• Asia Marketing Journal
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• v.16 no.1
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• pp.35-69
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• 2014

The impact of competition on pricing has been studied in the context of counterfactual merger analyses where expected optimal prices in a hypothetical monopoly are compared with observed prices in an oligopolistic market. Such analyses would typically assume static decision making by consumers and firms and thus have been applied mostly to data obtained from consumer packed goods such as cereal and soft drinks. However such static modeling approach is not suitable when decision makers are forward looking. When it comes to the markets for durable products with indirect network effects, consumer purchase decisions and firm pricing decisions are inherently dynamic as they take into account future states when making purchase and pricing decisions. Researchers need to take into account the dynamic aspects of decision making both in the consumer side and in the supplier side for such markets. Firms in a two-sided market typically subsidize one side of the market to exploit the indirect network effect. Such pricing behaviors would be more prevalent in competitive markets where firms would try to win over the battle for standard. While such qualitative expectation on the relationship between pricing behaviors and competitive structures could be easily formed, little empirical studies have measured the extent to which the distinct pricing structure in two-sided markets depends on the competitive structure of the market. This paper develops an empirical model to measure the impact of competition on optimal pricing of durable products under indirect network effects. In order to measure the impact of exogenously determined competition among firms on pricing, we compare the equilibrium prices in the observed oligopoly market to those in a hypothetical monopoly market. In computing the equilibrium prices, we account for the forward looking behaviors of consumers and supplier. We first estimate a demand function that accounts for consumers' forward-looking behaviors and indirect network effects. And then, for the supply side, the pricing equation is obtained as an outcome of the Markov Perfect Nash Equilibrium in pricing. In doing so, we utilize numerical dynamic programming techniques. We apply our model to a data set obtained from the U.S. video game console market. The video game console market is considered a prototypical case of two-sided markets in which the platform typically subsidizes one side of market to expand the installed base anticipating larger revenues in the other side of market resulting from the expanded installed base. The data consist of monthly observations of price, hardware unit sales and the number of compatible software titles for Sony PlayStation and Nintendo 64 from September 1996 to August 2002. Sony PlayStation was released to the market a year before Nintendo 64 was launched. We compute the expected equilibrium price path for Nintendo 64 and Playstation for both oligopoly and for monopoly. Our analysis reveals that the price level differs significantly between two competition structures. The merged monopoly is expected to set prices higher by 14.8% for Sony PlayStation and 21.8% for Nintendo 64 on average than the independent firms in an oligopoly would do. And such removal of competition would result in a reduction in consumer value by 43.1%. Higher prices are expected for the hypothetical monopoly because the merged firm does not need to engage in the battle for industry standard. This result is attributed to the distinct property of a two-sided market that competing firms tend to set low prices particularly at the initial period to attract consumers at the introductory stage and to reinforce their own networks and eventually finally to dominate the market.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.4
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• pp.137-146
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• 2016

In recent years, business environment is faced with multi uncertainty that have not been suffered in the past. As supply chain is getting expanded and longer, the flow of information, material and production is also being complicated. It is well known that development service industry using application software has various uncertainty in random events such as supply and demand fluctuation of developer's capcity, project effective date after winning a contract, manpower cost (or revenue), subcontract cost (or purchase), and overrun due to developer's skill-level. This study intends to social contribution through attempts to optimize enterprise's goal by supply chain management platform to balance demand and supply and stochastic programming which is basically applied in order to solve uncertainty considering economical and operational risk at solution supplier. In Particular, this study emphasizes to determine allocation of internal and external manpower of developers using S&OP (Sales & Operations Planning) as monthly resource input has constraint on resource's capability that shared in industry or task. This study is to verify how Stochastic Programming such as Markowitz's MV (Mean Variance) model or 2-Stage Recourse Model is flexible and efficient than Deterministic Programming in software enterprise field by experiment with process and data from service industry which is manufacturing software and performing projects. In addition, this study is also to analysis how profit and labor input plan according to scope of uncertainty is changed based on Pareto Optimal, then lastly it is to enumerate limitation of the study extracted drawback which can be happened in real business environment and to contribute direction in future research considering another applicable methodology.

• Korean Journal of Health Education and Promotion
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• v.21 no.1
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• pp.243-257
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• 2004

