• Title/Summary/Keyword: 패턴

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A Critical Evaluation of the Correlation Between Biomarkers of Folate and Vitamin $B_{12}$ in Nutritional Homocysteinemia (엽산과 비타민 $B_{12}$ 결핍에 의한 호모시스테인혈증 흰쥐의 조직내 비타민 지표간의 상관관계 분석)

  • Min, Hye-Sun;Kim, Mi-Sook
    • Journal of Nutrition and Health
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    • v.42 no.5
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    • pp.423-433
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    • 2009
  • Folate and vitamin $B_{12}$ are essential cofactors for homocysteine (Hcy) metabolism. Homocysteinemia has been related with cardiovascular and neurodegenerative disease. We examined the effect of folate and/or vitamin $B_{12}$ deficiency on biomarkers of one carbon metabolism in blood, liver and brain, and analyzed the correlation between vitamin biomarkers in mild and moderate homocysteinemia. In this study, Sprague-Dawley male rats (5 groups, n = 10) were fed folatesufficient diet (FS), folate-deficient diet (FD) with 0 or 3 g homocystine (FSH and FDH), and folate-/vitamin $B_{12}$-deficient diet with 3 g homocystine (FDHCD) for 8 weeks. The FDH diet induced mild homocysteinemia (plasma Hcy 17.41 ${\pm}$ 1.94 nmol/mL) and the FDHCD diet induced moderate homocysteinemia (plasma Hcy 44.13 ${\pm}$ 2.65 nmol/mL), respectively. Although liver and brain folate levels were significantly lower compared with those values of rats fed FS or FSH (p < 0.001, p < 0.01 respectively), there were no significant differences in folate levels in liver and brain among the rats fed FD, FDH and FDHCD diet. However, rats fed FDHCD showed higher plasma folate levels (126.5 ${\pm}$ 9.6 nmol/L) compared with rats fed FD and FDH (21.1 ${\pm}$ 1.4 nmol/L, 22.0 ${\pm}$ 2.2 nmol/L)(p < 0.001), which is the feature of "ethyl-folate trap"by vitamin $B_{12}$ deficiency. Plasma Hcy was correlated with hepatic folate (r = -0.641, p < 0.01) but not with plasma folate or brain folate in this experimental condition. However, as we eliminated FDHCD group during correlation test, plasma Hcy was correlated with plasma folate (r = -0.581, p < 0.01), hepatic folate (r = -0.684, p < 0.01) and brain folate (r = -0.321, p < 0.05). Hepatic S-adenosylmethionine (SAM) level was lower in rats fed FD, FDH and FDHCD than in rats fed FS and FSH (p < 0.001, p < 0.001 respectively) and hepatic S-adenosylhomocysteine (SAH) level was significantly higher in those groups. The SAH level in brain was also significantly increased in rats fed FDHCD (p < 0.05). However, brain SAM level was not affected by folate and/or vitamin $B_{12}$ deficiency. This result suggests that dietary folate- and vitamin B12-deficiency may inhibit methylation in brain by increasing SAH rather than decreasing SAM level, which may be closely associated with impaired cognitive function in nutritional homocysteinemia.

A Time Series Graph based Convolutional Neural Network Model for Effective Input Variable Pattern Learning : Application to the Prediction of Stock Market (효과적인 입력변수 패턴 학습을 위한 시계열 그래프 기반 합성곱 신경망 모형: 주식시장 예측에의 응용)

