• Title/Summary/Keyword: Customer Buying Factors

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Factors Affecting Consumers' Acceptance of e-Commerce Consumer Credit Service: Multiple Group Path Analysis by Naver Shopping and Coupang (이커머스 후불결제(BNPL) 수용에 영향을 미치는 요인: 네이버쇼핑과 쿠팡 간 다중집단 비교)

  • Kim, Su Jin;Mo, Jeonghoon
    • The Journal of Society for e-Business Studies
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    • v.27 no.2
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    • pp.105-135
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    • 2022
  • As COVID-19 has led to a surge in e-commerce Buy Now Pay Later(BNPL) has become preferred choice among millennials. In Korea Coupang followed by Naver Pay offers a deferred payment, aiming to create customer lock-in effect, save credit card processing fee and lay the groundwork for entering into new financial services. However the literature related to the influential factors of customers' usage intention toward a deferred payment is scarce. For the study, a multi-group analysis was carried out to find differences between Naver shopping and Coupang. The results revealed that the important factors that affect a deferred payment adoption were compatibility, impulsive buying tendency in Naver shopping, whereas compatibility, relative advantage, additional value in Coupang(listed in order of most important). In addition, impulsive buying tendency had a positive effect on adoption intention in Naver shopping and on perceived risk in Coupang. The results imply that Naver shopping need to focus on managing delinquency while Coupang should provide sufficient information on how late fees and credit rating downgrade work and try not to make a deferred payment option stand out. In order to increase adoption rate it is recommendable to narrow down target segment of a deferred payment and expand it to a specialized vertical such as travel.

An Online Review Mining Approach to a Recommendation System (고객 온라인 구매후기를 활용한 추천시스템 개발 및 적용)

  • Cho, Seung-Yean;Choi, Jee-Eun;Lee, Kyu-Hyun;Kim, Hee-Woong
    • Information Systems Review
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    • v.17 no.3
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    • pp.95-111
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    • 2015
  • The recommendation system automatically provides the predicted items which are expected to be purchased by analyzing the previous customer behaviors. This recommendation system has been applied to many e-commerce businesses, and it is generating positive effects on user convenience as well as the company's revenue. However, there are several limitations of the existing recommendation systems. They do not reflect specific criteria for evaluating products or the factors that affect customer buying decisions. Thus, our research proposes a collaborative recommendation model algorithm that utilizes each customer's online product reviews. This study deploys topic modeling method for customer opinion mining. Also, it adopts a kernel-based machine learning concept by selecting kernels explaining individual similarities in accordance with customers' purchase history and online reviews. Our study further applies a multiple kernel learning algorithm to integrate the kernelsinto a combined model for predicting the product ratings, and it verifies its validity with a data set (including purchased item, product rating, and online review) of BestBuy, an online consumer electronics store. This study theoretically implicates by suggesting a new method for the online recommendation system, i.e., a collaborative recommendation method using topic modeling and kernel-based learning.

An Exploratory Study on Customers' Individual Factors on Waiting Experience (고객의 개인적 요소가 대기시간 경험에 미치는 영향에 대한 탐색적 연구)

  • Kim, Juyoung;Yoo, Bomi
    • Asia Marketing Journal
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    • v.12 no.1
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    • pp.1-30
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    • 2010
  • Customers often experience waiting for buying service. Managing customers' waiting time is important for service providers since customers who are dissatisfied with waiting, secede from a service place at last. Not a few studies have been done to solve waiting time problem and improve customers' waiting experience. Hui & Tse(1996) identify evaluation factors in customers' behavioral mechanism as customers wait. That is, customers experience perceived waiting time, waiting acceptability and emotional response to the wait when they wait. Since customers evaluate the wait using these factors, service provider should manage these factors in order to minimize customers' dissatisfaction. Therefore, this study explores that evaluation factors of waiting are influenced by customers' situational and experiential characteristics, which include customer loyalty, transaction importance for customer and waiting expectation level. Those situational and experiential characteristics are usually given to service providers so they can't control these at waiting point. The major findings derived from two exploratory studies can be summarized as follows. First, according to the result from the study 1 (restaurant setting), customers' transaction importance has the greatest positive influence on waiting experience. The results show restaurant service provider could prevent customers' separation effectively through strategies which raise customers' transaction importance, like giving special coupons for important events. Second, in study 2 (amusement part setting) customer loyalty has large positive impact on waiting experience as well as transaction importance. This results show that service provider could minimize customers' dissatisfaction using strategies which raise customer loyalty continuously. This results show customer perceives waiting experience differently according to characteristics of service place and service itself. Therefore, service provider should grasp the unique customers' situational and experiential characters for each service and service place. It could provide an effective strategy for waiting time management. Third, the study finds transaction importance and waiting expectation level have direct influence customers' waiting experience as independent variables, while existing studies treated them as moderators. Customer loyalty which has not been incorporated in previous waiting time research is known to affect waiting experience. It suggests that marketing strategy which builds up customer loyalty for long period of time is also quite effective, compared to short term tactics to help customers endure waiting time. Fourth, this study reveals the importance of actual waiting time along with perceived waiting time. So far most studies only focus on customers' perceived waiting time. Especially, this study incorporates the concept of patient limit on waiting time to investigate effect of actual waiting time. The results show that there were various responses to the wait depending on how actual waiting time exceeds individual's patent limit on waiting time or not, even though customers wait about the same period of time. Finally, using structural equation model, conceptual path between behavioral responses is verified. As customer perceives waiting time, then she decides whether she can endure it or not, and then her emotional response occurs. This result are somewhat different from Hui & Tse(1996)'s study. The study also includes theoretical contributions as well as practical implications.

