• Title/Summary/Keyword: Marketing costs

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A Case Study for Strawberry Joint Marketing in Nonsan (논산시 딸기 연합판매사업의 사례분석)

  • Kim, Chul-Ho
    • Korean Journal of Agricultural Science
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    • v.33 no.1
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    • pp.11-16
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    • 2006
  • Joint marketing defines marketing activity which aims scale economies, quality improvement, and reducing marketing costs, through regrouping and sharing roles between farmers, regional cooperative, and national agriculture cooperative federation. As a case study for joint marketing, an empirical analysis was done for strawberry joint marketing in Nonsan city and future directions for joint marketing were deduced.

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Cost Distribution Strategies in the Film Industry: the Simplex Method (영화의 유통전략에 대한 연구: 심플렉스 해법을 중심으로)

  • Hwang, Hee-Joong
    • Journal of Distribution Science
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    • v.14 no.10
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    • pp.147-152
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    • 2016
  • Purpose - High quality films are affected by both the production stage and various variables such as the size of the movie investment and marketing that changes consumers' perceptions. Consumer preferences should be recognized first to ensure that the movie is successful. If a film is produced without pre-investigation and analysis of consumer demand and taste, the probability of success will be low. This study investigates the balance of production costs, marketing costs, and profits using game theory, suggesting an optimization strategy using the simplex method of linear programming. Research design, data, and methodology - Before the release of the movie, initial demand is assumed to be driven largely by marketing costs. In the next phase, demand is assumed to be driven purely by a movie's production cost and quality, which might also further determine consumer demand. Thus, it is essential to determine how to distribute pure production costs and other costs (marketing) in a limited movie production budget. Moreover, it should be taken into account how to optimally distribute under the assumption that the audience and production company's input resources are limited. This research simplifies the assumptions for large-scale and relatively small-scale movie investments and examines how movie distribution participant profits differ when each cost is invested differently. Results - When first movers or market leaders have to choose both quality and marketing, it has been proven that pursuing a strategy choosing only one is more likely than choosing both. In this situation, market leaders should maximize marketing costs under the premise that market leaders will not lag their quality behind the quality of second movers. Additionally, focusing on movie marketing that produces a quick effect while ceding creative activity to increase movie quality is a natural outcome in the movie distribution environment since a cooperative strategy between market competitors is not feasible. Conclusions - Government film development policy should ignore quality competition between movie production companies and focus on preventing marketing competition. If movie production companies focus on movie production quality improvement then a creative competition would ensue.

A study on the profitability and marketing costs of seed potato farming in Bangladesh (방글라데시 씨감자 농가의 유통비용 및 수익성에 관한 연구)

  • Tabassum, Nazia;Kim, Chul-Won
    • Food Science and Preservation
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    • v.16 no.4
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    • pp.490-498
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    • 2009
  • This study attempted to examine the profitability and marketing costs of seed potato under contract farming system of BADC (Bangladesh Agricultural Development Corporation) with the help of primary and secondary data. Total 45 contract farmers were randomly selected. Attempts were made to calculate costs, returns and profitability of seed potato production under contract farming system, and to identify marketing channels of seed potato. The field level data were collected by a farm survey during the months of April 2005 through direct interviews with contract farmers and registered dealers using a structure survey questionnaire. The results showed that the gross return per hectare was Tk. 252,464 for all categories of farms. Cost of seeds, fertilizers, pesticides, irrigation and human labor were critical inputs for profitability of seed potato. Cobb-Douglas production function analysis was used to determine the effects of the key variables to seed potato production under contract farming system. The elasticity of seed potato production was at 0.727 for all categories of farms. The findings exhibited that the summation of elasticity of different inputs for seed potato production was less than one, implying that the production function exhibited decreasing returns to scale. Registered dealers and Upazila Sales Centers were involved in seed potato marketing formed a straightforward marketing channel. The total marketing costs of registered dealers were Tk. 759.49 per ton of seed potato. The net marketing margin of registered dealers was estimated at Tk. 465.51 per ton of seed potato. The selected contract farmers and registered dealers faced a number of problems and some of recommendations were suggested.

