• Title/Summary/Keyword: pricing factors

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An Experimental Study on the Price Discrimination on the Internet: The Effect of Illusion of Control and Lateral Customer Relationship on Price Fairness (인터넷의 다이나믹 프라이싱 구매방식에서의 가격차별화에 대한 구매자의 가격공정성 인지에 관한 연구)

  • Lee, Zoon-Ky;Lee, Ji-Hae
    • Journal of Information Technology Services
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    • v.6 no.2
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    • pp.19-33
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    • 2007
  • The current advance of IT and the e-commerce triggers the wide practice of dynamic pricing in all industries although the price discrimination has been very cautiously applied in the limited areas in the past. The price discrimination which offers different prices for each customer depending on their preference and buying behaviors has recently gained attention as it could provide superior benefits to sellers. The wide adoption of price discrimination, on the other hand, is reported to face buyer resistances and complaints. Our limited understanding on the perception of price fairness, which we think is key concept in the price discrimination on the Internet-enabled transactions, motives us to investigate factors that affect the perception of price fairness. This study focuses on illusion of control and lateral customer relationship to investigate their effects on price fairness in online auction and group purchase context. By conducting laboratory experiments, our study demonstrates that customers' perception on illusion of control in price determination and advantageous lateral customer relationship significantly affect price fairness perception in both online auction and group purchase environment. The findings are expected to provide researchers and managers with useful insights to develop better pricing strategies and design effective dynamic pricing mechanisms.

The Impact of Prices and Distribution on Customer Satisfaction in the Pharmaceutical Industry of Kazakhstan

  • Аida OMIR;Assel BEKBOSSINOVA;Orazaly SABDEN;Anel A. KIREYEVA
    • Journal of Distribution Science
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    • v.22 no.7
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    • pp.83-94
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    • 2024
  • Purpose: This article aims to investigate the influence of pricing and distribution on the level of satisfaction and purchase decisions among consumers of pharmaceutical products in Kazakhstan. Research design, data, and methodology: A mixed-methods research design was utilized, incorporating primary and secondary data. Primary data were collected through a survey administered to customers across various pharmacy types, with 100 valid responses analyzed. Secondary data involved an extensive review of existing literature and analysis of national statistics concerning the pharmaceutical market trends from 2008 to 2022. Results: The results reveal a complex relationship between price perceptions and customer satisfaction. A significant segment of the population views current drug prices as high, which affects their satisfaction levels and purchase decisions. The study also highlights the importance of service quality in enhancing customer satisfaction, suggesting that service improvements could mitigate some of the negative perceptions of pricing. Conclusions: This research contributes to the limited but growing body of knowledge on the impact of pricing strategies on consumer satisfaction in the pharmaceutical sectors of developing countries like Kazakhstan. Focusing on economic and behavioral aspects, this study provides a more holistic understanding of the factors driving consumer satisfaction and purchase behaviors in this critical sector.

Study on the Effect of Product Line Pricing on Loading Efficiency and Logistics Cost (상품라인별 가격결정이 적재효율 및 물류비에 미치는 영향에 관한 연구)

  • Jung, Sung-Tae;Yoon, Nam-Soo;Han, Kyu-Chul
    • Journal of Distribution Science
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    • v.12 no.8
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    • pp.55-69
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    • 2014
  • Purpose - Despite the importance of price, many companies do not implement pricing policies smoothly, because typical price management strategies insufficiently consider logistics efficiency and an increase in logistics costs due to logistics waste. This study attempts to examine the effect of product line pricing, which corresponds to product mix pricing, on logistics efficiency in the case of manufacturer A, and analyzes how logistics performance changes in response to these variables. Research design, data, and methodology - This study, based on the case of manufacturer A, involved research through understanding the current status, analyses, and then proposing improvement measures. Among all the products of manufacturer A, product group B was selected as the research object, and its distribution channel and line pricing were examined. As a result of simulation, for products with low loading efficiency, improvement measures such as changing the number of bags in the box were suggested, and a quantitative analysis was conducted on how these measures influence logistics costs. The TOPS program was used for the Pallet loading efficiency simulation tool in this study. To prevent products from protruding out of the pallet, the maximum measurement was set as 0.0mm, and loading efficiency was based on the pallet area, and not volume. In other words, its size (length x width) was focused upon, following the purpose of this study and, then, the results were obtained. Results - As a result of the loading efficiency simulation, when the number of bags in the box was changed for 36 products with low average loading efficiency of 73.7%, as shown in

