• Journal of the Korean Operations Research and Management Science Society
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• v.39 no.3
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• pp.63-82
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• 2014

The main objective of this research is to investigate whether the RFM (recency-frequency-monetary value) information of a customer's redemption behavior of loyalty points can improve the prediction of future value of the customer. The conventional measurement of customer value has been primarily based on purchase transactions behavior although a customer's future behavior can be also influenced by other interactions between the customer and the firm such as redemption of rewards in a loyalty program. We theorize why a customer's redemption behavior can influence her future purchases and thereby the customer's total value based on operant learning theory, goal gradient hypothesis, and lock-in effect. Using a dataset from a major book store in Korea spanning three years between 2008 and 2010, we analyze both purchase transactions and redemption records of over 10,000 customers. The results show that the redemption-based RFM information does improve the prediction accuracy of the customer's future purchases. Based on this result, we also propose an improved estimate of customer lifetime value (CLV) by combining purchase transactions and loyalty points redemption data. Managerial implications will be also discussed for firms managing loyalty programs to maximize the total value customers.

• IE interfaces
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• v.23 no.4
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• pp.319-326
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• 2010

The SMB supercomputing service provides a supercomputing infrastructure for Small and Medium-sized Business (SMB) to enhance the efficiency of product development activity. In this study, the economic value of SMB supercomputing service is presented. The economic value of service is comprised of a direct and an indirect economic value. A direct economic value was estimated based on the result of user survey on service effectiveness. The input-output analysis method was adopted to estimate an indirect economic value induced from a direct economic value. The future economic value based on the result of user demand survey is also presented. As a result, the annual and future economic value of service were estimated about 55,215 million won and 323,928 million won, respectively.

• Journal of Korean Institute of Industrial Engineers
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• v.20 no.4
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• pp.135-149
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• 1994

Demand forecasting is to estimate the demand of customers for products and services. Since the future is uncertain in nature, it is too difficult for us to predict exactly what will happen. Therefore, when the forecasting is performed upon the uncertain future, it is realistic to estimate the value of demand as an interval or a fuzzy number instead of a crisp number. In this paper, we propose a demand forecasting method using the standard back-propagation algorithm and then we extend the method to the case of interval inputs. Next, we demonstrate that the proposed method using the interval neural networks can represent the fuzziness of forecasting values as intervals. Last, we propose a demand forecasting method using the transformed input variables that can be obtained by taking account of the degree of influence between an input and an output.

• Water for future
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• v.15 no.2
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• pp.23-32
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• 1982

This study is to clarify the relation between the maximum 24 hour rainfall and the daily rainfall of a designated time 10 A.M., using the 506 rainfall datum from 32 rain-guage stations on the Han river basin covering a period of 7 years and trying to estimate the ratio of two data in accordance with the amount of rainfall respectively. The Mononobe's formula, which is widely used in this country, has the value of 2/3 power in it. The "n" was considered instead of 2/3 and derivated for each guaging station. The results make it possible to establish the Ison-n value map, and show that the n value is affected mainly by the topographical conditions. The daily rainfall of a designated time can be modified by the results of this study and expressed as Y(%)=218.25/R$$. But in the case of exceeding 200mm/day, it is recommended to use the 110% for safety. On the problems of intensity-duration concerned with the planning of public works, the formula can be expressed as r$$=fRday/24.(24/t)$$, where "f" is Y(%) divided by 100. As this study was done with the datum within shor period, it is necessary to study more about the "n" and "f" value so as to get previse value in the future.o as to get previse value in the future.

• Korean Journal of Oriental Medicine
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• v.2 no.1
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• pp.485-495
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• 1996

Oriental medicine is a traditional medical are that has maintained its medical system only in Korea, Japan and China, nowadays, it is required to systematize the Oriental medicine modernly as well as prove remedical value of it for public welfare and hygiene, medical studies about geriatric disease and ageing are valued highly in researchs of future medical service which were excuted by Korea, Japan and Germay. consequently, future - estimating project of the Oriental medicine which keeps and accent on research datas that have a curative effect highly must be constructed. in the cause of this, effieient and systematic subject selection should be preceded to accomplish an advisable planning of the Oriental medicine.

