• Title/Summary/Keyword: Customer reputation

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e-CRM and Digitization of Word of Mouth

  • Kim, Eun-Jin;Lee, Byung-Tae
    • Management Science and Financial Engineering
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    • v.11 no.3
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    • pp.47-60
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    • 2005
  • Well-known e-CRM strategy is to focus on profitable customers and pay less attention to unprofitable ones. Moreover, some researchers recommend not serving unprofitable ones any more. However, it often neglects customers indirect value. Deselecting unprofitable customers can raise the issue of bad word-of-mouth publicity especially in the age of the Internet. Some studies pointed out that a customers decision to buy a product or service is often strongly influenced by others. In this paper, we consider customers' word-of-mouth effect on quality learning of inexperienced customers. We show that firms implementing e-CRM must take the effect into the consideration when deselecting unprofitable customers.

A Study on CRM in TV Home Shopping (Part 1) (TV 홈쇼핑에서의 패션제품 CRM에 관한 연구(제1보))

  • Lee, Seung-Hee;Park, Soo-Kyeong
    • Journal of the Korean Society of Clothing and Textiles
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    • v.31 no.4 s.163
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    • pp.594-603
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    • 2007
  • The purpose of this study was to examine which variables affect customer relationship management in TV home shopping. Three hundred customers who had purchased fashion products in TV home shopping had participated in this study. The data was analyzed by factor analysis, t-test, correlation analysis and path analysis using SPSS program. As the result, 'service', 'information', 'contents', 'reputation', and 'benefits' variables had the effects on 'trust': especially, 'service' had the major effects on 'trust' The 'trust' and 'security' had the effects on 'commitment'. The 'price' variable had only effect on relationship maintenance. Also, 'trust' and 'commitment' had the 'relationship maintenance' Specifically 'commitment' had higher effect on relationship maintenance than 'trust' did. The results of this study would provide CRM marketing strategy for fashion marketers of TV home shopping.

Customers' Utilization and Satisfaction in Oriental Medical Clinics (한의원 환자들의 한방의료 이용 행태 및 만족도 실태)

  • Seo, Young-Joon;Kang, Shin-Hee;Kim, Yeon-Hee;Choi, Dae-Bong;Shin, Hyun-Kyu
    • The Journal of Korean Medicine
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    • v.31 no.2
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    • pp.124-136
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    • 2010
  • Objective:: This study aimed to examine the customers' utilization of and satisfaction with oriental medical clinics in South Korea. Method: The data for this study were collected from 1,208 patients of 391 oriental medical clinics through a mail questionnaire survey from September to December 2008. The collected data were analyzed by the frequency analysis and $X^2$-test. Results: The results of the study were as follows. First, the most important reason that patients used oriental medical services was to get both oriental and western medical services simultaneously, because they thought such approach would be more effective for treating their diseases. Second, two important reasons that patients visited oriental medical clinics were "the reputation of and trust in the oriental medical clinics" and "the recommendation of their family and friends". Third, many patients of the oriental medical clinics have concerns about the "high prices and the outcome of oriental medical services". Fourth, the most preferred oriental medical service was "acupuncture". Fifth, it was found that 75% of the respondents were satisfied with the services they had received. They told that the outcome of the care and the kindness of the clinics' staff were very important factors that have an impact on their satisfaction. Conclusion: The study results imply that oriental medical clinics have to make an effort to strengthen their reputation and trust in the community through the scientific validation of oriental medicine, differentiated services mixed with traditional value, customer relationship management, reasonable and acceptable price of the services, staff education, and continuous quality improvement.

