• Title/Summary/Keyword: Customer Decision

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An Optimal Pricing and Inventory control for a Commodity with Price and Sales-period Dependent Demand Pattern

  • Sung, Chang-Sup;Yang, Kyung-Mi;Park, Sun-Hoo
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2005.05a
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    • pp.904-913
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    • 2005
  • This paper deals with an integrated problem of inventory control and dynamic pricing strategies for a commodity with price and sales-period dependent demand pattern, where a seller and customers have complete information of each other. The problem consists of two parts; one is each buyer's benefit problem which makes the best decision on price and time for buyer to purchase items, and the other one is a seller's profit problem which decides an optimal sales strategy concerned with inventory control and discount schedule. The seller's profit function consists of sales revenue and inventory holding cost functions. The two parts are closely related into each other with some related variables, so that any existing general solution methods can not be applied. Therefore, a simplified model with single seller and two customers in considered first, where demand for multiple units is allowed to each customer within a time limit. Therewith, the model is generalized for a n-customer-classes problem. To solve the proposed n-customer-set problem, a dynamic programming algorithm is derived. In the proposed dynamic programming algorithm, an intermediate profit function is used, which is computed in case of a fixed initial inventory level and then adjusted in searching for an optimal inventory level. This leads to an optimal sales strategy for a seller, which can derive an optimal decision on both an initial inventory level and a discount schedule, in $O(n^2)$ time. This result can be used for some extended problems with a small customer set and a short selling period, including sales strategy for department stores, Dutch auction for items with heavy holding cost, open tender of materials, quantity-limited sales, and cooperative buying in the on/off markets.

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The Effect of Loyalty Factors Perceived by Consumers on General Super Market (대형마트에 대한 소비자들이 지각하는 충성요인이 재방문 결정에 미치는 영향 : 목포권 소비자를 중심으로)

  • Kim, Pan-Jin;Kim, Hwa-Kyung
    • The Journal of Industrial Distribution & Business
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    • v.8 no.4
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    • pp.37-46
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    • 2017
  • Purpose - The purpose of this study is to investigate the factors that cause consumers to frequently visit large - Super Store and goods for large - scale retailers using Super Store. Research design, data, and methodology - The purpose of this study is to present the empirical analysis of 53 adult males and females living in the Mokpo area on the relationship between perceived level of satisfaction and loyalty of the large - scale marts. The results were analyzed. The statistical data of the questionnaire were verified by the SPSS. Results - In the empirical analysis of this study, four variables were found to be the main loyalty factors, which were found to affect the satisfaction of Super Store and the decision to return again. Therefore, in this study, the quality of goods, price, diversity, and image were analyzed as loyalty factors, and it was analyzed as factors influencing satisfaction. It was confirmed that loyalty factors were important. In particular, consumers' perception of behaviors such as local specialties and community service that can be distinctly differentiated from other distribution agencies was very low. Conclusions - It is necessary to construct a comprehensive systematic system to analyze the detailed factors influencing the satisfaction and loyalty of users of Mokpo ticket consumers and to systematically manage and evaluate them. In order to raise awareness of consumer loyalty factors, consumer satisfaction and loyalty survey should be regularly conducted. Consumers should look for ways to improve them and develop improvement plans. The various direct and indirect services provided by Super Store to consumers include price, quality, assortment, customer service, accessibility, and feelings for large marts. However, since the services provided by the Super Store are different from those of the consumers, the loyalty factors for the different factors can be different. Therefore, in order to differentiate them from traditional markets or other distribution centers, it It should be used as a weapon of competition. In this study, it is generally recognized that the services provided by Super Store are very simple and inexpensive, so that consumers are not aware of the difference of particular stores.

