Information technology is a critical resource necessary for any company hoping to support and realize its strategic goals, which contribute to growth promotion and sustainable development. The selection of information technology and its strategic use are imperative for the enhanced performance of every aspect of company management, leading a wide range of companies to have invested continuously in information technology. Despite researchers, managers, and policy makers' keen interest in how information technology contributes to organizational performance, there is uncertainty and debate about the result of information technology investment. In other words, researchers and managers cannot easily identify the independent factors that can impact the investment performance of information technology. This is mainly owing to the fact that many factors, ranging from the internal components of a company, strategies, and external customers, are interconnected with the investment performance of information technology. Using an agent-based simulation technique, this research extracts factors expected to affect investment performance on information technology, simplifies the analyses of their relationship with economic modeling, and examines the performance dependent on changes in the factors. In terms of economic modeling, I expand the model that highlights the way in which product quality moderates the relationship between information technology investments and economic performance (Thatcher and Pingry, 2004) by considering the cost of information technology investment and the demand creation resulting from product quality enhancement. For quality enhancement and its consequences for demand creation, I apply the concept of information quality and decision-maker quality (Raghunathan, 1999). This concept implies that the investment on information technology improves the quality of information, which, in turn, improves decision quality and performance, thus enhancing the level of product or service quality. Additionally, I consider the effect of word of mouth among consumers, which creates new demand for a product or service through the information diffusion effect. This demand creation is analyzed with an agent-based simulation model that is widely used for network analyses. Results show that the investment on information technology enhances the quality of a company's product or service, which indirectly affects the economic performance of that company, particularly with regard to factors such as consumer surplus, company profit, and company productivity. Specifically, when a company makes its initial investment in information technology, the resultant increase in the quality of a company's product or service immediately has a positive effect on consumer surplus, but the investment cost has a negative effect on company productivity and profit. As time goes by, the enhancement of the quality of that company's product or service creates new consumer demand through the information diffusion effect. Finally, the new demand positively affects the company's profit and productivity. In terms of the investment strategy for information technology, this study's results also reveal that the selection of information technology needs to be based on analysis of service and the network effect of customers, and demonstrate that information technology implementation should fit into the company's business strategy. Specifically, if a company seeks the short-term enhancement of company performance, it needs to have a one-shot strategy (making a large investment at one time). On the other hand, if a company seeks a long-term sustainable profit structure, it needs to have a split strategy (making several small investments at different times). The findings from this study make several contributions to the literature. In terms of methodology, the study integrates both economic modeling and simulation technique in order to overcome the limitations of each methodology. It also indicates the mediating effect of product quality on the relationship between information technology and the performance of a company. Finally, it analyzes the effect of information technology investment strategies and information diffusion among consumers on the investment performance of information technology.
Documentation strategy has been experimented in various subject areas and local regions since late 1980's when it was proposed as archival appraisal and selection methods by archival communities in the United States. Though it was criticized to be too ideal, it needs to shed new light on the potentialities of the strategy for documenting local regions in digital environment. The purpose of this study is to analyse the implementation issues of documentation strategy and to suggest the directions for documenting local regions of Korea through the application of the strategy. The documentation strategy which was developed more than twenty years ago in mostly western countries gives us some implications for documenting local regions even in current digital environments. They are as follows; Firstly, documentation strategy can enhance the value of archivists as well as archives in local regions because archivist should be active shaper of history rather than passive receiver of archives according to the strategy. It can also be a solution for overcoming poor conditions of local archives management in Korea. Secondly, the strategy can encourage cooperation between collecting institutions including museums, libraries, archives, cultural centers, history institutions, etc. in each local region. In the networked environment the cooperation can be achieved more effectively than in traditional environment where the heavy workload of cooperative institutions is needed. Thirdly, the strategy can facilitate solidarity of various groups in local region. According to the analysis of the strategy projects, it is essential to collect their knowledge, passion, and enthusiasm of related groups to effectively implement the strategy. It can also provide a methodology for minor groups of society to document their memories. This study suggests the directions of documenting local regions in consideration of current archival infrastructure of Korean as follows; Firstly, very selective and intensive documentation should be pursued rather than comprehensive one for documenting local regions. Though it is a very political problem to decide what subject has priority for documentation, interests of local community members as well as professional groups should be considered in the decision-making process seriously. Secondly, it is effective to plan integrated representation of local history in the distributed custody of local archives. It would be desirable to implement archival gateway for integrated search and representation of local archives regardless of the location of archives. Thirdly, it is necessary to try digital documentation using Web 2.0 technologies. Documentation strategy as the methodology of selecting and acquiring archives can not avoid subjectivity and prejudices of appraiser completely. To mitigate the problems, open documentation system should be prepared for reflecting different interests of different groups. Fourth, it is desirable to apply a conspectus model used in cooperative collection management of libraries to document local regions digitally. Conspectus can show existing documentation strength and future documentation intensity for each participating institution. Using this, documentation level of each subject area can be set up cooperatively and effectively in the local regions.