Impact of Competency of Consulting Company on Business Performance: Focus on Franchise Companies

  • CHO, Young-Re;KIM, Moon-Myoung;SEO, Min-Gyo
    • The Korean Journal of Franchise Management
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    • v.11 no.2
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    • pp.7-15
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    • 2020
  • Purpose - The purpose of this study was to structurally verify how the competency of consulting company affects the business performance of consulting client firms through consulting achievement and consulting utilization. It aims to provide information for successful consulting and suggest strategic measures to improve consulting performance. Research design, data, and methodology - This study examines the structural relationship between competency of consulting company, consulting performance, and performance of consulting client firms. In this model, competency of consulting company consists of three sub-dimensions such as reputation, ability to perform business, and expertise. For these purposes, research model and hypotheses were developed. This survey was conduct ed for employees of companies that have experienced consulting in the past year. A total of 195 were used for this study. The data were analyzed using frequency analysis, confirmatory factor analysis, correlation analysis, and SEM with SPSS 18.0 and Amos 18.0 statistical program. Result - The results of this study are as follows. First, reputation, ability to perform business and expertise, which are sub-dimensions of consulting competence, was found to have positive effect on consulting achievements and also found to have a positive effect on utilization. Second, consulting performance was found to have positive effects on business performance of consulting client firms. It means that the management's willingness to utilize consulting results and the achievements of consulting performance have a positive effect on the company's management performance. Conclusions - Consulting firms need to perform customer-oriented consulting by accurately recognizing what management consulting is required by the client firms. The academic significance of this study was that the research was conducted through structural empirical analysis, not only from the relationship of competency of consulting company to consulting performance, but also to the relationship of business performance of client firms. In addition, the practical implication of this study is that clients can actively utilize the results of consulting to lead business performance.

Service Quality, Customer Satisfaction and Customer Loyalty of Mobile Communication Industry in China (중국이동통신산업중적복무질량(中国移动通信产业中的服务质量), 고객만의도화고객충성도(顾客满意度和顾客忠诚度))

  • Zhang, Ruijin;Li, Xiangyang;Zhang, Yunchang
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.3
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    • pp.269-277
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    • 2010
  • Previous studies have shown that the most important factor affecting customer loyalty in the service industry is service quality. However, on the subject of whether service quality has a direct or indirect effect on customer loyalty, scholars' views apparently vary. Some studies suggest that service quality has a direct and fundamental influence on customer loyalty (Bai and Liu, 2002). However, others have shown that service quality not only directly affects customer loyalty, it also has an indirect impact on customer loyalty by influencing customer satisfaction and perceived value (Cronin, Brady, and Hult, 2000). Currently, there are few domestic articles that specifically address the relationship between service quality and customer loyalty in the mobile communication industry. Moreover, research has studied customer loyalty as a whole variable, rather than breaking it down further into multiple dimensions. Based on this analysis, this paper summarizes previous study results, establishes an effect mechanism model among service quality, customer satisfaction, and customer loyalty in the mobile communication industry, and presents a statistical test on model assumptions by using customer investigation data from Heilongjiang Mobile Company. It provides theoretical guidance for mobile service management based on the discussion of the hypothesis test results. For data collection, the sample comprised mobile users in Harbin city, and the survey was taken by random sampling. Out of a total of 300 questionnaires, 276 (92.9%) were recovered. After excluding invalid questionnaires, 249 remained, for an effective rate of 82.6 percent for the study. Cronbach's ${\alpha}$ coefficient was adapted to assess the scale reliability, and validity testing was conducted on the questionnaire from three aspects: content validity, construct validity. and convergent validity. The study tested for goodness of fit mainly from the absolute and relative fit indexes. From the hypothesis testing results, overall, four assumptions have not been supported. The ultimate affective relationship of service quality, customer satisfaction, and customer loyalty is demonstrated in Figure 2. On the whole, the service quality of the communication industry not only has a direct positive significant effect on customer loyalty, it also has an indirect positive significant effect on customer loyalty through service quality; the affective mechanism and extent of customer loyalty are different, and are influenced by each dimension of service quality. This study used the questionnaires of existing literature from home and abroad and tested them in empirical research, with all questions adapted to seven-point Likert scales. With the SERVQUAL scale of Parasuraman, Zeithaml, and Berry (1988), or PZB, as a reference point, service quality was divided into five dimensions-tangibility, reliability, responsiveness, assurance, and empathy-and the questions were simplified down to nineteen. The measurement of customer satisfaction was based mainly on Fornell (1992) and Wang and Han (2003), ending up with four questions. Based on the study’s three indicators of price tolerance, first choice, and complaint reaction were used to measure attitudinal loyalty, while repurchase intention, recommendation, and reputation measured behavioral loyalty. The collection and collation of literature data produced a model of the relationship among service quality, customer satisfaction, and customer loyalty in mobile communications, and China Mobile in the city of Harbin in Heilongjiang province was used for conducting an empirical test of the model and obtaining some useful conclusions. First, service quality in mobile communication is formed by the five factors mentioned earlier: tangibility, reliability, responsiveness, assurance, and empathy. On the basis of PZB SERVQUAL, the study designed a measurement scale of service quality for the mobile communications industry, and obtained these five factors through exploratory factor analysis. The factors fit basically with the five elements, indicating the concept of five elements of service quality for the mobile communications industry. Second, service quality in mobile communications has both direct and indirect positive effects on attitudinal loyalty, with the indirect effect being produced through the intermediary variable, customer satisfaction. There are also both direct and indirect positive effects on behavioral loyalty, with the indirect effect produced through two intermediary variables: customer satisfaction and attitudinal loyalty. This shows that better service quality and higher customer satisfaction will activate the attitudinal to service providers more active and show loyalty to service providers much easier. In addition, the effect mechanism of all dimensions of service quality on all dimensions of customer loyalty is different. Third, customer satisfaction plays a significant intermediary role among service quality and attitudinal and behavioral loyalty, indicating that improving service quality can boost customer satisfaction and make it easier for satisfied customers to become loyal customers. Moreover, attitudinal loyalty plays a significant intermediary role between service quality and behavioral loyalty, indicating that only attitudinally and behaviorally loyal customers are truly loyal customers. The research conclusions have some indications for Chinese telecom operators and others to upgrade their service quality. Two limitations to the study are also mentioned. First, all data were collected in the Heilongjiang area, so there might be a common method bias that skews the results. Second, the discussion addresses the relationship between service quality and customer loyalty, setting customer satisfaction as mediator, but does not consider other factors, like customer value and consumer features, This research will be continued in the future.

