand can. Third, the interaction between price and brand dosen't appear. Thus from this result we can know that price and brand have the same amount of effect in both single-quo case and multi-que case. Forth, with respect to the price and brand name level of clothing, there exist significant differences in perceived quality, perceived value, and brand name level. Fifth, in the study of the relationship between perceived quality and purchase willingness and the relationship between the perceived value and purchase willingness, perceived value has more effect on purchase willingness than perceived quality.

• Journal of Labour Economics
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• v.29 no.3
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• pp.49-74
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• 2006

Even though the foreign currency crisis in 1997 and the introduction of Inflation Targeting(IT) have been considered as key factors for current low inflation, there have been few attempts to explain what is the contribution of the dynamics of wage and price to the low inflation. This study is to analyze the relation between wage and price especially focusing on how it through the economic events using cointegration instability tests. The result shows that the short and long-run relation between two have variables have changed through the period of 1997~1999. In the first subperiod, wage tended to respond immediately to inflation shocks, whereas price responded to wage shocks in a long-run. Moreover, the cointegration coefficient of price was equal to 1. In the second subperiod, however, the dynamics from price to wage has been weakened and the real wage has declined apparently. These findings mean that the workers have failed to raise their wage at the rate of inflation, that is, the so-called wage-price spiral was broken for the second subperiod. The implication of this study is that the relatively weak bargaining power of workers, or the condition of labor market, is one of the primary factors of the current low inflation.

• Korean Management Science Review
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• v.26 no.3
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• pp.67-78
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• 2009

In this paper, I analyze the mobile broadband services market characterized by vertical and horizontal differentiation. Vertical differentiation as service quality differentiation is based on the transmission speed of mobile internet service and horizontal differentiation as spatial differentiation is based on the service coverage. Theoretical explanations for the competitive price policy have been developed in the game context of WiBro which represent the high quality within the limited service coverage and HSDPA which represent relatively low quality with nation-wide service. When the WiBro has a mobile broadband service quality advantage and the difference in quality is sufficiently low, the price of WiBro with limited service coverage is relatively lower than that of HSDPA. This occurs because the advantage of WiBro's vertical service differentiation is offset by the disadvantage of horizontal differentiation. The difference in the quality of mobile internet service, however, is not too high, the price of WiBro is relatively higher than that of HSDPA. Moreover, when the service quality of WiBro is sufficiently high, the low quality HSDPA service faces no demand.

• Journal of Global Scholars of Marketing Science
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• v.19 no.4
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• pp.24-31
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• 2009

Firms produce various products that differ by function, design, color, etc. Product proliferation occurs for three different reasons. When there exist economies of scope, the unit cost for a product is lower when it is produced in conjunction with another product than when it is produced separately. Second, consumers are heterogeneous in the sense that they have different tastes, preferences, or price elasticities. A firm can earn more profit by segmenting consumers into different groups with similar characteristics. For example, product proliferation helps a firm increase profits by satisfying various consumer needs more precisely. The third reason for product proliferation is based on strategy. Producing a number of products can not only deter entry by providing few niches, but can also cause a firm to react efficiently to a low-price entry. By producing various products, a firm can reduce niches so that potential entrants have less incentive to enter. Moreover, a firm can produce new products in response to entry, which is called fighting brands. That is, when an entrant tries to attract consumers with a low price, an incumbent introduces a new lower-quality product while maintaining the price of the existing product. The drawback of product proliferation, however, is cannibalization. Some consumers who would have bought a high-price product switch to a low-price product. Moreover, it is possible that proliferation can decrease profits when a new product is less differentiated from a rival’s than is the existing product because of more severe competition. Many studies have analyzed the effect of product line rivalry in the areas of economics and marketing. They show how a monopolist can solve the problem of cannibalization by adjusting quality in a market where consumers differ in their preferences for quality. They find that a consumer who prefers high-quality products will obtain his or her most preferred quality, but a consumer who has not such preference will obtain less than his or her preferred quality to reduce cannibalization. This study analyzed the effects of product line rivalry in a duopoly market with two types of consumers differentiated by quality preference. I assume that the two firms are asymmetric in the sense that an incumbent can produce both high- and low-quality products, while an entrant can produce only a low-quality product. The effects of product proliferation can be explained by comparing the market outcomes when an incumbent produces both products to those when it produces only one product. Compared to the case in which an incumbent produces only a high-quality product, the price of a low-quality product tends to decrease in a consumer segment that prefers low-quality products because of more severe competition. Prices, however, tend to increase in a segment with high preferences because of less severe competition. It is known that when firms compete over prices, it is optimal for a firm to increase its price when its rival increases its price, which is called a strategic complement. Since prices are strategic complements, we have two opposing effects. It turns out that the price of a high-quality product increases because the positive effect of reduced competition outweighs the negative effect of strategic complements. This implies that an incumbent needs to increase the price of a high-quality product when it is also introducing a low-quality product. However, the change in price of the entrant’s low-quality product is ambiguous. Second, compared to the case in which an incumbent produces only a low-quality product, prices tend to increase in a consumer segment with low preferences but decrease in a segment with high preferences. The prices of low-quality products decrease because the negative effect outweighs the positive effect. Moreover, when an incumbent produces both kinds of product, the price of an incumbent‘s low-quality product is higher, even though the quality of both firms’ low-quality products is the same. The reason for this is that the incumbent has less incentive to reduce the price of a low-quality product because of the negative impact on the price of its high-quality product. In fact, the effects of product line rivalry on profits depend not only on changes in price, but also on sales and cannibalization. If the difference in marginal cost is moderate compared to the difference in product quality, the positive effect of product proliferation outweighs the negative effect, thereby increasing the profit. Furthermore, if the cost difference is very large (small), an incumbent is better off producing only a low (high) quality product. Moreover, this study also analyzed the effect of product line rivalry when a firm can determine product characteristics by focusing on the issue of fighting brands. Recently, Korean air and Asiana airlines have established budget airlines called Jin air and Air Busan, respectively, to confront the launching of budget airlines such as Hansung airline and Jeju air, among others. In addition, as more online bookstores have entered the market, a leading off-line bookstore Kyobo began its own online bookstore. Through fighting brands, an incumbent with a high-quality product can increase profits by producing an additional low-quality product when its low-quality product is more differentiated from that of the entrant than is its high-quality product.

