• Title/Summary/Keyword: Churn

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Increasing Customer Lifetime Value by Encouraging Customers to Pay Less in a Competitive Electricity Market (경쟁적 전력 시장 하에서 고객의 비용 절감을 통한 고객 평생 가치 증대에 관한 연구)

  • Kwon, Kwi-Seok;Cho, Jin-Hyung;Kang, Hwan-Soo
    • The Journal of the Korea Contents Association
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    • v.9 no.12
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    • pp.245-252
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    • 2009
  • The electrical power industry has been recognized as a natural monopoly industry for its technological and industrial characteristics. However, a competitive market system has been introduced to that industry in Europe, North America and Australia to overcome the inefficiencies originated from the monopolistic system for decades. In Korea, the power industry is expected to be placed in a competitive market system within several years after separation and privatization of vertically integrated industry in progress. Hence, there is a need for a research on the increase of customer value in that industry, however, existing studies have little dealt with that problem and there is no research on the price policy to consider churn and retention of customers. Therefore, this study provides a methodology for increasing customer loyalty and lifetime value by presenting the lowest pricing plan which leads to diminishing customers' cost. It is verified through an empirical examination that firms can enhance customer loyalty using a price element in that industry and maximize their profit by finding out customers whose lifetime values would increase.

Improving the Effectiveness of Customer Classification Models: A Pre-segmentation Approach (사전 세분화를 통한 고객 분류모형의 효과성 제고에 관한 연구)

  • Chang, Nam-Sik
    • Information Systems Review
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    • v.7 no.2
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    • pp.23-40
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    • 2005
  • Discovering customers' behavioral patterns from large data set and providing them with corresponding services or products are critical components in managing a current business. However, the diversity of customer needs coupled with the limited resources suggests that companies should make more efforts on understanding and managing specific groups of customers, not the whole customers. The key issue of this paper is based on the fact that the behavioral patterns extracted from the specific groups of customers shall be different from those from the whole customers. This paper proposes the idea of pre-segmentation before developing customer classification models. We collected three customers' demographic and transactional data sets from a credit card, a tele-communication, and an insurance company in Korea, and then segmented customers by major variables. Different churn prediction models were developed from each segments and the whole data set, respectively, using the decision tree induction approach, and compared in terms of the hit ratio and the simplicity of generated rules.

A Study on Gas-Liquid Contact in a Perforated Plate-Type $SO_2$ Absorber at Flooding Conditions

  • Han, Seung-Ho;Soowoo Kwon;Sangwon Jung;Jaehyuk Junk;Yang, Chang-Ryung;Carl Weilert
    • Journal of Korean Society for Atmospheric Environment
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    • v.15 no.E
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    • pp.17-28
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    • 1999
  • Gas-liquid contact tests above a perforated-plate were conducted with air and water at flooding gas-flow conditions in order to study two-phase flow characteristics in a limestone-gypsum SO2 absorber. Gas layers were in the form of air pockets and confined to the limited areas around each duct pipe, while the remaining tary area were in the wet condition. The liquid above the tray was always in the flooded and even fluidized conditions at gas flows over the range studied, although vigorous bubbly or churn-turbulent two-phase regime was only observed in the immediate vicinity of the gas hole exit at low gas loads. The froth zone was extremely active to provide intimate contact between gas and liquid so that the necessary mass transfer operation can take place, which is the primary purpose of high-performance SO2 absorbers. Howefer, the absorber $\Delta$P was 250mmH2O for the initial water level at 150mm, which is an important issue to be resolved for economical operation of the SO2 absorber. It was seen in the liquid level-and gas flow-transient tests that changes in the absorber liquid inventory were much more pronounced for intimate gas-liquid contact than changes in the gas flow. Based on the 4- and 8-duct pipe test results, grouping the duct pipes near the center of the test tray seemed to promote better recirulation of liquid from gas-liquid contact zone back to the reaction tank so that the absorbed SO2 can be neutralized.