  • Lee, Mo-Se;Ahn, Hyunchul
    • Journal of Intelligence and Information Systems
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    • v.24 no.1
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    • pp.167-181
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    • 2018
  • Over the past decade, deep learning has been in spotlight among various machine learning algorithms. In particular, CNN(Convolutional Neural Network), which is known as the effective solution for recognizing and classifying images or voices, has been popularly applied to classification and prediction problems. In this study, we investigate the way to apply CNN in business problem solving. Specifically, this study propose to apply CNN to stock market prediction, one of the most challenging tasks in the machine learning research. As mentioned, CNN has strength in interpreting images. Thus, the model proposed in this study adopts CNN as the binary classifier that predicts stock market direction (upward or downward) by using time series graphs as its inputs. That is, our proposal is to build a machine learning algorithm that mimics an experts called 'technical analysts' who examine the graph of past price movement, and predict future financial price movements. Our proposed model named 'CNN-FG(Convolutional Neural Network using Fluctuation Graph)' consists of five steps. In the first step, it divides the dataset into the intervals of 5 days. And then, it creates time series graphs for the divided dataset in step 2. The size of the image in which the graph is drawn is $40(pixels){\times}40(pixels)$, and the graph of each independent variable was drawn using different colors. In step 3, the model converts the images into the matrices. Each image is converted into the combination of three matrices in order to express the value of the color using R(red), G(green), and B(blue) scale. In the next step, it splits the dataset of the graph images into training and validation datasets. We used 80% of the total dataset as the training dataset, and the remaining 20% as the validation dataset. And then, CNN classifiers are trained using the images of training dataset in the final step. Regarding the parameters of CNN-FG, we adopted two convolution filters ($5{\times}5{\times}6$ and $5{\times}5{\times}9$) in the convolution layer. In the pooling layer, $2{\times}2$ max pooling filter was used. The numbers of the nodes in two hidden layers were set to, respectively, 900 and 32, and the number of the nodes in the output layer was set to 2(one is for the prediction of upward trend, and the other one is for downward trend). Activation functions for the convolution layer and the hidden layer were set to ReLU(Rectified Linear Unit), and one for the output layer set to Softmax function. To validate our model - CNN-FG, we applied it to the prediction of KOSPI200 for 2,026 days in eight years (from 2009 to 2016). To match the proportions of the two groups in the independent variable (i.e. tomorrow's stock market movement), we selected 1,950 samples by applying random sampling. Finally, we built the training dataset using 80% of the total dataset (1,560 samples), and the validation dataset using 20% (390 samples). The dependent variables of the experimental dataset included twelve technical indicators popularly been used in the previous studies. They include Stochastic %K, Stochastic %D, Momentum, ROC(rate of change), LW %R(Larry William's %R), A/D oscillator(accumulation/distribution oscillator), OSCP(price oscillator), CCI(commodity channel index), and so on. To confirm the superiority of CNN-FG, we compared its prediction accuracy with the ones of other classification models. Experimental results showed that CNN-FG outperforms LOGIT(logistic regression), ANN(artificial neural network), and SVM(support vector machine) with the statistical significance. These empirical results imply that converting time series business data into graphs and building CNN-based classification models using these graphs can be effective from the perspective of prediction accuracy. Thus, this paper sheds a light on how to apply deep learning techniques to the domain of business problem solving.

Performance Improvement on Short Volatility Strategy with Asymmetric Spillover Effect and SVM (비대칭적 전이효과와 SVM을 이용한 변동성 매도전략의 수익성 개선)

