• 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.

• Journal of Distribution Science
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• v.22 no.8
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• pp.87-98
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• 2024

Purpose: This study aimed to examine the influence of private label cues, including store image, product design, price promotion, and origin image, on consumers repurchase intention by mediating consumption value from a distribution perspective. Additionally, it explored nationality's moderating role in the relationship between consumption value and repurchase intention. Research design, data and methodology: Drawing on the SOR model, data were collected from 246 consumers who had purchased private-label products in the past month. Structural equation modeling analysis was employed to test hypotheses using AMOS and SPSS. Results: Findings revealed that cues significantly impact consumers' perception of consumption value, influencing repurchase intention. Price promotion directly affected repurchase intention, while other cues indirectly influenced it through consumption value mediation. Nationality moderated the relationship between consumption value and repurchase intention, with Korean consumers showing a higher propensity to repurchase than Chinese consumers. Conclusions: Theoretical implications of the study contributed to understanding consumer behavior by confirming the impact of private label cues, elucidating their differential effects on repurchase intention, and integrating theoretical frameworks. Managerial implications underscored the significance of leveraging cues to enhance consumption value perceptions, tailoring marketing strategies to accommodate cultural nuances, and utilizing cues to bolster consumer repurchase intentions, ultimately enhancing distribution channel effectiveness.

• Journal of Distribution Science
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• v.13 no.11
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• pp.47-58
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• 2015

Purpose - This study aims to seek determinants of department store sales commission rates under consignment contracts based on transaction cost theory, the power-dependence view, and the resource-based view. A consignment contract is a unique contract where the retailer, over a given period, takes possession of goods owned by a supplier, promotes the sales of these goods, and receives a profit share from their sales. Under this contract, the supplier owns the goods until they are sold. In department stores in South Korea, over 70% of overall sales comes through consignment contracts. In other words, this is the most popular contract agreement between large retailers and vendors in South Korea. Consignment contracts yield high profits to department stores with minimal sales uncertainty, stock cost, and marketing investment. Many suppliers believe the consignment contract commission rates are too high. However, department stores disagree. They state that the commissions are not high as they generate new value for the suppliers by accumulating up-to-date merchandise and supporting various marketing programs on their behalf. Recently, consignment contracts have been critically examined and scrutinized by politicians, mass media, and the public of Korea. This study further intends to derive implications reflecting both buyer and seller perspectives as well as offer insights to policy makers in making appropriate decisions. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 164 suppliers, which currently have relationships with department stores. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. The data were analyzed using SPSS 18.0 and AMOS structural equation modeling program Results - For the transaction cost theory and the power-dependence view, the results indicated that product diversity and demand volatility had a positive impact on the sales dependence on a department store. Dependence in turn had a positive effect on the sales commission under the consignment contract. Based on the resource-based view, the department store's marketing capability, the supplier's perception toward merchandising, and supporting activities could enhance the department store's channel leadership in the buyer-seller relationship. Subsequently, the channel leadership had a positive effect on the sales commission. However, product complexity had no relationship with department store dependence. Conclusions - This is the first empirical research that investigates the determinants of sales commissions under consignment contracts in the domestic retail industry. This study reveals several theoretical and practical implications for both marketing scholars and marketers. In terms of theoretical implication, this study integrated and enlarged certain theoretical background, such as transaction cost theory, the power-dependence view, and the resource-based view, to explain the determinants of sales commissions under consignment contracts that include sales revenue. From a business management viewpoint, this research offers useful insights for policy makers by applying two different perspectives, both the manufacturer and the retailer, in terms of the sales commission issue under a consignment contract.

