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Product Evaluation Criteria Extraction through Online Review Analysis: Using LDA and k-Nearest Neighbor Approach (온라인 리뷰 분석을 통한 상품 평가 기준 추출: LDA 및 k-최근접 이웃 접근법을 활용하여)

  • Lee, Ji Hyeon;Jung, Sang Hyung;Kim, Jun Ho;Min, Eun Joo;Yeo, Un Yeong;Kim, Jong Woo
    • Journal of Intelligence and Information Systems
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    • v.26 no.1
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    • pp.97-117
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    • 2020
  • Product evaluation criteria is an indicator describing attributes or values of products, which enable users or manufacturers measure and understand the products. When companies analyze their products or compare them with competitors, appropriate criteria must be selected for objective evaluation. The criteria should show the features of products that consumers considered when they purchased, used and evaluated the products. However, current evaluation criteria do not reflect different consumers' opinion from product to product. Previous studies tried to used online reviews from e-commerce sites that reflect consumer opinions to extract the features and topics of products and use them as evaluation criteria. However, there is still a limit that they produce irrelevant criteria to products due to extracted or improper words are not refined. To overcome this limitation, this research suggests LDA-k-NN model which extracts possible criteria words from online reviews by using LDA and refines them with k-nearest neighbor. Proposed approach starts with preparation phase, which is constructed with 6 steps. At first, it collects review data from e-commerce websites. Most e-commerce websites classify their selling items by high-level, middle-level, and low-level categories. Review data for preparation phase are gathered from each middle-level category and collapsed later, which is to present single high-level category. Next, nouns, adjectives, adverbs, and verbs are extracted from reviews by getting part of speech information using morpheme analysis module. After preprocessing, words per each topic from review are shown with LDA and only nouns in topic words are chosen as potential words for criteria. Then, words are tagged based on possibility of criteria for each middle-level category. Next, every tagged word is vectorized by pre-trained word embedding model. Finally, k-nearest neighbor case-based approach is used to classify each word with tags. After setting up preparation phase, criteria extraction phase is conducted with low-level categories. This phase starts with crawling reviews in the corresponding low-level category. Same preprocessing as preparation phase is conducted using morpheme analysis module and LDA. Possible criteria words are extracted by getting nouns from the data and vectorized by pre-trained word embedding model. Finally, evaluation criteria are extracted by refining possible criteria words using k-nearest neighbor approach and reference proportion of each word in the words set. To evaluate the performance of the proposed model, an experiment was conducted with review on '11st', one of the biggest e-commerce companies in Korea. Review data were from 'Electronics/Digital' section, one of high-level categories in 11st. For performance evaluation of suggested model, three other models were used for comparing with the suggested model; actual criteria of 11st, a model that extracts nouns by morpheme analysis module and refines them according to word frequency, and a model that extracts nouns from LDA topics and refines them by word frequency. The performance evaluation was set to predict evaluation criteria of 10 low-level categories with the suggested model and 3 models above. Criteria words extracted from each model were combined into a single words set and it was used for survey questionnaires. In the survey, respondents chose every item they consider as appropriate criteria for each category. Each model got its score when chosen words were extracted from that model. The suggested model had higher scores than other models in 8 out of 10 low-level categories. By conducting paired t-tests on scores of each model, we confirmed that the suggested model shows better performance in 26 tests out of 30. In addition, the suggested model was the best model in terms of accuracy. This research proposes evaluation criteria extracting method that combines topic extraction using LDA and refinement with k-nearest neighbor approach. This method overcomes the limits of previous dictionary-based models and frequency-based refinement models. This study can contribute to improve review analysis for deriving business insights in e-commerce market.