  • Kim, Sun Woong
    • Journal of Intelligence and Information Systems
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    • v.26 no.1
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    • pp.119-133
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    • 2020
  • Fama asserted that in an efficient market, we can't make a trading rule that consistently outperforms the average stock market returns. This study aims to suggest a machine learning algorithm to improve the trading performance of an intraday short volatility strategy applying asymmetric volatility spillover effect, and analyze its trading performance improvement. Generally stock market volatility has a negative relation with stock market return and the Korean stock market volatility is influenced by the US stock market volatility. This volatility spillover effect is asymmetric. The asymmetric volatility spillover effect refers to the phenomenon that the US stock market volatility up and down differently influence the next day's volatility of the Korean stock market. We collected the S&P 500 index, VIX, KOSPI 200 index, and V-KOSPI 200 from 2008 to 2018. We found the negative relation between the S&P 500 and VIX, and the KOSPI 200 and V-KOSPI 200. We also documented the strong volatility spillover effect from the VIX to the V-KOSPI 200. Interestingly, the asymmetric volatility spillover was also found. Whereas the VIX up is fully reflected in the opening volatility of the V-KOSPI 200, the VIX down influences partially in the opening volatility and its influence lasts to the Korean market close. If the stock market is efficient, there is no reason why there exists the asymmetric volatility spillover effect. It is a counter example of the efficient market hypothesis. To utilize this type of anomalous volatility spillover pattern, we analyzed the intraday volatility selling strategy. This strategy sells short the Korean volatility market in the morning after the US stock market volatility closes down and takes no position in the volatility market after the VIX closes up. It produced profit every year between 2008 and 2018 and the percent profitable is 68%. The trading performance showed the higher average annual return of 129% relative to the benchmark average annual return of 33%. The maximum draw down, MDD, is -41%, which is lower than that of benchmark -101%. The Sharpe ratio 0.32 of SVS strategy is much greater than the Sharpe ratio 0.08 of the Benchmark strategy. The Sharpe ratio simultaneously considers return and risk and is calculated as return divided by risk. Therefore, high Sharpe ratio means high performance when comparing different strategies with different risk and return structure. Real world trading gives rise to the trading costs including brokerage cost and slippage cost. When the trading cost is considered, the performance difference between 76% and -10% average annual returns becomes clear. To improve the performance of the suggested volatility trading strategy, we used the well-known SVM algorithm. Input variables include the VIX close to close return at day t-1, the VIX open to close return at day t-1, the VK open return at day t, and output is the up and down classification of the VK open to close return at day t. The training period is from 2008 to 2014 and the testing period is from 2015 to 2018. The kernel functions are linear function, radial basis function, and polynomial function. We suggested the modified-short volatility strategy that sells the VK in the morning when the SVM output is Down and takes no position when the SVM output is Up. The trading performance was remarkably improved. The 5-year testing period trading results of the m-SVS strategy showed very high profit and low risk relative to the benchmark SVS strategy. The annual return of the m-SVS strategy is 123% and it is higher than that of SVS strategy. The risk factor, MDD, was also significantly improved from -41% to -29%.

A Study on Chinese Traditional Auspicious Fish Pattern Application in Corperate Identity Design (중국 전통 길상 어(魚)문양을 응용한 중국 기업의 아이덴티티 디자인 동향)

  • ZHANG, JINGQIU
    • Cartoon and Animation Studies
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    • s.50
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    • pp.349-382
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    • 2018
  • China is a great civilization which is a combination of various ethnic groups with long history change. As one of these important components of traditional culture, the lucky shape has been going through the ideological upheaval of the history change of China. Up to now, it has become the important parts which can stimulate the emotion of Chinese nation. The lucky shape becomes the basis of the rich traditional culture by long history of the Chinese nation. Even say it is the centre of this traditional culture resource. The lucky shape is a way of expressing the Chinese history and national emotions. It is the important part of people's living habits, emotion, as well as the cultural background. What's more, it has the value of beliefs of Surname totem. Meanwhile, it also has the function of passing on information. The symbol of information finally was created by the being of lucky shape to indicate its conceptual content. There are various kinds of lucky shapes. It will have its limitations when researching all kinds of them professionally. So, here the lucky shape of FISH will be researched. The shape of fish is the first good shape created by the Chinese nation. It is about 6000 years. Its special shape and lucky meaning embody the peculiar inherent culture and intension of the Chinese nation. It's the important component of the Chinese traditional culture. The traditional shape of fish was focused on the continuation of history and the patterns recognition, etc. It seldom indicated the meaning of the shape into the using of the modern design. So by searching the lucky meaning & the way of fish shape, the purpose of the search is to explore the real analysis of value of the fish shape in the modern enterprise identity design. The way of search is through the development of the history, the evolvement and the meaning of lucky of the traditional fish shape to analyse the symbolic meaning and the cultural meaning from all levels in nation, culture, art and life, etc. And by using the huge living example of the enterprise identity design of the traditional shape of the fish to analyse that how it works in positive way by those enterprise which is based on the trust with good image. In the modern Chinese enterprise identity design, the lucky image will be reinterpreted in the modern way. It will be proofed by the national perceptual knowledge of the consumer and the way of enlarge the goodwill of corporate image. It will be the conclusion. The traditional fish shape is the important core of modern design.So this search is taken through the instance of the design of enterprise image of the traditional fish shape to analysis the idea of the majority Chinese people of the traditional luck and the influence of corporation which based on trust and credibility. In modern image design of Chinese corporation, the auspicious sign reappear. The question survey is taken by people through the perceptual knowledge of the consumer and the cognition the enterprise image. According the result, people can speculate the improvement of consumer's recognition and the possibility of development of traditional concept.

