• Title/Summary/Keyword: Marketing Channels

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Case Analysis of the Promotion Methodologies in the Smart Exhibition Environment (스마트 전시 환경에서 프로모션 적용 사례 및 분석)

  • Moon, Hyun Sil;Kim, Nam Hee;Kim, Jae Kyeong
    • Journal of Intelligence and Information Systems
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    • v.18 no.3
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    • pp.171-183
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    • 2012
  • In the development of technologies, the exhibition industry has received much attention from governments and companies as an important way of marketing activities. Also, the exhibitors have considered the exhibition as new channels of marketing activities. However, the growing size of exhibitions for net square feet and the number of visitors naturally creates the competitive environment for them. Therefore, to make use of the effective marketing tools in these environments, they have planned and implemented many promotion technics. Especially, through smart environment which makes them provide real-time information for visitors, they can implement various kinds of promotion. However, promotions ignoring visitors' various needs and preferences can lose the original purposes and functions of them. That is, as indiscriminate promotions make visitors feel like spam, they can't achieve their purposes. Therefore, they need an approach using STP strategy which segments visitors through right evidences (Segmentation), selects the target visitors (Targeting), and give proper services to them (Positioning). For using STP Strategy in the smart exhibition environment, we consider these characteristics of it. First, an exhibition is defined as market events of a specific duration, which are held at intervals. According to this, exhibitors who plan some promotions should different events and promotions in each exhibition. Therefore, when they adopt traditional STP strategies, a system can provide services using insufficient information and of existing visitors, and should guarantee the performance of it. Second, to segment automatically, cluster analysis which is generally used as data mining technology can be adopted. In the smart exhibition environment, information of visitors can be acquired in real-time. At the same time, services using this information should be also provided in real-time. However, many clustering algorithms have scalability problem which they hardly work on a large database and require for domain knowledge to determine input parameters. Therefore, through selecting a suitable methodology and fitting, it should provide real-time services. Finally, it is needed to make use of data in the smart exhibition environment. As there are useful data such as booth visit records and participation records for events, the STP strategy for the smart exhibition is based on not only demographical segmentation but also behavioral segmentation. Therefore, in this study, we analyze a case of the promotion methodology which exhibitors can provide a differentiated service to segmented visitors in the smart exhibition environment. First, considering characteristics of the smart exhibition environment, we draw evidences of segmentation and fit the clustering methodology for providing real-time services. There are many studies for classify visitors, but we adopt a segmentation methodology based on visitors' behavioral traits. Through the direct observation, Veron and Levasseur classify visitors into four groups to liken visitors' traits to animals (Butterfly, fish, grasshopper, and ant). Especially, because variables of their classification like the number of visits and the average time of a visit can estimate in the smart exhibition environment, it can provide theoretical and practical background for our system. Next, we construct a pilot system which automatically selects suitable visitors along the objectives of promotions and instantly provide promotion messages to them. That is, based on the segmentation of our methodology, our system automatically selects suitable visitors along the characteristics of promotions. We adopt this system to real exhibition environment, and analyze data from results of adaptation. As a result, as we classify visitors into four types through their behavioral pattern in the exhibition, we provide some insights for researchers who build the smart exhibition environment and can gain promotion strategies fitting each cluster. First, visitors of ANT type show high response rate for promotion messages except experience promotion. So they are fascinated by actual profits in exhibition area, and dislike promotions requiring a long time. Contrastively, visitors of GRASSHOPPER type show high response rate only for experience promotion. Second, visitors of FISH type appear favors to coupon and contents promotions. That is, although they don't look in detail, they prefer to obtain further information such as brochure. Especially, exhibitors that want to give much information for limited time should give attention to visitors of this type. Consequently, these promotion strategies are expected to give exhibitors some insights when they plan and organize their activities, and grow the performance of them.