Fly Ash Application Effects on CH4 and CO2 Emission in an Incubation Experiment with a Paddy Soil (항온 배양 논토양 조건에서 비산재 처리에 따른 CH4와 CO2 방출 특성)

  • Lim, Sang-Sun;Choi, Woo-Jung;Kim, Han-Yong;Jung, Jae-Woon;Yoon, Kwang-Sik
    • Korean Journal of Soil Science and Fertilizer
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    • v.45 no.5
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    • pp.853-860
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    • 2012
  • To estimate potential use of fly ash in reducing $CH_4$ and $CO_2$ emission from soil, $CH_4$ and $CO_2$ fluxes from a paddy soil mixed with fly ash at different rate (w/w; 0, 5, and 10%) in the presence and absence of fertilizer N ($(NH_4)_2SO_4$) addition were investigated in a laboratory incubation for 60 days under changing water regime from wetting to drying via transition. The mean $CH_4$ flux during the entire incubation period ranged from 0.59 to $1.68mg\;CH_4\;m^{-2}day^{-1}$ with a lower rate in the soil treated with N fertilizer due to suppression of $CH_4$ production by $SO_4^{2-}$ that acts as an electron acceptor, leading to decreases in electron availability for methanogen. Fly ash application reduced $CH_4$ flux by 37.5 and 33.0% in soils without and with N addition, respectively, probably due to retardation of $CH_4$ diffusion through soil pores by addition of fine-textured fly ash. In addition, as fly ash has a potential for $CO_2$ removal via carbonation (formation of carbonate precipitates) that decreases $CO_2$ availability that is a substrate for $CO_2$ reduction reaction (one of $CH_4$ generation pathways) is likely to be another mechanisms of $CH_4$ flux reduction by fly ash. Meanwhile, the mean $CO_2$ flux during the entire incubation period was between 0.64 and $0.90g\;CO_2\;m^{-2}day^{-1}$, and that of N treated soil was lower than that without N addition. Because N addition is likely to increase soil respiration, it is not straightforward to explain the results. However, it may be possible that our experiment did not account for the substantial amount of $CO_2$ produced by heterotrophs that were activated by N addition in earlier period than the measurement was initiated. Fly ash application also lowered $CO_2$ flux by up to 20% in the soil mixed with fly ash at 10% through $CO_2$ removal by the carbonation. At the whole picture, fly ash application at 10% decreased global warming potential of emitted $CH_4$ and $CO_2$ by about 20%. Therefore, our results suggest that fly ash application can be a soil management practice to reduce green house gas emission from paddy soils. Further studies under field conditions with rice cultivation are necessary to verify our findings.

Efficacy and Accuracy of Patient Specific Customize Bolus Using a 3-Dimensional Printer for Electron Beam Therapy (전자선 빔 치료 시 삼차원프린터를 이용하여 제작한 환자맞춤형 볼루스의 유용성 및 선량 정확도 평가)

  • Choi, Woo Keun;Chun, Jun Chul;Ju, Sang Gyu;Min, Byung Jun;Park, Su Yeon;Nam, Hee Rim;Hong, Chae-Seon;Kim, MinKyu;Koo, Bum Yong;Lim, Do Hoon
    • Progress in Medical Physics
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    • v.27 no.2
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    • pp.64-71
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    • 2016
  • We develop a manufacture procedure for the production of a patient specific customized bolus (PSCB) using a 3D printer (3DP). The dosimetric accuracy of the 3D-PSCB is evaluated for electron beam therapy. In order to cover the required planning target volume (PTV), we select the proper electron beam energy and the field size through initial dose calculation using a treatment planning system. The PSCB is delineated based on the initial dose distribution. The dose calculation is repeated after applying the PSCB. We iteratively fine-tune the PSCB shape until the plan quality is sufficient to meet the required clinical criteria. Then the contour data of the PSCB is transferred to an in-house conversion software through the DICOMRT protocol. This contour data is converted into the 3DP data format, STereoLithography data format and then printed using a 3DP. Two virtual patients, having concave and convex shapes, were generated with a virtual PTV and an organ at risk (OAR). Then, two corresponding electron treatment plans with and without a PSCB were generated to evaluate the dosimetric effect of the PSCB. The dosimetric characteristics and dose volume histograms for the PTV and OAR are compared in both plans. Film dosimetry is performed to verify the dosimetric accuracy of the 3D-PSCB. The calculated planar dose distribution is compared to that measured using film dosimetry taken from the beam central axis. We compare the percent depth dose curve and gamma analysis (the dose difference is 3%, and the distance to agreement is 3 mm) results. No significant difference in the PTV dose is observed in the plan with the PSCB compared to that without the PSCB. The maximum, minimum, and mean doses of the OAR in the plan with the PSCB were significantly reduced by 9.7%, 36.6%, and 28.3%, respectively, compared to those in the plan without the PSCB. By applying the PSCB, the OAR volumes receiving 90% and 80% of the prescribed dose were reduced from $14.40cm^3$ to $0.1cm^3$ and from $42.6cm^3$ to $3.7cm^3$, respectively, in comparison to that without using the PSCB. The gamma pass rates of the concave and convex plans were 95% and 98%, respectively. A new procedure of the fabrication of a PSCB is developed using a 3DP. We confirm the usefulness and dosimetric accuracy of the 3D-PSCB for the clinical use. Thus, rapidly advancing 3DP technology is able to ease and expand clinical implementation of the PSCB.

