• Journal of the Korean Operations Research and Management Science Society
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• v.32 no.1
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• pp.105-124
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• 2007

CRM (Customer Relationship Management) becomes a crucial paradigm as the environment of the market changes. About the CRM actively maintaining and managing customers that have been already acquired, the research has been done as a plan to lure loyal customers who bring lucrative profits in the long term for the company in order to increase the value to the customers. However, in practice, the focus is on putting spurs to attracting new customers in a short term rather than retaining existing customers who give profitable revenues. If the company puts high emphasis on drawing the new customers, in a CRM's point of view in relation to the value of the customers, it can incur a loss in the long run. The reason is that if the firm conducts discriminative sales promotion, the existing clients with high loyalty will feel relatively treated inappropriately and they will have negative feelings such as being betrayed from the company they prefer. This occurrence of negative emotion can in-crease the possibility of highly profitable clients' secession. In consequence, this paper focusing on the process of the client segmentation at the mobile telecommunication services shows that the sales promotion strategy for the new customer attraction can lead to negative effect on the loyalty of the existing customers.

• Korean Management Science Review
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• v.26 no.1
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• pp.183-196
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• 2009

Customer retention has been a pressing issue for companies to get and maintain the loyal customers in the competing environment. Lots of researchers make effort to seek the characteristics of the churning customers and the loyal customers using the data mining techniques such as decision tree. However, such existing researches don't consider relationships among customers. Social network analysis has been used to search relationships among social entities such as genetics network, traffic network, organization network and so on. In this study, a customer network is proposed to investigate the differences of network characteristics of churning customers and loyal customers. The customer networks are constructed by analyzing the real purchase data collected from a Korean cosmetic provider. We investigated whether the churning customers and the loyal customers have different degree centralities and densities of the customer networks. In addition, we compared products purchased by the churning customers and those by the loyal customers. Our data analysis results indicate that degree centrality and density of the churning customer network are higher than those of the loyal customer network, and the various products are purchased by churning customers rather than by the loyal customers. We expect that the suggested social network analysis is used to as a complementary analysis methodology with existing statistical analysis and data mining analysis.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.5 no.10
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• pp.1733-1750
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• 2011

In the early stages of a software project, it is critical to understand the needs of the customers and elicit their customer requirements. Various requirements elicitation methods have been proposed. However, existing methods still have the limitations such as a limited number of target customers, limited expression of customers' opinions, and difficulty in collecting the customers' opinions continuously. A novel method for eliciting customer requirements is proposed by utilizing a social network service (SNS), which is a shared source of raw information of the customers' needs and opinions. The proposed method is validated to show its effectiveness in overcoming the limitations of existing methods.

• 한국경영정보학회:학술대회논문집
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• 2007.06a
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• pp.931-936
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• 2007

To understand the relationship between factors influencing customers' intention to switch from current banking services to mobile banking service. We first investigates immediate influence of customers' satisfaction with existing banking service and attractiveness of mobile banking as an alternative service. We further examines the moderating effect of alternative service attractiveness that influences the relationship between existing service satisfaction and switching intention to mobile banking service.

• Journal of Korean Institute of Industrial Engineers
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• v.33 no.3
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• pp.339-348
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• 2007

Since the 1980s, the marketing paradigm has rapidly changed from product-driven marketing to customer-driven marketing. Recently, due to an increase in the amount of information, customer-differentiation strategies have been emphasized more than product-differentiation strategies. This paper suggests a methodology for new customer segmentation and purchase forecasting using changes in customer behavior. This methodology includes a segmentation method for new customers using existing customer's characteristics and a purchase-forecasting system using the purchase-behavior patterns of existing customers. The proposed methodology not only provides differential services from a segmentation system but also recommends differential items from the purchase forecasting system for new and existing customers.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.4
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• pp.57-72
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• 2009

As development of information technologies, customer retention has been an important issue in the competing environment. A lot of researches focus on prediction of the churning customers and seeking their characteristics. However, relationships among customers or products have not been considered in existing researches. In this study, product networks are proposed and analyzed to investigate the differences of network characteristics of products purchased by potential churning customers and those of loyal customers. The product networks are constructed from real product purchase data collected from a Korean department store. We investigated the characteristic differences, such as the degree centrality, degree centralization, and density, of two product networks constructed by potential churning customers and the loyal customers. The results indicate that degree centrality, density and degree centralization of the product network of the loyal customers are higher than those of the potential churning customers. And the promotional products of the department store are resulted to be effective in attracting the loyal customers.

