• The Research Journal of the Costume Culture
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• v.18 no.4
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• pp.774-788
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• 2010

This research is to understand luxury consumption values for luxury consumers. The aims of this study is to identify their luxury consumption values and the effects of the values on the perceived acquisition value. This study also divided data into two groups according to the difference between reservation price and actual price; positive reservation price group, negative reservation price group, and analyzed the effects of the values on the perceived acquisition value between two groups. In this study, we used structural models equation and results presented that the conceptual model was a good fit to the data. The empirical results suggested four dimensions of luxury consumption values; symbolic value, innovative design value, quality value and origin value. There were positively significant effects of symbolic value and quality value on the perceived acquisition value. The effects of innovative design value on the acquisition value was significantly negative. Two groups categorized by reservation price depicted the differences on effect levels of symbolic value, innovative design value, and quality value on the acquisition value perception.

• Korean Management Science Review
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• v.21 no.3
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• pp.1-12
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• 2004

The paper demonstrates that versioning of digital products occurs more frequently than that of physical products because of low marginal cost. The versioning occurs no matter what a customer knows his/her reservation price. Low-quality version will not be produced when the difference between reservation prices is very large. The paper also shows that a firm tries to lower the quality of low-quality product to prevent customers with high reservation prices from purchasing low-quality product.

• Journal of the Korean Operations Research and Management Science Society
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• v.30 no.2
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• pp.105-115
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• 2005

By committing to a long-term replenishment contract, buyers can purchase a product at a lower price from a supplier who is less pressured to find new customers due to the long-term contract and can charge a discounted price. We develop an analytical model from the buyer's perspective to investigate a capacity reservation contract. We are considering the system with a single supplier and a buyer. The buyer can purchases any desired amount from a spot market at a higher price in addition to the contracted amount. For such a system, we propose an algorithm to derive the optimal contract terms. The result of computational experiments shows that the algorithm finds the global optimum solution in a resonable amount of time.

• Journal of the Korean Society of Clothing and Textiles
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• v.37 no.7
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• pp.972-983
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• 2013

This study investigates the effects of fashion innovativeness and utilization on the price perception of formal wear and climbing wear as well as gender differences on price perception and the relationship of the variables. Price perception measurements were based on reference price and reservation price; subsequently, a premium price ratio was calculated based on the measured prices. A survey that involved male and female adult consumers was conducted in Daegu in August 2011. A total of 321 responses were analyzed using descriptive statistics, factor analysis, reliability analysis, correlations and independent sample t-test. Two factors of fashion innovativeness were derived and named as unique-oriented innovativeness and change-oriented innovativeness. The utilization of formal wear and climbing wear was higher in the male group versus the female group. Reference price and reservation price were identified similar to the actual consumer purchasing prices reported in previous studies. Male consumers showed a tendency in price perception in accordance with the utilization. The change-oriented innovativeness of the female group led to a positive relationship with the perceived price of climbing jackets.

• Journal of the military operations research society of Korea
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• v.14 no.1
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• pp.63-83
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• 1988

This study is concerned with the equilibrium bidding strategy and the optimal auction design of sequential auction with a reserve price and an entry fee. It is assumed that each bidder has a fixed reservation value and draws the reservation values of other bidders independently in the same distribution and may obtain at most one object to be sold. Under such assumptions, the sequential auction will be analyzed by the game theoretic approach. The purpose of this paper is, in the sequential auction, to find the equilibrium bidding strategy and to design the optimal auction under the equilibrium bidding strategy. The equilibrium bidding strategy and the optimal auction design are further analyzed with respect to change of the reserve price, the entry fee, and the number of bidders and objects. Specially, the auctioneer's expected revenue for each auction is obtained and analyzed.

• Journal of the military operations research society of Korea
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• v.13 no.2
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• pp.63-83
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• 1987

This study is concerned with the equilibrium bidding strategy and the optimal auction design of sequential auction with a reserve price and an entry fee. It is assumed that each bidder has a fixed reservation value and draws the reservation values of other bidders independently in the same distribution and may obtain at most one object to be sold. Under such assumptions, the sequential auction will be analyzed by the game theoretic approach. The purpose of this paper is, in the sequential auction, to find the equilibrium bidding strategy and to design the optimal auction under the equilibrium bidding strategy. The equilibrium bidding strategy and the optimal auction design are further analyzed with respect to change of the reserve price, the entry fee, and the number of bidders and objects. Specially, the auctioneer's expected revenue for each auction is obtained and analyzed.

