• Asia Marketing Journal
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• v.18 no.4
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• pp.77-98
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• 2017

This research explores two key facets of behavior (reward point accrual and redemption) that consist of a loyalty program. It focuses on assessing the impact of accrual effort level on three types of redemption behavior: speed, unit size, and hedonic preference at the individual level by using large scale transaction data from a multi-vendor loyalty program providing flexible environment for point accrual and redemption. Findings from this research demonstrate that customers tend 1) to speed up point redemption, 2) to enlarge the size of redeemed points, and 3) to prefer utilitarian rewards as the level of effort at the accrual stage of reward point increases.

• Asia Marketing Journal
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• v.15 no.4
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• pp.51-60
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• 2014

Previous research on loyalty program has verified the factors that influence redemption behavior and the understanding of the mechanism of redemption behavior with academic and practical implications. However, these research has not proven boundary conditions in which the phenomena can be strengthened or weakened- that is, the moderating effect remains unclear. The inclusion of moderating variables can provide a more extensive understanding of the mechanism of this behavior from academic and managerial perspectives alike. Therefore, this current research proposes regulatory focus as a moderating variable, which has received scarce attention in the study of loyalty program behavior, especially individual characteristic variables that, in turn, affect the consumers' purchasing behavior in various ways. Previous research on consumer decision making investigates the differential role of regulatory focus as a series of stages. Regulatory focus theory posits that people depend on the two types of regulatory focus when pursuing goals: promotion focus vs. prevention focus. The former induces tendencies to recognize a goal as a hope and ideal, as something that satisfies the need for accomplishment, and to be sensitive to the presence of a positive outcome of the match and to match the pursuit of goals. On the other hand, the latter tends to regard a goal as the responsibility or obligation to achieve the goal, has a tendency to avoid failure to meet a target, and is sensitive to the presence of the negative consequences that do not reach the target. The following propositions are suggested: 1) The effect of higher accumulation effort level on delaying point redemption speed will be relatively more pronounced for customers with prevention focus. 2) The effect of higher accumulation effort level on large redemption unit size will be relatively more pronounced for customers with prevention focus. 3) The effect of higher accumulation effort level on hedonic redemption ratio will be relatively more pronounced for customers with promotion focus. Therefore, this research provides a moderating variable that has the potential to be used as a reference for market segmentation and affects the relationship between point accumulation effort and three sides of point redemption behavior. On this basis, the direction for the future research on this issue is recommended. Future research could verify these propositions conducting a survey of customers' propensity of regulatory focus in conjunction with the history of the loyalty program of data. This would provide a more realistic effect on the usage behavior of loyalty program consumers by providing useful implications for both marketing practitioners and researchers.

• Asia-Pacific Journal of Business
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• v.11 no.3
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• pp.243-260
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• 2020

Purpose - This paper aims to investigate the properties of crude oil based derivative security (DLS) focusing on step-down type for comprehensive understanding of its risk. Design/methodology/approach - Kernel estimation is conducted to figure out statistical feature of the process of oil price. We simulate oil price paths based on kernel estimation results and derive probabilities of hitting the barrier and early redemption. Findings - The amount of issuance for crude oil based DLS is relatively low when base prices are below $40 while it is high when base prices are around $60 or $100, which is not consistent with kernel estimation results showing that oil futures prices tend to revert toward $46.14 and the mean-reverting speed is faster as oil price is lower. The analysis based on simulated oil price paths reveals that probability of early redemption is below 50% for DLS with high base prices and the ratio of the probability of early redemption to the probability of hitting barrier is remarkably low compared to the case for DLS with low base prices, as the chance of early redemption is deferred. Research implications or Originality - Empirical results imply that the level of the base price is a crucial factor of the risk for DLS, thus introducing a time-varying knock-in barrier, which is similar to adjust the base price, merits consideration to enhance protection for DLS investors.

• Communications for Statistical Applications and Methods
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• v.15 no.4
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• pp.563-585
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• 2008

This paper presents how to improve the efficiency and accuracy in the pricing and sensitivity evaluation for derivatives, since the need for the evaluation of complicated derivatives is increased. The Monte Carlo(MC) simulation using the quasi random number instead of pseudo random number can improve the elapsed time and accuracy for the valuation of European-type derivatives. However, the quasi MC simulation method has its limit for applying it in the multi-dimensional case such as American-type and path-dependent options due to the increased correlation between dimensions as the dimension of random numbers is increased. In order to complement this problem, we develop a modified method in which correlation values are controlled to be below a pre-specified value. Thus, this method is applicable for the pricing of either derivatives ill which underlying assets or risk factors are several or derivatives having path-dependent or early redemption property. Furthermore, we illustrate that it is important to take an appropriate grid interval for the use of finite difference method(FDM) by applying the FDM to one example of non-symmetrical butterfly spreads.

• Korean Journal of Remote Sensing
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• v.38 no.6_1
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• pp.1395-1406
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• 2022

This study investigated the effects of the urban forest and street trees on flow and temperature distribution in the Daegu National Debt Redemption Movement Memorial Park. For this, we implemented tree-drag and tree-cooling parameterization schemes in a computational fluid dynamics (CFD) model and validated the simulated wind speeds, wind directions, and air temperatures against the measured ones. We used the wind speeds, wind directions, air temperatures predicted by the local data assimilation and prediction system (LDAPS) as the inflow boundary conditions. To investigate the flow and thermal characteristics in the presence of trees in the target area, we conducted numerical experiments in the absence and presence of trees. In the absence of trees, strong winds and monotonous flows were formed inside the park, because there were no obstacles inducing friction. The temperature was inversely proportional to the wind speed. In the presence of trees, the wind speeds(temperatures) were reduced by more than 40 (5)% inside the park with a high planting density due to the tree drag (cooling) effect, and those also affected the wind speeds and temperatures outside the park. Even near the roadside, the wind speeds and temperatures were generally reduced by the trees, but the wind speeds and air temperatures increased partly due to the change in the flow pattern caused by tree drag.

• Journal of the Korean Institute of Landscape Architecture
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• v.41 no.1
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• pp.21-33
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• 2013

The purpose of this study is to find applicabilities of human bioclimatic maps, using human thermal sensation(comfort) in summer, with microclimatic in situ data and computer simulation results at the study site of downtown Daegu. This includes the central business district(CBD) area and two urban parks, the Debt Redemption Movement Memorial Park and the 2.28 Park, for urban and landscape planning and design. Climatic data and urban setting information for the analysis of human thermal sensation were obtained from in situ measurement and the geographic information system data. As a result, the CBD had higher air temperature than the parks when the wind speed was low. Relative humidities were opposite to the air temperature. Especially, same directional streets with local wind direction had lower air temperature than streets perpendicular to the wind direction. The most important climatic variable of human thermal sensation in summer was direct beam solar radiation. Also, creating shadow areas would be the most relevant method for modifying hot thermal environments in urban areas. The most effective method of creating shadow patterns was making a tree shadow over a pergola, and the second best one was making a tree shadow on the front of north directional building walls. Moreover, how to plant trees for creating shadow patterns was important as well as what kind of trees should be planted. The results of human thermal sensation were warm to very hot at sunny areas and neutral to warm at shaded ones. At the sunny areas, wide, squared shape areas had a little bit higher thermal sensation than those of narrow streets. The albedo change of building walls 0.15 and ground surface 0.1 could change 1/6 of a sensation level at the shaded areas and 1/3 at the sunny ones. These microclimatic approaches will be useful to find appropriate methods for modifying thermal environments in urban areas.