• Korean Management Science Review
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• v.25 no.2
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• pp.57-71
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• 2008

We study factors that affect consumers' switching behaviors among service providers in Korean mobile telecommunications service market. For empirical analysis, quarterly time series data from the first quarter of 2004 through the second quarter of 2007 were used. We chose the number of switchers to each mobile service provider in each quarter as dependent variables. Independent variables include acquisition costs per subscriber, which play the role of subsidy to mobile handset, switching costs, time trend, structural change effect, and waiting demand effects. Through the empirical analysis, we found that each provider's churn-in customers are affected by different factors. Specifically, the number of churn-in customers into SK Telecom is explained mainly by SK Telecom's customer acquisition costs and waiting demand from KTF, while the number of customers switching into KTF is better explained by switching costs from the previous service provider and waiting demand from SK Telecom. Those who chose LG Telecom as their new provider, on the other hand, were mainly attracted by LG Telecom's high subscriber acquisition cost.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2003.11a
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• pp.187-190
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• 2003

Since the early 1980s, the concept of relationship management in marketing area has gained its importance. Acquiring and retaining the most profitable customers are serious concerns of a company to perform more targeted marketing campaigns. For effective CRM (Customer Relationship Management), it is important to gather information on customer value. Many researches have been performed to calculate customer value based on CLV (Customer Lifetime Value). It, however, has some limitations. It is difficult to consider the churn of customers, because the previous prediction models have focused mainly on expected future cash flow derived from customers'past profit contribution. In this paper we suggest a CLV model considering past profit contribution, potential benefit, and churn probability of a customer. We also cover a framework for analyzing customer value and segmenting customers based on their value. Customer value is classified into three categories: current value, potential value and customer loyalty. Customers are segmented according to the three categories of customer value. A case study on calculating customer value of a wireless communication company will be illustrated.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.7 no.3
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• pp.490-508
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• 2013

One of the most important scalability issues facing the current Internet is the rapidly increasing rate of BGP updates (BGP churn), to which route flap and path exploration are the two major contributors. Current countermeasures would either cause severe reachability loss or delay BGP convergence, and are becoming less attractive for the rising concern about routing convergence as the prevalence of Internet-based real time applications. Based on the observation that highly active prefixes usually repeatedly explore very few as-paths during path exploration, we propose a router-level mechanism, Path Exploration Aggregation (PEA), to scale BGP without either causing prefix unreachable or slowing routing convergence. PEA performs aggregation on the transient paths explored by a highly active prefix, and propagates the aggregated path instead to reduce the updates caused by as-path changes. Moreover, in order to avoid the use of unstable routes, PEA purposely prolongs the aggregated path via as-path prepending to make it less preferred in the perspective of downstream routers. With the BGP traces obtained from RouteViews and RIPE-RIS projects, PEA can reduce BGP updates by up to 63.1%, shorten path exploration duration by up to 53.3%, and accelerate the convergence 7.39 seconds on average per routing event.

• Journal of Korea Game Society
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• v.18 no.5
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• pp.47-58
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• 2018

Game bots distribute a large amount of goods or items used in a game, thereby lowering the value of game goods and items. Also, a large number of game bots hunt monsters and collect items, which hinders ordinary users from enjoying content normally. However, no research has been done on the type of user and the type of activity that the increase in bots specifically affects. Therefore, this study provides a practical implication to encourage users to use games by classifying types based on the game users' access data and analyzing the correlation with user departure due to the increase of bots.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.14 no.12
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• pp.4706-4724
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• 2020

With various structured data, such as the company size, loan balance, and savings accounts, the voice of customer (VOC), which is text data containing contact history and counseling details was analyzed in this study. To analyze unstructured data, the term frequency-inverse document frequency (TF-IDF) analysis, semantic network analysis, sentiment analysis, and a convolutional neural network (CNN) were implemented. A performance comparison of the models revealed that the predictive model using the CNN provided the best performance with regard to predictive power, followed by the model using the TF-IDF, and then the model using semantic network analysis. In particular, a character-level CNN and a word-level CNN were developed separately, and the character-level CNN exhibited better performance, according to an analysis for the Korean language. Moreover, a systematic selection model for optimal text mining techniques was proposed, suggesting which analytical technique is appropriate for analyzing text data depending on the context. This study also provides evidence that the results of previous studies, indicating that individual customers leave when their loyalty and switching cost are low, are also applicable to corporate customers and suggests that VOC data indicating customers' needs are very effective for predicting their behavior.

