• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.5
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• pp.185-196
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• 2023

This paper investigates the effects of entrepreneurs' cognitive biases on business opportunity evaluation, given their strong entrepreneurial spirit, which is characterized by innovation, proactivity, and risk-taking. When making decisions related to business activities, entrepreneurs typically make rational judgments based on their knowledge, experience, and the advice of external experts. However, in situations of extreme stress or when quick decisions are required, they often rely on heuristics based on their cognitive biases. In particular, we often see cases where entrepreneurs fail because they make decisions based on heuristics in the process of evaluating and selecting new business opportunities that are planned to guarantee the growth and sustainability of their companies. This study was conducted in response to the need for research to clarify the effects of entrepreneurs' cognitive biases on new business opportunity evaluation, given that the cognitive biases of entrepreneurs, which are formed by repeated successful experiences, can sometimes lead to business failure. Although there have been many studies on the effects of cognitive biases on entrepreneurship and opportunity evaluation among university students and general people who aspire to start a business, there have been few studies that have clarified the relationship between cognitive biases and social networks among entrepreneurs. In contrast to previous studies, this study conducted empirical surveys of entrepreneurs only, and also conducted research on the relationship with social networks. For the study, a survey was conducted using a parallel survey method using online mobile surveys and self-report questionnaires from 150 entrepreneurs of small and medium-sized enterprises. The results of the study showed that 'overconfidence' and 'illusion of control', among the independent variables of entrepreneurs' cognitive biases, had a statistically significant positive(+) effect on business opportunity evaluation. In addition, it was confirmed that the moderating variable, social network, moderates the effect of overconfidence on business opportunity evaluation. This study showed that entrepreneurs' cognitive biases play a role in the process of evaluating and selecting new business opportunities, and that social networks play a role in moderating the structural relationship between entrepreneurs' cognitive biases and business opportunity evaluation. This study is expected to be of great help not only to entrepreneurs, but also to entrepreneur education and policy making, by showing how entrepreneurs can use cognitive biases in a positive way and the influence of social networks.

• Journal of Intelligence and Information Systems
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• v.22 no.1
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• pp.43-61
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• 2016

Customer reviews help potential customers make purchasing decisions. However, the prevalence of reviews on websites push the customer to sift through them and change the focus from a mere search to identifying which of the available reviews are valuable and useful for the purchasing decision at hand. To identify useful reviews, websites have developed different mechanisms to give customers options when evaluating existing reviews. Websites allow users to rate the usefulness of a customer review as helpful or not. Amazon.com uses a ratio-type helpfulness, while Yelp.com uses a count-type usefulness index. This usefulness index provides helpful reviews to future potential purchasers. This study investigated the effects of sentiment and readability on useful votes for customer reviews. Similar studies on the relationship between sentiment and readability have focused on the ratio-type usefulness index utilized by websites such as Amazon.com. In this study, Yelp.com's count-type usefulness index for restaurant reviews was used to investigate the relationship between sentiment/readability and usefulness votes. Yelp.com's online customer reviews for stores in the beverage and food categories were used for the analysis. In total, 170,294 reviews containing information on a store's reputation and popularity were used. The control variables were the review length, store reputation, and popularity; the independent variables were the sentiment and readability, while the dependent variable was the number of helpful votes. The review rating is the moderating variable for the review sentiment and readability. The length is the number of characters in a review. The popularity is the number of reviews for a store, and the reputation is the general average rating of all reviews for a store. The readability of a review was calculated with the Coleman-Liau index. The sentiment is a positivity score for the review as calculated by SentiWordNet. The review rating is a preference score selected from 1 to 5 (stars) by the review author. The dependent variable (i.e., usefulness votes) used in this study is a count variable. Therefore, the Poisson regression model, which is commonly used to account for the discrete and nonnegative nature of count data, was applied in the analyses. The increase in helpful votes was assumed to follow a Poisson distribution. Because the Poisson model assumes an equal mean and variance and the data were over-dispersed, a negative binomial distribution model that allows for over-dispersion of the count variable was used for the estimation. Zero-inflated negative binomial regression was used to model count variables with excessive zeros and over-dispersed count outcome variables. With this model, the excess zeros were assumed to be generated through a separate process from the count values and therefore should be modeled as independently as possible. The results showed that positive sentiment had a negative effect on gaining useful votes for positive reviews but no significant effect on negative reviews. Poor readability had a negative effect on gaining useful votes and was not moderated by the review star ratings. These findings yield considerable managerial implications. The results are helpful for online websites when analyzing their review guidelines and identifying useful reviews for their business. Based on this study, positive reviews are not necessarily helpful; therefore, restaurants should consider which type of positive review is helpful for their business. Second, this study is beneficial for businesses and website designers in creating review mechanisms to know which type of reviews to highlight on their websites and which type of reviews can be beneficial to the business. Moreover, this study highlights the review systems employed by websites to allow their customers to post rating reviews.