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The Effects of Consumption Value of Smartphone Users on Relational Factors and Repurchase Intention (스마트폰 이용고객의 소비가치가 관계적 요인과 재구매 의도에 미치는 영향)

  • Kim, Hyun-Kyung;Cho, Hyun-Jin
    • Journal of Distribution Science
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    • v.11 no.4
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    • pp.73-80
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    • 2013
  • Purpose - As the smart-phone market adds new technologies and introduces new marketing trends, competition among companies is getting fierce. Now, smart-phone companies need to pay attention not only to attaining new customers but also to retaining customers, which means managing relationships to prevent customer defection. Therefore, how to satisfy customer needs and maintain long-term relations are both important to make consistent progress in the rapidly changing smart-phone market. To illustrate this point, the study focuses on analyzing the effects of consumption value on relational factors and buying intentions among smart-phone users. First, consumption value was divided into functional, economic, and emotional values. After that, the effects of these values on satisfaction and brand trust were confirmed. Additionally, effects of satisfaction and brand trust on repurchase intention were analyzed. Research design, data, and methodology - The data was collected in a self-administered survey among 270 undergraduate students, using smart-phones between June 4th-12th, 2012. A total of 257 questionnaires were collected and used for the data analysis. A path analysis based on Lisrel 8.54 was used for the hypothesis test. Consumption value was divided into functional, economic, and emotional values. Subsequently, the effects of these values on satisfaction and trust in the brand were confirmed. Additionally, the effects of satisfaction and trust in the brand on repurchase intention were analyzed. Results - First, functional value, economic value, and emotional value - especially emotional value - were revealed to have positive effects on satisfaction. Second, emotional value was shown to have positive effects on brand trust, while functional and economic values did not. Third, satisfaction had positive effects on brand trust. In considering the relative influence on brand trust, satisfaction was the most crucial factor. It is clear that in the evaluation of the direct experience, using the product or the service plays an important role in building brand trust. Fourth, satisfaction and brand trust positively influenced repurchase intention. This indicates that both factors must be achieved to induce the repurchase Intention among customers. Conclusions - One can see that the enjoyable emotions consumers feel while using smart-phones is the most important factor in increasing levels of satisfaction. Moreover, this indicates that consumers pursue economic desires along with convenient functions in order to reduce opportunity costs. Additionally, consumers are affected by psychological and emotional messages in building trust, rather than practical and rational ones. Thus, in order to appeal to young clients as an attractive brand in the smart-phone market, approaching customers with an emotional value is recommended. In addition, in order for the brand to gain trust, the overall experience the consumer feels while using smart phones should be maximized. After all, one must fulfill the consumers' desire for a new experience and show a willingness to faithfully accomplish the responsibility of the brand to strengthen relationships with customers in the smart-phone market.

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An study on purchasing activity of Private Brand clothing in large discount store (소비자들의 대형마트 PB의류 구매행동에 관한 연구)

  • Kim, Young-Hwan;Kim, Pan-Jin
    • Journal of Distribution Science
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    • v.6 no.1
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    • pp.117-128
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    • 2008
  • The purpose of the research is to furnish basic data for efficient and effective marketing by examining the correlation how a certain element effects on customer's selection behavior, when they choose private label branded clothes at the store of giant discount store like E-.mart, Home-plus, Lotte-mart and 2001 outlet. We come to the following conclusions through such procedures; What we found on this study is that main factors of decision related purchasing garment of private brand in giant discount store is based on the sales price, quality of products and needs of customer's using. Further to this, in terms of choice activity in private brand clothes, we realized the price value is depend on the resonable price with the items because nowadays most customers can be compare to other discount store around their shopping place including trend of garment and quality of products. The order of the general inclination in selection behavior of private branded garment in giant discount store is as follows; Sales price > style & trend > quality of product and substantial convenience > display and prompt buying. Judging from the conclusion of the research we noted that customer's satisfaction comes from their target price to supply substantial needs and in terms of styling of clothes should be considered current trendy compared to national brand as well.

