• Title/Summary/Keyword: customer contribution

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A CLV (Customer Lifetime Value) model in the wireless telecommunication industry

  • Hyunseok Hwang;Kim, Suyeon;Euiho Suh
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2003.11a
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    • pp.187-190
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    • 2003
  • Since the early 1980s, the concept of relationship management in marketing area has gained its importance. Acquiring and retaining the most profitable customers are serious concerns of a company to perform more targeted marketing campaigns. For effective CRM (Customer Relationship Management), it is important to gather information on customer value. Many researches have been performed to calculate customer value based on CLV (Customer Lifetime Value). It, however, has some limitations. It is difficult to consider the churn of customers, because the previous prediction models have focused mainly on expected future cash flow derived from customers'past profit contribution. In this paper we suggest a CLV model considering past profit contribution, potential benefit, and churn probability of a customer. We also cover a framework for analyzing customer value and segmenting customers based on their value. Customer value is classified into three categories: current value, potential value and customer loyalty. Customers are segmented according to the three categories of customer value. A case study on calculating customer value of a wireless communication company will be illustrated.

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The Influence of Self-discrepancy on One's Contributive Behaviors in Customer-based Online Communities (고객기반 온라인 커뮤니티에서 개인의 자아 차이 (Self-discrepancy)가 기여 행위에 미치는 영향)

  • Suh, A-Young
    • CRM연구
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    • v.4 no.1
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    • pp.35-54
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    • 2011
  • Organizing and maintaining customer-based online communities are becoming increasingly important in current business environment. Companies can utilize the member generated contents in developing their products and services and they can establish close relationships with their customers. This paper investigates how customer-based online communities increase individual members' contributive behaviors. Drawing on the social psychology literature, this study adopts the concept of self-discrepancy rooted in self-identity and derive an index for self-discrepancy by using the differences between actual and virtual self-identities. Furthermore, this study examines the relationship between the self-discrepancy and the anonymity-related psychological factors (autonomy, recovery, and catharsis), which in turn influence quality and quantity of contribution. Analysis of 114 respondents showed that self-discrepancy between actual and virtual selves has two different sub-dimensions (personal self-discrepancy and social sel f-discrepancy) and each dimension has different effect on the quality and quantity of contribution through the mediation of autonomy and recovery. Notably, catharsis negatively influenced quality of contribution. Theoretical and practical implications are discussed based on the major findings.

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The Effects of Project Managers'Servant Leadership on Project Performance via Customer Satisfaction (프로젝트 관리자의 서번트 리더십이 고객만족을 통해 프로젝트 성과에 미치는 영향)

  • Lee, Hyung-Su;Shin, Ho-Chul
    • Journal of Korean Society for Quality Management
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    • v.46 no.2
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    • pp.283-300
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    • 2018
  • Purpose: Since the servant leadership of project managers is seemingly related to the project performance by influencing project team members' positive attitude and behavior, this study attempts to provide empirical evidence for a link between servant leadership and project performance. In addition, the present study investigates the mediating effects of customer satisfaction on the servant leadership-project performance relations. Methods: The data of servant leadership and project performance were collected from 185 project team members of a company providing IT service, and customer satisfaction data were collected from 100 project clients served by the company. Before testing the hypotheses, we calculated aggregation statistics(e.g., $r_{wg}$, ICC(1), and ICC(2)) to ensure appropriate aggregation of servant leadership scores. The statistics confirmed the use of 67 team level servant leadership scores with project performance and customer satisfaction. Results: The results show that servant leadership is significantly related to three project performance measures(perceptions of performance contribution and sales contribution, and actual project profits) in the current team-level sample. Results also indicate that the clients' perception of customer satisfaction shows a mediating effect in the process of servant leadership affecting sales contribution of project performance. Conclusion: The present study empirically confirms that servant leadership plays a major role in enhancing project performance on team level analysis. The results suggest that servant leadership increases customer satisfaction since the project managers serve and care for their team members which translate into effective customer service. Theoretical and practical implications are reviewed, and limitations of the study and suggestions for future research are addressed.

