IV. Research Findings
1. Interview Data Analysis
1.2 Research Results
The results of the survey for each company and target products are as follows.
Company A
Company A is a game software production company established in 2016. The company has 20 employees and possesses numerous software production achievements including three game applications.
Company A recognizes the number of competitors as 10 or more. Compared with existing competitors, there is almost no differentiation of its products. Company A chose 2 points (1 point: Very Low, 5 points: Extremely High) for barriers to enter the finance (investment scale), and 3 points (1 point: Very Low, 5 points: Extremely High) for technology entry barriers, indicating that entry barriers are largely recognized as moderate. Considering the response, it can be concluded that the products of Company A is in a monopolistic competitive market.
Responses to questions about innovation type are as follows. Company A chose 2 points (1 point: None, 5 points: Very Big) for the product innovation, 5 points (1 point: None, 5 points:
Very Bid) for the product imitation, and 2 points (1 point: None, 5 points: Very Big), for the process innovation. Therefore, the innovation of company A seems to depend mainly on the product imitation.
The major innovation impact is mainly 'cost down' and 'value up', so 'cost down' only was '1,' value up only was '5,' two impacts being neutral ‘3.’ And if the effect of cost down on cost down and value up is greater, then '2', and if value up is greater, '4' was to be indicated. The innovation impact of Company A's products was 2 points, so the impact of innovation was more significant in reducing the production cost for Company A.
The answers to the questions concerning the pricing strategy of Company A are as follows.
Regarding whether to apply Cost-based Pricing, it gave 2 points (1 point: Never, 5 points:
Always), 1 point (1 point: Never, 5 points: Always) as to whether Value-based Pricing was applied, and 4 points (1 point: Never, 5 points: Always) as to whether Competition-based Pricing was applied or not. As a result of these surveys, Company A's pricing strategy could be mainly Competition-based Pricing.
Company B
Company B has bakery store in the university from 2012 to the present. It is a small company that sells products targeting a limited number of customers in the university and is managed by three employees.
Company B recognizes the number of competitors as 10 or more. Compared with the existing competitive, there is almost no differentiation of its products. Company B gave 1 point for barriers to enter the finance and technology. Those recognize that barriers to entry are very low.
‧
Responses to questions about innovation type are as follows. Company B chose 1 point for the product innovation, 5 points for the product imitation, 2 points for the process innovation.
Therefore, the innovation of company B seems to depend mainly on the product imitation.
As a respond of innovation impact of company B was 2 points, so the innovation was more significant in reducing the production cost for Company B.
The answers to the question concerning the pricing strategy of Company B are as follows.
Regarding whether to apply Cost-based Pricing, it gave 3 points, 4 points as to whether Value-based Pricing was applied, 2 points as to whether to apply Competition-Value-based Pricing was applied or not. As a result of these surveys, Company B’s pricing strategy could be primarily Value-based Pricing.
Company C
Company C was founded in 1999 as a manufacturer of educational software. Through B2B (Business to Business) and B2C (Business to Consumer) were entered the market with two product groups and is managed by 30 employees.
Product C-1
Company C recognizes the number of competitors as 6 to 9. Compared with existing competitors, there is differentiation of its product. Company C chose 2 points for entry barriers in financial, three points for entry barriers in technical. Those recognize that that entry barriers are largely recognized as moderate. Considering the responses, it can be seen that Product C-1 is belongs to a monopolistic competitive market.
Responses to questions about innovation type are as follows. Company C chose is 3 points for the product innovation, 4 points for the product imitation, 2 points for process innovation.
Therefore, the innovation of product C-1 seems to depend mainly on product imitation.
As a respond to measure innovation impact was 1 point, so the innovation was mainly the reduction of production cost in product C-1 of Company C.
The answers to the question concerning the pricing strategy of product C-1 are as follows.
Regarding whether to apply Cost-based Pricing, it gave 4 points, 2 points as to whether Value-based Pricing was applied, 3 points as to whether to apply Competition-Value-based Pricing was applied or not. These findings revealed that the pricing strategy for product C-1 is cost-based pricing, which takes into account the company's production costs rather than the competitor's price. This seems to be due to the characteristics of product differentiation.