Forecasting the Business Performance of Restaurants on Social Commerce

  • Supamit BOONTA;Kanjana HINTHAW
    • Journal of Distribution Science
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    • v.22 no.4
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    • pp.11-22
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    • 2024
  • Purpose: This research delves into the various factors that influence the performance of restaurant businesses on social commerce platforms in Bangkok, Thailand. The study considers both internal and external factors, including but not limited to business characteristics and location. Moreover, this research also analyzes the effects of employing multiple social commerce platforms on business efficiency and explores the underlying reasons for such effects. Research design, data, and methodology: Restaurants can be classified into different price ranges: low, medium, and high. To further investigate, we employed natural language processing AI to analyze online reviews and evaluate algorithm performance using machine learning techniques. We aimed to develop a model to gauge customer satisfaction with restaurants across different price categories effectively. Results: According to the research findings, several factors significantly impact restaurant groups in the low and mid-price ranges. Among these factors are population density and the number of seats at the restaurant. On the other hand, in the mid-and high-price ranges, the price levels of the food and drinks offered by the restaurant play a crucial role in determining customer satisfaction. Furthermore, the correlation between different social commerce platforms can significantly affect the business performance of high-price range restaurant groups. Finally, the level of online review sentiment has been found to influence customer decision-making across all restaurant types significantly. Conclusions: The study emphasizes that restaurants' characteristics based on their price level differ significantly, and social commerce platforms have the potential to affect one another. It is worth noting that the sentiment expressed in online reviews has a more significant impact on customer decision-making than any other factor, regardless of the type of restaurant in question.

The Effects of Perceived Quality Factors on the Customer Loyalty: Focused on the Analysis of Difference between PB and NB (지각된 품질요인이 고객충성도에 미치는 영향: PB와 NB간의 차이분석)

  • Ye, Jong-Suk;Jun, So-Yon
    • Journal of Distribution Research
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    • v.15 no.2
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    • pp.1-34
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    • 2010
  • Introduction As consumers' purchase behavior change into a rational and practical direction, the discount store industry came to have keen competition along with rapid external growth. Therefore as a solution, distribution businesses are concentrating on developing PB(Private Brand) which can realize differentiation and profitability at the same time. And as improvement in customer loyalty beyond customer satisfaction is effective in surviving in an environment with keen competition, PB is being used as a strategic tool to improve customer loyalty. To improve loyalty among PB users, it is necessary to develop PB by examining properties of a customer group, first of all, quality level perceived by consumers should be met to obtain customer satisfaction and customer trust and consequently induce customer loyalty. To provide results of systematic analysis on relations between antecedents influenced perceived quality and variables affecting customer loyalty, this study proposed a research model based on causal relations verified in prior researches and set 16 hypotheses about relations among 9 theoretical variables. Data was collected from 400 adult customers residing in Seoul and the Metropolitan area and using large scale discount stores, among them, 375 copies were analyzed using SPSS 15.0 and Amos 7.0. The findings of the present study followed as; We ascertained that the higher company reputation, brand reputation, product experience and brand familiarity, the higher perceived quality. The study also examined the higher perceived quality, the higher customer satisfaction, customer trust and customer loyalty. The findings showed that the higher customer satisfaction and customer trust, the higher customer loyalty. As for moderating effects between PB and NB in terms of influences of perceived quality factors on perceived quality, we can ascertain that PB was higher than NB in the influences of company reputation on perceived quality while NB was higher than PB in the influences of brand reputation and brand familiarity on perceived quality. These results of empirical analysis will be useful for those concerned to do marketing activities based on a clearer understanding of antecedents and consecutive factors influenced perceived quality. At last, discussions about academical and managerial implications in these results, we suggested the limitations of this study and the future research directions. Research Model and Hypotheses Test After analyzing if antecedent variables having influence on perceived quality shows any difference between PB and NB in terms of their influences on them, the relation between variables that have influence on customer loyalty was determined as Figure 1. We established 16 hypotheses to test and hypotheses are as follows; H1-1: Perceived price has a positive effect on perceived quality. H1-2: It is expected that PB and NB would have different influence in terms of perceived price on perceived quality. H2-1: Company reputation has a positive effect on perceived quality. H2-2: It is expected that PB and NB would have different influence in terms of company reputation on perceived quality. H3-1: Brand reputation has a positive effect on perceived quality. H3-2: It is expected that PB and NB would have different influence in terms of brand reputation on perceived quality. H4-1: Product experience has a positive effect on perceived quality. H4-2: It is expected that PB and NB would have different influence in terms of product experience on perceived quality. H5-1: Brand familiarity has a positive effect on perceived quality. H5-2: It is expected that PB and NB would have different influence in terms of brand familiarity on perceived quality. H6: Perceived quality has a positive effect on customer satisfaction. H7: Perceived quality has a positive effect on customer trust. H8: Perceived quality has a positive effect on customer loyalty. H9: Customer satisfaction has a positive effect on customer trust. H10: Customer satisfaction has a positive effect on customer loyalty. H11: Customer trust has a positive effect on customer loyalty. Results from analyzing main effects of research model is shown as