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A Study of the Images of General Supers and a Department Store in a Local City (지방도시에 입점하고 있는 종합슈퍼와 백화점에 대한 점포이미지 비교 분석)

  • Kim, Chang-Gon
    • Journal of Distribution Science
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    • v.10 no.6
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    • pp.17-26
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    • 2012
  • Suncheon is a city comprising a rural and urban area, where there are four types of large stores. Studies have shown that there are too many large stores serving the local population of just 300,000. However, geographically, Suncheon is located at a transportation hub that borders the cities of Gwangyang and Yeosu as well as the local counties of Boseong and Gurae. Residents of these areas can reach these shopping stores within an hour's drive. Thus, the managers of these four stores regard residents in these areas as their valued customers and endeavor to create a differentiated image among them. In this study, 13 different images were used to determine the public's opinions and feelings towards these stores and the differences were analyzed. The store images measured overall store impression, diversity of the product, the quality of products displayed at the store, accessibility, the atmosphere, service to the customers, and so on. These images are evaluated subjectively by each customer and are major factors in them deciding to revisit the stores. The 13 images are classified into five main categories and further classified into 13 sub-categories. Three kinds of factor images were extracted from the store images in the five main categories by factor analysis using SPSS Ver. 19. The first factor image was extracted from the images of convenience, atmosphere, and service in the main categories and is called a sub-service factor for the store in this study. Accessibility to the store was classified as a convenience image in the main category and was extracted as a common factor along with diversity and the price of goods. These differences are expected according to the store location, that is, the difference between stores located in a large city and those in a small local city, and depending on the nature of survey respondents. The result shows that there is a significant difference between the stores' images with regard to accessibility, the price of products, brand image, and lighting/sound image. This study has the following limitations. First, the survey sample was restricted to residents of a small local city that includes rural and urban populations. The differences between the store images regarding traffic and accessibility are factored by store location, whether they are located within a large or a small city as well as the economic situation of these cities. Second, only the customers of large-scale stores were included in the survey as respondents. Relatively large traditional markets are held every five days in local cities and there is competition between large-scale stores and traditional markets with regard to diversity and the price of goods. It could be expected that customers in large-scale stores and customers in traditional markets would hold different store images. In future studies, images of stores in large cities should be compared with the images of stores located in small local cities. In addition, customer behavior when buying goods in large-scale stores should be compared with their behavior when buying goods in traditional markets.

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Buyer Trust in a Supplier Brand and the Link to Brand Loyalty in the Business-to-Business Markets (산업재 시장에서 조직구매자의 공급자 브랜드에 대한 신뢰 및 충성도에 관한 연구)

  • Han, Sang-Lin;Sung, Hyung-Suk
    • Journal of Distribution Research
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    • v.11 no.3
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    • pp.23-53
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    • 2006
  • Brands are important in the consumer market. They are the interface between consumers and the company. And consumers may develop loyalty to brands. Also, the late development of industrial marketing explains the near absence of research on brand equity in business to business. With recent change, Industrial companies have shifted from a production focus to a customer focus. Industrial brand is fast developing. The basic purpose of this study is to investigate industrial brand trust and loyalty affecting the result of business relationship between industrial buyers and suppliers. Factors hypothesized to influence trust in a brand include a number of brand characteristics, company characteristics and consumer-brand characteristics. This research presented a comprehensive constructive model consisting of components of industrial brand trust and loyalty, and then propose the research model base on prior researches and studies about relationships among components of industrial brand loyalty Data were gathered from respondents who work in industrial buying center. For this study, Data were analyzed by AMOS 4.0. The results of this research analysis were as fallow. Industrial brand trust and loyalty were positively related with a number of industrial brand characteristics, supplier characteristics and buyer-brand characteristics, relationship commitment. This research newly proposed the concept of industrial brand trust and loyalty affecting the result of business relationship between industrial buyers and suppliers.