• Journal of Korea Port Economic Association
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• v.28 no.4
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• pp.39-57
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• 2012

This study aims to find out the relationship of customer behavioral intention and marketing variables such as service quality and customer satisfaction which are regarded as its determinants. And then this study has suggested what service factors shall be emphasized to induce the latent customers. And it has grouped strategic Schemes on which service variables shall be focused to enhance the existing customer behavioral intentions. This study has found, to the existing customers, only physical environments among 3 dimension components of Service quality significantly affects to the Behavioral intentions. Priorly, marketing efforts, namely, expansion of convenient facilities such as special berth construction is necessary. To the latent customer, service delivery is the most powerful factor to the behavioral intentions. Consequently, frequency of cruise calling, Facilities of shopping and eating, issues and their development of cruise goods and publicity and promotions are needed.

• Asia Marketing Journal
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• v.22 no.1
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• pp.1-26
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• 2020

Firms employing hierarchical loyalty programs (HLPs) periodically demote customers from higher to lower status level to divest from unprofitable customers and boost profitability. However, existing literature lacks objective evidence on how customer demotion affects demoted customers' future purchase behaviors and ultimately profitability for the firm. Moreover, customers in the HLP's higher position may respond to customer demotion differently from those in the HLP's lower position. Drawing upon emotions and equity theories, this study quantifies how the profits that customers contribute to the firm change after customer demotion, and compares demoted customers' behavioral reactions from top-tier with those from bottom-tier based on customers' actual behavior data from a major retail bank in South Korea. The findings show that withdrawing customer status actually deteriorates customer profitability, and customers with top-tier status decrease their profitability more dramatically than those with bottom-tier status after demotion. The results contribute to previous literature on customer demotion and relationship marketing, and provide specific guidelines into how firms should design and implement customer demotion in HLPs.

• Korean Management Science Review
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• v.22 no.2
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• pp.35-49
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• 2005

When new services are introduced, interaction among existing and new services has to be considered. The interaction can be characterized by the substitution or complementary effect among services. This paper analyzes how the interaction among services affects the customers' subscription decision in telecommunication services industry. Based on a face-to-face in-depth survey from a sample of 1,200 respondents, a new wireless internet access service or WiBro is analyzed to identify the substitution/complementary effect in relation to the existing other telecommunication services. Additionally, the important factors explaining both customers' subscription and substitution decisions are identified. The analysis results indicate that males and students are more likely to subscribe WIBro service. Interestingly, family size positively affects the subscription decision. However, heavy users of on-line game are reluctant to subscribe WiBro service. Among the potential WiBro subscribers, the customers who are less satisfied with the existing fixed line broadband internet access service are more likely to stop subscribing the fixed line service, which implies substitution by a new service. We believe that the consideration of the interactions among services is essential to devise a winning strategy for the new services in the highly uncertain telecommunications business environment.

• Proceedings of the Korea Inteligent Information System Society Conference
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• 2005.05a
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• pp.274-282
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• 2005

Customer retention is one of the major issued in life insurance industry, in which competition is increasingly fierce. There are many things to do to retain customers. One of those things is to be continuously in touch with all customers. The objective of this study is to design the contact scheduling system(CSS) to support the planers who must touch the customers without having subjective information. Support-planers suffer from lack of information which can be used to intimately touch. CSS that is developed in this study generates contact schedule to touch customers by taking into account existing contact history. CSS has a two stage process. In the first stage, it segments customers according to his or her demographics and contract status data. Then it finds typical pattern and pattern is combined to business rules for each segment. We expert that CSS would support support-planers to make uncontacted customers' experience positive.