    , loading efficiency improved to 89.9%. Further, from calculating logistics cost based on the cost calculation standard of manufacturer A, the amount of annual logistics cost reduction amounted to 101,458,084 KRW. Given that the sum of the logistics cost of the product group B of manufacturing enterprises A is 400,340,850 KRW, it can be reduced by 25%, to 298,882,766 KRW. Although many methods improve loading efficiency, this study proved that logistics cost could be reduced by changing the number of bags within boxes. If this measure is applied to other items, visible logistics cost reduction effects will be realized through improvements in loading efficiency. Conclusions - Future pricing policies should consider their correlation with quality, loading efficiency, product specifications, and logistics standardization to prevent logistics waste, enabling management to improve earnings for companies. Thus, when companies decide pricing policies for new products, the aspects of merchandising and marketing should take priority; however, the aspect of logistics also needs to be considered as significant. Measures revealed by the study results are not only the responsibilities of manufacturing enterprises. Pricing policy agreements between manufacturing enterprises and distribution companies, and logistics factors related to price determination should be considered; further, governments should also support them for their collaborations. This will enable consumers to purchase quality products with low prices.

  • A Study on Evaluation Method and Application of Purchase Consideration Items for Estimation of Apartment Price (아파트 분양가 산정을 위한 구매 고려 항목별 평가 방법 및 적용에 관한 연구)

    • Kim, Ki-Hyuk;Pyeon, Su-Jeong;Lee, Donghoon
      • Proceedings of the Korean Institute of Building Construction Conference
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      • 2018.05a
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      • pp.163-164
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      • 2018
    • Every construction company should consider the apartment price when building apartment houses because the sales price has a great impact on the rate of apartment sales. Here, the average apartment price and characteristics of an apartment complex are factors that determine the sales price. However, the existing apartment pricing method fails to properly reflect the weight of each factor. Therefore, the study investigates factors that impact the apartment price and importance of each factor. It examines the apartment pricing method taking into account of the weight.

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    Influencing Factors of the Fast Food Restaurant Users' Intention of Reusing (패스트푸드레스토랑 이용자들의 재이용 의도 영향요인에 관한 연구)

    • Park, Hui-Jin;Jeong, Gwang-Hyeon
      • Journal of Applied Tourism Food and Beverage Management and Research
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      • v.16 no.1
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      • pp.1-20
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      • 2005
    • The objective of this study is to examine how the factors influence each other by determining the appropriate measurement standard based on the fast food restaurant attribute evaluation, perceived pricing, value, satisfaction and intent for return patronage, and present an effective fast food restaurant marketing strategy based on the analytical results by patrons and market segmentations. The results showed that restaurant attribution evaluation had a positive effect on the perceived value, satisfaction and intent for return patronage of the fast food restaurant patrons; perceived pricing of the fast food restaurant patrons had a positive affect on the perceived value, satisfaction and intent for return patronage; perceived value had a positive affect on satisfaction and intent for return patronage; and satisfaction had a positive affect on intent for return patronage.

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    A review on global market environment and regulatory issues of flavors (세계 식품 향료시장의 환경과 법적규제)

    • Oh, Jae Soon
      • Food Science and Industry
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      • v.50 no.4
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      • pp.2-11
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      • 2017
    • The external factors of global flavor market include the world economy, population growth, urbanization, consumer spending, raw material availability, pricing, and regulatory issues. And the internal factors as product pricing and technology development may lie the flavor house's competitiveness and cost considerations. In developing countries, rising preference for packaged food and beverages and increasing personal expenditures will drive demand for flavor market. Increasing consumer demand for natural products, driven in part by health concerns and a desire for transparency in labeling will impact the demand. The increasing demand for salt and sugar reduction will boost demand for flavors to maintain the overall taste. The use of quality and innovative flavors in the beverages and the multifunctional flavors has a positive influence on the global market. The global flavor industry has the presence of several drivers and positive trends, with its future expected to be promising.

