• Proceedings of the SAREK Conference
• /
• 2009.06a
• /
• pp.650-655
• /
• 2009

In this study, a consumer willingness to pays for residential heating systems are estimated by economic valuation method. The major Korean residential heating systems in apartments are central heating system (CH), district heating system (DH), and individual heating system (IH). However, DH and IH systems are adopted in newly constructed apartments. Each heating system has own characteristics which residents can identify and value. 700 households in apartment were surveyed to analyze the preference of the residential heating systems and to estimate willingness to pay. We find that the households in DH system are more satisfied with their heating system than the households in other systems overall and that consumers prefer an apartment with DH system than with IH system and the willingness to pay for IH system is less than DH system. The results indicate that DH system has the relative premium which may be caused by the safety and the convenience to manage the system.

• Asia pacific journal of information systems
• /
• v.23 no.1
• /
• pp.21-43
• /
• 2013

Internet vendors are gradually realizing the importance of "locking-in" online customers in order to ensure profitability. Erection of switching barriers increases customers'lock-in and in turn may result in their willingness to pay price-premium for the same service. However, raising customer lock-in online is difficult because search costs are very low. Therefore, this study examines the effect of switching barriers (customer satisfaction, perceived value and relative advantage) on switching costs and the effect of switching costs on customer's willingness to pay more. Since switching costs and consequent relationships may depend upon the type of product therefore the research model in this study is examined for both search products and experience products. Data is collected through an online survey from two websites (one each for search product and experience product). The empirical results show the key role of switching costs in customers' willingness to pay more and the relationships among the four constructs. The theoretical and practical implications of this study are also discussed.

• Journal of Korean Society of Forest Science
• /
• v.96 no.2
• /
• pp.183-188
• /
• 2007

This study was carried out to examine the perceptions of consumers and forest product manufacturers in South Korea about forest certification and to identify their willingness-to-pay for certified products by personal interviews. Sixteen percent of interviewees knew and heard about forest certification. However, fifty-six percent of interviewees had an intention to participate in forest certification system. The consumers' group can be described in relative terms as the male of 30 age bracket. The average price premium charged to consumers was higher than one paid to manufacturers, and thus manufacturers are willing to include the additional costs for certified products.

• Journal of Community Nutrition
• /
• v.8 no.2
• /
• pp.96-101
• /
• 2006

This study compares brand equity of the fast food industry between Korea and the Philippines. This comparison is conducted by measuring a price premium that the college students in both countries would pay for hamburgers. Three popular fast food chains in each country, Lotteria, McDonalds', and Burger King in Korea and Jollibee, McDonalds', and Burger King in the Philippines, were chosen for the study. Utilizing a brand-based comparative approach, the findings of the study indicated that Burger King showed the highest brand equity for the premium brand image in both countries, whereas both local brands had a lower brand equity compared to international brands. The results of the study provide useful information for international and local brand managers that wish to establish strategies for a brand image, as well as to manage brand equity effectively. (J Community Nutrition 8(2): 96-101, 2006)

• Environmental and Resource Economics Review
• /
• v.17 no.2
• /
• pp.327-347
• /
• 2008

This study proposes a new answering mechanism of deciding whether to purchase or not under uncertainty-real risk answering mechanism (R-RAM) for real transaction and hypothetical risk answering mechanism (H-RAM). It IS also. shown that the traditional answering mechanism (TAM) assumed in most of existing contingent valuation methods should be applied in a real transaction without uncertainty. While the willingness to pay (WTP) being simply compared with the bidding price m TAM, the mean of WTP should be greater than the bidding pnce at least by the risk premium for a purchase decision m R-RAM and H-RAM. Only difference between R-RAM and H-RAM is risk premium. The H-RAM takes a smaller risk premium than the R-RAM. This study proposes the contingent valuation method (CVM) with H-RAM could be an alternative to reducing the under-or over-estimation of WTP by comparing the WTP estimates obtained from three different CVMs with TAM, R-RAM and H-RAM.

• Korean Management Science Review
• /
• v.31 no.4
• /
• pp.93-106
• /
• 2014

This paper investigated customers' willingness to pay (WTP) for the integrated news platform, which is a paid digital news service provided by Korean newspapers. The integrated news platform has been widely employed and regarded as an alternative to recover dramatically decreasing sales of newspapers since N-Screen era began. This study employed a conjoint analysis to examine WTP for the integrated news platform and its attributes. According to the results, WPT for the integrated news platform was estimated as 4543.6 won, which is only 30.3% of the real price. Digitalized newspaper and premium news were found to be significant attributes explaining customers' WTP. The results of this paper implies that present marketing strategies for the integrated news platform of Korean newspapers should be reconsidered and revised.

