• Title/Summary/Keyword: loyalty score

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A Loyalty Score Model Development in Credit Card Business (고객 로열티 스코어 모델 개발)

  • Chun, Heui-Ju
    • The Korean Journal of Applied Statistics
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    • v.21 no.2
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    • pp.211-219
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    • 2008
  • Customer Loyalty is very important for a company to be survived and to make profit for a long time. Especially, since the credit card company has to manage proper card members and merchants, the CRM(Customer Relationship Management) is much emphasized. A loyalty score is more essential to credit card companies which provide differential financial services based on card members and merchants than any other companies. In this paper, we discuss behavioral measures to define customer loyalty and suggest a method to make loyalty score with an example of a credit card company. The loyalty score developed is considered easy to understand and simple to apply in card industry. In the development of loyalty score, first, we define the loyal customers and non-loyal customers by measuring variables indicating loyalty. And we perform individual logistic regression by each exploratory measuring variable and obtain the weight of measure variables using Chi-square statistics which is used for model fitness. The loyalty score suggested shows very stable results in terms of PSI (Population Stability Index) as time goes.

Prediction of New Customer's Degree of Loyalty of Internet Shopping Mall Using Continuous Conditional Random Field (Continuous Conditional Random Field에 의한 인터넷 쇼핑몰 신규 고객등급 예측)

  • Ahn, Gil Seung;Hur, Sun
    • Journal of Korean Institute of Industrial Engineers
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    • v.41 no.1
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    • pp.10-16
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    • 2015
  • In this study, we suggest a method to predict probability distribution of a new customer's degree of loyalty using C-CRF that reflects the RFM score and similarity to the neighbors of the customer. An RFM score prediction model is introduced to construct the first feature function of C-CRF. Integrating demographical similarity, purchasing characteristic similarity and purchase history similarity, we make a unified similarity variable to configure the second feature function of C-CRF. Then parameters of each feature function are estimated and we train our C-CRF model by training data set and suggest a probabilistic distribution to estimate a new customer's degree of loyalty. An example is provided to illustrate our model.

An Exploratory Study on the Introduction of Loyalty to Segmentation of Theme Park Users (주제공원 이용자의 시장세분화를 위한 충성도의 사용가능성 검토)

    • Journal of the Korean Institute of Landscape Architecture
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    • v.26 no.1
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    • pp.1-11
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    • 1998
  • The purpose of this paper is twofold : to identify loyalty applicable to segmentation of theme park users and to find characteristics of the segments. Thetheme park was regarded as a product and Lotte World was regarded as a brand. One hundred thirty five college students were selected by nonprobability sampling for two waves thirty of data collection. Both behavioral and attitudinal dimension of loyalty were measured in the first wave by the proportion of visit of the Lotte World to 3 major theme parks for one year, including the Lotte World, and by calculating the mean score of selected 7 attitudinal items, respectively. After 14 weeks, the same respondents were asked the number of actual visits of the Lotte World. Medians of two dimensions and cluster analyses were utilized to classify the respondents into 4 categories : high, spurious, latent, and low loyalty. Then ANOVA and $$\chi$^2$ test of independence were conducted to find the difference in intention to visit the Lotte World and actual visitation of it among groups. Only intention was significantly different by the group and the mean score of intention was highest in the high loyalty group. Although no statistical difference was found in actual visitation among groups, the theory of planned behavior provided a theoretical support to conclude that the loyalty is a useful variable for segmentation of theme park users because intention is an antecedent variable to the behavior. Discriminant analyses showed that characteristics of each loyalty group can be differentiated by motivations and constraints. When median was a group classification criterion, 73.2 percent of high loyalty group was correctly classified. A few comments were suggested on data collection, and inclusion of new discriminant variables was discussed for the future research.

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Factors Influencing on Selection of Specialty Hospital among Inpatients with Loyalty (전문병원 충성고객의 병원 선택에 영향을 미치는 요인)