Product C-2
‧
Company C recognizes that the number of competing products of product C-2 as between 1 to 3. Compared with existing competitors, there is massive differentiation of its products.
Company C gave 3 points for the entry barriers of finance, 5 points for technical entry barriers, indicating that entry barriers are recognized as high. Considering these points, Product C-2 is in an oligopoly market.
Responses to questions about innovation type are as follows. Company C chose 5 points for the product innovation, 2 points for the product imitation, 3 points for the process innovation.
Conducting the responses, innovation of product C-2 seems to depend mainly on product innovation.
As a respond of innovation impact of Product C-2 was 5 point, so the result of innovation can be mainly for value up.
The responds to the question concerning the pricing strategy of product C-2 are as follows.
Regarding whether to apply Cost-based Pricing, it gave 3 points, 5 points as to whether Value-based Pricing was applied, 2 points as to whether to apply Competition-Value-based Pricing was applied or not. As a result of these findings, product C-2’s the pricing strategy could be primarily Value-based Pricing.
Company D
Company D is a manufacturing company of precision mechanical parts founded in 2005, major clients are Samsung Electronics, Apple, etc. there are about 70 employees in present.
Company D recognizes the number of competitors as 3 or less. Company D gave 5 points for the entry barriers in financial and technical, indicating that entry barriers are very high.
Considering these responds, the product of Company D is in an oligopolistic market.
Responses to questions about innovation type are as follows. Company D chose 5 points for the product innovation, 1 point for the product imitation, 2 points the process innovation.
Summarizing the responses, innovation type of Company D product seems to depend mainly on product innovation.
As a respond of innovation impact of Company D’s product was 5 point, so the result of innovation can be mainly for value up.
The responds to the questionnaire concerning the pricing strategy of Company D are as follows.
Regarding whether to apply Cost-based Pricing, it gave 2 points, 5 points as to whether Value-based Pricing was applied, 2 points as to whether to apply Competition-Value-based Pricing was applied or not. As a result of these findings, Company D's product pricing strategy could be mainly Value-based Pricing.
‧
Compared with existing competitors, the products of this company are produced by the orders of certain customers. Company E gave 3 points for the financial entry barrier of the, 2 points for the technical entry barriers, indicating that the barriers to entry are recognized as low.
Considering these responds, Product E-1 is in a monopolistic competitive market.
Responses to questions about innovation are as follows. Company E chose 1 point for the product innovation, 4 points for the product imitation, 2 points for the process innovation.
Considering the responds, the innovation of product E-1 seems to depend mainly on product imitation.
As a respond of innovation impact of company E was 2 points, so the innovation was more significant in reducing the production cost for Product E-1.
The responds to the inquire the pricing strategy of Company E are as follows. Regarding whether to apply Cost-based Pricing, it gave 5 points, 2 points as to whether Value-based Pricing was applied, and 3 points as to whether competition-based pricing was applied or not.
These findings revealed that the pricing strategy for product E-1 is cost-based pricing, which takes into account the company's production costs rather than the competitor's price. This is because it is produced by the order of a specific consumer
Product E-2.
Company E recognize the number of competing products of Product E-2 as 10 or more.
Compared with existing competitors, there is little differentiation of its product. Company E responds 3 points for the financial entry barrier, 3 points for the technical entry barrier, indicating that the two entry barriers are moderate. Considering these responds, the product E-2 is in a monopolistic competitive market.
Responses to questions about innovation are as follows. It gave 1 point for product innovation size response, 3 points for product imitation size, 5 points for process innovation. Therefore, the innovation of Product E-2 seems to depend mainly on process improvement.
In the questionnaire survey to measure the effect of innovation, since the impact of E-2 is one point, it can be said that the result of technological innovation was mainly the reduction of production cost.
The answer to the question concerning the price determination strategy of Company E is as follows. As to whether to apply Cost-based pricing, 5 points, whether to apply value-based pricing is 1 point, 1 point is given as to whether competition-based pricing is applied or not.
‧
As a result of these investigations, the pricing strategy for product E - 2 can be cost - based pricing.