• Journal of Korean Institute of Industrial Engineers
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• v.13 no.1
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• pp.31-38
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• 1987

This paper is concerned with the multiple unit auction under the following assumptions: 1) multiple identical objects are to be sold to the highest bidders, but a bidder may obtain at most one, 2) each bidder has a fixed reservation value and draws his reservation value independently in the same distribution, 3) The greater a bidder's reservation value is, the more a bidder will bid for the object, and 4) a bidder will bid when his expected profit is more than zero. The purpose of this paper is to design the optimal auctions, in terms of the reserve price and entry fee, that can be applied in any types of multiple unit auctions under the above assumptions. Further, auctioneer's expected revenue and profit, and all the winners' expected profit are analyzed.

• Journal of Korean Society for Quality Management
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• v.45 no.4
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• pp.957-968
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• 2017

Purpose: There are lots of efforts to increase the revenue of on-line travel agency due to the extreme competition in the hospitality industry. One of the way to improve the revenue is applying new concepted service for their business. In this study, it is introduced an innovative system design of hotel reservation for the on-line travel agency using the concept of an opaque product. Methods: By adopting the opaque product at the hotel reservation system, the reservation requests can increase because the customer tends to feel that they purchase the hotel service with relatively cheap price. The overall process for an innovative hotel reservation system is presented and the core algorithm to implement this system is also suggested through a mathematical model based optimization method. Results: To validate and to examine the proposed process and core algorithm, a numerical example is provided with the modified data of the hotels in Seoul metropolitan city. The discount prices and the overall revenue of hotels are generated according to hotel grade. Conclusion: It is confirmed that the revenue of the hotel tends to increase according to its grade. This is because that the customer want to use the new service which applying the concept of opaque product when the higher discount ratio are decided for lower grade hotels.

• Journal of Navigation and Port Research
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• v.41 no.2
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• pp.63-70
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• 2017

Despite the remarkable continual growth of the world cruise industry, studies have yet to be attempted on many revenue management problems in cruise operations. This paper suggests two schemes that can be easily applied to cruise revenue management: optimal dual pricing and passenger safety level. In optimal dual pricing, a pair of higher and lower prices is applied to cabin reservation through market segmentation. This scheme can be executed with a linear price-response function for the current unreserved cabins. A cruise line could benefit from this scheme to maximize reservation revenue while attaining full occupancy. The dual pricing scheme is also devised to produce only integer demands to suit real management practices. The life boat capacity is an additional service capacity unique to the cruise industry, catering to passengers' safety. The concept of passenger safety level is defined and computed for any passenger life boat capacity of a cruise ship. It can be used to evaluate the passenger safety of a cruise ship in operation, as well as to determine the number of life boat seats required for a new cruise ship. Hypothetical examples are used to illustrate the operation of these two schemes.

• Journal of the Korean Society of Clothing and Textiles
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• v.33 no.9
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• pp.1506-1518
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• 2009

This study identifies the relationships among demographic variables, well-being health consciousness, sports/leisure activity, and the perceived premium price for high functional sports/leisure wear. An empirical study was conducted with the data collected by questionnaires distributed to male and female respondents aged 15 and over. Descriptive statistics, factor analysis, MANOVA, two-way ANOVA, and regressions were used to analyze 244 answers. As a result, 3 factors were determined for well-being health consciousness: nature-friendly life, premium consumption for health, and health care. The older group pursued a nature-friendly life more than the younger group, the female group pursued premium consumption for health more than male group, and older women and younger men pursued health care more than their counterparts. Sports/leisure activity was relatively intensive in the male group and in the younger group. Sports/leisure activity was explained by male characteristic and health care factors. Sports/leisure activity was the only element for predicting the perceived premium price ratio for high functional sports/leisure wear.