• Journal of Korean Ophthalmic Optics Society
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• v.20 no.2
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• pp.83-92
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• 2015

Purpose: This study was performed to offer some more effective marketing strategies for optical shops on a basis of analyses of what lifestyles influence most on 'store selection' and 'recommendation intention' and of what properties of 'store selection' influence most on 'recommendation intention'. Methods: Questionnaire surveys were conducted from the customers who visited the optical shops in Seoul and northern Gyeonggi-do region from January 1 to June 30, 2014. It was analyzed via utilizing SPSS v.20.0 statistical package program. Results: The results in lifestyle-factors which influence on store selection were arranged in order as follows: 'stability oriented', 'goal oriented', 'cultural activity oriented'. And the results in value-factors which influence on 'recommendation intention' were arranged in order as follows: 'stability oriented', 'health oriented'. The most positive factor for 'recommendation intention' was revealed as 'dealing with customers' among several factors of 'store selection'. Conclusions: Today's marketing activities for customers should be suited for different lifestyles of customers. Customers who have 'stability oriented', 'goal oriented', and 'cultural activity oriented' lifestyles tend to select optical shops in consideration of 21 items when selecting an optical shop. Customers who have 'stability oriented', and 'health oriented' lifestyles have positive influences related to 'recommendation intention'. Also, it is likely for customers to recommend optical shops to others when the factor 'dealing with customers' meets their expectations.

• Journal of Korean Ophthalmic Optics Society
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• v.19 no.4
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• pp.419-427
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• 2014

Purpose: We propose an effective marketing strategy for eyeglasses stores on the basis of surveys about the relationships between customers' social values, customer satisfaction and selecting glasses store. Methods: All 245 surveys were conducted about customers had visited the eyeglasses store located in Seoul and Northern Gyeonggi-do regions from January 1 to June 30, 2014, and it were analyzed by SPSS v.20.0 statistical package program. Results: The order of customers' social values factors which have an influence on 'Selecting Store' is "Society oriented", "Ability oriented", "Freedom oriented" and "Happiness oriented". Also, the order of customers' social values factors which have an influence on satisfaction is "Society oriented", "Ability oriented". In addition, Customer Satisfaction is affected by Service, one of the factor of 'Selecting Store' factors. Conclusions: Each type of marketing activities should be conducted for customers by their various values. The best plan to elicit good reactions from customers is meeting them through "Society-oriented" factors. Meeting with customers through the "Ability-oriented" factors is second only to the best option. It is shown that the method to increase the satisfaction for customers' return visit is to manage 'Service factors' well.

• Journal of Distribution Science
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• v.6 no.1
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• pp.117-128
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• 2008

The purpose of the research is to furnish basic data for efficient and effective marketing by examining the correlation how a certain element effects on customer's selection behavior, when they choose private label branded clothes at the store of giant discount store like E-.mart, Home-plus, Lotte-mart and 2001 outlet. We come to the following conclusions through such procedures; What we found on this study is that main factors of decision related purchasing garment of private brand in giant discount store is based on the sales price, quality of products and needs of customer's using. Further to this, in terms of choice activity in private brand clothes, we realized the price value is depend on the resonable price with the items because nowadays most customers can be compare to other discount store around their shopping place including trend of garment and quality of products. The order of the general inclination in selection behavior of private branded garment in giant discount store is as follows; Sales price > style & trend > quality of product and substantial convenience > display and prompt buying. Judging from the conclusion of the research we noted that customer's satisfaction comes from their target price to supply substantial needs and in terms of styling of clothes should be considered current trendy compared to national brand as well.

• Journal of Distribution Science
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• v.15 no.6
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• pp.77-96
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• 2017