Product E-3
Company E recognizes the number of competitors as 3 or less. Compared with existing competitors, there is technological differentiation of its products. Company E gave 4 points for the financial barriers of entry and 5 points for technical barriers of entry. Those respond indicated that the two barriers of entry are extremely high. Considering these responds, the product E-3 belongs to an oligopoly market.
Responses to questions about innovation type are as follows. Company E chose 5 points for the product innovation, 2 points for the product imitation, and 3 points for process innovation.
Therefore, the innovation of Product E-3 seems to depend mainly on products the product innovation.
The innovation impact of Company E’s product E-3 was 5 points, so the impact of innovation was more significant in the value up.
The answer to the question concerning the pricing strategy of Company E are as follows.
Regarding whether to apply Cost-based Pricing, it gave 2 points, 5 points as to whether Value-based Pricing was applied, and 5 points as to whether Competition-Value-based Pricing was applied or not. As a result of these surveys, Company E’s pricing strategy of product E-3 could be mainly Value-based Pricing.
Company F
Company F is a Korean traditional food manufacturing and processing company founded in 2012. There are 20 employees currently.
Product F-1
Company F recognizes the number of product F-1competitors as 10 or more. Compared with existing competitors, there is no discrimination of its products. Company F chose 1 point for financial and technical barriers of entry. Considering these points, it can be concluded that the product F-1 is in a monopolistic competitive market.
Responses to questions about innovation type are as follows. Company F chose 1 point for the product innovation, 4 points, and 2 points process innovation. Therefore, the innovation type of product F-1 seems to depend mainly on the product imitation.
The innovation impact of product F-1 was 2 points, so the impact of innovation was more significant in reducing the production cost for Company F.
The answer to the question concerning the pricing strategy of product F-1 are as follows.
Regarding whether to apply Cost-based Pricing, it gave 3 points, 1 point as to whether
Value-‧
based Pricing was applied, and 4 points as to whether Competition-based Pricing was applied or not. As a result of these surveys, the pricing strategy of product F-1 could be a Competition-based Pricing.
Product F-2
Company F recognizes the number of competitors as about 8. Compared with existing competitors, there is almost no differentiation of it product. Company F chose 2 points for financial barriers of entry and 3 point for technical barriers of entry, indicating that entry barriers are largely recognized as moderate. Considering the response, it can be concluded that product F-2 is in a monopolistic competitive market.
Responses to questions about innovation type are as follows. Company F chose 1 point for the product innovation, 3 points the product imitation, 5 points for the process innovation.
Therefore, the innovation of company F products seems to depend on the process innovation.
In the questionnaire survey to measure the effect of innovation, since the impact of F-2 is one point, it can be said that the result of technological innovation was mainly the reduction of production cost.
The answer to the question concerning the pricing strategy of product F-2 are as follows. As to whether to apply Cost-based Pricing, it gave 5 points, as to whether to apply Value-based Pricing is 1 point, 1 as to whether competition-based pricing was applied or not. Consider and results, the pricing strategy of product F-2 could be mainly Cost-based Pricing.
Company G
Company G is a bakery company for special customers (skin disease patients), founded in 2010.
It is a company that manufactures products of high value and healthy materials and is known as the first company to produce bread for skin diseases patients. Currently there are 20 employees, located in Seoul and Busan city.
Company G recognizes the number of competitors as 8 or more. After the development, there were no competitive products in the market, but 10 years later, there are more imitators.
Compared to the current competitors’ product, Company G's products is almost no differentiation of its products. Company G chose 2 points for both finance and technology barriers of entry, indicating that entry barriers are largely recognized as moderate. Considering these responses, it can be concluded that the product of Company G is in a monopolistic competitive market.
The innovation Impact of Company G’s product was 2 points, so the impact of innovation was more significant in reducing the production cost for Company G.
The answer to the questions concerning the pricing strategy of Company G are as follows.
Regarding whether to apply Cost-based Pricing, it gave 3 points, 2 points on whether
value-‧
based pricing was applied, and 5 points as to whether Competition-based Pricing was applied or not. As a result of surveys, Company G’s pricing strategy could be mainly Competition-based Pricing.
Company I
Company I is a company that manufactures and sells kitchen and office furniture in the Busan city for 30 years. Currently there are five employees.
