• Management & Information Systems Review
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• v.30 no.2
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• pp.185-210
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• 2011

For many firms, customers are their most valuable assets. This is a shift in the interest of managers and researchers from a traditional focus on product management to a more recent focus on customer management. And they manage their customers with relationship marketing. Despite the recent academic interest in the study of customer equity, prior research has focused on brand equity and limited relationship mediated variate such as satisfaction, commitment and trust. This paper suggests customer equity drives with mediated variate and examines how relationship marketing can generate drives of customer equity and influence on customer behaviors. The results are like this. First, customer equity drives include value, brand and relationship equity and they mediate between relationship marketing activities and customer behaviors. Second, financial, social and structural activities have significant impact on repurchase, positive word of mouth, and cross purchase through customer equity drives. Third, this study tried to organize literature on customer equity systematically. It will become the foundation of follow-up studies.

• Information Systems Review
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• v.12 no.3
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• pp.75-88
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• 2010

Business models in open market systems targeting smart phone users are determined by several important factors. First, by providing developers efficient technical platforms, it contains a setting for developers to learn, apply and improve the skills relating to the product category easily while they stay beyond a corporate boundary. Second, by the first condition, a huge population of talented developers becomes to join a specific open market where will invite more customers to use their applications. Hence it will attract more and more developer participants who will finally give a rise to a persistent market growth. Third, the evaluation system between platform providers and application producers, and one between application producers and application users may underlie the trust relationships between them. The research conducted a multiple embedded case study to test the success factors of open market based business models. It focused on smart phone game communities that have installed user evaluation, and feedback systems. The user innovation empowerment model within the social game networks has highlighted the theories on the roles and characteristics of lead users, and lead user network behaviors for future NPD participations.

• Journal of Global Scholars of Marketing Science
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• v.17 no.1
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• pp.51-75
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• 2007

Dongdaemun fashion market has been successfully positioned as a main hub for non-brand fashion product distribution in Korea. One of important competitive advantages of Dongdaemun market often quoted by retail researchers is an efficiently managed network system among supply chain members. This study aimed to examine the importance of buyer-supplier relationship elements and supplier properties from buyers' perspectives (small & very small-sized fashion stores in Dongdaemun market), and to identify the determinants of the relationship length between suppliers and buyers. Survey responses of 233 stores were analyzed using EQS 6.1 for Window and SPSSWIN 10.0. The findings could be summarized as follows: First, fashion stores perceived that right delivery as the most important factor, and geographically closeness, design capability, quality, and lower price followed in order. Second, the characteristics of stores such as location, wholesaling versus retailing focusing, monthly sales, and total business length all affected the perceived importance of buyer-supplier relationship. Third, design capacity, communication, power was identified as determinants of actual relationship length with a supplier, while communication and trust were found to be determinants of future expected relationship length.

• Journal of Distribution Science
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• v.13 no.5
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• pp.53-60
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• 2015

Purpose - The purpose of this paper is to shed light on the importance of the slope and curvature of the volatility curve implied in option prices in the KOSPI 200 options index. A number of studies examine the implied volatility curve, however, these usually focus on cross-sectional characteristics such as the volatility smile. Contrary to previous studies, we focus on time-series characteristics; we investigate correlation dynamics among slope, curvature, and level of the implied volatility curve to capture market information embodied therein. Our study may provide useful implications for investors to utilize current market expectations in managing portfolios dynamically and efficiently. Research design, data, and methodology - For our empirical purpose, we gathered daily KOSPI200 index option prices executed at 2:50 pm in the Korean Exchange distribution market during the period of January 2, 2004 and January 31, 2012. In order to measure slope and curvature of the volatility curve, we use approximated delta distance; the slope is defined as the difference of implied volatilities between 15 delta call options and 15 delta put options; the curvature is defined as the difference between out-of-the-money (OTM) options and at-the-money (ATM) options. We use generalized method of moments (GMM) and the seemingly unrelated regression (SUR) method to verify correlations among level, slope, and curvature of the implied volatility curve with statistical support. Results - We find that slope as well as curvature is positively correlated with volatility level, implying that put option prices increase in a downward market. Further, we find that curvature and slope are positively correlated; however, the relation is weakened at deep moneyness. The results lead us to examine whether slope decreases monotonically as the delta increases, and it is verified with statistical significance that the deeper the moneyness, the lower the slope. It enables us to infer that when volatility surges above a certain level due to any tail risk, investors would rather take long positions in OTM call options, expecting market recovery in the near future. Conclusions - Our results are the evidence of the investor's increasing hedging demand for put options when downside market risks are expected. Adding to this, the slope and curvature of the volatility curve may provide important information regarding the timing of market recovery from a nosedive. For financial product distributors, using the dynamic relation among the three key indicators of the implied volatility curve might be helpful in enhancing profit and gaining trust and loyalty. However, it should be noted that our implications are limited since we do not provide rigorous evidence for the predictability power of volatility curves. Meaning, we need to verify whether the slope and curvature of the volatility curve have statistical significance in predicting the market trough. As one of the verifications, for instance, the performance of trading strategy based on information of slope and curvature could be tested. We reserve this for the future research.