Optimal Incentives for Customer Satisfaction in Multi-channel Setting (멀티채널에서의 고객만족제고 인센티브 연구)

  • Kim, Hyun-Sik
    • Journal of Distribution Research
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    • v.15 no.1
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    • pp.25-47
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    • 2010
  • CS is one of the major concerns of managers in the world because it is well known to be a key medium construct for firms' superior outcome. One of the major agents for CS management is retailers. Firms try to manage not only employees but also retailers to promote CS behaviors. And so diverse incentives are used to promote their CS behaviors under diverse channel setting such as multi-channel. However in spite of the rising needs there has been scarce studies on the optimal incentive structure for a manufacturer to offer competing retailers at the multi-channel. In this paper, we try to find better way for a manufacturer to promote the competing retailers' CS behaviors. We investigated how to promote the retailers' CS behavior via game-theoretic modeling. Especially, we focus on the possible incentive, CS bonus type reward introduced in the studies of Hauser, Simester, and Wernerfelt(1994) and Chu and Desai(1995). We build up a multi stage complete information game and derive a subgame perfect equilibrium using backward induction. Stages of the game are as following. (Stage 1) Manufacturer sets wholesale price(w) and CS bonus($\eta$). (Stage 2) Both retailers in competition set CS effort level($e_i$) and retail price($p_i$) simultaneously. (Stage 3) Consumers make purchasing decisions based on the manufacturer's initial reputation and retailers' CS efforts.