A Study on Market Expansion Strategy via Two-Stage Customer Pre-segmentation Based on Customer Innovativeness and Value Orientation (고객혁신성과 가치지향성 기반의 2단계 사전 고객세분화를 통한 시장 확산 전략)

  • Heo, Tae-Young;Yoo, Young-Sang;Kim, Young-Myoung
    • Journal of Korea Technology Innovation Society
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    • v.10 no.1
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    • pp.73-97
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    • 2007
  • R&D into future technologies should be conducted in conjunction with technological innovation strategies that are linked to corporate survival within a framework of information and knowledge-based competitiveness. As such, future technology strategies should be ensured through open R&D organizations. The development of future technologies should not be conducted simply on the basis of future forecasts, but should take into account customer needs in advance and reflect them in the development of the future technologies or services. This research aims to select as segmentation variables the customers' attitude towards accepting future telecommunication technologies and their value orientation in their everyday life, as these factors wilt have the greatest effect on the demand for future telecommunication services and thus segment the future telecom service market. Likewise, such research seeks to segment the market from the stage of technology R&D activities and employ the results to formulate technology development strategies. Based on the customer attitude towards accepting new technologies, two groups were induced, and a hierarchical customer segmentation model was provided to conduct secondary segmentation of the two groups on the basis of their respective customer value orientation. A survey was conducted in June 2006 on 800 consumers aged 15 to 69, residing in Seoul and five other major South Korean cities, through one-on-one interviews. The samples were divided into two sub-groups according to their level of acceptance of new technology; a sub-group demonstrating a high level of technology acceptance (39.4%) and another sub-group with a comparatively lower level of technology acceptance (60.6%). These two sub-groups were further divided each into 5 smaller sub-groups (10 total smaller sub-groups) through two rounds of segmentation. The ten sub-groups were then analyzed in their detailed characteristics, including general demographic characteristics, usage patterns in existing telecom services such as mobile service, broadband internet and wireless internet and the status of ownership of a computing or information device and the desire or intention to purchase one. Through these steps, we were able to statistically prove that each of these 10 sub-groups responded to telecom services as independent markets. We found that each segmented group responds as an independent individual market. Through correspondence analysis, the target segmentation groups were positioned in such a way as to facilitate the entry of future telecommunication services into the market, as well as their diffusion and transferability.

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Bioacoustics and Habitat Environment Analysis of Cicadas in Taebaeksan National Park (태백산국립공원에 서식하는 매미류의 생물음향 및 서식환경 분석)

  • Kim, Yoon-Jae;Jung, Tae-Jun;Ki, Kyong-Seok
    • Korean Journal of Environment and Ecology
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    • v.33 no.6
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    • pp.664-676
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    • 2019
  • This study aimed to analyze the bioacoustics and habitat environment of the cicadas inhabiting Taebaeksan National Park, an sub-alpine region in Korea. The mating calls of the cicadas were recorded for approximately 3 months, between July and September of 2018. The recording devices were installed in Daedeoksan valley and Baekcheon valley, inside Taebaeksan National Park, and the sounds were recorded 24 hours a day. In order to obtain the habitat distribution data of the cicadas, the sounds were recorded from 111 spots located in the Taebaeksan National Park trail in August 2018. The daily weather data was obtained from the Taebaek city weather center. The results of the study demonstrated that 5 species of cicadas inhabit Taebaeksan National Park, namely, Leptosemia takanonis, Lyristes intermedius, Kosemia yezoensis, Hyalessa fuscata, and Meimuna opalifera. The time of appearance for L. takanonis was early July to mid-July, and that for L. intermedius, K. yezoensis, H. fuscata, and M. opalifera was mid-July to early September. Analysis of the circadian rhythm revealed that L. intermedius, K. yezoensis, and H. fuscata started producing mating calls between 6:00 and 7:00, which ended at around 19:00 for all the three species. The peak time for producing mating calls was 11:00 for L. intermedius, 12:00 for H. fuscata, and around 13:00 to 14:00 for K. yezoensis. The environmental factors influencing the mating calls of the cicadas inhabiting Taebaeksan National Park were analyzed by logistic regression. The results showed that the probability of producing mating calls increased by 1.192 and 1.279 times in L. intermedius and K. yezoensis, respectively, when the average temperature increased by one degree. When the duration of sunlight increased by one hour, the probability of producing mating calls increased by 4.366 and 2.624 times in L. intermedius and H. fuscata, respectively. Analysis of the interspecific effects revealed that when H. fuscata produced a single mating call, the probability of producing mating calls increased by 14.620 and 2.784 times in L. intermedius and K. yezoensis, respectively. When K. yezoensis and L. intermedius produced mating calls, the probability of producing mating calls in H. fuscata increased by 11.301 and 2.474 times, respectively. L. intermedius and K. yezoensis did not have any effects on each other with respect to the production of mating calls. Analysis of the habitat environment of each species revealed that their habitats were located at altitudes of 1,046 m (780~1,315 m) for L. intermedius, 1,072 m (762~1,361 m) for K. yezoensis, and 976 m (686~1,245 m) for H. fuscata. Unlike H. fuscata, which was found at a low altitude, K. yezoensis and L. intermedius were not found at altitudes lower than 700 m. Analysis of the average aspect of the habitats of each of the cicada species revealed that L. intermedius was found at 166° (125~207°), K. yezoensis was found at 100° (72~128°), and H. fuscata was found at 173° (118~228°). Examination of the distribution of each of the cicada species revealed that they were predominantly distributed in the ridges and slopes located in the southeastern region of Munsubong in Taebaeksan. In summary, L. intermedius and K. yezoensis was found to inhabit higher altitudes in Taebacksan National Park than H. fuscata, which was found throughout the Korean peninsula. Additionally, the main aspect of the cicada habitat was found to be the southeastern region (100~173°), which has good access to daylight.

