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The Antecedents of Switching Cost and its Effect on Customer Loyalty in Digital Music Service Industry (온라인 음악서비스 산업에서 전환비용의 선행요인 및 전환비용이 고객충성도에 미치는 영향)

  • Kang, Sung-Min;Uhm, Gi-Heon
    • Asia pacific journal of information systems
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    • v.20 no.2
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    • pp.157-180
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    • 2010
  • Rapid development of information technology has generated a new industry and market. In particular, network technology such as the Internet and other computer networks made transaction activities switched from traditional offline commerce to e-commerce. Among them, digital content is bit-based object which is created and distributed through electronic environment. In particular, many entertainment contents such as the music, the movies, and the computer game softwares are main products. Although digital content commerce has high potential demand, it lacks the consideration about the factor related to maintaining existing customer such as customer loyalty and switching costs. There has been a number of research on customer loyalty and other factors affecting it in the traditional electronic commerce environment, but there is a lack of research which examines the characteristics of digital content. The study about the effect of switching costs on customer loyalty in digital content commerce is necessary because the customers of digital content commerce market are from those of other e-commerce market or traditional offline commerce market. In addition, customer loyalty and switching costs are important factors because they may build up greater customer retention. For that reason, this study focused on examining the relationships among switching costs, antecedents for switching costs, and customer loyalty in online digital music service industry. The study has three major purposes: (1) to find antecedents of switching costs on digital content commerce and examine effect of antecedents for switching costs; (2) to identify effect of switching costs on customer loyalty in digital content commerce and examine moderating effects of alternative attractiveness; (3) to identify the differences of antecedents for switching costs by contents transmission type(streaming service and downloading service). And, the online digital music service industry is selected in this study since there are many users and transactions incurring. To accomplish these purposes, a survey questionnaire was developed and distributed to 256 informants. Survey instrument was developed based on previous research and pre-established survey items. Total of 206 surveys are collected and used in the data analysis. Among the respondents, 56.8% is male and 43.2% is female. Also, 86 responses were streaming service user group and 120 responses were download service user group. These data was analyzed using regression analysis. Major findings of empirical analysis can be summarized as follows. First, switching costs have positive effect on customer loyalty in digital content commerce environment. Second, the influence of switching costs on customer loyalty increases under conditions of high alternative attractiveness. Third, DRM convenience and breadth of use have positive effect on switching costs. The findings imply that the digital content provider should pay more attention to switching costs in addition to customer satisfaction in order to attract customers. Also, increasing the convenience of DRM use by securing the convenience of user interface and expanding the support device and increasing the service use scope by providing diverse value-added service helps to create a switching barrier. The result of the study can become a practical use in marketing strategy for maintaining existing customer. In particular, switching barrier is very important under conditions of high competition in the online music service market. This study can be used as a basis for further studies about customer retention in digital content commerce.

Empirical Analysis of Consumer Behavior on the Internet Shopping Mall Choice from the Schema Perspective: Comparison Between Bricks & Clicks and Pure-Player Shopping Mall (스키마 관점에서 살펴본 인터넷 쇼핑몰 선택에 대한 소비자행동의 이해: Bricks & Clicks와 Pure-Player 인터넷 쇼핑몰 비교를 중심으로)