    , and moderating effects is shown as
    . Results This study is designed with 16 research hypotheses, Results from analyzing their main effects show that 9 of 11 hypotheses were supported and other 2 hypotheses were rejected. On the other hand, results from analyzing their moderating effects show that 3 of 5 hypotheses were supported and other 2 hypotheses were rejected. H1-1: (SPC: Standardized Path Coefficient)=-0.04, t-value=-1.04, p>. 05). H1-2: (${\Delta}\chi^2$=1.10, df=1, p> 0.05). H1-1 and H1-2 are rejected, so it is prove that perceived price is not a significant decision variable having influence on perceived quality and there is no significant variable between PB and NB in terms of influence of perceived price on perceived quality. H2-1: (SPC=0.31, t-value=3.74, p<. 001). H2-2: (${\Delta}\chi^2$=3.93, df=1, p< 0.05). H2-1 and H2-2 are supported, so it is proved that company reputation is a significant decision variable having influence on perceived quality and, in terms of influence of company reputation on perceived quality, PB has relatively stronger influence than NB. H3-1: (SPC=0.26, t-value=5.30, p< .001). H3-2: (${\Delta}\chi^2$=16.81, df=1, p< 0.01). H3-1 and H3-2 are supported, so it is proved that brand reputation is a significant decision variable having influence on perceived quality and, in terms of influence of brand reputation on perceived quality, NB has relatively stronger influence than PB. H4-1: (SPC=0.31, t-value=2.65, p< .05). H4-2: (${\Delta}\chi^2$=1.26, df=1, p> 0.05). H4-1 is supported, but H4-2 is rejected, Therefore, it is proved that product experience is a significant decision variable having influence on perceived quality and, on the other hand, there is no significant different between PB and NB in terms of influence of product experience on product quality. H5-1: (SPC=0.24, t-value=3.00, p<. 05). H5-2: (${\Delta}\chi^2$=5.10, df=1, p< 0.05). H5-1 and H5-2 are supported, so it is proved that brand familiarity is a significant decision variable having influence on perceived quality and, in terms of influence of brand familiarity on perceived quality, NB has relatively stronger influence than PB. H6: (SPC=0.91, t-value=19.06, p< .001). H6 is supported, so a fact that customer satisfaction increases as perceived quality increases is proved. H7: (SPC=0.81, t-value=7.44, p<. 001). H7 is supported, so a fact that customer trust increases as perceived quality increases is proved. H8: (SPC=0.57, t-value=7.87, p< .001). H8 is supported, so a fact that customer loyalty increases as perceived quality increases is proved. H9: (SPC=0.08, t-value=0.76, p> .05). H9 is rejected, so it is proved influence of customer satisfaction on customer trust is not significant. H10: (SPC=0.21, t-value=4.34, p< .001). H10 is supported, so a fact that customer loyalty increases as customer satisfaction increases is proved. H11: (SPC=0.40, t-value=5.68, p< .001). H11 is supported, so a fact that customer loyalty increases as customer trust increases is proved. Implications Although most of existing studies have used function, price, brand, design, service, brand name, store name as antecedent variables for perceived quality, this study used different antecedent variables in order to analyze and distinguish purchase group PB and NB through preliminary research. Therefore, this study may be used as preliminary data for a empirical study that is designed to be helpful for practical jobs. Also, this study is made to be easily applied to any practical job because SEM(Structural Equation Modeling), most strongly explaining the relation between observed variable and latent variable, is used for this study. This study suggests a new strategic point that, in order to increase customer loyalty, customer's perceived quality level should satisfied for inducing customer satisfaction, customer trust, and customer loyalty. Therefore, after finding an effective differentiating factors in perceived quality in order to increase customer loyalty through increasing perceived quality, this factor was made to be applied to PB and NB. Because perceived quality factors which is recognized as being important by consumers is different between PB and NB, this study suggests how to efficiently establish marketing strategy by enhancing a factor. Companies have mostly focused on profitability in terms of analyzing customer loyalty, but this study included positive WOM(word of mouth). Hence, this study suggests that it would be helpful for establishing customer loyalty when consumers have cognitive satisfaction and emotional satisfaction together. Limitations This study used variables perceived price, company reputation, brand reputation, product experience, brand familiarity in order to determine whether each constituent factor has different influence on perceived quality between purchase group PB and NB. These characteristic variables are made up on the basis of the preliminary research, but it is expected that more precise research result would be obtained if additional various variables are included in study. This study selected a practical product that is non-durable, low-priced and bestselling product in a discount store through the preliminary research because it can be easily estimated by consumers. Therefore. generalization of study would be more easily obtained if more various product characteristics is included. Regarding a sample used in this study, it was only based on consumers who purchase products in a large-scale discount store located in Seoul and in the capital area. Accordingly, this sample has some geographical limitation, If a study is expanded by including more areas, more representative research results may be produced. Because this study is only designed to analyze consumers who purchase a product in a large-scale discount store, some difference may be found according to characteristics of each business type. In other words, there is certainly some application limitation, so research result from this study may not be applied to other business types. Future research may have fruitful results if it adjusts a variable to each business type.