Purpose - This study aims to develop correspondence strategies to the environment change in domestic retail store types. Recently, new types of retails have emerged in retail industries. Therefore, trade area platform has developed focusing on the speed of data, no longer trade area from district border. Besides, 'trade area smart' brings about change in retail types with the development of giga internet. Thus, context shopping is changing the way of consumers' purchase pattern through data capture, technology capability, and algorithm development. For these reasons, the sales estimation model has been shown to be flawed using the notion of former scale and time, and it is necessary to construct a new model. Research design, data, and methodology - This study focuses on measuring retail change in large multi-shopping mall for the outlook for retail industry and competition for trade area with the theoretical background understanding of retail store types and overall domestic retail conditions. The competition among retail store types are strong, whereas the borders among them are fading. There is a greater need to analyze on a new model because sales expectation can be hard to get with business area competition. For comprehensive research, therefore, the research method based on the statistical analysis was excluded, and field survey and literature investigation method were used to identify problems and propose an alternative. In research material, research fidelity has improved with complementing research data related with retail specialists' as well as department stores. Results - This study analyzed trade area survival and its pattern through sales estimation and empirical studies on trade areas. The sales estimation, based on Huff model system, counts the number of households shopping absorption expectation from trade areas. Based on the results, this paper estimated sales scale, and then deducted modified probability model. Conclusions - In times of retail store chain destruction and off-line store reorganization, modified Huff model has problems in estimating sales. Transformation probability model, supplemented by the existing problems, was analyzed to be more effective in competitiveness business condition. This study offers a viable alternative to figure out related trade areas' sale estimation by reconstructing new-modified probability model. As a result, the future task is to enlarge the borders from IT infrastructure with data and evidence based business into DT infrastructure.

• Journal of the Korea Computer Graphics Society
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• v.14 no.3
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• pp.11-17
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• 2008

Many methods which represent complex surfaces using height map without a number of vertex have been researched. However, a single layer height map cannot present more complex objects because it has only one height value on each position. In this paper, we introduce the new approach to render more complex objects, which are not generated by single layer height map, using multi layer height map. We store height values of the scene to each texture channel by the ascending order. A pair of ordered height values composes a geometry block and we use this property. For accurate ray search, we store the highest value in odd channels and the lowest value in even channels to generate quad tree height map. Our ray search algorithm shows accurate intersections between viewing ray and height values using quad tree height map. We solve aliasing problems on grazing angles occurred in previous methods and render the result scene on real-time.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2010.05a
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• pp.411-413
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• 2010

The wireless AP positioning system is under active progress regarding research and commercialization due to its merit of being able to overcome the representing demerits of existing GPS positioning, which are signal distortion and poor signal reception. This system's feature is to collect AP information distributed throughout the real world, store it on database, and execute positioning by comparing with searched AP information. The positioning process uses collected data, whereas comparison of database data uses the fingerprinting method. The fingerprinting method is a probabilistic modeling method that acquires as much of the data collected from one location upon database composition, to store the value's average value and use it in positioning. Yet, using the average value may contain the probability of errors. Such errors are fatal weaknesses for services based on the background of accurate positioning. This paper deals with the characteristics and problems of the previously used wireless AP positioning system, and proposes measures of using AP information for outdoor positioning in order to solve the aforementioned problems.

• Journal of the Korean Home Economics Association
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• v.40 no.6
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• pp.69-83
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• 2002

This study examined the effects of demographic variables on buying behavior, and investigated buyers'perceived value and risk perception of the internet shopping mall. The sample was collected by a department store in Daegu, and it included 1,732 individuals using the Cyber Mall. Research methods used in this study were simple statistics, t-test and ANOVA. The buyers perceived values through the internet shopping mall were classified into five categories-price, time, convenience, intrinsic attributes, reliability and the risk perception also was classified such as the overall purchasing process, quality of products, exposure of the personal information, delivery system, refund and exchange. The major findings of this study were 1) most important categories affecting their buying behavior were the value of convenience and following values in order were time, price, reliability, intrinsic attributes. 2) the risk perception were overall purchasing behavior, quality of products, exposure of personal information, delivery, and refund & exchange in order. 3) age of buyers, buying experience on the internet shopping mall, and gender were the important factors affecting the buyers'perceived value and risk. 4) the study also, showed that according to the variety of products, buyers perceived the value and risk differently, for example, the price was the most important perceived value in case of food product. The implication of the study is to strategically suggest how to enhance the buyers'perceived value and diminish perceived risk of different products.