Comparison of Property Changes of Black Jujube and Zizyphus jujube Extracts during Lactic Acid Fermentation (흑대추와 일반 건조대추의 추출 및 유산발효과정 중 특성 변화)

  • Auh, Mi Sun;Kim, Yi Seul;Ahn, Seung Joon;Ahn, Jun Bae;Kim, Kwang Yup
    • Journal of the Korean Society of Food Science and Nutrition
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    • v.41 no.10
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    • pp.1346-1355
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    • 2012
  • This study was carried out to investigate the characteristics of black jujube and Zizyphus jujube extracts during lactic acid fermentation. Both extracts were fermented using Lactobacillus fermentum YL-3. As a result, viable cell number rapidly increased until 24 hours, after which it gradually decreased. Before lactic acid fermentation, the $IC_{50}$ of black jujube, which was 0.014 mg/mL, was lower than that of Zizyphus jujube. Further, black jujube showed stronger antioxidant activity (374.21 mg AA eq/g) than Zizyphus jujube. Contents of total polyphenolics in both extracts were 15.46 mg/g and 13.61 mg/g, respectively, whereas contents of total flavonoids were 374.21 ${\mu}g/g$ and 64.25 ${\mu}g/g$. After lactic acid fermentation, there was no significant increase in DPPH or ABTS free radical scavenging activity. Total polyphenolic content of Zizyphus jujube decreased to 12.39 mg/g upon fermentation, whereas flavonoid content significantly increased to 291.58 ${\mu}g/g$. Further, polyphenolic and flavonoid contents of black jujube increased from 15.46 mg/g to 17.46 mg/g and from 374.21 ${\mu}g/g$ to 1,135.29 ${\mu}g/g$, respectively. These results demonstrate that 9-Times Steamed and Dried increased functional components. Especially, lactic acid fermented black jujube showed remarkably high antioxidant activity. These results confirm the potential use of lactic acid fermented black jujube as a valuable resource for the development of functional foods.

