• Title/Summary/Keyword: company's needs

Search Result 419, Processing Time 0.023 seconds

An Examination of the Effectiveness of Crisis Response Strategies for Repairing Competence and Integrity Violations

  • Sung, Yen-yi;Lee, Han-joon;Park, Jong-chul
    • Asia Marketing Journal
    • /
    • v.15 no.1
    • /
    • pp.129-154
    • /
    • 2013
  • Product-harm crises, which are connected to defective or dangerous products, are perceived as the most common threats to a company. Product harm crises can distort long standing favorable equality perceptions, tarnish a company's reputation, cause major revenue and market-share losses, lead to costly product recalls, and devastate a carefully nurtured brand equity. However, in spite of the devastating impact of product-harm crises, little systematic research exists to asses its marketing consequences. So, the purpose of this study is to investigate how Koreans react to the crisis response in the aftermath of different crises(competence violation vs. integrity violation) and inspire additional research in crisis communication. This study has three main findings which run counter to the assumptions of Kim et al.(2007). Namely, the current study expands on the research of Kim et al. (2004, 2007) by examining how companies repair customers' trust and corporate attitude after crises. Different from previous studies, this study assumes that apology for an integrity-based crisis is the most appropriate way to repair consumer trust and corporate attitude. As for competence-based crisis, similarly, apology for competence-based crisis can be more successful repairing consumer trust and corporate attitude. Concerning silence strategy, remaining silent dose not admit or deny guilt right away, but instead of asking the perceiver to withhold judgment, suggesting that, silence could be expected to be superior to apology but inferior to denial. Finally, apology for competence violation will be expected to bemore effective than apology for integrity violation. Research conceptual model was as follows: According to the results, apology is found to be the most effective strategy to repair corporate attitude no matter the crisis is perceived as a violation of competence or integrity. Second, company may consider keeping silent as a desirable response because they does not admit nor deny responsibility but ask the public to withhold judgment. However, the result of this study shows that, in the overall crisis situations, silence strategy did not differ significantly from the denial strategy, which suggested that the public wants explanation instead of uncertainty. Third, there was the interaction effect between crisis type and crisis response strategies. In this study, apology is more effective for the competence violated situation in terms of regaining consumer trust and repairing their attitude toward company, while the apology's effectiveness is lower for the integrity-violated situation. More specifically, when the crisis is perceived due to company's lack of ability(competence violation), consumer's trust belief and attitude toward the company is more easily to repair when the company issued a sincere apology. Damaged product is perceived less intentional so participants are more likely to give the company second chance when they apology to the public. By contrast, exaggerated advertisement(integrity violation) is perceived intentionally and thus makes participants angrier toward the accused company. Although apology is perceived as the most effective strategy, when issuing apology, it also means the company admitted their intention. Therefore, in this kind of crisis situation, trust repair needs not only a sincere apology but additional efforts.

  • PDF

Development of a New Direct Marketing Channel in the Chinese Rural Market: The Case of Hongfu Fertilizer Company

  • Li, Dao-sheng;Hong, Jinhwan
    • Asia Marketing Journal
    • /
    • v.15 no.2
    • /
    • pp.29-47
    • /
    • 2013
  • Distribution channel decisions involve long-term commitments with other firms that are very difficult to change or replace. In particular, marketing channel decisions in emerging markets are much more complicated due to unfamiliar conditions and problems such as lack of market data and distribution systems. Therefore, when a company considers changing or introducing a marketing channel in an area, it is much more difficult to judge its effectiveness in an emerging market than in a developed market. In this study, we investigate the development process of a new direct marketing channel of Hongfu Fertilizer Company (hereafter Hongfu), a medium-sized Chinese fertilizer manufacturer, and propose an approach to test the feasibility of this new marketing channel in the Chinese rural market. We measure the effectiveness of Hongfu's new marketing channel from two perspectives: i) from customers' perspective through direct responses of farmers, which showed that a new channel can increase the convenience and lower the purchasing costs for the farmers, and ii) from the company's perspective, by calculating the incremental profit of the company using the expansion factor (T/Q) method, which suggested that the execution of Hongfu's strategy to expand a new marketing channel will result in an increase in profits. The results of this study contribute to the development of a methodology to test the feasibility of a new direct marketing channel in the emerging markets such as the Chinese rural market. Traditional and indirect distribution channels in emerging markets are generally not very efficient and difficult to change. Especially, in emerging markets, like the Chinese rural market, the methods of testing channel feasibility must be different from that of developed markets. Considering market situations, market experiments can be more effective then systematic market surveys in testing channel feasibility in emerging markets. This study implies that managers must learn to cope with a transition from the traditional marketing channels in emerging markets. With the development in farmers' understanding of marketing concept, the transition from traditional marketing channel is unavoidable for all firms. Farmers in China are generally very conservative, however, their buying behaviors are changing. Therefore, fertilizer companies should try to adjust in accordance with farmers' demand characteristics that the efforts to meet the economic needs of farmers with new marketing channels as well as trust building are critical in the near future.