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An Analysis on Competition and Ecology of Mobile Platform : Based on the Continuous Usage Intention of Smart-Phone OS Platform (모바일 플랫폼 경쟁과 모바일 생태계에 관한 고찰 : 스마트폰 운영 플랫폼의 지속사용 의도를 중심으로)

  • Lee, Bo-Kyoung;Shim, Seon-Young
    • Journal of Information Technology Services
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    • v.11 no.2
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    • pp.19-47
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    • 2012
  • Contemporary smartphone competition is generally described as the battle between Apple's proprietary platform and Google's open platform. However, this competition is not limited within smartphone adoption itself. User's pre-adoption of one mobile platform via smartphone can be connected to the post-adoption of the same mobile platform based on the other smart devices (e.g. smart pad). In this study, we investigate whether user's preference to a certain platform is persistent over mobile ecology, from the pre-adoption of one smart device to the post-adoption of following devices. For this investigation, we adopt the dual-model as the ground theory, where post-adoption of IT product is explained by both dedication and constraint factors. The empirical testing first evidences that dual model works well as our research model for identifying the reasons of post-adoption. Next, we group our data into two parts in order to compare the switching behavior of iPhone users and Android phone users. iPhone users show much lower switching rate to Android based smart pads, while Android phone users show higher churn rate to iPad (49.3% : 96.3%). Especially, satisfaction showed much stronger effect than switching cost on the continuing intention of existing platform, when the analysis is given to the iPhone user's group. From this result, we can conjecture the relatively stronger loyalty of iPhone users. More managerial implications on the mobile platform strategy are driven.

Performance Evaluation of a Large-scale MR Damper for Controlling Seismic Response using a Real-time Hybrid Test Method (실시간 하이브리드 실험법을 이용한 대형 MR감쇠기의 제진 성능평가)

  • Chung, Hee-San;Lee, Sung-Kyung;Park, Eun-Churn;Youn, Kyung-Jo;Min, Kyung-Won;Lee, Heon-Jae;Choi, Kang-Min;Moon, Suk-Jun;Jung, Hyung-Jo
    • Proceedings of the Korean Society for Noise and Vibration Engineering Conference
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    • 2007.11a
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    • pp.655-660
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    • 2007
  • This paper presents real-time hybrid test method of large-scale MR damper applied to a building structure under seismic excitation. The real-time hybrid test using an actuator for the control performance evaluation of a MR damper controlling the response of earthquake-excited building structure is experimentally implemented. In the test, the building structure is used as a numerical part, on which a large-scale MR damper adopted as an experimental part was installed to reduce its response. At first, the force that is acting between a MR damper and building structure is measured from the load cell attached on the actuator system and is fed-back to the computer to control the motion of the actuator. Then, the actuator is so driven that the error between the interface displacement computed from the numerical building structure with the excitations of earthquake and the fed-back interface force and that measured from the actuator. The control efficiency of the MR damper used in this paper is experimentally confirmed by implementing this process of experiment on real-time.

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A Tuned Liquid Mass Damper(TLMD) for Controlling Bi-directional Responses of a Building Structure (건축구조물의 2방향 진동제어를 위한 동조액체질량감쇠기)

  • Heo, Jae-Sung;Park, Eun-Churn;Lee, Sang-Hyun;Lee, Sung-Kyung;Kim, Hong-Jin;Cho, Bong-Ho;Jo, Ji-Seong;Kim, Dong-Young;Min, Kyung-Won
    • Transactions of the Korean Society for Noise and Vibration Engineering
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    • v.18 no.3
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    • pp.345-355
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    • 2008
  • This paper presents a design of a tuned liquid mass damper(TLMD) for controlling bi-directional response of high-rise building structure subjected to windload. The proposed damper behaves as a tuned mass damper(TMD) of which mass is regarded as the mass of a tuned liquid column damper(TLCD) and the case wall of the TLCD itself in one direction and the TLCD in the other direction. Because the proposed device has coupled design parameter along two orthogonal directions, it is very important to select designing components by optimal fine tuning. In the designing TLMD, for easy maintenance, the rubber-bearing with small springs was applied in TMD direction. In this study, the Songdo New City Tower 1A in Korea, which has been designed and constructed two TLCDs in order to control bi-directional response, was chosen as the model building structure. The results of rotation test proved the effectiveness of bi-directional behavior of TLMD.

On the Tree Model grown by one-sided purity (단측 순수성에 의한 나무모형의 성장에 대하여)

  • 김용대;최대우
    • Journal of Intelligence and Information Systems
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    • v.7 no.1
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    • pp.17-25
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    • 2001
  • Tree model is the most popular classification algorithm in data mining due to easy interpretation of the result. In CART(Breiman et al., 1984) and C4.5(Quinlan, 1993) which are representative of tree algorithms, the split fur classification proceeds to attain the homogeneous terminal nodes with respect to the composition of levels in target variable. But, fur instance, in the chum prediction modeling fur CRM(Customer Relationship management), the rate of churn is generally very low although we are interested in mining the churners. Thus it is difficult to get accurate prediction modes using tree model based on the traditional split rule, such as mini or deviance. Buja and Lee(1999) introduced a new split rule, one-sided purity for classifying minor interesting group. In this paper, we compared one-sided purity with traditional split rule, deviance analyzing churning vs. non-churning data of ISP company. Also reviewing the result of tree model based on one-sided purity with some simulated data, we discussed problems and researchable topics.