The Meaning of Extraordinary Circumstances under the Regulation No 261/2004 of the European Parliament and of the Council (EC 항공여객보상규칙상 특별한 사정의 의미와 판단기준 - 2008년 EU 사법재판소 C-549/07 (Friederike Wallentin-Hermann v Alitalia) 사건을 중심으로 -)

  • Kim, Young-Ju
    • The Korean Journal of Air & Space Law and Policy
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    • v.29 no.2
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    • pp.109-134
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    • 2014
  • Regulation (EC) No 261/2004 of the European Parliament and of the Council of 11 February 2004 establishing common rules on compensation of assistance to passengers in the event of denied boarding and of cancellation or long delay of flights (Regulation No 261/2004) provides extra protection to air passengers in circumstances of denied boarding, cancellation and long-delay. The Regulation intends to provide a high level of protection to air passengers by imposing obligations on air carriers and, at the same time, offering extensive rights to air passengers. If denied boarding, cancellation and long-delay are caused by reasons other than extraordinary circumstances, passengers are entitled for compensation under Article 7 of Regulation No 261/2004. In Wallentin-Hermann v Alitalia-Linee Aeree Italiane SpA(Case C-549/07, [2008] ECR I-11061), the Court did, however, emphasize that this does not mean that it is never possible for technical problems to constitute extraordinary circumstances. It cited specific examples of where: an aircraft manufacturer or competent authority revealed that there was a hidden manufacturing defect on an aircraft which impacts on safety; or damage was caused to an aircraft as a result of an act of sabotage or terrorism. Such events are not inherent in the normal exercise of the activity of the air carrier concerned and is beyond the actual control of that carrier on account of its nature or origin. One further point arising out of the court's decision is worth mentioning. It is not just necessary to satisfy the extraordinary circumstances test for the airline to be excused from paying compensation. It must also show that the circumstances could not have been avoided even if all reasonable measures had been taken. It is clear from the language of the Court's decision that this is a tough test to meet: the airline will have to establish that, even if it had deployed all its resources in terms of staff or equipment and the financial means at its disposal, it would clearly not have been able - unless it had made intolerable sacrifices in the light of the capacities of its undertaking at the relevant time - to prevent the extraordinary circumstances with which it was confronted from leading to the cancellation of the flight.

New Insights on Mobile Location-based Services(LBS): Leading Factors to the Use of Services and Privacy Paradox (모바일 위치기반서비스(LBS) 관련한 새로운 견해: 서비스사용으로 이끄는 요인들과 사생활염려의 모순)

  • Cheon, Eunyoung;Park, Yong-Tae
    • Journal of Intelligence and Information Systems
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    • v.23 no.4
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    • pp.33-56
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    • 2017
  • As Internet usage is becoming more common worldwide and smartphone become necessity in daily life, technologies and applications related to mobile Internet are developing rapidly. The results of the Internet usage patterns of consumers around the world imply that there are many potential new business opportunities for mobile Internet technologies and applications. The location-based service (LBS) is a service based on the location information of the mobile device. LBS has recently gotten much attention among many mobile applications and various LBSs are rapidly developing in numerous categories. However, even with the development of LBS related technologies and services, there is still a lack of empirical research on the intention to use LBS. The application of previous researches is limited because they focused on the effect of one particular factor and had not shown the direct relationship on the intention to use LBS. Therefore, this study presents a research model of factors that affect the intention to use and actual use of LBS whose market is expected to grow rapidly, and tested it by conducting a questionnaire survey of 330 users. The results of data analysis showed that service customization, service quality, and personal innovativeness have a positive effect on the intention to use LBS and the intention to use LBS has a positive effect on the actual use of LBS. These results implies that LBS providers can enhance the user's intention to use LBS by offering service customization through the provision of various LBSs based on users' needs, improving information service qualities such as accuracy, timeliness, sensitivity, and reliability, and encouraging personal innovativeness. However, privacy concerns in the context of LBS are not significantly affected by service customization and personal innovativeness and privacy concerns do not significantly affect the intention to use LBS. In fact, the information related to users' location collected by LBS is less sensitive when compared with the information that is used to perform financial transactions. Therefore, such outcomes on privacy concern are revealed. In addition, the advantages of using LBS are more important than the sensitivity of privacy protection to the users who use LBS than to the users who use information systems such as electronic commerce that involves financial transactions. Therefore, LBS are recommended to be treated differently from other information systems. This study is significant in the theoretical point of contribution that it proposed factors affecting the intention to use LBS in a multi-faceted perspective, proved the proposed research model empirically, brought new insights on LBS, and broadens understanding of the intention to use and actual use of LBS. Also, the empirical results of the customization of LBS affecting the user's intention to use the LBS suggest that the provision of customized LBS services based on the usage data analysis through utilizing technologies such as artificial intelligence can enhance the user's intention to use. In a practical point of view, the results of this study are expected to help LBS providers to develop a competitive strategy for responding to LBS users effectively and lead to the LBS market grows. We expect that there will be differences in using LBSs depending on some factors such as types of LBS, whether it is free of charge or not, privacy policies related to LBS, the levels of reliability related application and technology, the frequency of use, etc. Therefore, if we can make comparative studies with those factors, it will contribute to the development of the research areas of LBS. We hope this study can inspire many researchers and initiate many great researches in LBS fields.