  • PDF

An Analysis of Success Factors of New Product Plan in DFSS (DFSS(Design For Six Sigma)사고를 통한 신제품계획 단계에서 프로젝트 성공요인에 대한 실증분석)

  • Lee, Kang-Koon;Ree, Sang-Bok
    • Journal of Korean Society for Quality Management
    • /
    • v.33 no.1
    • /
    • pp.42-50
    • /
    • 2005
  • The IMD(International Institute for Management Development) report said that national competitiveness of Korea is declined in this year. The main reason for Korea's decline is a largely related to the weakness of corporate competitiveness. The new product development is a necessary ingredient for improving the national competitiveness. The analysis of changing of technologies and customer's needs is needed for successful new product development. In this paper, We found out successful factors of the project by use of DFSS(Design for Six Sigma) and proved them by case study of K-company. Result from this paper is applied to the new product development planning step for K-company and it made a great success rate. It is expected that the result is applied to the same kind industries.

A Further Development of TQM Model: Meeting Organisational Development Needs

  • Chan, Y.K.;Chan, Jimmy S.F.;Chau K.Y.
    • International Journal of Quality Innovation
    • /
    • v.6 no.2
    • /
    • pp.116-130
    • /
    • 2005
  • While there are many successful cases where application of the TQM model has reaped substantial benefits (Corcoran, 1996; Hayday, 1996 and Massey, 1996), there is little attempt to further develop the TQM model to meet organisations' development needs. The purpose of this paper is introduce the process of development of a fit-for-purpose management system model to meet the development needs of the MTR Corporation Limited, a metro company of Hong Kong. The new management system model is formulated based on the previous research results, on TQM but comprises a new approach to bridging their pitfalls. The formulation of the TMS elements is based on the common factors of four National Quality Awards (Japan, USA, Europe and Australia) and the critical factors developed by seven studies. These studies include those of Saraph et al. (1989), Flynn et al. (1994), Anderson et al. (1995), Powell (1995), Handfield and Ghosh (1995), Black and Porter (1996), and Ahire et al. (1996).

The study on the Ways to Invigoration of Small Business Logistics by using Multilateral FTA (물류중소기업의 TPP 활용방안에 관한 연구)

  • KIM, Dong-Ho
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
    • /
    • v.68
    • /
    • pp.149-169
    • /
    • 2015
  • Recently, it's a trend that the third party outsourcing logistics will be increased a logistics flow from law material to final products. The government also works on promoting logistics company as securing the expertise for strengthen logistics industry and secure competitiveness. Nevertheless, logistics market have been divided by polarization between small logistics company and major company. Also a labor who work for logistics is being caused by worsened working conditions. That is one of results of the survey. Almost 50% of response are they have not been aware of FTA and have not known to need the FTA. Many respondents said that entering the overseas logistics or a new way like FTA will be difficult to take part in. Therefore I suggest several examples in this paper to encourage a vitalization of small logistics company through the multilateral FTA. Now our country needs to make an effort to maximize connections between multilateral FTA and policy effect by signing FTA with many countries and extending Economic territory. This effect can completely cope with the improvement of economic interests, establishing regional integration strategy and change of global supply chain. Therefore, a small business logistics have to make their competitiveness & a new dealing market in the future.

  • PDF

A study on the effective administration of medical risk selection system for life insurance (보험진단제도의 효율적 운영에 대한 연구)

  • Ham, Dong-Un;Chun, Jin-Man;Shim, Suk-Kyueng
    • The Journal of the Korean life insurance medical association
    • /
    • v.27 no.2
    • /
    • pp.85-95
    • /
    • 2008
  • When an insurance company receives an application for life or health insurance, the company must evaluate the degree of risk the individual for insurance coverage presents before the company agrees to issue the policy. A medical factor is a physical or psychological characteristic that may increases a hazard. A financial factor is financial information that is taken into account by underwriter to determine if a person is applying for more than he/she reasonably needs or can afford. A personal factor is a lifestyle choice. There are several medical risk selection systems in Korean life insurance market. They are attending physician's statement, direct examination by insurance doctors, and paramedic examination. However there is some dissatisfaction of current system. It is possible that cooperation of part-time insurance doctors system may be one of useful system of medical risk selection. Improvement of medical risk selection system will be an important matter of profitability of insurance company and it will contribute to sound life insurance system.