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  • Technology Valuation Method Selection using Axiomatic Design (공리적 설계를 이용한 기술가치평가방법의 선정)

    • 문병근;조규갑
      • Proceedings of the Technology Innovation Conference
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      • 2003.02a
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      • pp.191-199
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      • 2003
    • It is critical to select an appropriate technology valuation method when the characteristics of a technology and valuation environment are variable. To ensure high quality decision making when selecting a technology valuation method, it is necessary to understand the principles of a good technology valuation method, and define and apply a decision making theory for selecting an optimal method. The authors propose that Axiomatic Design Principles can be applied as a decision making theory. In order to apply Axiomatic Design for this problem, this paper describes four domains(customer, functional, physical, and process domain) and four axioms(independence, information, cost, time axiom) for the decision making process for the optimal technology valuation method. The result of this study will contribute flexibility to the dynamic technology valuation process.

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    Creating the Optimal Product Business Management System for Social and Enterprise Development

    • Liao, Shih-chung
      • Journal of Distribution Science
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      • v.11 no.6
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      • pp.21-30
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      • 2013
    • Purpose - This paper examines product design management, the current design focus of which has shifted to the need to produce innovation applications that can effectively respond to the market's consumption changes in a timely manner. Research design, data, methodology - This study discusses several methodologies that are widely used in experimental processes, such as fuzzy theory, multi-criteria decision-making theory, and managing decision making. The designers will better understand their customers by applying these methodologies. This study examines how the current trend in product innovation design observes customer needs, controls innovation, and stimulates design ability. Results - This paper takes innovative telephone design as an experimental case to investigate how to create a product using market-oriented and customized management concepts and creative design abilities. Conclusions - If accompanied by an innovative product value chain, a product can further the development of enterprise management, now the main element of every developed country's social and economic development.