I. Introduction : The purpose of this study is to test empirically hypothetical causality among constructs used in previous studies to build the model of relational market behavior on customers' participation and consumer-brand relationship after introducing theories of relationship marketing, loyalty program, consumer-brand relationship, customers' participation in service marketing as previous studies with regard to relational market behavior, which Bagozzi(1995) and Peterson(1995) commented on constructs and definition suggested by Sheth and Parvatiyar (1995). For this purpose, loyalty program by the service provider, customers' participation and consumer-brand relationship as preceding variables explain relational market behavior defined by Sheth and Parvatiyar(1995). This study proposes that loyalty program as a tool of relationship marketing will be effective in that consumers' participation in marketing relationship results in a narrow range of choice(Sheth and Parvatiyar, 1995) because consumers think that their participation motive result in benefits(Peterson, 1995). Also, it is proposed that the quality of consumer-brand relationship explain the performance of relationship as well as the intermediary effect because the loyalty program could be evaluated based on relationship with customers. We reviewed the variables with regard to performance of relationship based on relation maintain in marketing literature, and then tested our hypotheses related to several performance variables including loyalty and intention of relation maintain based on the previous studies and constructs(Bendapudi and Berry, 1997 ; Bettencourt, 1997 ; Palmatier, Dant, Grewal and Evans, 2006 ; You Jae Yi and Soo Jin Lee, 2006). II. Study Model : Analyses about hypothetical causality were proceeded. The marketing effect of loyalty program on relational market behavior was empirically tested in study regarding a service provider. The research model in according to the path hypotheses (loyalty program ${\rightarrow}$ customers' participation ${\rightarrow}$ consumer-brand relationship ${\rightarrow}$ relational market behavior and loyalty program ${\rightarrow}$ consumer-brand relationship, and loyalty program ${\rightarrow}$ relational market behavior and customers' participation ${\rightarrow}$ consumer-brand relationship, and customers' participation ${\rightarrow}$ relational market behavior) proceeded as an activity for customer relation management was suggested. The main purpose of study is to see if relational market behavior could be brought as a result of developing relationship between consumers and a corporate into being stronger and more valuable when a corporate or a service provider try aggressively to build the relationship with customers (Bettencourt, 1997; Palmatier, Dant, Grewal and Evans, 2006; Sheth and Parvatiyar, 1995). III. Conclusion : The results of research into the membership fitness club, one of service areas with high level of customer participation (Bitner, Faranda, Hubbert and Zeithaml, 1997; Chase, 1978; Kelley, Donnelly, Jr. and Skinner, 1990) are as follows: First, causalities in according to path hypotheses were tested, after the preceding variables affecting relational market behavior and conceptual frame were suggested. In study, all hypotheses were supported as expected. This result confirms the proposition suggested by Sheth and Parvatiyar(1995), who claimed that intention of consumer and corporate to participate in marketing relationship brings high level of marketing productivity. Also, as a corporate or a service provider try aggressively to build relationship with customers, the relationship between consumers and a corporate can be developed into stronger and more valuable one (Bettencourt, 1997; Palmatier, Dant, Grewal and Evans, 2006). This finding supports the logic of relationship marketing. Second, because the question regarding the path hypothesis of consumer-brand relationship ${\rightarrow}$ relational market behavior are still at issue, the further analyses were conducted. In particular, there existed the mediating effects of consumer-brand relationship toward relational market behavior. Also, multiple regressions were conducted to see if which one strongly influences relational market behavior among specific question items with regard to consumer-brand relationship. As a result, the influence between items composing consumer-brand relationship and ones composing relational market behavior was different. Among items composing consumer-brand relationship, intimacy was an influence of sustaining relationship, word of mouth, and recommendation, intimacy and interdependence were influences of loyalty, intimacy and self-connection were influences of tolerance and advice. Notably, commitment among items measuring consumer-brand relationship had the negative influence with relational market behavior. This means that bringing relational market behavior is not consumer-brand relationship without personal commitment, but effort to build customer relationship like intimacy, interdependence, and self-connection. This finding confirms the results of Breivik and Thorbjornsen(2008). They reported that six variables composing the quality of consumer-brand relationship have higher explanation in regression model directly affecting performance of consumer-brand relationship. As a result of empirical analysis, among the constructs with regard to consumer-brand relationship, intimacy(B=0.512), interdependence(B=0.196), and quality of partner(B=0.153) had the effects on relation maintain. On the contrary, self-connection, love and passion, and commitment had little effect and did not show the statistical significance(p<0.05). On the other hand, intimacy(B=0.668) and interdependence(B=0.181) had the high regression estimates on word of mouth and recommendation. Regarding the effect on loyalty, explanation level of the model was high(R2=0.515), intimacy(0.538), interdependence(0.223), and quality of partner(0.177) showed the statistical significance(p<0.05). Furthermore, intimacy(0.441) had the strong effect as well as self-connection(0.201) and interdependence (0.163) had the effect on tolerance and forgive. And these three variables showed effects even on advice and suggestion, intimacy(0.373), self-connection(0.270), interdependence (0.155) respectively. Third, in study with regard to the positive effect(loyalty program ${\rightarrow}$ customers' participation, loyalty program ${\rightarrow}$ consumer-brand relationship, loyalty program ${\rightarrow}$ relational market behavior, customers' participation ${\rightarrow}$ consumer-brand relationship, customers' participation ${\rightarrow}$ relational market behavior, consumer-brand relationship ${\rightarrow}$ relational market behavior), the path hypothesis of customers' participation ${\rightarrow}$ consumer-brand relationship, was supported. The fact that path hypothesis of customers' participation ${\rightarrow}$ consumer-brand relationship was supported confirms assertion by Bitner(1995), Fournier(1994), Sheth and Parvatiyar(1995) about consumer relationship to participate in marketing relationship.