A Study on Preparation of 3'-$[^{18}F]$Fluoro-3'-deoxythymidine and Its Biodistribution in 9L Glioma Bearing Rats (3'-$[^{18}F]$Fluoro-3'-deoxythymidine의 합성과 9L glioma 세포를 이식한 래트에서의 체내동태에 관한 연구)

  • Shim, Ah-Young;Moon, Byung-Seok;Lee, Tae-Sup;Lee, Kyo-Chul;An, Gwang-Il;Yang, Seung-Dae;Yu, Kook-Hyun;Cheon, Gi-Jeong;Choi, Chang-Woon;Lim, Sang-Moo;Chun, Kwon-Soo
    • Nuclear Medicine and Molecular Imaging
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    • v.40 no.5
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    • pp.263-270
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    • 2006
  • Purpose: Several radioisotope-labeled thymidine derivatives such as $[^{11}C]$thymidine was developed to demonstrate cell proliferation in tumor. But it is difficult to track metabolism with $[^{11}C]$thymidine due to rapid in vivo degradation and its short physical half-life. 3'-$[^{18}F]$fluoro-3'-deoxythymidine ($[^{18}F]$FLT) was reported to have the longer half life of fluorine-18 and the lack of metabolic degradation in vivo. Here, we described the synthesis of the 3'-$[^{18}F]$fluoro-3'-deoxythymidine ($[^{18}F]$FLT) and compared with $([^{18}F]FET)\;and\;([^{18}F]FDG)$ in cultured 9L cell and obtained the biodistribution and PET image in 9L tumor hearing rats. Material and Methods: For the synthesis of $[^{18}F]$FLT, 3-N-tert-butoxycarbonyl-(5'-O-(4,4'-dimet hoxytriphenylmethyl)-2'-deoxy-3'-O-(4-nitrobenzenesulfonyl)-${\beta}$-D-threopentofuranosyl)thymine was used as a FLT precursor, on which the tert-butyloxycarbonyl group was introduced to protect N3-position and nitrobenzenesulfonyl group. Radiolabeling of nosyl substitued precursor with $^{18}F$ was performed in acetonitrile at $120^{\circ}C$ and deproteced with 0.5 N HCI. The cell uptake was measured in cultured 9L glioma cell. The biodistribution was evaluated in 9L tumor bearing rats after intravenous injection at 10 min, 30 min, 60 min and 120 min and obtained PET image 60 minutes after injection. Results: The radiochemical yield was about 20-30% and radiochemical purity was more than 95% after HPLC purification. Cellular uptake of $[^{18}F]$FLT was increased as time elapsed. At 120 min post-injection, the ratios of tumor/blood, tumor/muscle and tumor/brain were $1.61{\pm}0.34,\;1.70{\pm}0.30\;and\;9.33{\pm}2.22$, respectively. The 9L tumor was well visualized at 60 min post injection in PET image. Conclusion: The uptake of $[^{18}F]$FLT in tumor was higher than in normal brain and PET image of $[^{18}F]$FLT was acceptable. These results suggest the possibility of $[^{18}F]$FLT at an imaging agent for brain tumor.