• Journal of Distribution Science
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• v.11 no.4
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• pp.37-49
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• 2013

Purpose - This research identifies the meaning of the core capability level of Car Master and the reason why its service at the Moment of Truth should be demonstrated through empirical cases. It can be seen that this study differs from existing research because it proposes that the recognized core capability level to achieve customer satisfaction should focus on the mediating effect of Moment of Truth quality. This paper examines the effect of Car Master's recognized core capability level on customer satisfaction by using the variables mentioned above. Moreover, this study uses regression analysis to verify that the mediating effect of Moment of Truth quality on Car Master's capability level achieves customer satisfaction. Research design, data, and methodology - First, we present evidence that could apply to Car Master's recognized core capability level by detailing the relationship between customer satisfaction and a structuring factor for Car Master's core capability level. Our proposed research model observes the relationship between the structuring factor of core capability and customer satisfaction. Second, we had an opportunity to define how the core capability and Moment of Truth quality affect customer satisfaction by performing empirical analysis on the partial mediating effect of Moment of Truth quality at a recognized core capability level and Moment of Truth quality affecting customer satisfaction. Results - First, the results indicate that Car Master's recognized core capability level (product professionalism, marketing skill, and reliability) positively affects customer satisfaction. Second, the results show that an ability to listen and a sense of dedication positively affect customer satisfaction, and are among the Moment of Truth quality factors; but performance capability, which is one of the Moment of Truth quality factors, does not positively affect customer satisfaction. These results clearly differ from prior studies focused on Moment of Truth quality and consumer satisfaction. Third, the results show that Moment of Truth quality has a partial mediating effect in terms of the impact of Car Master's recognized core capability level in achieving consumer satisfaction. Conclusions - This research indicates that the company will be able to expand if they investigate and show an interest in more training and education for Car Master. The study verified that outstanding Car Masters show differentiated performance on customer satisfaction at the Moment of Truth in various instances. Thus, we believe that this is the time for a discussion on systematic and empirically recognized core capability levels and the Moment of Truth quality. The study on Car Master's recognized core capability level offers suitable solutions for Car Masters to respond to customers at the Moment of Truth. Further, this study emphasizes the importance of service as a critical factor having a direct relationship with the company's success and failure and contributing to building trust with the customer. Thus, an investment in continuous education and training for Car Master will help the growth of the business.

• Archives of design research
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• v.14 no.3
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• pp.37-48
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• 2001

This paper is a study on how women consumers purchase are affected by models who appear in advertisements for cosmetics, focusing especially on studies concerning the impact that models have on advertisement strategies of the cosmetic industry in korea. In surveys conducted, consumers responded that cosmetic advertisement models should examplify a expertness and trustworthiness attitude more than just display their own physical attractiveness. The consumers who bought cosmetic products based on its endorsement from particular models responded that they had a positive reaction to the models physical attractiveness and likability while experiencing a negative reaction to the model's expertness and trustworthiness attitude. Women consumers are interested in cosmetic advertisement models, but do not necessarily trust them. Hence, the use of a Particular model does not directly affect the consumers Purchasing decision. Famous stars often appear in cosmetic advertisements in korea, and targeted consumers have a very positive response to their physical attractiveness, familiarity and perceived likability. However, the consumers have a completely negative response to the models in regards to their expertness, trustworthiness, and their sense of similarity with the model. The models, then, should be used in these advertisements to try and uphold the fellowing qualities. expertness in regards to having some knowledge of, experience with, and expertness in using the cosmetic produces, trustworthiness when expressing their own opinion of the product, matching image of products and targeted consumers.

• Journal of Distribution Science
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• v.13 no.1
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• pp.105-118
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• 2015