• Journal of Service Research and Studies
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• v.14 no.2
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• pp.1-17
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• 2024

One of the most important decisions for managers in the online banner advertising industry, is to choose the best banner alternative for exposure to customers. Since it is difficult to know the click probability of each banner alternative in advance, managers must experiment with multiple alternatives, estimate the click probability of each alternative based on customer clicks, and find the optimal alternative. In this reinforcement learning process, the main decision problem is to find the optimal balance between the level of exploitation strategy that utilizes the accumulated estimated click probability information and exploration strategy that tries new alternatives to find potentially better options. In this study we analyze the impact of word-of-mouth effects and the number of alternatives on the optimal exploration-exploitation strategies. More specifically, we focus on the word-of-mouth effect, where the click-through rate of the banner increases as customers promote the related product to those around them after clicking the exposed banner, and add it to the overall reinforcement learning process. We analyze our problem by employing the Multi-Armed Bandit model, and the analysis results show that the larger the word-of-mouth effect and the fewer the number of banner alternatives, the higher the optimal exploration level of advertising reinforcement learning. We find that as the probability of customers clicking on the banner increases due to the word-of-mouth effect, the value of the previously accumulated estimated click-through rate knowledge decreases, and therefore the value of exploring new alternatives increases. Additionally, when the number of advertising alternatives is small, a larger increase in the optimal exploration level was observed as the magnitude of the word-of-mouth effect increased. This study provides meaningful academic and managerial implications at a time when online word-of-mouth and its impact on society and business is becoming more important.

• Journal of Distribution Science
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• v.13 no.2
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• pp.75-83
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• 2015

Purpose - This study aims to identify the effects of communication cues, anonymity, and social presence on group polarization in computer-mediated communication (CMC) settings. Extant literature has introduced some theoretical backgrounds of social presence and SIDE (Social Identity model of Deindividuation Effects) to explain the effects of communication cues and anonymity. The concept of social presence emphasized the mediating role on communication cues and anonymity. However, most literature did not measure social presence and compare group polarization of all condition groups. This does not sufficiently explain the result of group polarization. Research design, data, and methodology - We believe that the direct impact of anonymity on group polarization can provide a more admissible and clearer explanation for the results. In addition, this study categorizes anonymity into two levels, as anonymity of group and anonymity of self. To justify the anonymity view, a laboratory experiment was conducted. The experiment was conducted in communication cues settings (visual cue; without visual cue) and anonymity settings (identified; anonymous). Each of the four settings has 10 groups consisting of five subjects each (total 200 subjects). The subjects are undergraduates from a large university, majoring in business. All experimental procedures and calculations of choice shift and preference change follow the literature. Results - First, the removal of visual cues does not produce a significant impact on group polarization, which cannot be explained by the social presence view. Second, the anonymous condition does not significantly affect group polarization, which also cannot be explained by the social presence view. However, the anonymous condition directly affects group polarization. Specifically, anonymity of self has a stronger effect on group polarization than anonymity of group. The result explains about the leading factor affecting group polarization. This study examines another view of how computer-mediated communication may be associated with group polarization. The process and outcome data from the experiment reveal that group polarization is not affected by level of social presence, but by level of anonymity. Group discussions conducted with visual cue CMC setting and identified CMC setting result in weaker group polarization. Conversely, group discussions conducted without visual cue CMC setting and anonymous CMC setting lead to stronger group polarization. The results of the study have the following implications. First, they provide clues for business organizations to design the most appropriate media conditions and preemptive social conditions to implement when making group decisions through CMC, to maximize achievements, generate amicable agreements, or actively share information. Second, this study can be useful in analyzing different adverse effects generated through Internet use. Conclusions - This research can help explain discussions and decision-making actions on Internet forums, which have recently increased, as well as providing a foundational basis in newly establishing policies for the forums. Finally, it should be noted that many other factors such as group size, topics, and group history may affect group polarization. These should be examined in future studies.