• Journal of the Korean Data and Information Science Society
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• v.19 no.4
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• pp.1007-1018
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• 2008

The purpose of this case study is to demonstrate database-marketing management. First, we explore original variables for insurance customer's data, modify them if necessary, and go through variable selection process before analysis. Then, we develop churn prediction models using logistic regression, neural network and SVM analysis. We also compare these three data mining models in terms of misclassification rate.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.2
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• pp.69-77
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• 2019

As information technology advances, the penetration of smart devices connected to the Internet, such as smart phone and tablet PC, has rapidly expanded, and as sensor prices have fallen the Internet of Things has begun to be introduced in the industry. Today's industry is rapidly changing and evolving, requiring companies to respond to the new paradigm of business. In this situation, companies need to actively manage and maintain customer relationships in order to acquire loyal customers who bring them a high return. The purpose of this study is to suggest a method to manage customer relationship using real time IoT data including IoT product usage data, customer characteristics and transaction data. This study proposes a method of segmenting customers through RFM analysis and transition index analysis. In addition, a real-time monitoring through control charts is used to identify abnormalities in product use and suggest ways of differentiating marketing for each group. In the study, 44 samples were classified as 9 churn customers, 10 potential customers, and 25 active customers. This study suggested ways to induce active customers by providing after-sales benefit for product reuse to a group of churn customers and to promote the advantages or necessity of using the product by setting the goal of increasing the frequency of use to a group of potential customers. Finally, since the active customer group is a loyal customer, this study proposed an one-on-one marketing to improve product satisfaction.

• Journal of Intelligence and Information Systems
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• v.12 no.2
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• pp.167-183
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• 2006

Since data mining attempts to find unknown facts or rules by dealing with also vaguely-known data sets, it always suffers from high error rate. In order to reduce the error rate, many researchers have employed multiple models in solving a problem. In this research, we present a new type of multiple models, called DyMoS, whose unique feature is that it classifies the input data and applies the different model developed appropriately for each class of data. In order to evaluate the performance of DyMoS, we applied it to a real customer churn problem of an automobile insurance company, The result shows that the DyMoS outperformed any model which employed only one data mining technique such as artificial neural network, decision tree and case-based reasoning.

• Journal of Intelligence and Information Systems
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• v.12 no.4
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• pp.109-126
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• 2006

An effective customer classification has been essential for the successful customer relationship management. The typical customer rating is carried out by the proportionally allocating the customers into classes in terms of their life time values. However, since this method does not accurately reflect the homogeneity within a class along with the heterogeneity between classes, there would be many problems incurred due to the misclassification. This paper suggests a new method of rating customer using Holistic profit technique, and validates the new method using the customer data provided by an insurance company. Holistic profit is one of the methods used for deciding the cutoff score in screening the loan application. By rating customers using the proposed techniques, insurance companies could effectively perform customer relationship management and diverse marketing activities.

• Journal of Environmental Science International
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• v.6 no.1
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• pp.25-31
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• 1997

The variations of gas hold-up, overall volumetric oxygen mass transfer coefficients and liquid circulation velocity in an internal loop reactor were investigated to manifest scale-up effect. The relationship between superficial gas velocity and gas hold-up were found as Ugr = 0.045 $\varepsilon$r in the pilot-scale and Ugr = 0.056 $\varepsilon$r in the bench-scale reactor. The overall volumetric oxygen mass tractsfer coefficient, KLa was slightly increased in the pilot-scale than in the bench-scale reactor. Flow regime was changed from the bubble flow to the churn-turbulent flow when the superficial gas velocity reached to 3.5 - 4 cm/sec in the pilot-scale.