Alcohol consumption is a major source of health problems, for example, alchol consumption is related to liver diseases. In addition, the social and economic costs related to alcohol consumption are enormous. This study was conducted to evaluate the current status and influencing factors related to the recognition and behavioral intention for both drinking and alcohol-reduction programs. Three effective alcohol-reduction programs of clinic program, mass education, and alliance were considered. To explain the health behavior for drinking and alcohol-reduction programs, a five-stage behavioral intention model was built and 500 questionnaires were completed through a telephone survey. Stages of the model composed of recognition of the programs, past experiences, present drinking status, intention for drinking, and behavioral intention for alcohol-reduction programs. As a result, recognition rates of the programs were low in general, therefore the strategies of education, public relations, and advertisement need to be pursued. The alcohol dependency resulted in the fact that success rate was 30％ although trial rate of alcohol-reducing was 23％. The necessity of alcohol-reduction programs were suggested. In addition, significant factors related to the intention for alcohol-reducing were individual attitude and reluctancy to pay their time and money. An insignificant factor was the attitude to their alcohol-reduction by other people. Behavioral intention rates for alcohol-reducing clinics were 4％, and those for mass education were 8％. There were very low purchase rates for clinic program, mass education, and alliance. In conclusion, evidenced-based and effective alcohol-reduction programs need to be encouraged to drinkers by medical doctors, and the strategies of education, public relations, and advertisement are also recommended. In addition, continuing legal and systematic support for alcohol-reducing would lower the drinking rate and ultimately contribute to the nation's health promotion.

• Journal of the Korean Society of Costume
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• v.66 no.8
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• pp.98-108
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• 2016

Knitwear has been used as an active and functional clothing item due to its flexible and soft nature. Diverse design expressions have made knitwear into an essential fashion item for people today, who are constantly seeking for ways to display their individualism. The purpose of this study is to analyze the actual wearing conditions, and the preferred designs of knitwear for female college students in order to provide a baseline data, which can be used to develop knitwear designs for the subjects of the study. Survey by questionnaire of 135 female college students in 3 universities in Seoul were analysed. The results of the study are as follows: First, the most owned knitwear were sweaters and cardigans. Knitwear was viewed as soft and warm, as well as versatile. It was not restricted to certain sizes, and was comfortable to wear for different activities. Seound, the most preferred items were sweaters and cardigans. The most preferred styles were round neckline sweaters and open V-neckline cardigans. Third, the most preferred designs were plain designs with achromatic colors and wool-blended fabrics. The most preferred images were simple images. The most preferred fit was loose enough for little bit of room inside. Fourth, appropriateness and design of the knitwear were assessed during the purchasing stage. the most preferred method of purchase was purchasing via online stores after researching the knitwear through various channels, such as store visits and the Internet. The preferred price of knitwear was below 100,000 KRW. Fifth, the most common complaints were as follows: changes in the shape and quality of the knitwear after a wash, appearance of nap, and loose threads. In short, it is necessary for female college students to develop high quality knitwear with designs that can display individuality, while being simple.

• Journal of the Korean housing association
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• v.26 no.6
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• pp.43-52
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• 2015

The purpose of this study was to explore housing value clusters of young renters in South Korea and their relationships to household and housing characteristics reflected in the 2012 Korea Housing Survey (KHS). The 2012 KHS microdata was used as secondary data. Among the households included in the microdata, 1,196,144 young renter households (between 20 and 34 years of age) in private rental units were analyzed. The main findings are as follows. Ten rating scale items measured housing values. Eight of them were grouped into three value factors: Investment, Affordability and Cost Increase. Using these three value factors and perception of homeownership, households were classified into four clusters: Prospective Home Investor, Settled Renter, Homeowner Wannabe, and Support Needed. The current tenure types, income and expectation for next tenure types of four housing value clusters of young renters reflected Korea's tenure ladder which has home ownership at top followed by Jeon-se rental, monthly rental with deposit and monthly rental without deposit. The households in Prospective Home Investor and Homeowner Wannabe clusters would consider home purchase in the near future. Finally, households in Support Needed Cluster would be the main target to consider in development and implementation of housing welfare policies and programs to resolve housing problems of young renters, including beginning-stage professionals.

• The Journal of Fisheries Business Administration
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• v.32 no.2
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• pp.73-89
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• 2001

The market conditions of sea mustard is changing by overproduction, decreasing price, Import of blanched and salted sea mustard from China into Korea domestic market and increasing market share of sea mustard of China in Japan. In addition, the price support program in sea mustard aquaculture must be modified due to the restriction of domestic support by international organization such as WTO. There are two ways to solve those problems. First is that finding a way to solve the overproduction of sea mustard. One of possible ways is the production adjustment by Marketing Order. Second is that finding an alternative way to replace price support program. The possible way is Direct Payment instead of purchase stockpile system. To introduce marketing Order, outlook center, organization of self-management, production adjustment through output control measure, improvement of market structure, and education/publicity arc necessary. Also, to implement marketing order, setting a model business by government is required. There are two steps for implementation of marketing order. First step is to construct Order Committee including organization of producer, people related marketing. However, this committee must run by government for certain short-term. Second step is to improve quality of product and acceleration of demand. At visual point that enforcement of the first step is completed, government has process that government transfers Order Committees self-correcting. It is desirable that government only conduct the support acts such as quality improvement and acceleration of demand. Also, at early stage it is necessary to have aid system for marketing order For example, we can expect that income increase by production adjustment in long run. However, in short run the income of producer may decrease so, it is required to compensate his economic lose. For compensation, The useful means that can be utilized is direct payment. Direct payment is not continued policy. Also, when production adjustment policy such as Marketing Order has effective results, Direct Payment as an assistant measure must be reduced or abolished. Therefore, when production adjustment acts as an effective tool to control overproduction, Direct Payment system.