    A Study on Pricing Model of High-Rise Residential Buildings From the viewpoint of Landmark Factor

    • Sung-Kon Moon;Sang-Hyo Lee;Kyung-Min Min;Joo-Sung Lee;Jae-Jun Kim
      • International conference on construction engineering and project management
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      • 2009.05a
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      • pp.573-578
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      • 2009
    • Previous research on super high rise buildings focused mostly on the use of public space from building plan perspective, survey of residents' satisfaction evaluation, construction technology and structural technology. But little research is done on the economic analysis of landmark factors. The purpose of this study is to find landmark factors that can be quantitatively measured, collect data on super high rise residential buildings in Seoul. Find the intrinsic values of the landmarks, and analyze how these values differ in areas with different densities, i.e. in 3 Gangnam-gus & Yeongdeungpo-gu and in other areas. It is expected that the results of this study can be used to set an appropriate price of super high rise building in consideration of its landmark value in different area

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    An Empirical Study on costing and Pricing in On-Line Database Service (온라인 데이터베이스 서비스의 원가계산과 가격결정에 관한 실증적 연구)

    • Lee, Yeong-Jae;Jeong, U-Seong
      • The Transactions of the Korea Information Processing Society
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      • v.4 no.1
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      • pp.23-38
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      • 1997
    • Based on previous research for end-users information needs, this research is to investigate DB costing method for decision-making on pricing of DB service by critical factors. The first phase of the research classifies the elements of DB product cost accounting by activities of the circulation system of information in DB service. The second phase is to develop model based on results of DB product costing in the first phase of research. The third phase of research is to present the process of DB product cost accounting by applying the model to an on-line service company. Finally, the research develops the pricing decision model to determine the priority of each factor by survey from major on-line service companies in America and Japan. It is essential to research further regarding the DB product costing and pricing methods in order to determine a proper DB service charge. The right Pricing decision in the DB service charge will contribute to the growth of the DB industry.

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    Can Bank Credit for Household be a Conditional Variable for Consumption CAPM? (가계대출을 조건변수로 사용하는 소비 준거 자본자산 가격결정모형)

    • Kwon, Ji-Ho
      • Asia-Pacific Journal of Business
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      • v.11 no.3
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      • pp.199-215
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      • 2020
    • Purpose - This article tries to test if the conditional consumption capital asset pricing model (CCAPM) with bank credit for household as a conditional variable can explain the cross-sectional variation of stock returns in Korea. The performance of conditional CCAPM is compared to that of multifactor asset pricing models based on Arbitrage Pricing Theory. Design/methodology/approach - This paper extends the simple CCAPM to the conditional version of CCAPM by using bank credit for household as conditioning information. By employing KOSPI and KOSDAQ stocks as test assets from the second quarter of 2003 to the first quarter of 2018, this paper estimates risk premiums of conditional CCAPM and a variety of multifactor linear models such as Fama-French three and five-factor models. The significance of risk factors and the adjusted coefficient of determination are the basis for the comparison in models' performances. Findings - First, the paper finds that conditional CCAPM with bank credit performs as well as the multifactor linear models from Arbitrage Pricing theory on 25 test assets sorted by size and book-to-market. When using long-term consumption growth, the conditional CCAPM explains the cross-sectional variation of stock returns far better than multifactor models. Not only that, although the performances of multifactor models decrease on 75 test assets, conditional CCAPM's performance is well maintained. Research implications or Originality - This paper proposes bank credit for household as a conditional variable for CCAPM. This enables CCAPM, one of the most famous economic asset pricing models, to conform with the empirical data. In light of this, we can now explain the cross-sectional variation of stock returns from an economic perspective: Asset's riskiness is determined by its correlation with consumption growth conditional on bank credit for household.

    The Combination of Product Attributes in Luxury Fashion Brands (패션 명품 브랜드의 제품 속성 조합)

    • Kang, Bo-Kyung;Hwang, Jin-Sook
      • Journal of the Korea Fashion and Costume Design Association
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      • v.13 no.2
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      • pp.89-101
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      • 2011
    • The economy blocking and price competitiveness caused by globalization has generated an on-going controversy of global sourcing among high-priced luxury brands. The consumers in the global market purchase luxury goods based on both craftsmanship and the reputation of luxury brands. Factors such as the origin, brand and pricing can affect the intention of consumers to buy luxury goods. This study analyzed the optimum brand combination using conjoint analysis. The analysis was based on the selection of origin, brand name and price as extrinsic factors among attributes of customer choice. These factors were subdivided into Italian and Chinese origins, Gucci, Prada, and Miu Miu in terms of brand names, and 450,000, 750,000, and 1,500,000 Won in terms of price levels. The result showed that origin was considered the most important factor followed by brand name and pricing. This tendency tells us that customers consider origin, brand name and price in that order when purchasing luxury brands. In regards to each factor, respondents preferred Italian to Chinese origins, the Gucci to Miu Miu brand name, and 750,000 to 450,000 won for price level. Generally, women in their 20s and 30s preferred products from advanced nations at a medium-level price.

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