The Influence of Store Environment on Service Brand Personality and Repurchase Intention (점포의 물리적 환경이 서비스 브랜드 개성과 재구매의도에 미치는 영향)

  • Kim, Hyoung-Gil;Kim, Jung-Hee;Kim, Youn-Jeong
    • Journal of Global Scholars of Marketing Science
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    • v.17 no.4
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    • pp.141-173
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    • 2007
  • The study examines how the environmental factors of store influence service brand personality and repurchase intention in the service environment. The service industry has been experiencing the intensified competition with the industry's continuous growth and the influence from rapid technological advancement. Under the circumstances, it has become ever more important for the brand competitiveness to be distinctively recognized against competition. A brand needs to be distinguished and differentiated from competing companies because they are all engaged in the similar environment of the service industry. The differentiation of brand achievement has become increasingly important to highlight certain brand functions to include emotional, self-expressive, and symbolic functions since the importance of such functions has been further emphasized in promoting consumption activities. That is the recent role of brand personality that has been emphasized in the service industry. In other words, customers now freely and actively express their personalities or egos in consumption activities, taking an important role in construction of a brand asset. Hence, the study suggests that it is necessary to disperse the recognition and acknowledgement that the maintenance of the existing customers contributes more to boost repurchase intention when it is compared to the efforts to create new customers, particularly in the service industry. Meanwhile, the store itself can offer a unique environment that may influence the consumer's purchase decision. Consumers interact with store environments in the process of,virtually, all household purchase they make (Sarel 1981). Thus, store environments may encourage customers to purchase. The roles that store environments play are to provide informational cues to customers about the store and goods and communicate messages to stimulate consumers' emotions. The store environments differentiate the store from competing stores and build a unique service brand personality. However, the existing studies related to brand in the service industry mostly concentrated on the relationship between the quality of service and customer satisfaction, and they are mostly generalized while the connective studies focused on brand personality. Such approaches show limitations and are insufficient to investigate on the relationship between store environment and brand personality in the service industry. Accordingly, the study intends to identify the level of contribution to the establishment of brand personality made by the store's physical environments that influence on the specific brand characteristics depending on the type of service. The study also intends to identify what kind of relationships with brand personality exists with brand personality while being influenced by store environments. In addition, the study intends to make meaningful suggestions to better direct marketing efforts by identifying whether a brand personality makes a positive influence to induce an intention for repurchase. For this study, the service industry is classified into four categories based on to the characteristics of service: experimental-emotional service, emotional -credible service, credible-functional service, and functional-experimental service. The type of business with the most frequent customer contact is determined for each service type and the enterprise with the highest brand value in each service sector based on the report made by the Korea Management Association. They are designated as the representative of each category. The selected representatives are a fast-food store (experimental-emotional service), a cinema house (emotional-credible service), a bank (credible-functional service), and discount store (functional-experimental service). The survey was conducted for the four selected brands to represent each service category among consumers who are experienced users of the designated stores in Seoul Metropolitan City and Gyeonggi province via written questionnaires in order to verify the suggested assumptions in the study. In particular, the survey adopted 15 scales, which represent each characteristic factor, among the 42 unique characteristics developed by Jennifer Aaker(1997) to assess the brand personality of each service brand. SPSS for Windows Release 12.0 and LISREL were used in the analysis of data verification. The methodology of the structural equation model was used for the study and the pivotal findings are as follows. 1) The environmental factors ware classified as design factors, ambient factors, and social factors. Therefore, the validity of measurement scale of Baker et al. (1994) was proved. 