Development and Assessment Individual Maximum Permissible Dose Method of I-131 Therapy in High Risk Patients with Differentiated Papillary Thyroid Cancer (물리학 선량법을 이용한 갑상선암의 개인별 최대안전용량 I-131 치료법 개발과 유용성 평가)

  • Kim, Jeong-Chul;Yoon, Jung-Han;Bom, Hee-Seung;JaeGal, Young-Jong;Song, Ho-Chun;Min, Jung-Joon;Jeong, Heong;Kim, Seong-Min;Heo, Young-Jun;Li, Ming-Hao;Park, Young-Kyu;Chung, June-Key
    • The Korean Journal of Nuclear Medicine
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    • v.37 no.2
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    • pp.110-119
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    • 2003
  • Purpose: Radioiodine (I-131) therapy is an effective modality to reduce both recurrence and mortality rates in differentiated thyroid cancer. Whether higher doses shows higher therapeutic responses was still debatable. The purpose of this study was to validate curve-fitting (CF) method measuring maximum permissible dose (MPD) by a biological dosimetry using metaphase analysis of peripheral blood lymphocytes. Materials and Methods: Therapeutic effects of MPD was evaluated in 58 patients (49 females and 9 males, mean age $50{\pm}11$ years) of papillary thyroid cancer. Among them 43 patients were treated with ${\Leq}7.4GBq$, while 15 patients with ${\geq}9.25GBq$. The former was defined as low-dose group, and the latter high-dose group. Therapeutic response was defined as complete response when complete disappearance of lesions on follow-up I-131 scan and undetectable serum thyroglobulin levels were found. Statistical comparison between groups were done using chi-square test. P value less than 0.05 was regarded as statistically significant. Results: MPD measured by CF method using tracer and therapeutic doses were $13.3{\pm}1.9\;and\;13.8{\pm}2.1GBq$, respectively (p=0.20). They showed a significant correlation (r=0.8, p<0.0001). Exposed doses to blood measured by CF and biological methods were $1.54{\pm}0.03\;and\;1.78{\pm}0.03Gy$ (p=0.01). They also showed a significant correlation (r=0.86, p=0.01). High-dose group showed a significantly higher rate of complete response (12/15, 80%) as compared to the low-dose group (22/43, 51.2%) (p=0.05). While occurrence of side effects was not different between two groups (40% vs. 30.2%, p=0.46). Conclusion: Measurement of MPD using CF method is reliable, and the high-dose I-131 therapy using MPD gains significantly higher therapeutic effects as compared with low-dose therapy.

Effect of Retrovirus Mediated TNF-$\alpha$ Gene Transfer to Tumor Necrosis Factor(TNF) Sensitive Tumor Cell Lines on Sensitivity to TNF (Retroviral Vector를 이용한 TNF-$\alpha$ 유전자의 이입이 암세포의 종양괴사인자(TNF) 감수성에 미치는 효과)

  • Oh, Yeon-Mok;Park, Kyeo-Yeong;Jung, Man-Pyo;Yoo, Chul-Gyu;Kim, Young-Whan;Han, Sung-Goo;Sim, Young-Soo;Han, Yong-Chol
    • Tuberculosis and Respiratory Diseases
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    • v.41 no.2
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    • pp.87-96
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    • 1994
  • Background : Since tumor necrosis factor was discovered in 1975, TNF has been well known about its cytotoxic effect on tumor cells in vivo and in vitro. According to the recent improvement of molecular biological techinques, it is possible that exogenous TNF gene is transferred to tumor cells and is expressed in theirs. By virtue of TNF gene transfer, we have expected that TNF expressed in TNF-gene-transferred tumor cells would kill tumor cells in vivo without systemic side effect. The expected mechanisms in which antitumor effects of TNF expressed in TNF-gene-transferred tumor cells are working would be as followings. In the first mechanism, TNF expressed in TNF-gene-transferred tumor cells would kill tumor cells around(like homicide). In the second mechanism, TNF expressed in TNF-gene-transferred tumor cells would kill themselves(like suicide). In the third mechanism, TNF expressed in TNF-gene-transferred tumor cells would recruit immune effector cells and kill tumor cells indirectly. In the last mechanism, TNF expressed in TNF-gene-transferred tumor cells would augment cytokine such as interferon-$\gamma$ to kill tumor cells. Among these four mechanisms of antitumor effect, only the second mechanism has not been established yet. Therefore, to elucidate the second mechanism, We performed this study. Method : We transferred TNF-$\alpha$ gene to NCI-H2058, a human mesothelioma cell line and WEHI164, a murine fibrosarcoma cell line by using retroviral vector(pLT12SNTNF). And, We determined by using MTT assay whether TNF expressed in TNF-gene-transferred tumor cell lines would kill themselves like suicide or not. Then, if TNF-gene-transferred tumor cell lines would not suicide themselves, I would know more about the TNF sensitivity of TNF-gene-transferred tumor cell lines to exogenous TNF also by MTT assay. Result : NCI-H2058 and WEHI164 which were sensitive to TNF, became far less sensitive to endogenous and exogenous TNF after being transferred TNF-$\alpha$ gene to. Conclusion : TNF-gene-transfer to NCI-H2058 and WEHI164 gave them resistance to TNF.