• Fashion & Textile Research Journal
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• v.17 no.6
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• pp.907-918
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• 2015

With the pervasiveness of digital environment and expansion of new media, ICT (Information and Communication Technology) leads the role of consumer to change from a passive customer into an active co-producer. As customer participation in the fashion industry increases, this study attempts to explore the cases of customer participation as a co-producer in fashion industry through analyzing business models of companies, including Threadless, Blank label, Cut on Your Bias, Acustom Apparel, Thinkgivers. The results show that customer participation is mainly facilitated through design participation in fashion industry, with different level of participation and IT as well as different contribution target. Compared to the past, consumer’s preference is reflected through participation before the stage of production. Results indicate three main characteristics of customer participation in fashion industry. First, value co-creations using customer experiences and understanding customer needs are important. Second, active online communication among customers are critical. Third, it is important to ensure customer’s own item. From a customer perspective, participation enables them to purchase their own distinctive product and offers exciting experience and satisfaction over the production processes, and compensation can be used to increase customer participation. On the other hand, companies using customer participation can take advantage of cost reduction in product development, inventory, and marketing. Customer participation, as a win-win strategy for business and consumer, is expected to expand further in the future with the development of ICT.

• Journal of Agricultural Extension & Community Development
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• v.19 no.3
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• pp.699-727
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• 2012

Conditions of farm crop switching are affected by several important external factors such as agricultural products import opening, policy support, and climate change. Farming environment is always changing; barriers to imports are becoming lower and lower because of FTA and others, and climate change affects a boundary line of cultivation. Those situations give farmers motivation to change crops in order to cope with them. In addition, crop switching has been done in response to the local government measures about purchase of local agricultural products according to the local food and the expansion of organic agricultural products in school meal. Even though the favorable environment toward crop switching has been created, there are not many researches or outcomes regarding crop switching. Only few studies focus on the list of decision-making in crop switching, and locally suitable crop selection is not treated. In order to utilize crop switching as a farm management strategy, the proper frame should be studied and practical researches on application possibility also need. Therefore, study on crop switching is in a timely, proactive manner because farms catch the chance of expansion of school meal by changing crops. This paper applies HERO model used for venture foundation process to crop switching process. Success factors of HERO model are comprised of Habitate, Entrepreneurship, Resource, and Opportunity, and these phased application factors are applied to crop switching process. By doing so, each phase success factor of crop switching can be uncovered. Three farm organizations supplying organic agricultural products to schools are studied in Gyeonggi province. As a result, the stabilization stage cannot be achieved because of the habitate conditions and social conditions with low risk bearing of crop switching and current school meal systems are the main problems to block the diversification of risks. In order to succeed in crop switching, constructing the habitate in local districts or in systems of school meal is more effective than supporting each farm.

• Archives of design research
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• v.14 no.1
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• pp.27-34
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• 2001

In order to design the products that impression or emotional taste influence the purchase, feedback is necessary as useful data for better idea sketches through users emotional evaluation in early stage of design process. On the other hand, it was required to make judgments individually in previous image evaluations for emotional evaluations such as semantic differential method (SD method) that objects have been considered as classified tendency. However those SD methods are not enough to reflect flexible human capability with similarity judgment in object perceptual process. Therefore, this study proposes a classification of stimulus based on intuitive judgment and a hierarchical image evaluation method based on analysis of hierarchical process and fuzzy integration. The evaluation will be conducted through the order of process, intuitive classification of objective stimulus and items, definition of representatives in each class. Evaluation for each image of the stimulus, calculation of prior raking based on fuzzy integration. The evaluation supportive software is developed to conduct this evaluation process under interactive environments.

• Proceedings of the Korean Society for Noise and Vibration Engineering Conference
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• 2011.10a
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• pp.821-832
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• 2011

Recently, the noise of vehicle is the one of the key factors for customers to purchase a vehicle and the most important part which is related to the noise is the exhaust system. Thus, car makers have their own ways to assess this exhaust noise not only to decrease the level of noise but to enhance the feeling of it. Typically, to do these things in the early stage of development, the tuning code of the exhaust system has to be made by CAE tool, which is very reliable but expensive, and the prototype parts of this code would be made for the validation test. Then this process can be iterated to meet the target of the performance. In this study, a new algorithm which adapts the '3 dimensional convective sound wave theory 'and 'Doppler effect' has been developed. With this new algorithm, a brand new system for the calculation of tail pipe noise has been developed and validated by acoustic wind tunnel test. As a result of this study, various comparisons and have been carried out, for example, the comparison with other CAE tool has been performed for the validity and the improvement of the new calculation code could be achieved.