2) The service brand personalities were subdivided as sincerity, excitement, competence, sophistication, and ruggedness, which makes the use of the brand personality scales by Jennifer Aaker(1997) appropriate in the service industry as well. 3) One-way ANOVA analysis on the scales of store environment and service brand personality showed that there exist statistically significant differences in each service category. For example, the social factors were highest in discount stores, while the ambient factors and design factors were highest in fast-food stores. The discount stores were highest in the sincerity and excitement, while the highest point for banks was in the competence and ruggedness, and the highest point for fast-food stores was in the sophistication, The consumers will make a different respond to the physical environment of stores and service brand personality that are inherent to the corresponding service interface. Hence, the customers will make a different decision-making when dealing with different service categories. In this aspect, the relationships of variables in the proposed hypothesis appear to work in a different way depending on the exposed service category. 4) The store environment factors influenced on service brand personalities differently by category of service. The factors of store's physical environment are transferred to a brand and were verified to strengthen service brand personalities. In particular, the level of influence on the service brand personality by physical environment differs depending on service category or dimension, which indicates that there is a need to apply a different style of management to a different service category or dimension. It signifies that there needs to be a brand strategy established in order to positively influence the relationship with consumers by utilizing an appropriate brand personality factor depending on different characteristics by service category or dimension. 5) The service brand personalities influenced on the repurchase intention. Especially, the largest influence was made in the sophistication dimension of service brand personality scale; the unique and characteristically appropriate arrangement of physical environment will make customers stay in the service environment for a long time and will lead to give a positive influence on the repurchase intention. 6) The store environment factors influenced on the repurchase intention. Particularly, the largest influence was made on the social factors of store environment. The most intriguing finding is that the service factor among all other environment factors gives the biggest influence to the repurchase intention in most of all service types except fast-food stores. Such result indicates that the customers pay attention to how much the employees try to provide a quality service when they make an evaluation on the service brand. At the same time, it also indicates that the personal factor is directly transmitted to the construction of brand personality. The employees' attitude and behavior are the determinants to establish a service brand personality in the process of enhancing service interface. Hence, there should be a reinforced search for a method to efficiently manage the service staff who has a direct contact with customers in order to make an affirmative improvement of the customers' brand evaluation at the service interface. The findings suggest several managerial implications. 1) Results from the empirical study indicated that store environment factors have a strong positive impact on a service brand personality. To increase customers' repurchase intention of a service brand, the management is required to effectively manage store environment factors and create a friendly brand personality based on the corresponding service environment. 2) Mangers and researchers must understand and recognize that the store environment elements are important marketing tools, and that brand personality influences on consumers' repurchase intention. Based on such result of the study, a service brand could be utilized as an efficient measure to achieve a differentiation by enforcing the elements that are most influential among all other store environments for each service category. Therefore, brand personality established involving various store environments will further reinforce the relationship with customers through the elevated brand identification of which utilization to induce repurchase decision can be used as an entry barrier. 3) The study identified the store environment as a component of service brand personality for the store's effective communication with consumers. For this, all communication channels should be maintained with consistency and an integrated marketing communication should be executed to efficiently approach to a larger number of customers. Mangers and researchers must find strategies for aligning decisions about store environment elements with the retailers' marketing and store personality objectives. All ambient, design, and social factors need to be orchestrated so that consumers can take an appropriate store personality. In this study, the induced results from the previous studies were extended to the service industry so as to identify the customers' decision making process that leads to repurchase intention and a result similar to those of the previous studies. The findings suggested several theoretical and managerial implications. However, the situation that only one service brand served as the subject of analysis for each service category, and the situation that correlations among store environment elements were not identified, as well as the problem of representation in selection of samples should be considered and supplemented in the future when further studies are conducted. In addition, various antecedents and consequences of brand personality must be looked at in the aspect of the service environment for further research.