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A Methodology to Develop a Curriculum based on National Competency Standards - Focused on Methodology for Gap Analysis - (국가직무능력표준(NCS)에 근거한 조경분야 교육과정 개발 방법론 - 갭분석을 중심으로 -)

  • Byeon, Jae-Sang;Ahn, Seong-Ro;Shin, Sang-Hyun
    • Journal of the Korean Institute of Landscape Architecture
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    • v.43 no.1
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    • pp.40-53
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    • 2015
  • To train the manpower to meet the requirements of the industrial field, the introduction of the National Qualification Frameworks(hereinafter referred to as NQF) was determined in 2001 by National Competency Standards(hereinafter referred to as NCS) centrally of the Office for Government Policy Coordination. Also, for landscape architecture in the construction field, the "NCS -Landscape Architecture" pilot was developed in 2008 to be test operated for 3 years starting in 2009. Especially, as the 'realization of a competence-based society, not by educational background' was adopted as one of the major government projects in the Park Geun-Hye government(inaugurated in 2013) the NCS system was constructed on a nationwide scale as a detailed method for practicing this. However, in the case of the NCS developed by the nation, the ideal job performing abilities are specified, therefore there are weaknesses of not being able to reflect the actual operational problem differences in the student level between universities, problems of securing equipment and professors, and problems in the number of current curricula. For soft landing to practical curriculum, the process of clearly analyzing the gap between the current curriculum and the NCS must be preceded. Gap analysis is the initial stage methodology to reorganize the existing curriculum into NCS based curriculum, and based on the ability unit elements and performance standards for each NCS ability unit, the discrepancy between the existing curriculum within the department or the level of coincidence used a Likert scale of 1 to 5 to fill in and analyze. Thus, the universities wishing to operate NCS in the future measuring the level of coincidence and the gap between the current university curriculum and NCS can secure the basic tool to verify the applicability of NCS and the effectiveness of further development and operation. The advantages of reorganizing the curriculum through gap analysis are, first, that the government financial support project can be connected to provide quantitative index of the NCS adoption rate for each qualitative department, and, second, an objective standard is provided on the insufficiency or sufficiency when reorganizing to NCS based curriculum. In other words, when introducing in the subdivisions of the relevant NCS, the insufficient ability units and the ability unit elements can be extracted, and the supplementary matters for each ability unit element per existing subject can be extracted at the same time. There is an advantage providing directions for detailed class program and basic subject opening. The Ministry of Education and the Ministry of Employment and Labor must gather people from the industry to actively develop and supply the NCS standard a practical level to systematically reflect the requirements of the industrial field the educational training and qualification, and the universities wishing to apply NCS must reorganize the curriculum connecting work and qualification based on NCS. To enable this, the universities must consider the relevant industrial prospect and the relation between the faculty resources within the university and the local industry to clearly select the NCS subdivision to be applied. Afterwards, gap analysis must be used for the NCS based curriculum reorganization to establish the direction of the reorganization more objectively and rationally in order to participate in the process evaluation type qualification system efficiently.