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The Characteristics of Relational Quality and Buying Behavior Depending on Consumer's Internet Shopping Value - Focused on Clothing Purchase - (소비자들의 인터넷 쇼핑가치에 따른 관계품질 및 구매행동특성 - 의류제품 구매를 중심으로 -)

  • Ji, Hye-Kyung
    • Journal of the Korea Fashion and Costume Design Association
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    • v.11 no.1
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    • pp.63-75
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    • 2009
  • This study aims to find out the dimension of consumers' shopping values in internet clothing purchase, and the relation of their relational quality with shopping malls and their shopping behavior depending on the type of their shopping values. For this purpose, this study surveyed 343 male and female consumers in their 20s or 30s for empirical analysis who have ever purchased clothing through internet shopping malls. Respondents are selected using the convenience sampling through internet survey in July 2008. For statistical analysis, descriptive statistics, factor analysis, ANOVA analysis, Duncan test, and $X^2$-test are carried out using SPSS for Windows 12.0. The results are as follows. First, consumers' shopping value dimensions in internet shopping for clothes are found 4 factors of fun, economic utility, information, and shopping convenience. Second, based on shopping value dimensions, consumers are categorized into an practicality-seeking, an economic utility/fun-seeking, a fun-seeking, and an information/fun-seeking group. Third, there are significant differences in relational quality, customer loyalty, favorable word of mouth, and repurchase intention depending on shopping value-based consumer types. In particular, the economic utility/fun-seeking and information/fun-seeking group have higher values on relational quality and shopping behavior variables than other groups. Thus internet shopping mall businesses need to recognize these group of consumers as their core customers and develop programs to maintain a long-term relationship with them.

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A Study on Consumers' Recognition and Satisfaction to the Brand Agricultural Products (브랜드농산물에 대한 소비자인식 및 만족도 연구)

  • Kim, Min-Gyun;Kim, Pan-Jin;Chung, Gi-Young
    • Journal of Distribution Science
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    • v.14 no.6
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    • pp.45-52
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    • 2016
  • Purpose - This study was conducted to present a study on the perception and satisfaction with the brand agricultural products targeted at consumers who use a lot of local products. According to the data of 2011, the total number of the brand agricultural products of Korea is 5,291 with various kinds. Research design, data and methodology - The survey shows that the brand agricultural products are being used by some specific people. However, it can be a useful idea which can help the consumption of brand agricultural products to be expanded if we understand how consumers' recognitions are different between various groups. For an empirical Analysis, the response data of 110 adult patients residing in the metropolitan area were used and conducted with a factor analysis, frequency analysis in order to ensure the validity and conducted a regression analysis and correlation analysis using SPSS statistical program. Results - According to the analysis, it showed consumers with an interest in brand agricultural products are 40-50 age housewives and the middle class of about 5 million won in monthly income more than 3 million won with a college education. As for consumers' purchasing status, all the subjects said that they had experienced buying brand agricultural products and the level of satisfaction for them was very high. Relatively, consumers' satisfaction level with high income and education is high. And recognition of the brand agricultural products was found mainly goes through word of mouth. The age and income are very important factors in customers' repurchase for brand agricultural products. The result of the analysis for the influences on brand agricultural products of customer satisfaction suggests even if the recognitions for safety, quality, and value are vital factors, the recognition of quality doesn't influence on brand agricultural products statistically and significantly. It was analysed if there were any differences between recognitions by group to brand agricultural products, that is to say recognition of safety, quality and value and the result can be summarized as follows. There are all statistical significant differences depending on their age, educational background and income. In the case of 30 or 40 aged, as they got the education level of college and graduate school and earned relatively high income, most customers have positive recognition on the brand agricultural products. This implies the group which can buy and consume the brand agricultural more easily has much more positive recognition. Conclusion - The results of this study shows consumers' brand awareness and satisfaction with brand agricultural products are affected by their age and income level. The purpose of this study is to find the information that can help brand agricultural products markets to be expanded by understanding the factors which encourage consumers to behave repurchase as well as customers' various levels of recognition to the brand agricultural products. The survey says that brand agricultural products are being used by some specific people.