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Word-of-Mouth Effect for Online Sales of K-Beauty Products: Centered on China SINA Weibo and Meipai (K-Beauty 구전효과가 온라인 매출액에 미치는 영향: 중국 SINA Weibo와 Meipai 중심으로)

  • Liu, Meina;Lim, Gyoo Gun
    • Journal of Intelligence and Information Systems
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    • v.25 no.1
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    • pp.197-218
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    • 2019
  • In addition to economic growth and national income increase, China is also experiencing rapid growth in consumption of cosmetics. About 67% of the total trade volume of Chinese cosmetics is made by e-commerce and especially K-Beauty products, which are Korean cosmetics are very popular. According to previous studies, 80% of consumer goods such as cosmetics are affected by the word of mouth information, searching the product information before purchase. Mostly, consumers acquire information related to cosmetics through comments made by other consumers on SNS such as SINA Weibo and Wechat, and recently they also use information about beauty related video channels. Most of the previous online word-of-mouth researches were mainly focused on media itself such as Facebook, Twitter, and blogs. However, the informational characteristics and the expression forms are also diverse. Typical types are text, picture, and video. This study focused on these types. We analyze the unstructured data of SINA Weibo, the SNS representative platform of China, and Meipai, the video platform, and analyze the impact of K-Beauty brand sales by dividing online word-of-mouth information with quantity and direction information. We analyzed about 330,000 data from Meipai, and 110,000 data from SINA Weibo and analyzed the basic properties of cosmetics. As a result of analysis, the amount of online word-of-mouth information has a positive effect on the sales of cosmetics irrespective of the type of media. However, the online videos showed higher impacts than the pictures and texts. Therefore, it is more effective for companies to carry out advertising and promotional activities in parallel with the existing SNS as well as video related information. It is understood that it is important to generate the frequency of exposure irrespective of media type. The positiveness of the video media was significant but the positiveness of the picture and text media was not significant. Due to the nature of information types, the amount of information in video media is more than that in text-oriented media, and video-related channels are emerging all over the world. In particular, China has made a number of video platforms in recent years and has enjoyed popularity among teenagers and thirties. As a result, existing SNS users are being dispersed to video media. We also analyzed the effect of online type of information on the online cosmetics sales by dividing the product type of cosmetics into basic cosmetics and color cosmetics. As a result, basic cosmetics had a positive effect on the sales according to the number of online videos and it was affected by the negative information of the videos. In the case of basic cosmetics, effects or characteristics do not appear immediately like color cosmetics, so information such as changes after use is often transmitted over a period of time. Therefore, it is important for companies to move more quickly to issues generated from video media. Color cosmetics are largely influenced by negative oral statements and sensitive to picture and text-oriented media. Information such as picture and text has the advantage and disadvantage that the process of making it can be made easier than video. Therefore, complaints and opinions are generally expressed in SNS quickly and immediately. Finally, we analyzed how product diversity affects sales according to online word of mouth information type. As a result of the analysis, it can be confirmed that when a variety of products are introduced in a video channel, they have a positive effect on online cosmetics sales. The significance of this study in the theoretical aspect is that, as in the previous studies, online sales have basically proved that K-Beauty cosmetics are also influenced by word-of-mouth. However this study focused on media types and both media have a positive impact on sales, as in previous studies, but it has been proven that video is more informative and influencing than text, depending on media abundance. In addition, according to the existing research on information direction, it is said that the negative influence has more influence, but in the basic study, the correlation is not significant, but the effect of negation in the case of color cosmetics is large. In the case of temporal fashion products such as color cosmetics, fast oral effect is influenced. In practical terms, it is expected that it will be helpful to use advertising strategies on the sales and advertising strategy of K-Beauty cosmetics in China by distinguishing basic and color cosmetics. In addition, it can be said that it recognized the importance of a video advertising strategy such as YouTube and one-person media. The results of this study can be used as basic data for analyzing the big data in understanding the Chinese cosmetics market and establishing appropriate strategies and marketing utilization of related companies.

An Empirical Study on the Oriental Herbal Cosmetics Purchase Behaviors in Women in the Metropolitan Area (한방 화장품 구매행동에 관한 실증적 연구 - 수도권 거주 여성 소비자를 중심으로 -)

  • 엄정녀;김주덕
    • Journal of the Society of Cosmetic Scientists of Korea
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    • v.30 no.1
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    • pp.93-102
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    • 2004
  • Recently, the golden age of herbal cosmetics has come. Along with active introduction of oriental herbal lines, diversification of distribution channels is designated as a major feature. In this background, the present study attempts to consider the domestic market for oriental herbal cosmetics, which is growing rapidly with the introduction of various new brands, and examine the perceptions of this new type of cosmetics by women consumers based on their purchase behaviors, and search for the ways for its promotion and development. A survey was conducted to adult women consumers aged 19∼60 residing in Seoul or Gyeonggi-do. Out of a total of 430 surveys distributed, 350 answer sheets were used for the analysis Among the results, the first-hand information on the herbal cosmetics market, their usage, and the consumer needs obtained in the present study will serve as a fundamental data for planning the marketing strategies for the oriental herbal cosmetics.