Product I-1
Company I recognize the number of competitors as 8 or more. Compared with existing competitors, there is no discrimination of its product. Company I chose 3 points for financial entry barriers, and 2 points to technical entry barriers, indicating that entry barriers are recognized as moderate. Considering the response, it can be concluded that the product I-1 is in a monopolistic competitive market.
Responses to questions about innovation type are as follows. Company I chose 1 point for the product innovation, 4 points for the product imitation, and 2 points the process innovation.
Therefore, the innovation type of product I-1 seems to depend mainly on the product imitation.
The innovation impact of product I-1 was 1 point, so the impact of innovation was more significant in reducing the production cost for Company I.
The answer to the question concerning the pricing strategy of Company I are as follows.
Regarding whether to apply Cost-based Pricing, it gave 3 points, 1 point as to whether Value-based Pricing was applied, 4 points as to whether competition-Value-based pricing was applied or not.
As a result of these survey results, pricing strategy of product I-1 could be mainly Competition-based Pricing.
Product I-2
Company I recognize the number of competitors as 3 or less. Compared with the existing competitive products, there is technical differentiation of product I-2. Company I chose 4 points financial barrier of entry, 5 points for technical barriers of entry, indicating that entry barriers are largely recognized as very high. Considering the response, it can be concluded that Product I-2 is belongs to oligopoly market.
Responses to questions about innovation type are as follows. Company I gave 5 points for the product innovation, 1 point for the product imitation, 3 points for process innovation. Therefore, the innovation type of product I-2 seems to depend mainly on the product innovation.
As a respond of innovation impact of product, I-2 was 5 point, so the result of innovation can be mainly for value up.
The answer to the question concerning the pricing strategy of Company I are as follows.
‧
Value-based Pricing, 3 points as to whether Competition-based Pricing was applied or not. As a result of these surveys, the pricing strategy for product I-2 could be mainly Value-based Pricing.Company J
Company J is a food manufacturing and processing company founded in 2015. Currently, there are about 5 employees.
Company J recognizes the number of competitors as 10 or more. Compared with existing competitive products, there is some differentiation of its product. Company J responds 1 point for the financial and technical barrier of entry, indicating that the two entry barriers are low.
Considering these responds, Company J is in a monopolistic competitive market.
Responses to questions about innovation type are as follows. Company J chose 1 point for the product innovation, 5 points for the product imitation, and 2 points for process innovation.
Therefore, the innovation of company J seems to depend mainly on the product imitation.
The innovation impact of Company J's products was 1 point, so the impact of innovation was more significant in reducing the production cost for Company J.
The answer to the question concerning the pricing strategy of Company J are as follows.
Regarding whether to apply Cost-based Pricing, it gave 5 points, 1 point as to whether Value-based Pricing was applied, and 4 points as to whether Competition-Value-based Pricing was applied or not. These findings revealed that the pricing strategy for product of Company J is cost-based pricing, which takes into account the company's production costs rather than the competitor's price.
Company K
Company K is a company that manufactures organic pet snacks and was founded in 2017.
Currently, there are about five employees.
Company K recognizes the number of competitors as 10 or more. Compared with existing competitive products, there is some differentiation of its product. The products of this company are produced by the orders of certain customers. Company K responds 1 point for the financial and technical barrier of entry, indicating that the two entry barriers are low. Considering these responds, Company K is in a monopolistic competitive market.
Responses to questions about innovation type are as follows. Company K chose 1 point for the product innovation, 4 points for the product imitation, and 3 points for process innovation.
Therefore, the innovation type of company K seems to depend mainly on the product imitation.
‧
國立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
The innovation impact of Company K's products was 1 point, so the impact of innovation was more significant in reducing the production cost for Company K.
The answer to the question concerning the pricing strategy of Company K are as follows.
Regarding whether to apply Cost-based Pricing, it gave 5 points, 2 point as to whether Value-based Pricing was applied, and 3 points as to whether Competition-Value-based Pricing was applied or not. These findings revealed that the pricing strategy for Company J product is cost-based pricing, which takes into account the company's production costs rather than the competitor's price. This is because it is produced by the order of a specific consumer