• The Journal of Industrial Distribution & Business
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• v.10 no.6
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• pp.39-50
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• 2019

Purpose - Since the local liquor industry uses the agricultural products produced in the region as the main raw material, cultivation of the industry can be a way to expand the demand for domestic agricultural products and can contribute to the income increase of the farmers. In addition, the local liquor industry can be developed into a region-specific industry differentiated from other regions by linking with the region's tourism resources. Therefore, in order to achieve various derivative effects through promotion of the local liquor industry, it is necessary to precisely understand the factors related to the purchase and consumption of local liquor which then will lead to an increase in consumption. This study analyzes the current status and problems of local liquor industries and examines the determinants of consumers' purchasing decisions of regional specialties through questionnaires. We will then propose a strategy to promote consumption of locally produced alcoholic beverages. Research design, data, and methodology - An online Domestic Consumer Survey was conducted to identify the actual purchases and uses of local liquors for 500 consumers nationwide. Based on the questionnaire results, the analysis uses an ordered probit model. Results - As a result of analyzing the effect of consumer characteristics on the purchase of local liquors, it was found that the average cost of drinking, income, local specialty, brewery experience, and health concerns have a significant effect on gender, drinking frequency. All the variables except the participation in the training of the special provincial manufacturing method were found to be statistically significant. The statistical significance was at a 1% significance level for the remaining factors excluding the bottle design. This shows that the higher taste, quality, price, and harmony with food, the higher the probability of purchasing local liquors. Conclusions - In the analysis of factors influencing the purchase intention of local liquors, it was found that factors such as taste, quality, price, and harmony with food had a significant effect. Given the diversity of purchasing factors, the importance of diversification strategies is emphasized again. In particular, it will be important to secure wide publicity for local liquors through various PR strategies.

• Information Systems Review
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• v.7 no.1
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• pp.97-113
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• 2005

This paper designed and implemented(programmed) a comparative shopping agent that helps consumers to shop at on-line shopping malls over Internet. At offline stores, as consumers usually tell a sales clerk about a manufacturer, functions and price range of an item they want to purchase, the sales clerk will show the products or relevant catalogues. Then the consumer will compare functions, design and prices of the product and buy it with the lowest price. PriceMeter, a comparative shopping agent, introduced in this paper, is designed best geared to this consumers' buying behavior. Basically, as consumers enter a manufacturer's name, price, features and etc. at a search window, PriceMeter will search the web and provide a list of product informations such as features and prices that meet the search conditions. Consumers can see the information in either a form of catalogue or a printing format. As consumers click specific items to examine closely, it will show prices and information about shopping malls that sell the requested items. Clicking a 'Buy' icon, the consumers will be transferred to the right web page at the linked shopping mall. The emergence of the comparative shopping agent will expedite a consumer-centered retailing economy in the age of e-commerce. As consumers are provided with a better set of product and shopping mall information, they can make better purchasing decisions and gain more bargaining power shifted from manufacturers(sellers). The presentation of this comparative shopping agent is intended to promote the consumer-centered B2C e-commerce.

• Journal of the Korean Society for Library and Information Science
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• v.30 no.2
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• pp.167-188
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• 1996