The Roles of Service Failure and Recovery Satisfaction in Customer-Firm Relationship Restoration : Focusing on Carry-over effect and Dynamics among Customer Affection, Customer Trust and Loyalty Intention Before and After the Events (서비스실패의 심각성과 복구만족이 고객-기업 관계회복에 미치는 영향 : 실패이전과 복구이후 고객애정, 고객신뢰, 충성의도의 이월효과 및 역학관계 비교를 중심으로)

  • La, Sun-A
    • Journal of Distribution Research
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    • v.17 no.1
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    • pp.1-36
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    • 2012
  • Service failure is one of the major reasons for customer defection. As the business environment gets tougher and more competitive, a single service failure might bring about fatal consequences to a service provider or a firm. Sometimes a failure won't end up with an unsatisfied customer's simple complaining but with a wide-spread animosity against the service provider or the firm, leading to a threat to the firm's survival itself in the society. Therefore, we are in need of comprehensive understandings of complainants' attitudes and behaviors toward service failures and firm's recovery efforts. Even though a failure itself couldn't be fixed completely, marketers should repair the mind and heart of unsatisfied customers, which can be regarded as an successful recovery strategy in the end. As the outcome of recovery efforts exerted by service providers or firms, recovery of the relationship between customer and service provider need to put on the top in the recovery goal list. With these motivations, the study investigates how service failure and recovery makes the changes in dynamics of fundamental elements of customer-firm relationship, such as customer affection, customer trust and loyalty intention by comparing two time points, before the service failure and after the recovery, focusing on the effects of recovery satisfaction and the failure severity. We adopted La & Choi (2012)'s framework for development of the research model that was based on the previous research stream like Yim et al. (2008) and Thomson et al. (2005). The pivotal background theories of the model are mainly from relationship marketing and social relationships of social psychology. For example, Love, Emotional attachment, Intimacy, and Equity theories regarding human relationships were reviewed. As the results, when recovery satisfaction is high, customer affection and customer trust that were established before the service failure are carried over to the future after the recovery. However, when recovery satisfaction is low, customer-firm relationship that had already established in the past are not carried over but broken up. Regardless of the degree of recovery satisfaction, once a failure occurs loyalty intention is not carried over to the future and the impact of customer trust on loyalty intention becomes stronger. Such changes imply that customers become more prudent and more risk-aversive than the time prior to service failure. The impact of severity of failure on customer affection and customer trust matters only when recovery satisfaction is low. When recovery satisfaction is high, customer affection and customer trust become severity-proof. Interestingly, regardless of the degree of recovery satisfaction, failure severity has a significant negative influence on loyalty intention. Loyalty intention is the most fragile target when a service failure occurs no matter how severe the failure criticality is. Consequently, the ultimate goal of service recovery should be the restoration of customer-firm relationship and recovery of customer trust should be the primary objective to accomplish for a successful recovery performance. Especially when failure severity is high, service recovery should be perceived highly satisfied by the complainants because failure severity matters more when recovery satisfaction is low. Marketers can implement recovery strategies to enhance emotional appeals as well as fair treatments since the both impacts of affection and trust on loyalty intention are significant. In the case of high severity of failure, recovery efforts should be exerted to overreach customer expectation, designed to directly repair customer trust and elaborately designed in the focus of customer-firm communications during the interactional recovery process to affect customer trust rebuilding indirectly. Because it is a longer and harder way to rebuild customer-firm relationship for high severity cases, low recovery satisfaction cannot guarantee customer retention. To prevent customer defection due to service failure of high severity, unexpected rewards as a recovery will be likely to be useful since those will lead to customer delight or customer gratitude toward the service firm. Based on the results of analyses, theoretical and managerial implications are presented. Limitations and future research ideas are also discussed.

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