• Title/Summary/Keyword: Churn Analysis

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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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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.

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.

Object Replication and Consistency Control Techniques of P2P Structures for Multiplayer Online Games (멀티플레이어 온라인 게임을 위한 P2P 구조의 객체 복제와 일관성 제어 기법)

  • Kim, Jinhwan
    • The Journal of the Institute of Internet, Broadcasting and Communication
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    • v.14 no.4
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    • pp.91-99
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    • 2014
  • The main game architectures for multiplayer online games are the traditional client-server architectures, multi-server architectures and P2P(peer-to-peer) architectures. P2P architectures, due to their distributed and collaborative nature, have low infrastructure costs and can achieve high scalability as well as fast response time by creating direct connections between players. However, P2P architectures face many challenges. Distributing a game among peers makes maintaining control over the game more complex. These architectures also tend to be vulnerable to churn and cheating. Providing consistency control in P2P systems is also more difficult since conflicting updates might be executed at different sites resulting in inconsistency. In order to avoid or correct inconsistencies, most multiplayer games use a primary-copy replication approach where any update to the object has to be first performed on the primary copy. This paper presents the primary-copy model with the update dissemination mechanism that provides consistency control over an object in P2P architectures for multiplayer online games. The performance for this model is evaluated through simulation experiments and analysis.

A Startegy to Improve Customer Satisfaction in Mutuality Bank: Focus on Suhyup (상호금융 고객만족 제고를 위한 전략방향:수협을 중심으로)

  • Cho, Yong-Jun;Park, Chun-Gun
    • The Korean Journal of Applied Statistics
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    • v.23 no.5
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    • pp.799-812
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    • 2010
  • The public banking market (the main eld of the second banking sector) faces increased competition du to the expansion of the rst banking sector. In this situation, Customer Satisfaction Management(CSM is emerging as a core business factor to create continuous growth without competitive exclusion because it is possible to churn management and draw an advocate customer. In this pa- per, with Suhyup mutuality bank as a sample for research, I have looked for necessary Customer Satisfaction(CS) factors and deduced a Customer Satisfaction Index(CSI), Customer Loyalty and Net Promoter Score(NPS) of detail factors in CS through a survey. Based on these result, the strategic factors required to improve CS were found and strategic directions for CS were proposed through a CS portfolio analysis.

Consumption Changes during COVID-19 through the Analysis of Credit Card Usage : Focused on Jeju Province

  • YOON, Dong-Hwa;YANG, Kwon-Min;OH, Hyeon-Gon;KIM, Mincheol;CHANG, Mona
    • The Journal of Economics, Marketing and Management
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    • v.9 no.5
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    • pp.39-50
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    • 2021
  • Purpose: This study is to analyze the changes of consumption patterns to diagnose the economic impacts on consumers' market during COVID-19, and to suggest implications to overcome the new social and economic crisis of Jeju Island. Research design, data, and methodology: We collected a set of credit card transaction records issued by BC Card Company from merchants in Jeju Special Self-Governing Province for past 4 years from 2017 to 2020 from the Jeju Data Hub run by Jeju Special Self-Governing Province. The big data contains details of approved credit card transactions including the approval numbers, amount, locations and types of merchants, time and age of users, etc. The researchers summed up amount in monthly basis, transforming big data to small data to analyze the changes of consumption before and after COVID-19. Results: Sales fell sharply in transportation industries including airlines, and overall consumption by age group decreased while the decrease in consumption among the seniors was relatively small. The sales of Yeon-dong and Yongdam-dong in Jeju City also fell significantly compared to other regions. As a result of the paired t-test of all 73 samples in Jeju City, the p-value of the mean consumption of the credit card in 2019 and 2020 is significant, statistically proven that the total consumption amount in the two years is different. Conclusions: We found there are sensitive spots that can be strategically approached based on the changes in consumption patterns by industry, region, and age although most of companies and small businesses have been hit by COVID-19. It is necessary for local companies and for the government to be focusing their support on upgrading services, in order to prevent declining sales and job instability for their employees, creating strategies to retain jobs and prevent customer churn in the face of the crisis. As Jeju Province is highly dependent on the tertiary industry, including tourism, it is suggested to create various strategies to overcome the crisis of the pandemic by constantly monitoring the sales trends of local companies.