    Structure of the Model We investigated four issues about the topic as following: (1) How much total incentive is adequate for a firm of a specific level of reputation to promote retailers' CS behavior under multi-channel setting ?, (2) How much total incentive is adequate under diverse level of complimentary externalities between the retailers' CS efforts to promote retailers' CS behavior?, (3) How much total incentive is adequate under diverse level of cost to make CS efforts to promote retailers' CS behavior?, (4) How much total incentive is adequate under diverse level of competition between retailers to promote retailers' CS behavior? Our findings are as following. (1) The higher reputation has the manufacturer, the higher incentives for retailers at multi-channel are required in the equilibrium.
    shows the increasing pattern of optimal incentive level along the manufacturer's reputation level(a) under some parameter conditions(b=1/2;c=0;$\beta$=1/2). (2) The bigger complimentary externalities exists between the retailers' CS efforts, the higher incentives are required in the equilibrium.
    shows the increasing pattern of optimal incentive level along the complimentary externalities level($\beta$) under some parameter conditions(a=1;b=1/2;c=0). (3) The higher is the retailers' cost, the lower incentives are required in the equilibrium.
    shows the decreasing pattern of optimal incentive level along the cost level(c) under some parameter conditions(a=1;b=1/2;$\beta$=1/2). (4) The more competitive gets those two retailers, the higher incentives for retailers at multi-channel are required in the equilibrium.
    shows the increasing pattern of optimal incentive level along the competition level(b) under some parameter conditions(c=0;a=1;$\beta$=1/2). One of the major contribution points of this study is the fact that this study is the first to investigate the optimal CS incentive system under multi-channel setting.

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A Study on Consumer Trust Building in an Internet Marketplace (인터넷 오픈마켓 거래안전 요인과 소비자신뢰의 관계 연구)

  • Lee, Ki-Heon
    • CRM연구
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    • v.1 no.1
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    • pp.23-48
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    • 2006
  • Internet B2C marketplace such as 'Auction', 'G Market', 'Daum onket' etc.(called open market) has grown sharply in sales about yearly 100% rate increase in recent 1-2 years in Korea. Although Open marketplace has much reputation and the customer loyalty, almost of merchants participated in open market, which size in sales are medium/small, has poor reputation and trust. Consumers, who have to get in touch with untrustworthy merchants for trade in openmarket, perceive high trade risk which undergo the monetary damages such as 'merchandise never received'. This examines what factors consumer trust develop in online marketplace. This study explores several perceived risk factors in an open market by factor analysis and multi-regression to prove the relationships between the degree of trust for the merchants and the perceived trade risk. 133 data collected from the open market user data in this survey. In this study, the consumer's trade satisfaction in open market is low by 4.2 point degree of 7 point likert scale. and perceives 4 trade risk factors such as (1) 'failure to honor warranty or guarantee' (2) 'defective/poor goods in quality' (3) 'merchandise never received or received late' (4) 'poor information'. the degree of merchant's trust has significant relationship with the degree of perceived risk(sig. = 0.0000, $R^2=.327$) We find that the open market has to enhance the relationship marketing of trust by developing the strategies.

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Innovation in Giorgetto Giugiaro's Automobile Design (Giorgetto Giugiaro의 자동차디자인의 혁신성)

  • Lee, Myung-Ki
    • Archives of design research
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    • v.19 no.5 s.67
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    • pp.383-394
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    • 2006
  • In 2005, Giorgetto Giugiaro unveiled the Ferrari GG50 at the 50th anniversary celebration of his design career. Beginning his career at the age of 17, he is a master designer who has achieved design revolution by uniting creativity, design methodology, and technology. He has been awarded a number of international prizes for his exquisite achievements and reputation for car design. Carrozzeria of ITAL DESIGN, founded by Giugiaro, is a company whose ideas combine cutting-edge technology and high quality craftsmanship. Beginning in car design, ITAL DESIGN achieved a positive reputation internationally and, since 1999, has expanded even more rapidly under its new name, ITAL DESIGN-GIUGIARO. The owner of 12 affiliates worldwide, all service systems are buyer-oriented, ensuring the highest level of technical consulting. Beginning with the 1971 Alfa Romeo Alfasud, the 1st major project, more than 100 cars have been designed in the past 35 years, leading to the production or in million cars by major motor companies around the world. Giugiaro has focused on practical performance as well as external beauty in his car design, the best of which enter the mass market. With his philosophy of "I want to be the 1st customer of my design" Giugiaro design invites customer participation and input to meet their needs and demands. Free from the routine, typical image, Giugiaro design has raised the bar for creativity and thinking beyond traditional values and ideologies.