• Asia-Pacific Journal of Business
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• v.2 no.1
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• pp.23-48
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• 2011

Generally, higher brand equity ends up with higher market share and higher profitability. However, superior brand equity does not guarantee the success in the market. That is, consumer choice is closely related to brand equity but we need more than brand equity to explain this complex phenomenon. We adopt the customer equity concepts: value equity, brand equity, and retention equity. By incorporating value equity and retention equity into customer equity, it is possible to avoid the problems of using the brand equity only. In the paper, we apply this customer equity concepts to cellular phone and investigate the effects of antecedent variables such as exposure, knowledge, positive experience and negative experience on the components of customer equity. In addition, as surrogate measure of customer lifetime value, the weighted measure of purchase intention, consideration set inclusion, and next purchase is used as dependent variable. We estimate the effects of components of customer equity at the brand level and aggregate level using SURE model. Estimation results show that Apple has currently low market share but has high future potentials and Korean firms have currently high market share but has rather low future potentials.

• Asia pacific journal of information systems
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• v.8 no.3
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• pp.101-118
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• 1998

The purpose of this study is to construct a value-oriented sizing and cost estimation model for system integration projects. In particular, this study is to build a system architecture design and integration cost model, and a network design and implementation cost model. Unlike software development projects, system integration projects include knowledge-intensive professional services on system architecture and network design areas. Because of these work's high invisibility, the cost of these services is hard to estimate and measure. Therefore, we need to develop value-oriented cost models. This study presents 6 value-oriented cost models, and tests statistical significance of these models with real system integration project data. The results show that cost factors on these models are valid, and models are statistically significant. Future work is needed to integrate various cost models and apply the whole model to field projects to increase model's prediction accuracy.

• The Journal of Information Systems
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• v.15 no.2
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• pp.95-123
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• 2006

It is needed to evaluate information systems actively which has already developed to improve future performance of the organization and foster the activation of information system. The introduction or development of information system also can bring about a organizational success. To measure exactly the organizational performance of information systems, it is needed to develop a new valuation model for a specific information system from a objective pint of view, as well as to equip a standard methodology using BSC measurement. The information system valuation from a objective point of view is of importance as the basic information for the decision to obtain information system. This paper takes aim at investigating a new information system valuation model and developing a information system valuation system using case-based reasoning for predicting currency value of information system in each organization. A new information system valuation system is developed as a web-enabling base. Using this, users are able to estimate the value of specific information system on a real time efficiently.

• Environmental and Resource Economics Review
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• v.12 no.1
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• pp.49-74
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• 2003

This study used a slightly modified version of contingent valuation questionnaire designed and developed by Krupnick et al.(2000) to estimate the value of mortality risk reduction for environmental policy. Because that environmental policy, especially air pollution policy with some latency main effect on mortality risk reduction of old people with some latency period, respondents were asked about their current WTP for 5/1,000 mortality risk reduction being to take place beginning at 70 over the course of ten years. The annual mean WTP is 233,370 won (standard error 32,570 won) in spike/continuous/interval data model. The implied VSL is 466 million won. The 95% confidence interval is 339 million won~594 million won.

• Proceedings of the Korea Water Resources Association Conference
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• 2010.05a
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• pp.447-451
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• 2010

It is quite important for manufacturing firms to stably secure water, because industrial water is used for a variety of purposes as one of the important inputs in the production process. Despite the significance of industrial water use and the increase of industrial water demand, relatively little has studied regarding the industrial water use in Korea. This paper employs the marginal productivity approach in order to estimate the economic value of water in Korean manufacturing industry, and we use the information of 53,912 factories surveyed in 2003. The result of the likelihood ratio test shows that Trans-log is an appropriate model for estimating the data of this study. In Trans-log function model, the industry-wide output elasticity of water is 0.0104, and the marginal value is KRW 1,156 per ton. The estimated values differ across the sectors and these values range from the high value of about KRW 13,760 per ton in the transportation equipment sector to low values of KRW 428 per ton in the precision instrument sector. The research provides useful information to help policy-makers in developing and implementing more appropriate policies regarding the management and distribution of water resources by estimating the value of water resources by sector. In addition, Korean government enables the drafting of future water pricing scenarios based on the estimated value information.