• Journal of Distribution Science
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• v.13 no.5
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• pp.71-82
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• 2015

Purpose - The purpose of this study is to investigate risk price implied from the pricing kernel of Korean stock distribution market. Recently, it is considered that the quantitative easing programs of major developed countries are contributing to a reduction in global uncertainty caused by the 2007~2009 financial crisis. If true, the risk premium as compensation for global systemic risk or economic uncertainty should show a decrease. We examine whether the risk price in the Korean stock distribution market has declined in recent years, and attempt to provide practical implications for investors to manage their portfolios more efficiently, as well as academic implications. Research design, data and methodology - To estimate the risk price, we adopt a non-parametric method; the minimum norm pricing kernel method under the LOP (Law of One Price) constraint. For the estimation, we use 17 industry sorted portfolios provided by the KRX (Korea Exchange). Additionally, the monthly returns of the 17 industry sorted portfolios, from July 2000 to June 2014, are utilized as data samples. We set 120 months (10 years) as the estimation window, and estimate the risk prices from July 2010 to June 2014 by month. Moreover, we analyze correlation between any of the two industry portfolios within the 17 industry portfolios to suggest further economic implications of the risk price we estimate. Results - According to our results, the risk price in the Korean stock distribution market shows a decline over the period of July 2010 to June 2014 with statistical significance. During the period of the declining risk price, the average correlation level between any of the two industry portfolios also shows a decrease, whereas the standard deviation of the average correlation shows an increase. The results imply that the amount of systematic risk in the Korea stock distribution market has decreased, whereas the amount of industry-specific risk has increased. It is one of the well known empirical results that correlation and uncertainty are positively correlated, therefore, the declining correlation may be the result of decreased global economic uncertainty. Meanwhile, less asset correlation enables investors to build portfolios with less systematic risk, therefore the investors require lower risk premiums for the efficient portfolio, resulting in the declining risk price. Conclusions - Our results may provide evidence of reduction in global systemic risk or economic uncertainty in the Korean stock distribution market. However, to defend the argument, further analysis should be done. For instance, the change of global uncertainty could be measured with funding costs in the global money market; subsequently, the relation between global uncertainty and the price of risk might be directly observable. In addition, as time goes by, observations of the risk price could be extended, enabling us to confirm the relation between the global uncertainty and the effect of quantitative easing. These topics are beyond our scope here, therefore we reserve them for future research.

• Korean Institute of Interior Design Journal
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• v.20 no.6
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• pp.161-172
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• 2011

Although the term royal floors is broadly used in high-rise housing, it is hard to find any clear scholarly definition of this term or any in-depth study exploring people's perceptions of it. This study reviewed ongoing discussions about concepts and definitions regarding royal floors, collected opinions from high-rise housing residents and realtors about the term, and compared the opinions of these two groups. First, the statistically analyzed results verified five main factors affecting people's perceptions of royal floors: locational characteristics (i.e., daylight, view, orientation), 2) price characteristics (i.e., premium, price increase level, number of houses on urgent sale), 3) best location of apartment building (i.e., location within a neighborhood, unit size), 4) architectural characteristics of apartment complex (i.e., size of complex, housing type, size options of units), and 5) personal characteristics of respondents (i.e., personal concepts of the meaning of housing, lifestyles). Results from the analysis showed that realtors perceived strong relationships between royal floors and 1) locational and 2) price characteristic factors, while residents perceived strong relationships between royal floors and personal preference as well as three factors from the five identified above: 1) locational, 2) price, and 4) architectural characteristics. Third, in defining royal floors in a building, the past rule of 1/4 is no longer effective. Instead, the rule of 1/n has become more prevalent (i.e., 1/6 to 1/8). Fourth, royal floors can be defined as the 15th to 25th floors in a 30-story high-rise housing structure based on the agreement of 50% of residents and 70% of realtors.

• Journal of the Korea Convergence Society
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• v.10 no.5
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• pp.157-163
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• 2019

This study empirically investigates the double jeopardy phenomenon in a Korean and a New Zealand context. The double jeopardy is that companies with a small market share tend to suffer not only smaller sales volumes but also suffer a lower price than the market leader. The research reported here analyses price and market share data for 14 categories of household goods in Korea and a smaller number in New Zealand. Analysis shows that, in Korea, leading brands do enjoy a price premium as predicted, of around 15%, but that there is little or no evidence of double jeopardy occurring in New Zealand. Based on this study, evidence suggests that market share is a strong valid strategic objective in the East.

• Knowledge Management Research
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• v.10 no.3
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• pp.81-98
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• 2009

The purpose of this study is to investigate the effect of Hallyu(Korean Wave) and marketing mix elements on brand equity based on the Korean cosmetic brand in China Market. It will provide the constructive suggestions to build Korea brand equity in overseas market through empirical research. At the beginning of this study, in order to analyze the effect of Hallyu and marketing mix elements on brand equity, we studied literature reviews on relationships between brand equity and marketing mix elements, culture, Hallyu and its influences on marketing. And then, we set up the research model, hypotheses and variables. The chosen variables to investigate are price premium, price deals, store image, distribution intensity, advertising, Hallyu, perceived quality, brand loyalty, brand awareness/associations, and brand equity. The results of the study reveal that Hallyu and advertising had a positive influence on perceived quality, brand loyalty and brand awareness/associations, but the other marketing elements had partial influence. All of perceived quality, brand loyalty and brand awareness/associations showed positive effects on brand equity. Additionally, theoretical and managerial implications of brand equity and Hallyu based on the results of this study are discussed. And limitations and future research issues are also presented.