A Thermal Time-Driven Dormancy Index as a Complementary Criterion for Grape Vine Freeze Risk Evaluation (포도 동해위험 판정기준으로서 온도시간 기반의 휴면심도 이용)

  • Kwon, Eun-Young;Jung, Jea-Eun;Chung, U-Ran;Lee, Seung-Jong;Song, Gi-Cheol;Choi, Dong-Geun;Yun, Jin-I.
    • Korean Journal of Agricultural and Forest Meteorology
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    • v.8 no.1
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    • pp.1-9
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    • 2006
  • Regardless of the recent observed warmer winters in Korea, more freeze injuries and associated economic losses are reported in fruit industry than ever before. Existing freeze-frost forecasting systems employ only daily minimum temperature for judging the potential damage on dormant flowering buds but cannot accommodate potential biological responses such as short-term acclimation of plants to severe weather episodes as well as annual variation in climate. We introduce 'dormancy depth', in addition to daily minimum temperature, as a complementary criterion for judging the potential damage of freezing temperatures on dormant flowering buds of grape vines. Dormancy depth can be estimated by a phonology model driven by daily maximum and minimum temperature and is expected to make a reasonable proxy for physiological tolerance of buds to low temperature. Dormancy depth at a selected site was estimated for a climatological normal year by this model, and we found a close similarity in time course change pattern between the estimated dormancy depth and the known cold tolerance of fruit trees. Inter-annual and spatial variation in dormancy depth were identified by this method, showing the feasibility of using dormancy depth as a proxy indicator for tolerance to low temperature during the winter season. The model was applied to 10 vineyards which were recently damaged by a cold spell, and a temperature-dormancy depth-freeze injury relationship was formulated into an exponential-saturation model which can be used for judging freeze risk under a given set of temperature and dormancy depth. Based on this model and the expected lowest temperature with a 10-year recurrence interval, a freeze risk probability map was produced for Hwaseong County, Korea. The results seemed to explain why the vineyards in the warmer part of Hwaseong County have been hit by more freeBe damage than those in the cooler part of the county. A dormancy depth-minimum temperature dual engine freeze warning system was designed for vineyards in major production counties in Korea by combining the site-specific dormancy depth and minimum temperature forecasts with the freeze risk model. In this system, daily accumulation of thermal time since last fall leads to the dormancy state (depth) for today. The regional minimum temperature forecast for tomorrow by the Korea Meteorological Administration is converted to the site specific forecast at a 30m resolution. These data are input to the freeze risk model and the percent damage probability is calculated for each grid cell and mapped for the entire county. Similar approaches may be used to develop freeze warning systems for other deciduous fruit trees.

School Experiences and the Next Gate Path : An analysis of Univ. Student activity log (대학생의 학창경험이 사회 진출에 미치는 영향: 대학생활 활동 로그분석을 중심으로)

  • YI, EUNJU;Park, Do-Hyung
    • Journal of Intelligence and Information Systems
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    • v.26 no.4
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    • pp.149-171
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    • 2020
  • The period at university is to make decision about getting an actual job. As our society develops rapidly and highly, jobs are diversified, subdivided, and specialized, and students' job preparation period is also getting longer and longer. This study analyzed the log data of college students to see how the various activities that college students experience inside and outside of school might have influences on employment. For this experiment, students' various activities were systematically classified, recorded as an activity data and were divided into six core competencies (Job reinforcement competency, Leadership & teamwork competency, Globalization competency, Organizational commitment competency, Job exploration competency, and Autonomous implementation competency). The effect of the six competency levels on the employment status (employed group, unemployed group) was analyzed. As a result of the analysis, it was confirmed that the difference in level between the employed group and the unemployed group was significant for all of the six competencies, so it was possible to infer that the activities at the school are significant for employment. Next, in order to analyze the impact of the six competencies on the qualitative performance of employment, we had ANOVA analysis after dividing the each competency level into 2 groups (low and high group), and creating 6 groups by the range of first annual salary. Students with high levels of globalization capability, job search capability, and autonomous implementation capability were also found to belong to a higher annual salary group. The theoretical contributions of this study are as follows. First, it connects the competencies that can be extracted from the school experience with the competencies in the Human Resource Management field and adds job search competencies and autonomous implementation competencies which are required for university students to have their own successful career & life. Second, we have conducted this analysis with the competency data measured form actual activity and result data collected from the interview and research. Third, it analyzed not only quantitative performance (employment rate) but also qualitative performance (annual salary level). The practical use of this study is as follows. First, it can be a guide when establishing career development plans for college students. It is necessary to prepare for a job that can express one's strengths based on an analysis of the world of work and job, rather than having a no-strategy, unbalanced, or accumulating excessive specifications competition. Second, the person in charge of experience design for college students, at an organizations such as schools, businesses, local governments, and governments, can refer to the six competencies suggested in this study to for the user-useful experiences design that may motivate more participation. By doing so, one event may bring mutual benefits for both event designers and students. Third, in the era of digital transformation, the government's policy manager who envisions the balanced development of the country can make a policy in the direction of achieving the curiosity and energy of college students together with the balanced development of the country. A lot of manpower is required to start up novel platform services that have not existed before or to digitize existing analog products, services and corporate culture. The activities of current digital-generation-college-students are not only catalysts in all industries, but also for very benefit and necessary for college students by themselves for their own successful career development.