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An Empirical Study on the Impact of Quality Oriented Corporate Culture on Sustainability Management Performances (공급사슬 내에서 품질지향적 기업문화가 지속가능경영성과에 미치는 영향에 관한 실증연구)

  • Woo, Moo-Jin;Park, Jong-Woo;Jung, Byeong-Yeong
    • Journal of Distribution Science
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    • v.12 no.6
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    • pp.31-39
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    • 2014
  • Purpose - Environmental issues, climatic changes, and greenhouse gases are problems to be solved at a global level. With an increased emphasis on the environmental and social responsibility of the management of companies, the manner in which companies approach quality-oriented culture and their individual sustainability management are being discussed as truly important issues to help them secure their competitiveness and growth strategies. This study proposes strategic directions to help manufacturers not only in expanding their competitive quality-oriented company culture but also in strengthening their sustainability management abilities. This study conducts a literature review and empirical research to examine how significantly the variables of a quality-oriented company culture, customer-centered management, and process-centered and supply chain management-centered cooperation affect sustainability management performance in relation to economic profitability, environmental integrity, and social responsibility. Research design, data, and methodology - To verify research models and hypotheses, the study examined 170 companies using a questionnaire survey conducted over six weeks, and involved the performance of data analysis on 146 samples. Questionnaire responses were calibrated based on a Likert scale. The study used the Smart PLS 2.0 program designed for PLS (partial least squares), an analysis instrument of SEM (structural equation modeling). The study then verified empirical research hypotheses working on reliability analysis, validity analysis, factorial analysis, and path analysis. Results - Among the nine hypotheses, four are accepted and the rest are rejected. A quality-oriented company culture focusing on customer-centered management significantly influenced the maintainability management performance of environmental integrity and social responsibility, while economic profitability was dismissed. A process-focused quality-oriented company culture was significantly concerned with economic profitability but not with environmental integrity or social responsibility. A supply-chain cooperative company culture had a significant effect on economic profitability but not on environmental integrity or social responsibility. Conclusion - This study proposes strategic directions to help manufacturers expand their competitive quality-oriented company culture as well as strengthen abilities with sustainability management. It conducts a literature review and empirical research to examine how significantly the variables of quality-oriented company culture, customer-centered management, and process-centered and supply chain management-centered cooperation affect sustainability management performance in relation to economic profitability, environmental integrity, and social responsibility. There are two main conclusions. First, companies should consider the need for social responsibility management and environmental transparent management-focused maintainability management as avenues to create new markets and business, thereby helping the companies secure a reputation for having a customer and process-centered quality-oriented company culture by creating shared values between supply chains and enabling win-win situations through cooperation. Second, we are marching towards a creative win-win era from a society of conflicts and ruptures. Companies should understand that social responsibility management and supply chain management (SCM)-focused cooperation are the foundations of sustainable development, as they try to improve their culture while pursuing both win-win relationships with interested parties and equity in various conflictive relations.

Determinants and Performance of Port Logistics Service Quality (항만물류서비스품질의 결정요인과 성과분석)

  • Park, Jung-Hee;Woo, Su-Han
    • Journal of Korea Port Economic Association
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    • v.31 no.3
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    • pp.15-39
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    • 2015
  • This paper investigates the determinants of port service quality from a resources-based approach. The research model is derived from the relevant literature in port management, service quality, and resource-based theory. It is hypothesized that tangible and intangible resources contribute to port service quality, which in turn leads to the enhancement of reputation and loyalty to ports. To test this, a questionnaire survey is undertaken on three major ports in Korea: Busan, Incheon, and Gwangyang; the collected data are then analyzed using partial least squares. It is suggested that both tangible resources and intangible resources have a positive influence on general service quality and that general service quality has a positive influence on customer satisfaction, thus improving port reputation and loyalty. The contribution to the literature is that resource-based theory is applied to a port service quality model and the model is verified. In addition, an augmented model is adopted to examine the effect of individual resources on service quality. It is also possible for port managers to use the constructs to monitor their resources and develop more specific strategies to gain reputation and loyalty from customers.