The Effect of Price Discount Rate According to Brand Loyalty on Consumer's Acquisition Value and Transaction Value (브랜드애호도에 따른 가격할인율의 차이가 소비자의 획득가치와 거래가치에 미치는 영향)

  • Kim, Young-Ei;Kim, Jae-Yeong;Shin, Chang-Nag
    • Journal of Global Scholars of Marketing Science
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    • v.17 no.4
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    • pp.247-269
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    • 2007
  • In recent years, one of the major reasons for the fierce competition amongst firms is that they strive to increase their own market shares and customer acquisition rate in the same market with similar and apparently undifferentiated products in terms of quality and perceived benefit. Because of this change in recent marketing environment, the differentiated after-sales service and diversified promotion strategies have become more important to gain competitive advantage. Price promotion is the favorite strategy that most retailers use to achieve short-term sales increase, induce consumer's brand switch, in troduce new product into market, and so forth. However, if marketers apply or copy an identical price promotion strategy without considering the characteristic differences in product and consumer preference, it will cause serious problems because discounted price itself could make people skeptical about product quality, and the changes of perceived value might appear differently depending on other factors such as consumer involvement or brand attitude. Previous studies showed that price promotion would certainly increase sales, and the discounted price compared to regular price would enhance the consumer's perceived values. On the other hand, discounted price itself could make people depreciate or skeptical about product quality, and reduce the consumers' positivity bias because consumers might be unsure whether the current price promotion is the retailer's best price offer. Moreover, we cannot say that discounted price absolutely enhances the consumer's perceived values regardless of product category and purchase situations. That is, the factors that affect consumers' value perceptions and buying behavior are so diverse in reality that the results of studies on the same dependent variable come out differently depending on what variable was used or how experiment conditions were designed. Majority of previous researches on the effect of price-comparison advertising have used consumers' buying behavior as dependent variable. In order to figure out consumers' buying behavior theoretically, analysis of value perceptions which influence buying intentions is needed. In addition, they did not combined the independent variables such as brand loyalty and price discount rate together. For this reason, this paper tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception. And we provided with theoretical and managerial implications that marketers need to consider such variables as product attributes, brand loyalty, and consumer involvement at the same time, and then establish a differentiated pricing strategy case by case in order to enhance consumer's perceived values properl. Three research concepts were used in our study and each concept based on past researches was defined. The perceived acquisition value in this study was defined as the perceived net gains associated with the products or services acquired. That is, the perceived acquisition value of the product will be positively influenced by the benefits buyers believe they are getting by acquiring and using the product, and negatively influenced by the money given up to acquire the product. And the perceived transaction value was defined as the perception of psychological satisfaction or pleasure obtained from taking advantage of the financial terms of the price deal. Lastly, the brand loyalty was defined as favorable attitude towards a purchased product. Thus, a consumer loyal to a brand has an emotional attachment to the brand or firm. Repeat purchasers continue to buy the same brand even though they do not have an emotional attachment to it. We assumed that if the degree of brand loyalty is high, the perceived acquisition value and the perceived transaction value will increase when higher discount rate is provided. But we found that there are no significant differences in values between two different discount rates as a result of empirical analysis. It means that price reduction did not affect consumer's brand choice significantly because the perceived sacrifice decreased only a little, and customers are satisfied with product's benefits when brand loyalty is high. From the result, we confirmed that consumers with high degree of brand loyalty to a specific product are less sensitive to price change. Thus, using price promotion strategy to merely expect sale increase is not recommendable. Instead of discounting price, marketers need to strengthen consumers' brand loyalty and maintain the skimming strategy. On the contrary, when the degree of brand loyalty is low, the perceived acquisition value and the perceived transaction value decreased significantly when higher discount rate is provided. Generally brands that are considered inferior might be able to draw attention away from the quality of the product by making consumers focus more on the sacrifice component of price. But considering the fact that consumers with low degree of brand loyalty are known to be unsatisfied with product's benefits and have relatively negative brand attitude, bigger price reduction offered in experiment condition of this paper made consumers depreciate product's quality and benefit more and more, and consumer's psychological perceived sacrifice increased while perceived values decreased accordingly. We infer that, in the case of inferior brand, a drastic price-cut or frequent price promotion may increase consumers' uncertainty about overall components of product. Therefore, it appears that reinforcing the augmented product such as after-sale service, delivery and giving credit which is one of the levels consisting of product would be more effective in reality. This will be better rather than competing with product that holds high brand loyalty by reducing sale price. Although this study tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception, there are several limitations. This study was conducted in controlled conditions where the high involvement product and two different levels of discount rate were applied. Given the presence of low involvement product, when both pieces of information are available, it is likely that the results we have reported here may have been different. Thus, this research results explain only the specific situation. Second, the sample selected in this study was university students in their twenties, so we cannot say that the results are firmly effective to all generations. Future research that manipulates the level of discount along with the consumer involvement might lead to a more robust understanding of the effects various discount rate. And, we used a cellular phone as a product stimulus, so it would be very interesting to analyze the result when the product stimulus is an intangible product such as service. It could be also valuable to analyze whether the change of perceived value affects consumers' final buying behavior positively or negatively.

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