  • Kim, Bokmi;Hahm, Myung-Il;Min, In Soon;Kim, Sun Jung
    • Korea Journal of Hospital Management
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    • v.23 no.4
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    • pp.1-14
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    • 2018
  • Purpose : Customers with loyalty are very important to hospitals for sustainable growth in their medical market. Individuals with loyalty are likely to visit same hospital repeatedly when they need medical services. This study was to identify factors associated with selection of specialty hospitals among customers with loyalty. Methods : The subjects of this study were 735 inpatients in 22 specialty hospitals in 6 designated fields(joints, spine, colorectal-anal, obstetrics and gynecology, ophthalmology, otolaryngology). Customer types classified as customers with high loyalty, neutral customers, and customers with low loyalty according to net promoter score(NPS). Factor analysis was conducted to classify 22 hospital selection factors into some similar properties. Logistic regression analysis was conducted to confirm the selection factors related to loyal customers. Findings : Most of specialty hospitals received high NPS of 8 points or higher in all the designated fields. Five factors associated with selection of specialty hospital are (1) hospital facilities and convenience, (2) trust in doctor and hospital, (3) rapidness of treatment, (4) hospital awareness, and (5) accessibility. As a result of logistic regression analysis, selection factors related to loyal customers were 'hospital facilities and convenience', 'trust in doctor and hospital' and 'rapidness of treatment'. Differences in the degree of importance of three selection factors by customer types appeared for each designated field. Practical Implications : This study confirms the high level of patient experience among inpatients of specialty hospitals. Factors associated with selection of hospital among inpatients with loyalty are 'facilities and convenience of hospitals', 'trust of doctor and hospital' and 'rapidness of treatment'. This study will be meaningful as basic data to systematically enhance the roles and functions of the health care system and to provide securing competitiveness according to designated fields in the management aspect of specialty hospitals.

Customer Loyalty and Perception Differences in Relational Benefit: Focusing on Restaurant Industries (외식고객의 충성도 분류에 따른 관계편익 지각 차이에 대한 연구)

  • Kim, Hyungmin;Yoon, Jiyoung
    • Culinary science and hospitality research
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    • v.24 no.1
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    • pp.50-62
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    • 2018
  • The purpose of this study was to overview the meaning of customer loyalty to segment customers based on their loyalty and to analyze the difference of loyal customers' perception of relational benefits in the restaurant industries. A self-administered questionnaire was distributed to 500 adults with dining experience at restaurants. Participants were given a brief description of loyalty and were made to choose a specific restaurant they felt loyal to and one with no loyalty. Attitudinal and behavioral loyalty were used in cluster analysis resulting 4 cluster groups. Each group was named true, spurious, latent, and low loyalty. After the groups were separated, ANOVA was used to see if the score of perceived relational benefit showed difference. All four relational benefit including social, psychological, economic, and customization benefit showed significant difference(p<.001). True loyal customers perceived relational benefit as the highest while low loyal customers showed the lowest. For latent and spurious loyal customers, it was found that latent loyal customers showed higher perception than spurious customers.

An Empirical Study on the Comparison of Satisfaction and Loyalty of Customers at McDonald's Stand Alone and Co Branded Outlets+ (멕도날드 이용고객의 선택속성에 따른 이용만족 및 충성도에 관한 연구+ -독립매장과 공동 브랜딩 매장 고객간의 비교-)

  • Kim, Young-Kyu
    • Journal of the Korean Society of Food Culture
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    • v.19 no.4
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    • pp.407-418
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    • 2004
  • A study of the comparison of customers' satisfaction and loyalty at McDonald's two types of outlets is presented. The objective of this study is to test correlation among selection attributes, customer satisfaction and loyalty of customers patronizing two types of Mcdonald's restaurants - stand alone and co-branded, as Mcdonald's is known to be actively participating in co-branding with discount stores such as E-Mart. In order to measure customer loyalty, benchmark scores from customers showing extreme satisfaction are compared to the mean scores of total sample customers at each outlet. Meeting or exceeding benchmarking scores does not automatically bring in and create loyal customers but in doing so will certainly help build up strong customer relationship which will create additional loyalty. Marketers should be well aware that statistically significant difference do exist between these two groups of customers and should take into consideration these findings in opening up new outlets or renovating existing outlets.

Comparative Analysis of Customer Feedback Metrics for Improving Predictability of Customer Loyalty (고객 충성도 예측력 제고를 위한 측정방법(CFM) 비교연구)

  • Kim, Joung-rae;Chung, Byoung-gyu
    • Journal of Venture Innovation
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    • v.1 no.2
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    • pp.61-73
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    • 2018
  • Many studies have focused on improving the predictability of influential variables in the area of customer services. For a long time, customer satisfaction index(CSI) were the best matrics of customer loyalty. In 2003, net promoter score(NPS) was introduced and in many cases this matrics was more predictive than CSI. In 2010, customer effort score(CES) was introduced and in the service areas this matrics was more predictive than CSI and NPS. This study compared with 3 matrics based on the criteria which composed of basic assumptions, time perspective, measuring items, objectives of matrics, application areas, and limitations of application. The dominant matric which was applied in all functions and industries was not exited. For the purpose of improving predictability, single or compound matrics are useful according to industries and usage.