• Korean Journal of Organic Agriculture
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• v.19 no.4
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• pp.475-500
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• 2011

One of the first important strategic decisions when a starting an organic marketing initiative (OMI) is to plan the right strategy for distributing products. This decision depends to a large extent on whether the OMI has chosen a quality-premium product strategy or a price-quantity strategy. All distribution decisions interact strongly with other aspects of the marketing mix. Where and how a product is distributed objectives, its chosen strategy and the availability of human and capital resources. To select a market channel, frequent contact and discussions with possible partner are important. Generally, a distribution is made between the direct and indirect physical distribution of organic products to consumers. The longer the supply chain, the lower the chances that an OMI can steer the market through its own marketing measures and convince consumers through its own promotion activities. Generally speaking, the shorter the chain between OMI products and the final consumer, the less dependent the OMI will be on the success of other market actors. Direct selling activities to the retail or food industries also requires an OMI to undertake additional processing and marketing activities. For example, retailers often expect products to have been packed and labelled ready for sale. To conclude, distribution channels should be chosen in accordance with the product and price policy as well as the management capacity of the OMI.

• Korean Journal of Organic Agriculture
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• v.21 no.2
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• pp.139-155
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• 2013

The purpose of this study is to analyze the effects of abolishing the low-pesticide agricultural product certification on environmentally friendly farming. A survey was conducted to quantitatively analyze farming practices and factors that change farming practice. It was found that only 17.0% of low-pesticide fruit farmers said that they will change their farming practice into organic or pesticide-free farming. With regard to the factors of farming practice change, binomial logistic regression model was applied for the analysis. In the analysis, it was found that farmers who grow the low-pesticide agricultural product are more likely to change their farming practice into organic or pesticide-free farming, as their expected price of organic or pesticide-free products is high, their area size is small, price premium of low-pesticide agricultural product is low, the frequency of their training is high. It is necessary to enhance the direct payment system to enlarge organic and nonpesticide acreage, and pest management techniques for fruits should be developed for low-pesticide fruit farmers to change their practice into organic and nonpesticide practice. Dissemination of cultivation manual, introduction of insurance to farmers, improvement of certificate system, and advertising and marketing of environment-friendly agricultural products are useful to develop environment-friendly agriculture.

• Journal of Communications and Networks
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• v.9 no.3
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• pp.319-329
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• 2007

This paper presents a price-based quality-of-service (QoS) control framework for two-class network services, in which circuit-switched and packet-switched services are defined as "premium service class" and "best-effort service class," respectively. Given the service model, a customer may decide to use the other class as a perfect or an imperfect substitute when he or she perceives the higher utility of the class. Given the framework, fixed-point problems are solved numerically to investigate how static pricing can be used to control the demand and the QoS of each class. The rationale behind this is as follows: For a network service provider to determine the optimal prices that maximize its total revenue, the interactions between the QoS-dependent demand and the demand-dependent QoS should be thoroughly analyzed. To test the robustness of the proposed model, simulations were performed with gradually increasing customer demands or network workloads. The simulation results show that even with substantial demands or workloads, self-adjustment mechanism of the model works and it is feasible to obtain fixed points in equilibrium. This paper also presents a numerical example of guaranteeing the QoS statistically in the short term-that is, through the implementation of pricing strategies.

• Journal of Korean Institute of Industrial Engineers
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• v.38 no.4
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• pp.244-248
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• 2012

We present a simple numerical method for pricing American put options under a constant elasticity of variance (CEV) model. Our analysis is done in a general framework where only the risk-neutral transition density of the underlying asset price is given. We obtain an integral equation of early exercise premium. By exploiting a modification of the integral equation, we propose a novel and simple numerical iterative valuation method for American put options.

• Journal of the Korean Operations Research and Management Science Society
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• v.25 no.3
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• pp.49-64
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• 2000

A vendor supplies a product to a sole/major buyer on a lot-for-lot basis under deterministic inventory control conditions. The basic premise is that the setup cost reduction technologies are available to both the buyer and the vendor, and that the vendor's inventory and setup reduction investment costs differ from the buyer's. Therefore, an individually designed ordering and setup cost reduction policy will likely cause mismatches between the vendor's and the buyer's optimal cycle times. For this situation, we show that a joint optimal setup cost reduction and ordering policy, together with an appropriate side payment(quantity discount or premium price) schedule, can be designed in a spirit in a spirit of coordination to eliminate mismatches in individual optimal cycle times.

• Asia-Pacific Journal of Business
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• v.2 no.2
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• pp.1-35
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• 2011

Facing information overload in today's complex environments, managers look to a concise set of marketing metrics to provide direction for marketing decision making. While there have been several papers dealing with the theoretical aspects of dashboard creation, no research creates and tests a dashboard using scientific techniques. This study develops and demonstrates an empirical approach to dashboard metric selection. In a fast moving consumer goods category, this research selects leading indicators for national-brand and store-brand sales and revenue premium performance from 99 brand-specific and relative-to-competition variables including price, brand equity, usage occasions, and multiple measures of awareness, trial/usage, purchase intent, and liking/satisfaction. Plotting impact size and wear-in time reveals that different kinds of variables predict sales at distinct lead times, which implies that managerial action may be taken to turn the metrics around before performance itself declines.