An Empirical Study on Key Factors Affecting Churn Behavior with the Voices of Contact Center Customers (고객센터 상담내용 분석을 통한 이탈 요인에 관한 실증 연구)

  • Jang, Moonkyoung;Yoo, Byungjoon;Lee, Jaehwan
    • The Journal of Society for e-Business Studies
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    • v.22 no.4
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    • pp.141-158
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    • 2017
  • Along with IT development, customers are getting more easily to express their opinions using various IT channels. In this situation, complaint management is a pressing issue for companies to acquire and maintain loyal customers with low cost. Most of previous studies have investigated customer complaint information by quantitative variables such as demographic information, transaction information, or complaint frequency, but studies focusing on qualitative aspects of complaint information are limited. Therefore, this paper considers the possibility for customers to leave even when they complain occasionally or briefly. This paper analyzes the quantitive aspects as well as the qualitative aspects using sentiment analysis with Exit-voice theory. The dataset contains 268,364 inquiries of 46,235 customers obtained from a contact center of a private security company in Korea. This paper carries out logistic regression and the results imply that the customers's explicit response and their implicit sentiment have different effect on customers leave. This study is expected to provide useful suggestions for the effective complaint management.

Real-time Hybrid Testing a Building Structure Equipped with Full-scale MR dampers and Application of Semi-active Control Algorithms (대형 MR감쇠기가 설치된 건축구조물의 실시간 하이브리드 실험 및 준능동 알고리즘 적용)

  • Park, Eun-Churn;Lee, Sung-Kyung;Lee, Heon-Jae;Moon, Suk-Jun;Jung, Hyung-Jo;Min, Kyung-Won
    • Journal of the Computational Structural Engineering Institute of Korea
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    • v.21 no.5
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    • pp.465-474
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    • 2008
  • The real-time hybrid testing method(RT-HYTEM) is a structural testing technique in which the numerical integration of the equation of motion for a numerical substructure and the physical testing for an experimental substructure are performed simultaneously in real-time. This study presents the quantitative evaluation of the seismic performance of a building structure installed with an passive and semi-active MR damper by using RT-HYTEM. The building model that was identified from the force-vibration testing results of a real-scaled 5-story building is used as the numerical substructure, and an MR damper corresponding to an experimental substructure is physically tested by using the universal testing machine(UTM). The RT-HYTEM implemented in this study is validated because the real-time hybrid testing results obtained by application of sinusoidal and earthquake excitations and the corresponding analytical results obtained by using the Bouc-Wen model as the control force of the MR damper respect to input currents were in good agreement. Also for preliminary study, some semi-active control algorithms were applied to the MR damper in order to control the structural responses optimally. Comparing between the test results of semi-active control using RT-HYTEM and numerical analysis results show that the RT-HYTEM is more resonable than numerical analysis to evaluate the performance of semi-active control algorithms.

Understanding Over The Top(OTT) and Continuance Intention to Use OTT: Impacts of OTT Characteristics and Price Fairness (Over The Top(OTT)의 지속이용의도에 대한 이해: OTT 특성과 가격공정성의 영향)