A Study on Profitability of the Allianced Discount Program with Credit Cards and Loyalty Cards in Food & Beverage Industry (제휴카드 할인프로그램이 외식업의 수익성에 미치는 영향)

  • Shin, Young Sik;Cha, Kyoung Cheon
    • Asia Marketing Journal
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    • v.12 no.4
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    • pp.55-78
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    • 2011
  • Recently strategic alliance between business firms has become prevalent to overcome increasing competitive threats and to supplement resource limitation of individual firms. As one of allianced sales promotion activities, a new type of discount program, so called "Alliance Card Discount", is introduced with the partnership of credit cards and loyalty cards. The program mainly pursues short-term sales growth by larger discount scheme while spends less through cost share among alliance partners. Thus this program can be regarded as cost efficient discount promotion. But because there is no solid evidence that it can really deliver profitable sales growth, an empirical study for its effects on sales and profit should be conducted. This study has two basic research questions concerning the effects of allianced discount program ; 1)the possibility of sales increase 2) the profitability of the discount driven sales. In F&B industry, sales increase mainly comes from increased guest count. Especially in family restaurants, to increase the number of guests we need to enlarge the size of visitor group (number of visitors for one group) because customers visit by group in a special occasion. And because they pay the bill by group(table), the increase of sales per table is a key measure for sales improvement. The past researches for price & discount sensitivity and reference discount rate explain that price sensitive consumers have narrow reference discount zone and make rational purchase decision. Differently from all time discount scheme of regular sales promotions, the alliance card discount program only provides the right to get discount like discount coupon. And because it is usually once a month opportunity given by the past month usage level, customers tend to perceive alliance card discount as a rare chance to get. So that we can expect customers try to maximize the discount effect when they use the limited discount opportunity. Considering group visiting practice and low visit frequency of family restaurants, the way to maximize discount effect should be the increase the size of visit group. And their sensitivity to discount and rational consumption behavior defer the additional spending for ordering high price menu, even though they get considerable amount of savings from the discount. From the analysis of sales data paid by alliance discount cards for four months, we found the below. 1) The relation between discount rate and number of guest per table is positive : 25% discount results one additional guest 2) The relation between discount rate and the spending per guest is negative. 3) However, total profit amount per table is increased when discount rate is increased. 4) Reward point accumulation & redemption did not show any significant relationship with the increase of number of guests. These results suggest that the allianced discount program substantially contributes to sales increase and profit improvement by increasing the number of guests per table. Though the spending per guest is decreased by discount rate increase, the total amount of profit per table is improved. It seems the incremental profit by increased guest count offsets the profit decrease. Additional intriguing finding is the point reward system does not have any significant impact on the increase of number of guest, even if the point accumulation & redemption of loyalty program are usually regarded as another saving offers by customers. In sum, because it is proved that allianced discount program with credit cards and loyalty cards is effective to both sales drive and profit increase, the alliance card program could be recommended as strategically buyable program.

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