Research about a successful adopting for the CRM in the companies (기업에서의 성공적인 CRM 정착에 대한 연구)

  • Kim, Gipyoung
    • The Journal of Industrial Distribution & Business
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    • v.2 no.1
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    • pp.5-15
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    • 2011
  • Prior to the introduction of the CRM, we need to analyze the characteristics and the situations of the company, and should establish a clear vision of the CRM. And each company should identify elements and technologies for introducing the most suitable CRM for them, and optimize them, with long-term perspective. In addition, it requires the implementation strategy which integrates the existing company's routine marketing activities with the concept of the CRM. According to the implementation strategy, the company should improve the business process which is the most effective in investment step by step, and the information system strategy, which develops system investment gradually, should harmonize with it. First, we recognized that raising the company value is important by maximizing customer lifetime value (LTV) by understanding customer needs, and achieving the company's goal through customer satisfaction. Second, we understood that adopting the CRM should be accompanied by changes in the structure, business process and customer contact channels, and it can be successfully integrated with business when it gets proper understandings and attentions of the management. Third, the reality is that there are few cases of successful implementation of domestic companies, and some companies that successfully implement the system mean nothing but implement the solution for developing the CRM. Therefore, it needs to be observed for the long haul, and it seems that we need to approach more systematically to implementation cases for each industry about implementation of the CRM. Fourth, the CRM is no longer the preserve of major companies, and it is the time that medium and small sized enterprises also need it. Taking lesson from Switzerland's small size store merchants who successfully adopt right size of the CRM for their business, for domestic medium and small sized enterprises, the necessity to develop business through developing the CRM models which fit their situations and maintaining relationships with customers has been grown. Fifth, for adopting the CRM business processes, changing or converting the CRM system to the model which fits the company's situation is important rather than applying the advanced company's CRM system model. In other words, the CRM solution which can maximize their own strength by developing the CRM program that makes the most of features and characteristics of the company should be adopted.

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Monitoring of pesticide residues in commercial agricultural products in the northern area of Seoul, Korea (서울 북부지역 유통 농산물의 농약 잔류실태)

  • Han, Sung-Hee;Park, Sung-Kyu;Kim, Ouk-Hee;Choi, Young-Hee;Seoung, Hyun-Jung;Lee, Young-Ju;Jung, Jung-Hee;Kim, Yun-Hee;Yu, In-Sil;Kim, Yoo-Kyung;Han, Ki-Young;Chae, Young-Zoo
    • The Korean Journal of Pesticide Science
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    • v.16 no.2
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    • pp.109-120
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    • 2012
  • This study was conducted to monitor 284 pesticides residue level in 2,914 commercial agricultural products in the northern area of Seoul in 2011 by the multi class pesticide multiresidue analysis methods in Korea Food Code using GC, HPLC, GC-MSD and, LC-MSD. The detection rate of pesticide residues were 14.8% (431/2,914). The order of agricultural products in which the pesticide residues were detected was perilla leaves 40.0% (28/70), chamnamul 35.5% (11/31), amaranth 30.0% (3/10) and spinach 27.7% (38/137) etc. The percentage of products that exceeded the MRLs (maximum residue limits) were 1.0% (31/431). Those products that exceeded MRLs were ginseng (6), perilla leaves (4), leek (4), welsh onion (3) and sedeum (3) etc. The 59 kinds of the pesticides were detected on this study, 21 pesticides of them were detected over MRLs. Detection rate of fungicides (56.4%) was higher than that of insecticides (42.1%). And procymidone was detected with considerable high frequency. Additionally, residual residual violates pesticides were in the order of tolclofos-methyl, endosulfan, dimethomorph, diniconazole and fludioxonil. According to the agricultural marketing channels, detection and excess rate of them were monitored. Detection and excess rate of samples circulated in agricultural traditional market were highest. The estimated daily intakes (EDI) of the pesticides were compared to personal acceptable daily intakes (PADI) in order to risk assessment by food consumption. Diazinon in Korean cabbage showed the highest %ADI, 2.9901 and others showed below 3.0 %ADI. Overall, these results indicate that residue levels of pesticides detected were evaluated as safe.

