No abstract

No abstract

No abstract

The classical discrete choice model assumes that decision-makers consider all attributes in choice situations. However, decision-making often relies on some heuristic process instead of full attribute assessment. Unlike previous literature based on stated choice data, this study attempted to accommodate attribute inattention into a discrete choice model using market data. Our test reports getting better models fit in where they include both choice heuristic and full attribute preservation rules than in the conventional assumption. Accordingly, the heterogeneous decision rules need to be considered in choice modeling as an alternative to the traditional assumption. It is expected that this approach will help to derive food marketing implications for the consumer segments corresponding to each decision rule, reflecting multiple decision-making rules.

This paper analyzes factors that affect the profitability of health functional food manufacturers from the strategic business management perspective. For this purpose, we estimated a two-way error components model based on panel data of financial statements for health functional foods manufacturers, considering time effects. Our empirical evidence suggests that both industry-level and firm-level strategies are needed for individual firms to gain a competitive advantage by enhancing their profit performance. In response to competition intensification within the health functional food industry, they should consider the following efforts to increase profit performance to secure a competitive advantage: (1) expanding the firm’s size, (2) increasing market share, (3) realizing leverage effect through efficient capital management, (4) enhancing the advertising effectiveness, and (5) improving the efficiency of resource management.