The Effect of Perceived Costs and Satisfactions on Certain Types of Sales-promotions (세일즈프로모션 이용비용 지각과 소비자 만족에 관한 연구)

  • Shin, Min-Kyung;Joung, Soon-Hee
    • Journal of Families and Better Life
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    • v.27 no.1
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    • pp.31-44
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    • 2009
  • The purpose of this study was to understand how consumers perceive the costs of using certain types of sales-promotions and to suggest ways in which sales-promotions should be developed to contribute to the consumers' welfare and the development of Marketing Strategy. The sufficiency of the consumers' desire was essential to new and creative sales-promotion strategy. This study investigated the perceived costs of using timely opportunity costs, extra expenses, substitution costs, uncomfortable feeling, regrets and economical and psychological satisfactions on certain types of sales-promotions such as off line, coupon, packed items, collection and on line, and event. In the study results on the perceived costs of using certain types of sales-promotions, off line sales-promotions were perceived more than substitution costs, extra expenses, regrets and on line sales-promotions were perceived more than timely opportunity costs. These results were caused by immediately using off line sales-promotions and becoming a member of on line sales-promotions. In the research result on the perceived costs of using certain types of sales-promotions and economical satisfactions, off line sales-promotions exhibited positive relations with substitution costs of coupon and extra expenses, regrets of packed items and collection about economical satisfactions. On line sales-promotions exhibited positive relations with extra expenses and regrets about economical satisfactions. The research results on the perceived costs of using certain types of sales-promotions and psychological satisfactions, off line sales-promotions exhibited positive relations with timely opportunity costs of coupon and collection about psychological satisfactions. On line sales-promotions exhibited positive relations with substitution costs about psychological satisfactions. These results were caused by the feeling of leisure time as the consumer played games or hobbies. This study proposes an approach in the context of sales-promotion with some suggestions and thoughts.

Effects of the Corporate Image on Customer Loyalty by Switching Costs (전환비용에 따른 기업이미지가 고객충성도에 미치는 영향)

  • Kim, Yi-Tae
    • Proceedings of the Korea Contents Association Conference
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    • 2008.05a
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    • pp.426-430
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    • 2008
  • Most organizations recognize customer satisfaction as one of the most essential factors that ensure their success and prosperity. Many corporations realize that they can make their revisit their store and/or reuse their products and services by fulfilling customer satisfaction. The switching costs draw much attention from the managers and marketing experts as one of the key factors that have an considerable effect on customer loyalty. The purpose of this study is to understand the role of switching costs, and analyses the effects of corporate image on customer Loyalty according to switching costs and the structural relationship among these factors. The findings of the study provide integrated theoretical framework of switching costs and it's antecedents. And this study can be used as a marketing strategic tool to deter customer defection with help of a rewarding program to increase the benefits of customer retention.

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The Impact of Privacy Control on Users' Intention to Use Smart Home Internet of Things (IoT) Services

  • Kim, Mingyung;Choi, Bo Reum
    • Asia Marketing Journal
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    • v.24 no.1
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    • pp.29-38
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    • 2022
  • Despite the diverse benefits of smart home Internet of Things (IoT) services, the biggest obstacle to the actual usage of those services is concern about privacy. However, little research has investigated the impact of privacy control on users' intention to use smart home services. Based on communication privacy management theory and privacy calculus theory, this study investigates how privacy control options affect users' perceived benefits and costs and how those perceptions affect individuals' intentions to use smart home services by conducting an experiment. Our results showed that smart home privacy control options decreased perceived benefits and increased perceived costs. The perceived benefits and costs significantly affected the intention to use smart home security services. More intriguingly, the effect of perceived benefit was found to be stronger than that of the expected cost. This research contributes to the field of IoT and smart home research and provides practitioners with notable guidelines.

Examining Decision-Making of Participating in Open Innovation Platform: The Case of Biotechnology Industry

  • Son, Insoo;Lee, Jong-Ho;Lee, Dongwon
    • Asia Marketing Journal
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    • v.19 no.4
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    • pp.61-85
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    • 2018
  • Open innovation is based on a different knowledge landscape, with a different logic about the sources and uses of technologies. It implies that firms increasingly rely on external sources of innovation by emphasizing these ideas and resources. Using datasets from the UK biotechnology industry, this paper explores firms' willingness to participate in open innovation. The results indicate that the switching cost is identified as the direct predictor of the willingness to participate in open innovation. While high commitment based on the trust with partner increases switching costs, IT infrastructure within the firm decreases switching costs to open innovation. Taken together, this research broadens the study on open innovation by applying the switching cost as a medium of knowledge transfer in the biotech industry.