The Effect of the Context Awareness Value on the Smartphone Adopter' Advertising Attitude (스마트폰광고 이용자의 광고태도에 영향을 미치는 상황인지가치에 관한 연구)

  • Yang, Chang-Gyu;Lee, Eui-Bang;Huang, Yunchu
    • Journal of Intelligence and Information Systems
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    • v.19 no.3
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    • pp.73-91
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    • 2013
  • Advertising market has been facing new challenges due to dramatic change in advertising channels and the advent of innovative media such as mobile devices. Recent research related to mobile devices is mainly focused on the fact that mobile devices could identify users'physical location in real-time, and this sheds light on how location-based technology is utilized to achieve competitive advantage in advertising market. With the introduction of smartphone, the functionality of smartphone has become much more diverse and context awareness is one of the areas that require further study. This work analyses the influence of context awareness value resulted from the transformation of advertising channel in mobile communication market, and our research result reflects recent trend in advertising market environment which is not considered in previous studies. Many constructs has intensively been studied in the context of advertising channel in traditional marketing environment, and entertainment, irritation and information are considered to be the most widely accepted variables that has positive relationship with advertising value. Also, in smartphone advertisement, four main dimensions of context awareness value are recognized: identification, activity, timing and location. In this study, we assume that these four constructs has positive relationship with context awareness value. Finally, we propose that advertising value and context awareness value positively influence smartphone advertising attitude. Partial Least Squares (PLS) structural model is used in our theoretical research model to test proposed hypotheses. A well designed survey is conducted for college students in Korea, and reliability, convergent validity and discriminant validity of constructs and measurement indicators are carefully evaluated and the results show that reliability and validity are confirmed according to predefined statistical criteria. Goodness-of-fit of our research model is also supported. In summary, the results collectively suggest good measurement properties for the proposed research model. The research outcomes are as follows. First, information has positive impact on advertising value while entertainment and irritation have no significant impact. Information, entertainment and irritation together account for 38.8% of advertising value. Second, along with the change in advertising market due to the advent of smartphone, activity, timing and location have positive impact on context awareness value while identification has no significant impact. In addition, identification, activity, location and time together account for 46.3% of context awareness value. Third, advertising value and context awareness value both positively influence smartphone advertising attitude, and these two constructs explain 31.7% of the variability of smartphone advertising attitude. The theoretical implication of our research is as follows. First, the influence of entertainment and irritation is reduced which are known to be crucial factors according to previous studies related to advertising value, while the influence of information is increased. It indicates that smartphone users are not likely interested in entertaining effect of smartphone advertisement, and are insensitive to the inconvenience due to smartphone advertisement. Second, in today' ubiquitous computing environment, it is effective to provide differentiated advertising service by utilizing smartphone users'context awareness values such as identification, activity, timing and location in order to achieve competitive business advantage in advertising market. For practical implications, enterprises should provide valuable and useful information that might attract smartphone users by adopting differentiation strategy as smartphone users are sensitive to the information provided via smartphone. Also enterprises not only provide useful information but also recognize and utilize smarphone users' unique characteristics and behaviors by increasing context awareness values. In summary, our result implies that smartphone advertisement should be optimized by considering the needed information of smartphone users in order to maximize advertisement effect.

The Direction of Development of Leisure and Tourism Contents in Connection with Osaek District (강원도 오색지구 레저·관광 콘텐츠 개발 방향)

  • Lee, Gye-Young;Kim, Tae-Dong
    • Journal of Korea Entertainment Industry Association
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    • v.13 no.7
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    • pp.307-319
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    • 2019
  • This study aims to provide the basic materials for the development of leisure and tourism contents in connection with Osaek cableway for the revitalization of Osaek District. For such a purpose, the following policy directions were presented through the analysis of the present situation and conditions of Osaek District, the direction of development of leisure and tourism contents of Osaek District, etc. The first is increasing the participation of local residents and reinforcing their capabilities. The suggested promotion plans are ① establishing organizational system and strengthening support, ② reinforcing the capabilities of local residents and ③ constructing networks with external human resources. The second is setting the guidelines for contents development. It was proposed to prepare contents for leisure experience using the natural environment of Osaek District in response to the trend of increase of people who enjoy "contents using culture and arts" and leisure. The third is typological approach to contents. It was proposed to develop cultural contents with the theme of Osaek such as "Osaek Light Festival", "Osaek Concert", "Osaek Photo Exhibition" and "Osaek Good Men and Women Contest" for the promotion of the brand of the place name of Osaek and the creation of the "Picture Book Village" for the compilation of the history and culture of Osaek District with pictures. The fourth is securing marketing channels. For this, it was proposed to produce the website of Yangyang County or a website tentatively named as "Osaek-ri with Beautiful Osaek" and introduce an integrated travel product (transportation + lodging + foods + experience (hot spring, mineral water therapy, leisure experience, etc.) + purchasing local specialty products, etc.) composed of the leisure and tourism contents, transportation, lodging, foods, etc. of Osaek District through travel agencies. The final policy direction presented was phased implementation of the development and operation of the contents. Proposed policies include support of a consulting project to upgrade the organization of local residents; implementation of "Tourism Dure (Cooperative)" project for the solution of the problem of tourism in Osaek District by the residents themselves together using the space of culture and arts made by remodeling idle public and private facilities after benchmarking exemplary places; system improvement for the introduction of leisure and tourism contents appropriate for local conditions; and the establishment of a master plan for the introduction of various leisure and tourism contents in Osaek District.

