• Journal of the Korean Society of Clothing and Textiles
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• v.36 no.12
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• pp.1285-1296
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• 2012

This study investigates the effects of changes in price, total consumption expenditures and economic sitations on Korean household demands for clothing and footwear using time-series data. The clothing and footwear category was reclassified as clothing, footwear and clothing services items for the demand analysis. This study utilized the Linearized Almost Ideal Demand System (LAIDS) model to analyze household demand. The results indicate that price and total consumption expenditures are significantly related to Korean household consumption expenditure allocations for clothing and footwear items. The effects of the IMF bailout crisis in 1997 and the global financial crisis in 2008 on household expenditure shares for clothing and footwear items were very weak and statistically insignificant. All the demand elasticities were estimated with respect to total consumption expenditures and prices. Clothing was expenditure elastic (greater than one) and other items were classified as inelastic. All the own price elasticities of demands were negative (other than clothing). Through the estimations of cross price elasticity the relationships between the demands for items and other item prices were evaluated (i.e., substitutes and complements).

• Asia Marketing Journal
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• v.14 no.1
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• pp.53-81
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• 2012

Constructing attractive bundle offers depends on more than an understanding of the distribution of consumer preferences. Consumers are also sensitive to the framing of price information in a bundle offer. In classical economic theory, consumers' utility should not change as long as the total price paid stays same. However, even when total prices are identical, consumers' preferences toward a bundle product could be different depending on the format of price presentation and the locus of price discount. A weighted additive model predicts that the impact of a price discount on the overall evaluation of the bundle will be greater when the discount is assigned to the more important product in the bundle(Yadav 1995). Meanwhile, a reference dependent model asserts that it is better to assign a price discount to a tie-in component that has a negative valuation at its current offer price than to a focal product that has a positive valuation at its current offer price(Janiszewski and Cunha 2004). This paper has expanded previous research regarding price discount presentation format, investigating the reasons for mixed results of prior research and presenting new mechanisms for price discount framing effect. Prior research has hypothesized that bundling is used to sell a tie-in component with an offer price above the consumer's reference price plus a focal product of the same offer price with reference price(e.g., Janiszewski and Cunha 2004). However, this study suggests that bundling strategy can be used for increasing product's attractiveness through the synergy between components even when offer prices of bundle components are the same with reference prices. In this context, this study employed various realistic bundle sets with same price between offer price and reference price in the experiment. Hamilton and Srivastava(2008) demonstrated that when evaluating different partitions of the same total price, consumers prefer partitions in which the price of the high-benefit component is higher. This study determined that their mechanism can be applied to price discount presentation formats. This study hypothesized that price discount framing effect depends not on the negative perception of tie-in component with offer price above reference price but rather on the consumers' perceived consumption benefit in bundle product. This research also hypothesized that preference for low-benefit discount mechanism is that perceived consumption benefit reduces price sensitivity. Furthermore, this study investigated how consumers' concern for quality in a price discount--a factor not considered in previous research--influences price discount framing. Yadav(1995)'s experiment used only one magazine bundle of relatively low quality uncertainty and could not show the influence of perceived uncertainty of quality. This study assumed that as perceived uncertainty of quality increases, the price sensitivity mechanism for assigning the discount to low-benefit will increase. Further, this research investigated the moderating effect of uncertainty of quality in price discount framing. The results of the experiment showed that when evaluating different partitions of the same total price and the same amount of discounts, the partition that discounts in the price of low benefit component is preferred to the partition that decreases the price of high benefit component. This implies that price discount framing effect depends on the perceived consumption benefit. The results also demonstrated that consumers are more price sensitive to low benefit component and less price sensitive to high benefit component. Furthermore, the results showed that the influence of price discount presentation format on the evaluation of bundle product varies with the perceived uncertainty of quality in high consumption benefit. As perceived uncertainty of quality gradually increases, the preference for discounts in the price of low consumption benefit decreases. Besides, the results demonstrate that as perceived uncertainty of quality gradually increases, the effect of price sensitivity in consumption benefit also increases. This paper integrated prior research by using a new mechanism of perceived consumption benefit and moderating effect of perceived quality uncertainty, thus providing a clearer explanation for price discount framing effect.

• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.1
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• pp.73-82
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• 2006

Supply chain management (SCM) has been regarded as one of the most critical issues in the current business environment. Moreover, supply chain partnerships between suppliers and buyers in SCM have had a significant impact on supply chain performance. In this paper, we conduct a quantitative analysis for supplier-buyer's profit sharing and pricing policies based on supply chain partnerships. For this purpose, we assume that a two echelon supply chain with a single supplier and a single buyer is given and the buyer faces deterministic demand which is not only a function of buyer's selling price, but also strictly decreasing, concave, and twice differentiable function. Then we will prove the following. Firstly, without supply chain partnerships, there exist supplier and buyer's selling prices per unit such that their total profits are maximized, under the assumption that buyer's order quantity is exactly equal to the demand buyer faced. Secondly, buyer's selling price per unit which maximizes supply chain's total profit with supply chain partnerships is lower than buyer's selling price per unit which maximizes buyer's total profit without supply chain partnerships. Thirdly, given supplier's selling price per unit. buyer's total profit without supply chain part nerships is greater than that with supply chain partnerships, whereas the opposite case happens for supplier's total profit. Finally, there exists supplier's selling price per unit which makes the maximum total profits for both supplier and buyer with supply chain partnerships greater than those obtained for any given supplier's selling price per unit without supply chain partnerships.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.60 no.5
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• pp.929-935
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• 2011

Customers hardly change to electric prices in old days because electricity is essential commodity, while demand changes with price after deregulation. It's explained by price-based demand response with demand-elasticity matrix. Also all of the customers have had identical demand-price elasticity matrix till now. But in a practical power system, various customers are present with taking a variety of demand-price elasticity. Therefore this paper proposes demand-price sensitivity to represent different demand-price elasticity. Also as proposing demand-reliability sensitivity, it is modeling various customers' characteristics to reliability. And then this paper calculates total expected interruption cost of customer from the customer interruption cost and the demand-reliability sensitivity. A total expected interruption cost of system is shown as opportunity cost of a generation cost.

• Environmental and Resource Economics Review
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• v.10 no.4
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• pp.495-513
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• 2001

We investigate a practical method of calculating the impact of multiple domestic energy price change on the final demand, production, the export and import change, the change in the balance of payment of Korean economy. By combining an existing computable general equilibrium (CGE) model with the traditional input-output analysis with two additional assumptions on the price behavior, we provide a cost-effective method of analyzing the impact of multiple energy price changes on the domestic economy. The energy price shock we used in this paper is 0.127% increase weighted by the sectoral productions. The total impacts on price level and GDP are 1.258% and -0.940%, respectively. The impact on the total output (GDP and intermediate goods) is about -1.580%.

• Journal of Ginseng Research
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• v.18 no.3
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• pp.200-203
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• 1994

Recent trend of ginseng (p. ginseng) trade in Japan was analyzed. From 1984 white ginseng import increased continuously to 240% while export of red ginseng decreased to 29%. Red ginseng import increased until 1990 and decreased thereafter, resulting in 12% of total import ginseng in 1993 from 47% in 1990. During five years (1989∼1993) white ginseng import from Korea decreased from 44% to 14% of total white ginseng imported while import from China increased. Red ginseng import from China ranged 97 to l00% of total red ginseng and little change was shown during five years. Price of Korean ginseng was higher than that of China by 2.2 times for white and 6.6 times for red. The continuous decrease of Chinese ginseng price might affect import trend. Export price of red ginseng increased continuously and was higher than that of Korean red ginseng (1.95 times) and much higher than import price (20 times in 1993).