    A Decision Support System for Delivery Policies at an Internet Shopping Mall (인터넷 종합 쇼핑몰에서의 배송정책 의사결정지원시스템)

    • 이주영;박양병
      • Korean Management Science Review
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      • v.18 no.2
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      • pp.61-72
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      • 2001
    • This paper presents a decision support system (DSS) for selecting the best delivery policy at an internet general shopping mall with its own distribution center and many outside enterprises linked up with the mall. The DSS provides the decision maker with the performance information of three delivery policies (individual delivery, collective delivery, mixed delivery) for the given service level, customer order pattern, direct/indirect delivery ratio, unit costs of various delivery modes, upper level of goods characteristic index for collective delivery poller, etc. Furthermore, the DSS allows the decision maker to perform the sensitivity analyses of three delivery policies for their major parameters and unit costs of delivery modes. The DSS is developed with AweSim simulation 1anguage and Visual Basic programming 1anguage.

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    A Web-based DSS for Logistics of Supply Chain Integration (공급사슬 통합을 위한 웹기반 물류관리 의사결정지원 시스템)

    • 이호창;김민용
      • Korean Management Science Review
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      • v.18 no.2
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      • pp.39-60
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      • 2001
    • This Paper deals with a collaborative decision making procedure of web-based DSS for supply chain management (SCM). The seemingly autonomous DSS dedicated to each of mutually exclusive prob1em domains forms a communication network and cooperates each other for better SCM decision making. We a1so propose a hub-spoke information sharing model for the DSS network. In the hub-spoke model, an information hub at the center facilitates information exchange between DSS\\`s and controls the conversations defined by the series of XML messages between agents of DSS. A product ordering scenario where supply decision is triggered upon customer order is used to demonstrate the SCM decision procedure through a collaboration of the web-based DSS.

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    Customer Relationship Management System using Decision Tree (Decision Tree를 이용한 고객 취향 관리 시스템)

    • Choi, Jong-Hoon;Lee, Eun;Kong, Eun-Bae
      • Proceedings of the Korean Information Science Society Conference
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      • 2000.10b
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      • pp.60-62
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      • 2000
    • 인터넷의 활성화로 많은 사람들이 인터넷을 이용하고 이에 따라 인터넷을 이용한 서비스도 홍수를 이루고 있다. 이에 따라 인터넷을 상업적 목적으로 사용하는 서비스도 증가하고 있다. 그러나 많은 인터넷 서비스들이 고객들에게 획일적이고 일률적인 서비스만을 제공한다. 각각의 고객에게 취향과 관심분야에 따른 차별화 된 서비스가 필요로 한다. 각 고객에게 1대 1로 차별화 된 service를 제공하기 위해서 먼저 각 고객을 구별하고 그 고객의 취향과 관심분야의 파악을 위해서 인터넷에서의 행동을 관찰한다. 또한 고객의 관리를 위해 고객을 필요에 따라 그룹화하고, 고객과 직접 접촉을 통해 고객 정보를 파악할 수도 있다. 파악된 고객 정보의 효율적 저장과 분석을 위해서 decision tree를 이용해 학습을 한다. 고객의 행동의 특성상 incremental한 학습 알고리즘을 사용하며 고객의 선호도를 이용한 decision tree를 이용한다. 학습된 결과를 이용해서 1대 1 서비스를 제공함으로써 고객에서 편리성을 제공하고 서비스에 대한 친밀감과 고객의 흥미를 유발할 수 있다.

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    Multivariate Decision Tree for High -dimensional Response Vector with Its Application

    • Lee, Seong-Keon
      • Communications for Statistical Applications and Methods
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      • v.11 no.3
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      • pp.539-551
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      • 2004
    • Multiple responses are often observed in many application fields, such as customer's time-of-day pattern for using internet. Some decision trees for multiple responses have been constructed by many researchers. However, if the response is a high-dimensional vector that can be thought of as a discretized function, then fitting a multivariate decision tree may be unsuccessful. Yu and Lambert (1999) suggested spline tree and principal component tree to analyze high dimensional response vector by using dimension reduction techniques. In this paper, we shall propose factor tree which would be more interpretable and competitive. Furthermore, using Korean internet company data, we will analyze time-of-day patterns for internet user.


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