The Research on Recommender for New Customers Using Collaborative Filtering and Social Network Analysis (협력필터링과 사회연결망을 이용한 신규고객 추천방법에 대한 연구)

  • Shin, Chang-Hoon;Lee, Ji-Won;Yang, Han-Na;Choi, Il Young
    • Journal of Intelligence and Information Systems
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    • v.18 no.4
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    • pp.19-42
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    • 2012
  • Consumer consumption patterns are shifting rapidly as buyers migrate from offline markets to e-commerce routes, such as shopping channels on TV and internet shopping malls. In the offline markets consumers go shopping, see the shopping items, and choose from them. Recently consumers tend towards buying at shopping sites free from time and place. However, as e-commerce markets continue to expand, customers are complaining that it is becoming a bigger hassle to shop online. In the online shopping, shoppers have very limited information on the products. The delivered products can be different from what they have wanted. This case results to purchase cancellation. Because these things happen frequently, they are likely to refer to the consumer reviews and companies should be concerned about consumer's voice. E-commerce is a very important marketing tool for suppliers. It can recommend products to customers and connect them directly with suppliers with just a click of a button. The recommender system is being studied in various ways. Some of the more prominent ones include recommendation based on best-seller and demographics, contents filtering, and collaborative filtering. However, these systems all share two weaknesses : they cannot recommend products to consumers on a personal level, and they cannot recommend products to new consumers with no buying history. To fix these problems, we can use the information which has been collected from the questionnaires about their demographics and preference ratings. But, consumers feel these questionnaires are a burden and are unlikely to provide correct information. This study investigates combining collaborative filtering with the centrality of social network analysis. This centrality measure provides the information to infer the preference of new consumers from the shopping history of existing and previous ones. While the past researches had focused on the existing consumers with similar shopping patterns, this study tried to improve the accuracy of recommendation with all shopping information, which included not only similar shopping patterns but also dissimilar ones. Data used in this study, Movie Lens' data, was made by Group Lens research Project Team at University of Minnesota to recommend movies with a collaborative filtering technique. This data was built from the questionnaires of 943 respondents which gave the information on the preference ratings on 1,684 movies. Total data of 100,000 was organized by time, with initial data of 50,000 being existing customers and the latter 50,000 being new customers. The proposed recommender system consists of three systems : [+] group recommender system, [-] group recommender system, and integrated recommender system. [+] group recommender system looks at customers with similar buying patterns as 'neighbors', whereas [-] group recommender system looks at customers with opposite buying patterns as 'contraries'. Integrated recommender system uses both of the aforementioned recommender systems to recommend movies that both recommender systems pick. The study of three systems allows us to find the most suitable recommender system that will optimize accuracy and customer satisfaction. Our analysis showed that integrated recommender system is the best solution among the three systems studied, followed by [-] group recommended system and [+] group recommender system. This result conforms to the intuition that the accuracy of recommendation can be improved using all the relevant information. We provided contour maps and graphs to easily compare the accuracy of each recommender system. Although we saw improvement on accuracy with the integrated recommender system, we must remember that this research is based on static data with no live customers. In other words, consumers did not see the movies actually recommended from the system. Also, this recommendation system may not work well with products other than movies. Thus, it is important to note that recommendation systems need particular calibration for specific product/customer types.