  • Chung, Nam-Ho;Lee, Kun-Chang
    • Asia pacific journal of information systems
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    • v.17 no.4
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    • pp.165-186
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    • 2007
  • With the advent of a wide variety of Internet shopping malls, consumers can choose a best appealing shopping mall from among the Bricks-and-Clicks and Pure-Player malls. Pure-Players launched their operation grandiosely with the early stage of Internet use in 1995. However, after the burst of Dot-com company bubbles in 1997, Pure-Players introduce various types of business models to meet potential needs of consumers. While Pure-Players suffer skeptical views from market analysts as well as consumers, traditional offline companies learned important lessons from Dot-com companies collapse phenomena, and expanded their business channels into online in the name of Bricks-and-Clicks. Nowadays, Bricks-and-Clicks successfully establish in the market as one of reliable business partners among consumers. Therefore, it is no surprise that recent competitions between Bricks-and Clicks and Pure-Players become fiercer than ever to attract potential customers to their websites. In this situation, consumers can choose a shopping mall to their best satisfaction. Consumers can enjoy both offline and online options for shopping because Bricks-and Clicks provide both offline and online channels to consumers, which is compared with Pure-Players offering only online channel. Offline channel is unique in providing consumers with chances to touch and feel target products and services. Meanwhile, online channel is considered very viable and convenient shopping options for consumers. In this respect, it is easily assumed that consumers will show different online shopping behavior when they have to choose either Bricks-and-Clicks mall or Pure-Player mall for the sake of shopping. Remaining research issue in this case is how much consumers' schema would influence online shopping behavior between Bricks-and-Clicks and Pure-Players. Basically, schema is a framework for synthetic information recognition that individual consumers have and is very characteristic in that it focuses not on fragmentary facts but on the combination of various causes affecting results. Consumers' schema is closely represented by trust, structural assurance, and perceived relative advantage towards a specific type of shopping mall. In literature, there exist a lot of studies comparing Bricks-and-Clicks and Pure-Players. However, there is no study to pursue the analysis of consumer behaviors comparing Bricks-and Clicks and Pure-Players from the schema perspective. Therefore, this study aims to investigate this research gap. Empirical analysis is adopted by garnering valid questionnaires from 514 Internet shopping mall users. 237 were mainly using Bricks-and-Clicks for shopping, while 277 were found to visit Pure-Players for shopping. PLS was applied to analyze the survey data to verify the proposed research hypotheses. Findings from the empirical test results are as follows. First, consumers perceive more trust and relative advantage in Pure-Players, comparing with Bricks-and-Clicks. This result is against widely-accepted perception that Bricks-and-Clicks would be perceived by consumers as more trustworthy and relatively advantageous because they have offline reputation and stores. Therefore, it becomes more obvious that Internet is becoming daily necessaries, and consumers increasingly feel very comfortable in using the Internet for their own personal purposes. Second, consumers have firm faith in transaction safety, regardless Bricks-and-Clicks and Pure-Players. This seems due to the fact that most of shopping malls showing dubious transaction safety have no place in the market. In a nutshell, empirical results tell us that Pure-Players will grow very much in the future, to the extent that consumers perceive no difference in comparison with Bricks-and-Clicks. Besides, consumers' schema accumulated through trust and perceived relative advantage plays crucial role in determining consumer behavior.

Chinese Online Circulation Market and Market Approaching Strategy (중국 온라인 유통시장의 발전과 시장진출 전략)

  • Song, Jae-Do;Lee, Chan-Woo
    • Journal of Digital Convergence
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    • v.15 no.8
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    • pp.477-487
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    • 2017
  • This paper releases strategies for firms that wish to enter into online circulation business in China. SWOT based on a Korean manufacturing company teaches us better way to approach Chinese online market. Chinese online market is under oligopoly, where Alibaba and Jingdong account for about 80% of the total market. Game theory is used as a measure of threat and opportunity between Korean manufacturer and Chinese online market retailer. Game shows that they are easy to accept opportunity and sales uplift rather than low risk. Analysis shows that Korean companies should improve its products and brand competitiveness in the offline market before entering into the Chinese online retail market. They need to prepare a localization model.

The differences of online word-of-mouth acceptance and re-delivery intention - Focusing on the interaction effects of fashion involvement and market maven - (온라인 구전수용 및 재구전의도의 차이에 관한 연구 - 의복관여도와 마켓메이븐의 상호작용효과를 중심으로 -)

  • Lee, Angie;Rhee, YoungJu
    • The Research Journal of the Costume Culture
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    • v.26 no.2
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    • pp.172-187
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    • 2018
  • For the past decade, the convenience of sharing information online has improved drastically with the development of smart devices and social media. Such changes have contributed to regarding online word-of-mouth (WOM) as one of the most important consumer information sources. Therefore, the purpose of this study is to examine online WOM effects (acceptance/redelivery intention) with the two-way interaction effects of fashion involvement and the market maven. The empirical study consisted of an offline survey that collected data from 341 respondents and analyzed the data by factor analysis, independent t-test, and two-way ANOVA with SPSS 20.0, producing the following results. First, the market maven effect was found to differ significantly based on the level of fashion involvement, and is also higher when fashion involvement is high. Second, fashion involvement primarily affected online WOM acceptance, while the market maven significantly affected redelivery intention. Moreover, fashion involvement and market maven had relevant two-way interaction with both of the online WOM effects. Third, market maven had measurable effects on WOM redelivery types (objective/subjective) and directions (positive/negative/ neutral), whereas fashion involvement did not have any primary effects on them. However, fashion involvement and market maven had two-way interaction effects on the positive and negative direction of WOM redelivery. Based on these findings, the study suggests the importance of investigating and understanding the complicated online WOM behaviors of consumers, specifically from both managerial and theoretical perspectives.