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Empirical Analysis on Subscriber Churning in Mobile Number Portability System (이동전화번호이동제도에 따른 가입자 전환 실증분석)

  • Kim, Ho;Park, Yun-Seo;Jun, Duk-Bin
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2007.11a
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    • pp.341-356
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    • 2007
  • We study factors that affect consumers' switching behaviors among service providers in Korean mobile telecommunications service market. For empirical analysis, quarterly time series data from the first quarter of 2004 through the second quarter of 2007 were used. We chose the number of switchers to each mobile service provider in each quarter as dependent variables. Independent variables include acquisition costs per subscriber, which play the role of subsidy to mobile handset, switching costs, time trend, structural change effect, and standby demand effects. Through the empirical analysis, we found that different providers' churn-in customers are affected by different factors. Specifically, the number of chum-in customers into SK Telecom is explained mainly by SK Telecom's customer acquisition costs and standby demand from KTF, while the number of customers switching into KTF is better explained by switching costs from the previous service provider and standby demand from SK Telecom. Those who chose LG Telecom as their new provider, on the other hand, were mainly attracted by LG Telecom's high subscriber acquisition cost.

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Dynamic Scheduling of Network Processes for Multi-Core Systems (멀티 코어 시스템에서 통신 프로세스의 동적 스케줄링)

  • Jang, Hye-Churn;Jin, Hyun-Wook;Kim, Hag-Young
    • Journal of KIISE:Computing Practices and Letters
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    • v.15 no.12
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    • pp.968-972
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    • 2009
  • The multi-core processors are being widely exploited by many high-end systems. With significant advances in processor architecture, the network band-width required on the high-end systems is increasing drastically. It is therefore highly desirable to manage multiple cores efficiently to achieve high network band-width with minimum resource requirements. Modern operating systems, however, still have significant design and optimization space to leverage the network performance over multi-core systems. In this paper, we suggest a novel networking process scheduling scheme, which decides the best processor affinity of networking processes based on the processor cache layout, communication intensiveness, and processor loads. The experimental results show that the scheduling scheme implemented in the Linux kernel can improve the network bandwidth and the effectiveness of processor utilization by 20% and 59%, respectively.

The Drivers of Customer Defection in Online Games across Customer Types : Evidence from Novice and Experienced Customers (온라인 게임의 고객 유형 별 이탈 요인 : 신규 고객과 기존 고객을 중심으로)

  • Son, Jungmin;Jo, Wooyong;Choi, Jeonghye
    • Journal of the Korean Operations Research and Management Science Society
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    • v.39 no.4
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    • pp.115-136
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    • 2014
  • The game industry has grown steadily and the online game has become one of the most attractive game segments for its remarkable growth. Customer management in the online game industry, however, has received little attention from the academic field. The purpose of this study is to analyze the drivers of customer defection in the online game setting and suggest not only theoretical but also managerial insights into increasing customer retention rates. Prior to empirical analysis, the authors hypothesized that 3 variables of interests (Learning, Playing, Achievement) would explain the customer defection according to preceeding researches. To demonstrate these hypotheses, the authors obtained data from one of the biggest game publishers in Korea, and the empirical analysis model was developed considering context of research settings. The results of analyses provide the following insights. First, the key behavioral variables of Learning, Playing, and Achievement play substantial roles in explaining the customer defection. Next, the effects of these variables vary between customer types: novice and experienced customers. The defection decisions by novice customers are predicted by all key behavioral variables and Playing serves as the most influential indicator of the defection decisions. However, experienced customers are influenced by Playing and Achievement, while Learning has no impact on the defection decisions. Finally, the authors investigated hypothetical customer retention strategies, using the empirical results. The market outcomes indicate that the customer retention strategies work well with novice customers and it is hard-to-impossible to prevent experienced customers from defection using their behavioral data. These findings together deliver several meaningful insights to management as follow. First, the management should support customers to get involved in Learning activities at the very first stage. Second, customer's Achievement and appropriate compensation for it would work as defection barriers. Last, to optimize the outcomes of firm's marketing investments, it is better to focus on retention of novice users not experienced ones.