• Management & Information Systems Review
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• v.28 no.3
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• pp.25-44
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• 2009

The purpose of this paper is to examine the determinants which cause a price differential between common and preferred stock. Prior studies have shown that variables like liquidity, size, the number of outstanding shares issued can explain the price differential between common and preferred stock price. Based on year 2006 through year 2008 data, we analyzed the determinants using regression model. Dummy variables representing large/small company and KSE/KOSDAQ respectively are added and analyzed as independent variables. The firm size, trade volume turnover, and the number of preferred shares to total outstanding shares were proved to make influence on the price differential under the 5% significance level. Especially, we have found the number of preferred shares to total outstanding shares provide the most strong relationship with the price differential. This means that a high ratio of preferred stock to total outstanding shares leads to relatively high value of common stock and causes a big price differential.

• Journal of Korean Academy of Nursing Administration
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• v.10 no.1
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• pp.1-9
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• 2004

Korean health insurance has adopted preliminary DRG payment system through 8 DRGs from 1997. But present DRG payment system gives economic incentives for hospitals to hire less nurse. This study was attempted to develope DRG adjust index to differentiate DRG price by nurse staffing level for nursing care quality. Method: We analyzed inpatient care cost by medical institute and developed DRG adjust index to differentiate DRG price by nurse staffing level. Results: Among same medical institute, inpatient care cost are very different according to hospital's nurse staffing level. In the case of casarean section, inpatient care cost of the 1st grade general hospital are more expensive 85,732won than the 6th grade hospital. The cost difference are 8.24% of total casarean section DRG price and 16.48% of DTG variable price. We developed DRG adjust index-a to apply DRG variable price and index-b to apply DRG total price for compensation cost difference of hospitals. Conclusions: DRG price adjust index will give economic incentive for hospitals to hire more nurse and improve nursing care quality.

• Industrial Engineering and Management Systems
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• v.8 no.1
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• pp.1-13
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• 2009

This paper presents a coordinated planning model of price-dependent demand for a single-manufacturer and a single-retailer. The demand is assumed to be normally distributed, with its mean being price dependent. The manufacturer and retailer coordinate with each other to jointly and simultaneously determine the retail selling price and the retailer order quantity to maximize the joint expected total profit. This model is then compared to a 'returns' policy model where manufacturer buys back unsold items from the retailers. It is shown that the optimal total profit is higher for coordinated planning model than that for the returns policy model, in which the retail price is set by the retailer. A compensation or profit sharing scheme is then suggested and it is shown that the coordinated model with profit sharing yields a 'win-win' situation. Numerical results are presented to illustrate the profit patterns for both linear and nonlinear demand functions. The coordinated planning model, in addition, has a lower optimal price than for a returns policy model, which would result in higher sales, thus expanding the markets for the whole supply chain.

• Journal of Distribution Science
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• v.20 no.1
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• pp.87-98
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• 2022

Purpose: This research investigates whether the existence of preannouncing price discount before purchase has an effect on after regret about purchasing and price fairness perception. Moreover, this paper examines whether the preannouncing effects on regret (or price fairness perception) are moderated by motive inference type (or brand trust). Research design, data and methodology: This experimental design consisted of total 8 between-subjects full factorial, which is completed by 2 (preannouncing price discount before purchase) × 2 (motive inference type) × 2 (consumer's brand trust level). Results: First, regret (or price fairness) differs depending on the presence/absence of preannouncing price discount before purchase and price discount motive inference type. Second, interaction effect of preannouncing price discount presence/absence before purchase and price discount motive inference type on regret (or price fairness) after purchase differs depending on motive inference type (or brand trust). Conclusions: Preannouncing external cue could decrease the possibility of consumers to regret and prevent consumers perceiving price change as unfair. Thus, corporations should sufficiently explain to consumers about preannouncing and specific reason of price fall in order to decrease regret caused by price fall and to increase price fairness perception from preannouncing effect.