  • PDF

A Study on the Configuration of the Quotation Management System in the Make-To-Order Manufacturing Environments (수주생산 환경에서 견적관리체계의 구성에 관한 연구)

  • Jeon, Gyu-Hwan;Jang, Gil-Sang;Park, Chang-Kwon
    • Journal of the Korea Safety Management & Science
    • /
    • v.23 no.4
    • /
    • pp.73-81
    • /
    • 2021
  • Today's manufacturers must respond quickly to customer needs. In particular, make-to-order companies are constantly striving to satisfy customer demand for products in order to secure more favorable conditions in the future through bidding. In this bidding process, quotations play a very important role in providing favorable conditions. And the most important content that companies strive to satisfy their customers is the product's performance. Therefore, a company can attract customers and secure economic profits through good quotations, but it can be said that the first priority is to match the performance of the products requested by the customers. That is, when a company creates a quotation, it is important to structure the quotation according to the performance of the product. Thus, this paper intends to present a quotation management framework and a quotation BOM information model for constructing quotations efficiently in make-to-order manufacturing. And, in order to prove the usefulness of the proposed quotation management framework, we presents an case of the construction of an quotation management system based on the JAVA platform. As a result, the integrated quotation management system based on the proposed quotation management framework and quotation BOM has been successfully operated in a make-to-order company that manufactures marine engines.

A Case Study on the Quality Management of Construction Site through PDCA Cycle (PDCA Cycle적용을 통한 건설현장 품질관리에 관한 사례연구)

  • Baik, In-Whee
    • Journal of the Korea Institute of Building Construction
    • /
    • v.8 no.1
    • /
    • pp.49-56
    • /
    • 2008
  • According to the recent trends which are the diversity of customer requests and the multi-function of buildings, A construction company's business has converted from the producer-oriented approach to the consumer-oriented approach. Therefore, each construction company is continuously trying to improve the quality level as a way of corresponding to customer needs in these changing situations. The quality is one of the main management targets which judge the success of a project along with the schedule, the cost and the safety. As construction companies execute the quality management which they aimed at, it should be completed within the optimum schedule and the limit of the budget. Accordingly, the importance of the construction site management to complete a project is continuously increasing. The construction site management is the systematic method to perform the project goals such as the quality improvement, the cost saving and the safety management, which organically operate one another, by procuring the manpower, the material and the machine in the right time. Specially, as the construction industry has based on the construction site, the establish of systematic construction site management, which can effectively correspond sudden changes of the construction business environment, is essential to maximize the construction productivity. On top of that, the necessity of the quality management method is increasing to accommodate customer needs more spontaneously in the construction site. These endeavors could guarantee their competitive power.

A Study on the Strategic Adoption of Internet based Customer Relationship Management (인터넷 기반 고객관계관리의 전략적 도입에 관한 연구)

  • Roh Kyung-Ho
    • Management & Information Systems Review
    • /
    • v.5
    • /
    • pp.61-79
    • /
    • 2000
  • This research suggests the strategic adoption methodology of Customer Relationship Management. The backgrounds of CRM is the business environment changing that Market power is shifting to the customer who has unprecedented powers of choice today. The strategic adoption of Customer Relationship Management determines the value, needs and preferences of each customer or customer segment. Customer Relationship Strategy is an explicitly defined plan for how a company has decided to connect with, relate to, and focus on its chosen customers to create value. Deliberate decisions must be made, often involving trade-offs, so that investments are aligned with customer needs and value. Plan defined in terms of target customers value proposition, role in value delivery, and risk/reward sharing. All customers are not created equal; specific customers and/or customers segments are more desirable/valuable to pursue. Key premise of CRM is that value can be created by changing company's business model to better connect with customers. Area of service of Customer Relationship Management are as follows. Portfolio strategy, Market Opportunity Assessment, Brand Equity, Market Positioning, Pricing, Channel Strategy, Market Segmentation. Target Market Identification, Customer LifeTime Value Analysis, Customer Profitability, Customer Connections Economics Analysis. The objects of CRM are maximizing customer service effectiveness, improving customer loyalty, increasing customer service efficiency, optimizing intelligence about customer behaviors and preferences.

  • PDF

Considered Points for ISO/KS A 9000's Quality Certification System (ISO/KS A 9000's 품질인증제도와 인증 및 추진기업의 고려사항)

  • 안병선
    • Journal of the Korean Professional Engineers Association
    • /
    • v.32 no.6
    • /
    • pp.48-54
    • /
    • 1999
  • The ISO 90000 Quality System Certification is one of trends over the world. Many companies and organizations want to achieve the ISO 9000 certificate. But, some of companies did not fully consider the needs of certification before the decision of establishing the quality system to ISO 90000. If a company/organization wants to establish its unique quality system, it should consider some of points in the identification of needs, definition of application scope, effective ways of system establishing, top management committement, composition of task force team, practical involvement and development, analysis of process and assigned job functions, adoption of changes of business circumstances, and practical implementation of its unique quality system.

  • PDF