• Korean Journal of Organic Agriculture
• /
• v.29 no.4
• /
• pp.485-505
• /
• 2021

This study investigated consumers' perceptions and willingness to pay (WTP) for fruit and vegetables grown using renewable energy such as solar power, geothermal, waste heat from incinerators, hot water from thermal power plants. To this end, this study conducted an online survey of 1,050 consumers in Seoul, Gyeonggi, and the six metropolitan cities, and the main findings are as follows. First, most of the consumers perceived climate change as a serious problem, and 82.8% recognized the government's declaration of carbon zero was appropriate, which means that the government's active response to climate change is important. Second, on the pros and cons of the use of renewable energy when cultivating fruits and vegetables, opinions in favor of solar power were the highest, followed by geothermal heat, waste heat from waste incineration plants, and thermal power generation hot drainage. Third, at least 28.0% to 41.7% of consumers were willing to purchase fruits and vegetables using renewable energy more expensive than fruits grown using fossil energy such as kerosene. This means that the fruit and vegetable market using renewable energy is valuable as a niche market.

• The Journal of The Korea Institute of Intelligent Transport Systems
• /
• v.9 no.4
• /
• pp.113-122
• /
• 2010

Research and development related to advanced railway systems is currently underway presently to promote the maintenance and economic feasibility of subways, and the aim of such research and development is to enhance the functionality, passenger convenience, system safety and reliability assurance of the subway. In this situation, a study that predicts the effect that the development of such an advanced railway system would have on subway users is required. To this end, this study derived willingness to pay and decision factors with the introduction of an advanced railway system after surveying passengers who use subway lines 1~8. The Price Sensitivity Method (PSM) was applied to derive the willingness to pay in relation to user convenience (operating speed, ride comfort, safety, comfort, security and informativeness) with the introduction of an advanced railway system. In addition, willingness to pay and decision factors were examined after explaining the effects of introducing an advanced railway system in detail to subway users. Through the analysis, it was found that willingness to pay amounted to a premium of 148 won ~ 161 won with the introduction of an advanced railway system, and that this was affected by factors such as gender, frequency of use, satisfaction with comfort, and satisfaction with security.

• The Korean Journal of Health Service Management
• /
• v.6 no.2
• /
• pp.165-177
• /
• 2012

This study examined market size of private health insurance premium and individual characteristics associated with the market size change in Korea, using wave 1 (2008) and wave 2 (2009) of Korea Health Panel. The market size was 24.4 trillion Korean won in 2008 and 26.9 trillion in 2009. The increase rate of private health insurance premium among those who were the elderly, single, or the poor was higher than that among their counterpart respectively. Health status and utilization were insignificant in determining the increase rate of private health insurance premium. These findings were more obvious among the uninsured in 2008 than among the insured in 2008. The increase of private health insurance premium in Korea imply the increase of willingness-to-pay for health risk through private sector. The authors suggest policy intervention for accessability to health care for the underprivileged and weak through enlargement of Korean social health insurance benefit.

• Korean Journal of Community Nutrition
• /
• v.17 no.4
• /
• pp.494-503
• /
• 2012

The purpose of this study was to examine the effect of sustainability management (SM) at coffee houses on customers' store image and behavioral intention. In addition, customers' willingness to pay a premium for sustainable coffee houses was studied. During October 2011, a web survey was conducted via an on-line research company with customers aged 20 to 39 visiting one of the top five coffee houses in Korea at least once a month. A total of 300 targeted customers responded and all the data were analyzed. An exploratory factor analysis derived two dimensions of SM: SM in Social and Environmental Perspective and SM in Economic Perspective. The result of structural equation modeling indicated that SM in Economic Perspective at coffee houses had a significant positive effect on customers' behavioral intention with mediating effect by store image, but SM in Social and Environmental Perspective did not have such effect. Approximately one-third (31%) of the respondents were willing to pay a premium for a sustainable coffee house in a scenario. approximately 84% of the respondents unwilling to pay a premium for the sustainable coffee house chose the cost-related reasons including "Coffee price at the coffee house that they most often visit is already expensive (62.3%)" for such unwillingness. The results of this study showed that SM of coffee houses, especially that in Economic Perspective, could contribute to store image, and therefore increase customers' favorable behavioral intention, although the additional cost resulted from such SM practices might not be easily accommodated by customers.