Purpose - The objective of this study is to verify whether there are differences between Korean and Chinese consumers in the importance of the attributes such as shopping value and loyalty in social commerce. With the purpose of finding out these differences, the following questions are set up as research questions. First, will there be a difference between Korea and China in the importance of attributes of social commerce? Second, will there be a difference between Korean and Chinese consumers in shopping value? Third, will there be a difference between Korean and Chinese consumers in their loyalty? Research design, data, and methodology - The researchers collected data through self-administered questionnaires from Korean and Chinese consumers who had used social commerce within the past six months before answering the questionnaire. First, for social commerce users in Korea, comprising male and female university students in Chungcheong, a questionnaire was circulated. For social commerce users in China, university students within Beijing were surveyed. Responses to 336 questionnaires were used, excluding those with no answers or unreliable answers. Data coding and data cleaning were used. SPSS 18.0 was used. First, exploratory factor analysis is done to verify the validity of testing tools, and Cronbach's α coefficient is used to verify credibility. For factor analysis, the Varimax method is used. To verify the internal consistency reliability of each factor, the Cronbach's α coefficient is used to verify the credibility. Second, a T-test is done to verify differences between Korean and Chinese consumers for the importance of attributes. Third, ANOVA (Analysis of variance) is done to verify differences between Korean and Chinese consumers in shopping value and loyalty. Results - When Korean and Chinese consumers use social commerce, first, the importance of the attributes of social commerce is affected by four factors; playfulness and economic factors are more important to Korean consumers than Chinese consumers. As for informativeness factors, including product information and quality, and buyer comments, there was no confirmed difference between Korean and Chinese consumers. The convenience factor is more important to Chinese consumers than Korean consumers. Second, the factors affecting shopping value for Korean and Chinese consumers were hedonic shopping value and rational shopping value. To see the difference between Korean and Chinese consumers in shopping value factors, a t-test is conducted. As a result, in the rational shopping value factors of social commerce, Korean consumers scored higher than did Chinese consumers. These results were verified to be meaningful through statistics. In the hedonic shopping value factor of social commerce, Korean consumers scored higher than Chinese consumers. These results showed a significant difference. Third, loyalty in social commerce is higher for Chinese consumers than for Korean consumers. However, there is no difference in loyalty depending on sex. Conclusions - These results will hopefully be valuable and used in the future by Korean companies that wish to enter the Chinese social commerce market.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.5
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• pp.61-74
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• 2021

This study investigated the relationship between the social legitimacy and financial performance perceived for venture company. In particular, social legitimacy was classified into prior experiences, organizational competency, market-related, and government-related legitimacy according to the characteristics of venture businesses, and its effect on the financial and non-financial performance of venture businesses was verified. Data were collected by conducting a survey among 300 domestic venture businesses. According to the results it can be understood that social legitimacy affects the financial and non-financial performance of venture businesses. In other words, it was found that the acquisition of resources from external investors and governments which is justified by stakeholder and investors, venture business executives and employees' prior experience such as start-up experience, and retention of outstanding talent, etc., developing trust from the market and consumers through high organizational competency and differentiated product provision, have a positive effect on the financial and non-financial performance of venture companies. It can be interpreted that higher survival is possible through running the venture businesses with social legitimacy. In addition, this study is meaningful in that it presents a new standard for survival through measuring the relationship of the influence on substantial performance of venture businesses by expanding the existing sociological research to business management research.

• Knowledge Management Research
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• v.23 no.1
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• pp.149-164
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• 2022

This paper analyzes the independent financial advisory business that is not yet active in Korea and proposes a plan to activate the independent financial advisory business using fintech technology. A bill was enacted in 2017 for the domestic independent financial advisory business, but it has not been activated much until now for various reasons. Although existing studies have proposed solutions in various ways, there is no clear solution yet. This paper proposes a new method of revitalizing the independent financial advisory business through fintech technology using the trust system that has recently attracted attention. Digital securities fintech technology using blockchain distributed ledger technology presents new possibilities in the real estate and music copyright markets, and related fintech venture companies continue to emerge in Korea. By combining these digital securities fintech technologies and the business process of ETF, a method was derived so that independent financial advisors can have their own financial products. The proposed model is more decentralized than the existing financial product sales structure, and presents the possibility of a protocol economy through a structure close to a private blockchain while complying with the existing financial order. This paper is meaningful in that it presented new solutions to completely different markets from information convergence perspectives on two completely different markets, and we hope that more business solutions will emerge through knowledge management activities that converge various perspectives in the future.

• Korea Science and Art Forum
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• v.19
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• pp.417-424
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• 2015

The healthcare service industry has become one of the business industries in South Korea where service design is most actively being researched on and applied. In accordance with the recent upsurge of the interest in health, healthcare service is expanding its area including disease prevention, patient management, and rehabilitation treatment as well as cure and nursing care. The health manpower is the supplier, and their professional knowledge and ability and the patients' trust in medical technology are the most important factors for their customers. In addition, service design has come into the spotlight given that the medical institute system, health manpower attitude, and information delivery system and touch point are considered important factors contributing to customer satisfaction. It is very hard to satisfy customers only through professionalism, the environment, and product improvement because healthcare service deals with much more sensitive and emotional customers compared to other service industries. This means that a change in the service mind-set and the attitude of the health manpower as emotional labourers have practical effects. Therefore, the fundamental solution is to establish a system that provides related education with manpower and that settles various problems by itself. This paper introduces several solutions, such as education for health manpower and a service design system applied to a national-university-affiliated hospital in South Korea, and takes a close look at its effects.