The lack of an understanding of the characteristics and searching abilities of a specific user group in computer-based information systems in libraries hinders library and information science professionals in making the best decisions when designing, acquiring, and managing information systems. The objective of this study was to provide information on the characteristics and searching abilities of specific groups such as Korean college students & ones who study abroad, male & female, undergraduate & graduate students, etc. This study also has focused on the methods of loaming to use OPACs and non-user study. Questionnaire was administered to both Korean college students in the city of Taegu, Korea and students who study abroad in the state of Texas, US.A. 345 usable questionnaires were obtained and analyzed. These were analyzed using descriptive, inferential statistics, multiple correlation, and SPSS software. The. major findings of this study are: (1) There was a significant difference among specific student user groups except undergraduate and artiste-athlete students in the distribution of their knowledge about how to use OPACs: (2) There was a significant difference among specific groups in the means of their knowledge: (3) There was no significant difference among un. groups in the distribution of loaming method to use OPAC systems : (4) The correlation between the number of searching methods that the respondents knew in using OPACS and the amount of using computers (0.6635) is comparatively higher than my other correlation to the searching methods. Also, years of experience using computers, frequencies of computer use, and frequencies of OPAC use are comparatively higher than frequencies of library use and frequencies of manual card catalog un: (5) Frequencies of manual card catalog use have low negative correlations with the number of searching methods that the respondents knew in using OPACs: (6) Frequencies of manual card catalog use have little if any negative negative with OPAC and computer use. Conclusions are drawn from the findings in this paper, and recommendations an proposed when designing, adopting, or managing a new system. Topics fur future studies on the characteristics of OPAC systems and their use are also suggested.

• Journal of Korean Library and Information Science Society
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• v.34 no.1
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• pp.423-446
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• 2003

Library and information science professionals have to grasp user's needs and make the best decisions when designing, acquiring, and managing library information systems. However, it is not easy for them to make the decision owing to the lack of an understanding of the characteristics of a specific user group in computer-based information systems in libraries. The aim of this study was to provide information on the characteristics and abilities of specific user groups such as male & female student groups, undergraduate & graduate ones, Sciences and Humanities majored ones etc. The actual OPAC systems were searched by specific student user groups in selected academic libraries in both Republic of Korea and the States for the purpose(Author, Title, and Subject search). Ouestionnaire was prepared and administered to Korean college students in the city of Taegu, Korea and adjacent area. Two hundred and seven usable questionnaires were obtained and analyzed. These were analyzed using descriptive, inferential statistics, and SPSS software. The major findings by data analysis of this study were described in chapters 4 and 5 of this paper in detail. Also, conclusions were drawn from the findings in this paper, and recommendations were proposed when designing, adopting, or managing a new system.

• The Journal of Small Business Innovation
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• v.20 no.2
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• pp.51-66
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• 2017

Online and wireless communications have dramatically changed the contents industry marketplace. Content transactions are now instantaneous as distribution channels move from the 'mart' to smart platforms, creating opportunities for content creators large and small. Yet with opportunity comes the threat of imbalance in the industry ecosystem. In order to ensure the health and diversity of an industry that relies so heavily on the welfare of small creative enterprises, it is essential to establish rules for the fair transaction of content rights. Several structural forces may work against such rules: first, the industry consists of a large number of small distributor intermediary businesses (e.g. major publishers); second, end distributors (e. g. platforms) maintain a superior, monopsony position; and third, economic valuation of content is difficult. In terms of acquisition business model, rights transactions can be classified into three general models: (1) license model, (2) original acquisition model, and (3) monopsony model. This study explores the publishing industry in detail, considering key statutes and their operation across the models. From analysis of Korea and the US statutes and case law, and decisions of the Fair Trade Commission (FTC) of Korea, we offer evaluation criteria for discerning between fair and unfair content rights transactions. We further recommend industry practice that may enhance the likelihood for fair content rights transactions, and thus a thriving publishing ecosystem.

• The Journal of the Korea Contents Association
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• v.10 no.12
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• pp.366-377
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• 2010

As internet and mobile technology brings rapid transformation to this society of information, how relations are conducted between customers have become a critical factor influencing companies. Companies are creating Internet communities based on their brands, encouraging customers to actively form and develop brand communities. Thus, this report proposes a plan to analyze the effectiveness of community activities based on the customers active involvement and how to effectively manage and utilize it. The purpose of this research is to understand the effects on-line brand communities and their characters have on customer behavior. Also, it will study the effects community attitudes have on brand decisions and oral transmission communication when on-line brand communities choose a brand. This report was conducted to survey on-line university students to understand how communities' attitude affects the decision of on-line university brand and oral transmissions when students choose to study at a on-line university. According to research, those factors brought positive responses to character of the brand communities(confidentiality of information, interactivity, convenience, intimacy) and by doing so, on the customer's attitude side, positive results on intention of purchase and oral transmissions can be expected. In addition, the character of the brand communities affects intention of purchase and oral transmission communication. Based on this research, it is possible to propose a marketing strategy that revitalizes brand communities' activities.