• Journal of the Korean Society of Costume
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• v.54 no.6
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• pp.1-12
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• 2004

Price is one of the most important components of marketing mix. For consumers, price is an always-existing cue and definite evaluation criteria. However, information on price is meaningful only when it is perceived. Sources of price perception can be the actual retail price at the selling point, the internal reference price expected by consumers for a certain clothing product, and the external reference price advertised by marketer such as the price before mark-down. The purpose of this study was to investigate the influence of internal reference price on consumers' purchasing process of clothing products. A questionnaire including clothing stimuli was developed in order to assess consumers' internal reference price level. Usable data from 680 adult female urban residents were used for data analysis. Results indicated that consumers with relatively lower internal reference price tend to react low-price focused external reference price and use discount stores and unit price promotions. Consumers with relatively higher internal reference price advertisement are likely to have higher level of education, tend to infer price information to higher quality or prestige of products, and purchase clothing with regular retail price or coupons.

• Korean Journal of Construction Engineering and Management
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• v.11 no.2
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• pp.35-44
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• 2010

Currently, the unit price of public construction projects are not being evaluated appropriately for several reasons. First, the evaluation of the unit price differ per nature of the bidding process and its estimation process. In fact, pricing is determined to meet the total price in turnkey projects and to pass the low bid price deliberation process in unit price projects, and thus, such prices cannot be said to be reasonable prices per public project. After the contract is awarded, however, the prices determined without taking into consideration the characteristic of each bidding process and price estimate process are used for the valuation of progress payment, design changes, and escalation. Furthermore, this is also being applied to other low bid deliberation process as actual public project unit price, thereby affecting other processes as well. In effect, this system increases the risks for both the owner and the bidder who have determined the unit price. This research examines the risk factor and its extent in order to properly manage it in preparation for the future.

• The Research Journal of the Costume Culture
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• v.19 no.3
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• pp.565-578
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• 2011

The purpose of this study was to examine the emotional experience dimension on the brand of the low price cosmetics and to empirically investigate the effect of emotional experience on the relationship between customers and brand. Data were collected for 10 days starting on March $2^{nd}$ 2009. Questionnaires were distributed to 517 female college students who experienced to purchase the products of the low price cosmetic brand and answers were collected. The results of analysis on collected data showed that the emotional experience was classified into sense, spatial environmental emotion, sales promotion emotion, salesperson emotion and visual/verbal identity, and emotional experience on low price cosmetic brand had a positive effect on the relationship between customer and brand. Specifically, it was showed that emotional experience on low price cosmetic brand significantly affected the customer satisfaction, brand trust and brand attachment. In terms of effect of emotional experience on customer satisfaction, the orders in the degree of influence were following: the sense, spatial environmental emotion, sale promotion emotion and salesperson emotions. In terms of effect of emotional experience on brand trust, the orders in the degree of influence were following: the sense, salesperson emotions, sale promotion emotion and spatial environmental emotion. In terms of effect of emotional experience on brand attachment, the orders in the degree of influence were following: the sense, spatial environmental emotion, salesperson emotions, visual/verbal identity and sale promotion emotion.