Changes in Marketing Environments and Prospect of Cyber-Agricultural Market (유통(流通)환경(環境)의 변화(變化)와 가상(假想) 직거래시장(直去來市場)의 도입방안(導入方案))

  • Kwon, Yong-Dae
    • Korean Journal of Agricultural Science
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    • v.23 no.2
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    • pp.330-341
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    • 1996
  • As the agricultural marketing environments, which are consumers' tastes and preferences, producers' involvements in marketing business, government policy and liberalization of domestic market, have rapidly changed, current marketing systems are facing transitional periods. To cope with changing marketing environments, it is desirable to develop new marketing system that efficiently direct the flow of agricutlural products from producers to consumers. Cyber-marketing system, in which producers and consumers could conduct direct transaction with each other using computer internet system, would be suggested so that marketing stages and costs can be reduced. However, for cyber-marketing to be managed successfully, it is a need to establish data base and information network system for producers' group and consumers' group and to improve the marketing functional performances such as grading, packaging, and storage system.

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Impact of Marketing Losses on Efficiency in Transacting Banana in Scarce Rainfall Zone of Andhra Pradesh, India

  • Kumar, K. Nirmal Ravi
    • Agribusiness and Information Management
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    • v.9 no.2
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    • pp.1-11
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    • 2017
  • Introduction: To analyze the impact of marketing losses on efficiency in transacting banana in Kurnool district of SRZ in Andhra Pradesh and to assess the opinions of the farmers on the constraints in transacting banana. Research back ground, Materials and Methods: The study relies exclusively on primary information obtained from the banana farmers of Kurnool District. Purposive sampling procedure was followed for the selection of the study area. Top two mandals in the district and top two villages in each mandal are selected in accordance with the area under cultivation of banana. Probability proportion to size was followed regarding the selection of sample farmers and accordingly 60 marginal, 37 small and 23 other farmers were selected and thereby, the total sample size was 120. Result and Discussion: Three marketing channels were identified in the marketing of banana in Kurnool district viz., Producer ${\rightarrow}$ Local-exporter ${\rightarrow}$ Wholesaler ${\rightarrow}$ Retailer ${\rightarrow}$ Consumer (Channel-I), Producer ${\rightarrow}$ Wholesaler ${\rightarrow}$ Cart-vendor ${\rightarrow}$ Consumer (Channel-II) and Producer ${\rightarrow}$ Juice-holder ${\rightarrow}$ Consumer (Channel-III). With the inclusion of marketing losses in the price spread analysis of banana in all the three channels, the marketing costs of all the intermediaries were increased and thereby, the farmer's share in consumer's rupee and Net Marketing Margins of the agencies are on the decline. So, without inclusion of marketing losses, the farmer's share in consumer's rupee and Net Marketing Margins of all the agencies are overvalued. The higher the marketing losses, the more is the negative impact on farmer's net selling price, net marketing margins of the intermediaries and marketing efficiency. The sample farmers are facing major problems in marketing of banana like frequent price fluctuations, unorganized marketing and lack of transportation facilities on priority basis. Suggestions: It is suggested to educate the farmers regarding the optimum maturity index for harvest, use of mechanical harvesters, proper placement of fruits during storage and ripening, better packaging and cushioning technologies to absorb shocks during transportation, strengthening of storage facilities and transport facilities, encourage co-operative marketing etc., to promote marketing efficiency of banana in the study area.

A Study on Service Quality and Switching Costs of Instant Messenger Service Users (인스턴트 메신저 서비스 이용자의 서비스 품질과 전환비용에 관한 연구)

  • Kim, Seong-Ho;Bang, Ho-Yeol
    • Journal of Global Scholars of Marketing Science
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    • v.15 no.1
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    • pp.1-20
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    • 2005
  • The object of this study is to explore factors affecting customer satisfaction and customer loyalty of instant messenger service. We propose that service qualities (tangibility, assurance, responsiveness, empathy, reliability) affect customer satisfaction of instant messenger service, customer satisfactions do customer loyalty. As moderating factors of the relationship between customer satisfaction and customer loyalty, switching costs are suggested. To accomplish the object of this study data are collected from instant messenger user by survey research. We analyse the research model using structural equation model and moderated multiple regression. The result are as follows: (1) tangibility and responsiveness affect customer satisfaction. (2) customer satisfaction affects customer loyalty. (3) switching costs moderated the relationship between customer satisfaction and customer loyalty.

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