Internet commerce has been growing at a rapid pace for the last decade. Many firms try to reach wider consumer markets by adding the Internet channel to the existing traditional channels. Despite the various benefits of the Internet channel, a significant number of firms failed in managing the new type of channel. Previous studies could not cleary explain these conflicting results associated with the Internet channel. One of the major reasons is most of the previous studies conducted analyses under a specific market condition and claimed that as the impact of Internet channel introduction. Therefore, their results are strongly influenced by the specific market settings. However, firms face various market conditions in the real worlddensity and disutility of using the Internet. The purpose of this study is to investigate the impact of various market environments on a firm's optimal channel strategy by employing a flexible game theory model. We capture various market conditions with consumer density and disutility of using the Internet.
shows the channel structures analyzed in this study. Before the Internet channel is introduced, a monopoly manufacturer sells its products through an independent physical store. From this structure, the manufacturer could introduce its own Internet channel (MI). The independent physical store could also introduce its own Internet channel and coordinate it with the existing physical store (RI). An independent Internet retailer such as Amazon could enter this market (II). In this case, two types of independent retailers compete with each other. In this model, consumers are uniformly distributed on the two dimensional space. Consumer heterogeneity is captured by a consumer's geographical location (ci) and his disutility of using the Internet channel (${\delta}_{N_i}$).
shows various market conditions captured by the two consumer heterogeneities.
(a) illustrates a market with symmetric consumer distributions. The model captures explicitly the asymmetric distributions of consumer disutility in a market as well. In a market like that is represented in
(c), the average consumer disutility of using an Internet store is relatively smaller than that of using a physical store. For example, this case represents the market in which 1) the product is suitable for Internet transactions (e.g., books) or 2) the level of E-Commerce readiness is high such as in Denmark or Finland. On the other hand, the average consumer disutility when using an Internet store is relatively greater than that of using a physical store in a market like (b). Countries like Ukraine and Bulgaria, or the market for "experience goods" such as shoes, could be examples of this market condition.
summarizes the various scenarios of consumer distributions analyzed in this study. The range for disutility of using the Internet (${\delta}_{N_i}$) is held constant, while the range of consumer distribution (${\chi}_i$) varies from -25 to 25, from -50 to 50, from -100 to 100, from -150 to 150, and from -200 to 200.
summarizes the analysis results. As the average travel cost in a market decreases while the average disutility of Internet use remains the same, average retail price, total quantity sold, physical store profit, monopoly manufacturer profit, and thus, total channel profit increase. On the other hand, the quantity sold through the Internet and the profit of the Internet store decrease with a decreasing average travel cost relative to the average disutility of Internet use. We find that a channel that has an advantage over the other kind of channel serves a larger portion of the market. In a market with a high average travel cost, in which the Internet store has a relative advantage over the physical store, for example, the Internet store becomes a mass-retailer serving a larger portion of the market. This result implies that the Internet becomes a more significant distribution channel in those markets characterized by greater geographical dispersion of buyers, or as consumers become more proficient in Internet usage. The results indicate that the degree of price discrimination also varies depending on the distribution of consumer disutility in a market. The manufacturer in a market in which the average travel cost is higher than the average disutility of using the Internet has a stronger incentive for price discrimination than the manufacturer in a market where the average travel cost is relatively lower. We also find that the manufacturer has a stronger incentive to maintain a high price level when the average travel cost in a market is relatively low. Additionally, the retail competition effect due to Internet channel introduction strengthens as average travel cost in a market decreases. This result indicates that a manufacturer's channel power relative to that of the independent physical retailer becomes stronger with a decreasing average travel cost. This implication is counter-intuitive, because it is widely believed that the negative impact of Internet channel introduction on a competing physical retailer is more significant in a market like Russia, where consumers are more geographically dispersed, than in a market like Hong Kong, that has a condensed geographic distribution of consumers.