K-Pop Music Worldwide and Digital Marketing Role in Brazil

  • Lourenco, Patricia Portugal Marques de Carvalho;Kim, Sang Yong
    • Asia Marketing Journal
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    • v.17 no.4
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    • pp.63-88
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    • 2016
  • K-Pop is hugely promoted offline/online in East Asia, while efforts to promote it elsewhere are kept to a minimum. Whilst addressing the role of digital marketing in the promotion of K-Pop in the Brazilian music industry this study aims to demonstrate that K-pop will provide its audience with a unique and engaging experience if it thinks globally and acts locally in its marketing and communication strategies. A survey of K-Pop's world fan base was carried out online with 1,074 fans to determine the validity of the hypothesis. The results have demonstrated the need to adapt global and intercultural strategies to local markets with increasing brand awareness through utilizing digital marketing. For example, to increase K-Pop's popularity and market share in Brazil, it is not required to sing in Brazilian Portuguese, contrary to what might be perceived but fully singing in English would help breaking into the market dominated by domestic music as songs would have a higher probability to be included in the international soundtrack of a Brazilian telenovela and promote the K-Pop artist not only across Brazil but also give the artist exposure in all the markets the Brazilian telenovela is exported to, opening an entry door to those markets. K-Pop audience segmentation and psychographic profiling is crucial to the understanding of each market's consumer's preferences, likes, dislikes and their buying habits as it was proven through Brazil's digital media, social media, digital music market and K-Pop market analysis within the global context of the study. It should be also considered that brand extensions are not standard everywhere and that there are cultures where different product categories are not directly associated with its main corporate owner which requires extensive local market knowledge to succeed. The primary and secondary data research that we conducted for this study intended to demonstrate that K-Pop can be successful in Brazil and in Latin America and increase their local and regional market share if digital marketing and communication strategies are tailored to each individual market.

Exploratory Study to Develop Customers' Experience Measurement Scale of H&B Store

  • NOH, Eun-Jung;CHA, Seong-Soo
    • The Journal of Industrial Distribution & Business
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    • v.11 no.7
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    • pp.51-60
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    • 2020
  • Purpose: Recently, Korean cosmetics distribution market has been reorganized with the H&B store. In the domestic cosmetics distribution market, existing brand road shops are decreasing, and multi-shops are leading the H & B stores, which have greatly improved their experience and content. In these environmental changes, the offline distribution channels are turning into the multi-editing shops that have introduced products of various brands and greatly enhanced experiences and contents. Nevertheless, most studies of factors and measurement items for measuring customer experience in the H&B store use Schmitt (1999)'s Strategic Experience Modules (SEMs). Therefore, the purpose of this study is to propose a measure that is practicable through consideration of the in-store customer experience components of the H&B store. Research design, data and methodology: Based on Schmitt's Strategic Experience Modules (SEMs), which are widely used in customer experience marketing, the metric pool was constructed through customer and literature research on H & B store managers. Since then, 101 preliminary surveys and 211 main surveys have been conducted in order to propose a dimension of customer experience and refine the metrics. Results: As a result of the research, H&B store's customer experience was derived from a measurement model consisting of 19 measurement items in total of five dimensions: environmental experience, intellectual experience, behavioral experience, tech experience, and relationship experience. This study analyzed that compared to the existing Schmitt's Strategic Experience Modules (SEMs), (1) emotional experience expanded to environmental experience, (2) Cognitive and relationship experiences are maintained (3) behavioral experience was subdivided into physical and technical experiences. In particular, the environmental experience has been proposed as a major component is an important point because the H&B store recently opened a large flagship store and is competitive in constructing a differentiated space. Conclusions: Related experience was seen as an important component of customer experience in the offline store, but in the process of refining the scale, interaction items with employees of the H&B store were removed, and rather, participation in the APP or SNS channel of the company, event Participation, interaction with other customers, etc. appear to be important, while suggesting the practical implications.