A Study of the Core Characteristics and Contribution of Consumer Experiential Marketing (소비자 체험마케팅의 핵심적 특성들과 기여에 대한 고찰)

  • Kim, Woo-Sung;Huh, Eun-Jeong
    • Korean Journal of Human Ecology
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    • v.16 no.1
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    • pp.89-101
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    • 2007
  • This study deals with classification of various approaches regarding consumer experience, core characteristics, and contribution of experiential marketing. This study classifies seven approaches regarding consumer experience into 4 broad views (1)experience as experiential brand concept, 2)experience as a behavior, 3)experience as a behavior focusing on an affect, 4)experience as a holistic experience. Each of these 4 views of experience as well as the seven approaches is further explained in details. Five core characteristics of experiential marketing are suggested: l)forming a deep relationship between a customer and a brand, 2)being related to personal final values, 3)holistic experience with a brand, 4)fun, pleasure, and immersion, and 5)keeping customers through customer satisfaction and giving impression to a customer. Five propositions based on these core characteristics are suggested. The contribution of experiential marketing is suggested.

A Study on the Factors and Measurement of Quality of System Integration Service (정보시스템 통합 서비스의 품질요인 및 측정에 관한 연구)

  • 서창적
    • Journal of Korean Society for Quality Management
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    • v.27 no.4
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    • pp.20-41
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    • 1999
  • This study addresses the development of a quality measurement of information systems integration(SI) service. Several dimensions which affect on quality of systems integration service have been identified and tested. Also, a measurement tool(questionnaire) of the factors has been developed. To achieve above purpose, extensive literature review and in-depth interview with several SI managers and customers were used. We suggested the analysis framework including performance variables such as quality, customer satisfaction, intention of renewal contract, and contribution to better customer's information system and the quality factors as well. To verify the research framework, collected data from the survey was analyzed statistically. The data from 73 respondents was used for analysis. Consequently, we identified eight factors and developed a 41-item instrument with Likert 5 points to measure the quality of SI service. It was proved that the 41-item instrument suggested in this study was very useful to measure the performance of SI service such as quality and customer satisfaction. Also it was shown that the instrument measured intention of renewal contract and contribution of customer's information system well.

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An Empirical Study on the Adjustment Effect of Switching Barriers on Customer Retention in Mobile Telecommunication Services (이동통신서비스에서 전환장벽이 고객유지에 미치는 조절효과에 관한 실증연구)

  • Kim, Moon-Koo;Park, Myeong-Cheol;Jeong, Dong-Heon;Park, Jong-Hyun
    • Asia pacific journal of information systems
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    • v.13 no.3
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    • pp.107-130
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    • 2003
  • This paper aims to investigate the adjustment effect of switching barriers on customer retention in mobile telecommunication services. The detailed factors regarding switching barriers are classified based on the related literatures. Furthermore, the hierarchical regression analysis is used to analyze the extent to which the factors affect customer retention. The main contribution of this paper is to focus on switching barriers and theirs relationships with customer retention rather than customer satisfaction on early studies. The results are as follows: First, among the factors of switching barriers, switching costs, such as continuity cost and contractual cost, interpersonal relationship, and attractiveness of alternatives are key factors in determining customer retention. Second, continuity cost and interpersonal relationship have an adjustment effect between customer satisfaction and customer retention. The findings can help the mobile operators establish a customer-oriented strategy by identifying a few key factors strengthening the linkage with customers.

The Influence of Negative Emotions on Customer Contribution to Organizational Innovation in an Online Brand Community (온라인 브랜드 커뮤니티 내 부정적 감정들이 기업 혁신을 위한 고객 기여에 미치는 영향)

  • Jung, Suyeon;Lee, Hanjun;Suh, Yongmoo
    • Journal of Internet Computing and Services
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    • v.14 no.4
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    • pp.91-100
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    • 2013
  • In recent years, online brand communities, whereby firms and customers interact freely, are emerging trend, because customers' opinions collected in these communities can help firms to achieve their innovation effectively. In this study, we examined whether customer opinions containing negative emotions have influence on their adoption for organizational innovation. To that end, we firstly classified negative emotions into five categories of detailed negative emotions such as Fear, Anger, Shame, Sadness, and Frustration. Then, we developed a lexicon for each category of negative emotions, using WordNet and SentiWordNet. From 81,543 customer opinions collected from MyStarbucksIdea.com which is Starbucks' brand community, we extracted terms that belong to each lexicon. We conducted an experiment to examine whether the existence, frequency and strength of terms with negative emotions in each category affect the adoption of customer opinions for organizational innovation. In the experiment, we statistically verified that there is a positive relationship between customer ideas containing negative emotions and their adoption for innovation. Especially, Frustration and Sadness out of the five emotions are significantly influential to organizational innovation.