Patient Satisfaction as an Outcome Indicator (결과지표로서의 환자 만족도에 관한 연구)

  • Hwang, Jeein;Park, Hyeoun-Ae
    • Korean Journal of Adult Nursing
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    • v.13 no.1
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    • pp.29-39
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    • 2001
  • The purpose of this study was to identify factors influencing patient satisfaction and to evaluate the utility of patient satisfaction as an outcome indicator. The study was conducted by mailed questionnaire. The subjects were 900 patients discharged from adult nursing units in a tertiary teaching hospital. On the discharge date, questionnaires were distributed by two trained research assistants. The questionnaire developed by the researchers was based on Larson(1996)'s study, and consisted of 71 items with the following components: overall satisfaction, domain-specific satisfaction(administration process, hospital facility and environment, nurses, and doctors), patients' loyalty(intention to use the health care service of the hospital in the future), recommendation to others, health benefits, and demographic characteristics. Each item was rated using a five point Likert scale ranging from '1=strongly disagree' to '5= strongly agree'. The response rate was 43%(387/900). The satisfaction level with the health care service was generally high. Perceived health status was the only significant factor influencing satisfaction level. Satisfaction with doctors contributed the most to explaining overall satisfaction. Overall satisfaction was significantly correlated with patient loyalty, recommendation, to other and perceived health benefit. It was found that the score of satisfaction was positively correlated with the score of loyalty, recommendation, and health benefit. Therefore, patient satisfaction seems to be a good outcome indicator.

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A Comparison between Korean and Chinese Consumers in Service Quality Evaluation: Focused on the Multiplex Cinema

  • LEE, Seung-In;PARK, Yoonseo;JIN, Yanchun;ZHANG, Yan
    • Journal of Distribution Science
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    • v.18 no.8
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    • pp.89-102
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    • 2020
  • Purpose: Our purpose in this study is to compare the SERVQUAL, SERVPERF, and non-difference score measures and to find out which one is better for measuring the service quality of the multiplex cinema service. We also aim to analyze the structural relationships between service quality, customer satisfaction and customer loyalty. Methodology: For the study, we collected data from respondents who have used the multiplex cinema services and conducted an empirical test. SPSS 18.0 was used for descriptive frequency analysis, reliability analysis, and multiple regression analysis, AMOS 18.0 was used for structural equation modeling analysis of causal relationships among variables introduced in research hypotheses. Results: The main results of this study are as follows. First, we found that the non-difference score measure provided a much better model than did other service-measuring models (SERVQUAL, SERVPERF) in Korean and Chinese multiplex cinema. Second, two service-quality factors (Korea-tangibles and assurance vs. China-tangibles and empathy) between the multiplex cinema service quality factors significantly influenced customer satisfaction, which had a significant effect on customer loyalty in Korean and Chinese multiplex cinema. Conclusions: Based on the results, the authors discuss the implications and limitations of this study and future research directions at the end of the paper.

Effect of Food Neophobia on Restaurant Image, Customer Satisfaction, and Loyalty in Ethnic Restaurant (에스닉 레스토랑 이용객의 푸드네오포비아 성향이 레스토랑 이미지 및 고객 만족과 충성도에 미치는 영향)

  • Kim, Young-Shin;Baek, Seung-Hee
    • The Korean Journal of Food And Nutrition
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    • v.28 no.6
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    • pp.1082-1089
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    • 2015
  • The aim of this study was to investigate the effect of food neophobia on restaurant image, customer satisfaction, and loyalty in ethnic restaurants. A self-administered survey for data collection 581 customers who visited an ethnic restaurant in August, 2015. Statistical analyses included descriptive analysis, t-test, ANOVA and regression analysis for SPSS 21.0. The finding of the study indicated that the differences of food neophobia score in demographic characteristics showed significant differences by age, occupation, dining-out frequency, and source of dining-out information, not by gender. The mean value of food neophilic group was significantly higher than food neophobic group in all items of restaurant image, overall satisfaction and customer loyalty. The regression analysis showed that tangible aspect, price aspect, and food aspect of restaurant image had positive effects on overall satisfaction and customer loyalty however employee service showed different result by groups. The finding of the study offer marketing strategies for ethnic restaurants to induce customer revisit.