A Study on convergence of Mobile Smart Commerce and O2O Distributions Business Model for Small to Medium and Micro-Enterprises (중소·소상공인을 위한 모바일 스마트커머스 및 O2O 유통 비즈니스모델 융합 연구)

  • Kim, Byung-Wan
    • Journal of the Korea Convergence Society
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    • v.7 no.5
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    • pp.161-167
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    • 2016
  • Distribution channels are changing its industry paradigm from quantitative increase to qualitative improvement. In addition, it incorporates new characteristics and consumption tread of customers and the core value of service is developing focused around on online to offline (O2O) business model of omnichannel. In this respect, companies are integrating various distribution channels and in order to provide high content business service to customers, their interest in finding a new business strategy is increasing. Currently, most of the service being provided to customers are formed based on distribution structure centered around big companies and financial industry and the problems faced by small to medium and micro enterprises, which are expansion and improvement of channels, discovery of new distribution channels and finding O2O marketing strategy, can be said as very important task. Accordingly, this research purports to create added values which can serve as the driving force of growth of "creative economy" by improving distribution channels in which anyone who incorporates needs of smart consumers can enter into the smart commerce market and to further form sustainable win-win market that is strategic through business platforms for small to medium and micro enterprises therefrom.

A Study on Global Marketing Strategy for Improving the Ship-Parts Exports (조선기자재 수출확대를 위한 글로벌 마케팅 전략에 관한 연구)

  • Hwang, Sun-Woo;Shin, Dong-Ho;Kim, Hwan-Seong
    • Proceedings of the Korean Institute of Navigation and Port Research Conference
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    • 2019.05a
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    • pp.127-128
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    • 2019
  • After the financial crisis in 2008, Korean ship-parts manufacturing companies faced the survival of companies due to the difficulty in securing the volume of orders by sharp dropping in orders from big-three Korean shipbuilders. In ship-parts industry, product diversification and overseas market entry are important targets. Based on the expert Delphi survey and SWOT analysis, this study analyzes the key factors of overseas advancement by the growth stage of ship-parts companies and suggests a systematic and efficient overseas marketing strategy. Also, we propose a systematic and efficient advancement into overseas market by suggesting the traditional offline marketing strategy of exporting materials, marketing and marketing, and suggesting the need to build an integrated online and offline platform.

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Service Issues and Policy Directions for Promoting the O2O Industry in Korea (국내 O2O 서비스 이슈 진단 및 산업활성화 정책 방향 제안)

  • Kim, Dongsoo;Kim, Kwanho;Choe, Donguk;Jung, Jae-Yoon
    • The Journal of Society for e-Business Studies
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    • v.21 no.4
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    • pp.137-150
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    • 2016
  • A variety of O2O (Online to Offline) services such as Uber, Airbnb, and KakaoTaxi that create new values by connecting offline and online have emerged in the world. O2O services support the convenience of online services and the real-life capability of offline services simultaneously. Thanks to the development of ICTs such as mobility, IoT (Internet of Things), Fin-tech, and big data technologies, the market size of O2O industry is growing very rapidly. This paper reviews various O2O services and industry trends in Korea. In addition, important issues on O2O services and industry promotion are reviewed and presented. Specifically, legislative issues regulating the O2O industry in Korea, interest conflicts between new O2O platform providers and existing traditional offline service providers, current technology infrastructures for O2O services, and negative or side effects of O2O services are reviewed and summarized. Finally, comprehensive policy directions are proposed based on these reviewed issues. It is expected that the proposed policy directions would be adopted by the government and this research could consequently contribute to strengthening the competitiveness of the O2O industry in Korea.

Automation of Online to Offline Stores: Extremely Small Depth-Yolov8 and Feature-Based Product Recognition (Online to Offline 상점의 자동화 : 초소형 깊이의 Yolov8과 특징점 기반의 상품 인식)

  • Jongwook Si;Daemin Kim;Sungyoung Kim
    • The Journal of Korea Institute of Information, Electronics, and Communication Technology
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    • v.17 no.3
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    • pp.121-129
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    • 2024
  • The rapid advancement of digital technology and the COVID-19 pandemic have significantly accelerated the growth of online commerce, highlighting the need for support mechanisms that enable small business owners to effectively respond to these market changes. In response, this paper presents a foundational technology leveraging the Online to Offline (O2O) strategy to automatically capture products displayed on retail shelves and utilize these images to create virtual stores. The essence of this research lies in precisely identifying and recognizing the location and names of displayed products, for which a single-class-targeted, lightweight model based on YOLOv8, named ESD-YOLOv8, is proposed. The detected products are identified by their names through feature-point-based technology, equipped with the capability to swiftly update the system by simply adding photos of new products. Through experiments, product name recognition demonstrated an accuracy of 74.0%, and position detection achieved a performance with an F2-Score of 92.8% using only 0.3M parameters. These results confirm that the proposed method possesses high performance and optimized efficiency.