• Journal of the Korean Society of Clothing and Textiles
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• v.27 no.5
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• pp.475-484
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• 2003

The objectives of this study were to investigate the consumers' general perceptions and attitudes in response to the leaflet fashion advertisements, and to examine how much differently the level of price and the advertisement type affect brand images and consumers' buying intentions. Subjects for this study were 192 female university students in the twenties. Through the pre-test, several casual brands with such various the level of price as high, middle. and low were selected. Stimuli consisted of 8 photographs of the advertisements types which were manipulated according to the price level(highㆍmiddle & low) and the advertisements type(generalㆍleaflet). The results showed that consumers got the information on the fashion products mostly from the advertisements in magazines. It was also found that consumers showed the highest interests on the design and the discount rate of prices in the leaflet fashion advertisements. The price range(highㆍmiddle & low) of casual brands had significantly affected on the brand image and the consumers' buying intention. And the higher the prices of casual brands were, the worse brand images were when products were advertised by fashion leaflets. The advertisements types(generalㆍleaflet) gave some influences only on the brand image. Based on these results, marketing strategies of fashion advertising would be ,suggested.

• Asia Marketing Journal
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• v.15 no.4
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• pp.33-49
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• 2014

Environmental concern has been an important issue for a few decades, and the extent of consumer demand for eco-friendly consumption has been increased. This study seeks to investigate consumers' willingness to pay (WTP) a premium for eco-friendly cosmetics. This study evaluates how much more a consumer is willing to pay for eco-friendly cosmetics and examines significant factors influencing consumers' WTP for eco-friendly cosmetics. Consumers' WTP is measured using four different ecofriendly cosmetics: low-priced skin care cosmetics, low-priced makeup cosmetics, high-priced skin care cosmetics, and high-priced makeup cosmetics. This study uses the contingent valuation method (CVM) to estimate consumer's WTP for eco-friendly cosmetics. Survey questions were designed using both dichotomous choice and payment card method of CVM. Through face to face interviews and on-line surveys, the data were collected from women between 20 and 49 years old residing in Seoul and Kyeonggi area, Korea, in May 2010. A total of 226 questionnaires (132 from interviews and 94 from on-line) were included for the analytical sample in this study. The data were analyzed using descriptive analysis, T-test and Log-Logit analysis. The findings are as follows: First, the WTP measured by dichotomous choice method was estimated using the Log-Logit analysis. The results showed that the estimated WTP for low-priced skin care cosmetics was 19,152 won, which was 27.7% higher than the reference price, 15,000 won. For low-priced makeup cosmetics, the estimated WTP was 18,524 won, and its green premium was 21.0%. The estimated WTP for high-priced skin care cosmetics was 59,128 won, which was 18.3% higher than the reference price, 50,000 won. For high-priced makeup cosmetics was 57,666 won, and its green premium was 15.3%. Second, the WTP measure by payment card method was estimated using descriptive analysis. The results showed that the respondents were willing to pay 17,955 won for low-priced skin care cosmetics, which was 19.7% higher than the reference price, 15,000 won and 17,595 won for low-priced makeup cosmetics, which was 17.3% higher than the reference price. For high-priced skin care cosmetics, the average WTP was 56,950 won which was 13.9% higher than the reference price, 50,000 won. For high-priced makeup cosmetics, the average WTP was 55,650 won, which was 11.3% higher than the reference price. Overall, the WTP was higher in order of low-priced skin care, low-priced makeup, high-priced skin care, and high-priced makeup. It means that consumers decide degree of premium based on the price and the attributes of eco-friendly products. Third, the findings showed that age, monthly income, and having children or not were statistically significant factors that influenced consumers' willingness to pay for eco-friendly cosmetics. Other explanatory variables such as education, marital status, job, purchase experience of eco-friendly products, and environmental concerns did not show any statistical significance. The major contribution of this study is the investigation of the value of green attributes of the products by using CVM. Unlike most previous researches, this research used two methods of CVM, the dichotomous choice and the payment card, so it enhanced the reliability of research. According to this study, consumers showed price sensitivity when they pay green premium. These findings can be used as useful information to establish marketing strategies for green cosmetics.

• Journal of the Korean Society of Clothing and Textiles
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• v.27 no.9_10
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• pp.1036-1047
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• 2003

This study was carried out in the purpose of proposing internet marketing strategy which can make conversion rate higher through analysis of internet shopping behavior types. This study was executed in two stages; qualitative study, quantitative study. In the qualitative study, internet shopping behavior types were investigated through the In-depth interview and direct observation, and then in the quantitative study, differences of internet shopping behavior types according to consumer characteristics, product properties and shopping-mall types were examined. For qualitative study, 30 samples by focus sampling were inquired and for quantitative study, 334 data were collected through web survey. The results of this study are as follows: First, 7 Internet shopping behavior types of apparel were found through the qualitative study: cautious purchase by price comparison, searching purchase, special low price purchase, impulse purchase, prepurchase deliberation, information accumulation, recreation-oriented. Second, in relation to consumer characteristics, consumers that have many internet purchase experiences showed goal-directed behavior more and female did more special low price purchase behavior and impulse purchase behavior than male. Third, according to product properties, high price product led more cautious purchase by price comparison & prepurchase deliberation behavior and fashionable product led more information-searching behavior. In the case of low price and fashionable products, impulse purchase behaviors were showed more. Forth, according to Internet shopping mall types, category killer shopping mall visitors showed information search behavior, recreation-oriented behavior more.