Using Kano's Theory of Attractive Quality to Better Understand Customer Experiences with E-Services

  • Fundin, Anders;Nilsson, Lars
    • International Journal of Quality Innovation
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    • v.4 no.2
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    • pp.32-49
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    • 2003
  • The interest in on-line services has increased during the last couple of years and there are now several models developed to better understand how customers evaluate e-service quality. In this empirical study we combine the use of the theories of attractive quality and technology readiness so as to explain customer experiences of e-services. A survey was conducted with 188 students at three universities in Sweden, asking how they assess an e-service that enables one to reserve and buy cinema tickets on-line. The main contribution of the study is its provision of evidence on how to interpret and improve customer satisfaction when designing e-services. Our belief is that an organization can gain a clearer grasp of how customer satisfaction is created with an e-service by taking into account customers' experiences with new technology.

A Study on the Effect of Customer Equity on Behavioral Intentions: Moderating Effect of Restaurant Type

  • Lee, Sun Lyung;Namkung, Young;Yoon, Hye Hyun
    • Culinary science and hospitality research
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    • v.24 no.2
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    • pp.51-62
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    • 2018
  • The value of the customer's contribution essentially becomes the value of the dining industry in Korea. Therefore, an increase in the customer's equity maximizes the assets of the business. The purpose of this study intends to examine relationships between customer equity and behavioral intentions in restaurant industry and verify the moderating effect of restaurant type. This study takes an integrated perspective on prior literature on customer equity, as well as on aspects of the general restaurant industry related to customer equity, thereby defining the concept of customer equity in a way that reflects the characteristics of the dining industry. A total of 420 patrons in Korea participated. The results showed a positive relationship between brand equity, relationship equity and behavioral intentions. There were moderating effects related to restaurant type in the causal relationships between behavioral intentions. The components of customer equity and relationship equity in casual dining restaurants, and value equity and brand equity in quickservice restaurants significantly by customers differs according to restaurant type. Limitations and future research directions are also discussed.

Contribution of Emotional Labor and Organizational Commitment to Turnover Intention and Customer Orientation of School Foodservice Dietitian in the Busan Area (부산지역 학교급식 영양(교)사의 감정노동과 조직몰입이 이직의도 및 고객지향성에 미치는 영향)

  • Lee, Kyung-A;Lyu, Eun-Soon
    • Korean journal of food and cookery science
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    • v.33 no.1
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    • pp.104-112
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    • 2017
  • Purpose: This study aimed to analyze the contribution of emotional labor (surface acting, deep acting) and organizational commitment (affective commitment, continuance commitment) to turnover intention and customer orientation of school foodservice dietitian. Methods: Our survey was administered to 393 school foodservice dietitian in the Busan area on February 11, 2014. Results: For verification of mean differences, the mean scores for surface acting, deep acting, affective commitment, and continuance commitment were found to be 2.53/5.00, 3.71, 2.88, and 3.57, respectively. The mean surface acting score was significantly different according to age (p<0.001), total length of career as a dietitian (p<0.01), school type (p<0.001), and employment status (p<0.05). The mean deep acting and turnover intention scores were significantly different according to age (p<0.001), total length of career as a dietitian (p<0.001), school type (p<0.001), employment status (p<0.001), and no. of meals served (p<0.001). The mean customer orientation score was significantly different according to age (p<0.05), employment status (p<0.01), and number of work hour (p<0.05). There was a positive correlation (p<0.01) between turnover intention and surface acting and continuance commitment, but a negative correlation (p<0.01) with deep acting and affective commitment. Also, there was a positive correlation (p<0.01) between customer orientation and deep acting, affective commitment, but a negative correlation (p<0.01) with surface acting. Affective commitment had a negative influence on turnover intention (${\beta}=-0.444$, p<0.001), but surface acting had a positive influence on turnover intention (${\beta}=0.110$, p<0.05). Conclusion: These results suggest that management of affective commitment is essential for decreasing turnover intention. Therefore, emotional labor and organizational commitment of school foodservice dietitians should be managed from the school foodservice organizational viewpoint of The Ministry of Education.