  • Park, Hyunsun;Kim, Sanghyun;Sohn, Changyong
    • Knowledge Management Research
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    • v.23 no.1
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    • pp.203-225
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    • 2022
  • Competition in the OTT (Over the Top) service market is getting fiercer since global OTT services enter the domestic market and existing platforms are actively reorganized. As powerful competitors with ultra-luxurious content continue to enter the marke with diversity required by users, various efforts are required for OTT service platforms to prevent subscriber churn in order to generate continuous revenue. Thus, this study tried to examine the effect of OTT service characteristics on continuous use intention through an empirical analysis based on Expectation-Confirmation Model(ECM). A total of 386 responses were collected from individuals who have experience or are currently using OTT service and analyzed using AMOS 24. Results show that content curation, content richness, and audience activity had a significant effect on expectation confirmation. Also, expectation confirmation had a significant effect on perceived usefulness and user satisfaction while perceived usefulness had a significant effect on user satisfaction, significantly influencing continuous intention to use OTT. Finally, price fairness was found to strengthen all proposed relationships. The findings are expected to provide useful information for service and content development for subscriber retention, which has the most direct impact on revenue generation of OTT service providers.

Feasibility of Deep Learning Algorithms for Binary Classification Problems (이진 분류문제에서의 딥러닝 알고리즘의 활용 가능성 평가)

  • Kim, Kitae;Lee, Bomi;Kim, Jong Woo
    • Journal of Intelligence and Information Systems
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    • v.23 no.1
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    • pp.95-108
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    • 2017
  • Recently, AlphaGo which is Bakuk (Go) artificial intelligence program by Google DeepMind, had a huge victory against Lee Sedol. Many people thought that machines would not be able to win a man in Go games because the number of paths to make a one move is more than the number of atoms in the universe unlike chess, but the result was the opposite to what people predicted. After the match, artificial intelligence technology was focused as a core technology of the fourth industrial revolution and attracted attentions from various application domains. Especially, deep learning technique have been attracted as a core artificial intelligence technology used in the AlphaGo algorithm. The deep learning technique is already being applied to many problems. Especially, it shows good performance in image recognition field. In addition, it shows good performance in high dimensional data area such as voice, image and natural language, which was difficult to get good performance using existing machine learning techniques. However, in contrast, it is difficult to find deep leaning researches on traditional business data and structured data analysis. In this study, we tried to find out whether the deep learning techniques have been studied so far can be used not only for the recognition of high dimensional data but also for the binary classification problem of traditional business data analysis such as customer churn analysis, marketing response prediction, and default prediction. And we compare the performance of the deep learning techniques with that of traditional artificial neural network models. The experimental data in the paper is the telemarketing response data of a bank in Portugal. It has input variables such as age, occupation, loan status, and the number of previous telemarketing and has a binary target variable that records whether the customer intends to open an account or not. In this study, to evaluate the possibility of utilization of deep learning algorithms and techniques in binary classification problem, we compared the performance of various models using CNN, LSTM algorithm and dropout, which are widely used algorithms and techniques in deep learning, with that of MLP models which is a traditional artificial neural network model. However, since all the network design alternatives can not be tested due to the nature of the artificial neural network, the experiment was conducted based on restricted settings on the number of hidden layers, the number of neurons in the hidden layer, the number of output data (filters), and the application conditions of the dropout technique. The F1 Score was used to evaluate the performance of models to show how well the models work to classify the interesting class instead of the overall accuracy. The detail methods for applying each deep learning technique in the experiment is as follows. The CNN algorithm is a method that reads adjacent values from a specific value and recognizes the features, but it does not matter how close the distance of each business data field is because each field is usually independent. In this experiment, we set the filter size of the CNN algorithm as the number of fields to learn the whole characteristics of the data at once, and added a hidden layer to make decision based on the additional features. For the model having two LSTM layers, the input direction of the second layer is put in reversed position with first layer in order to reduce the influence from the position of each field. In the case of the dropout technique, we set the neurons to disappear with a probability of 0.5 for each hidden layer. The experimental results show that the predicted model with the highest F1 score was the CNN model using the dropout technique, and the next best model was the MLP model with two hidden layers using the dropout technique. In this study, we were able to get some findings as the experiment had proceeded. First, models using dropout techniques have a slightly more conservative prediction than those without dropout techniques, and it generally shows better performance in classification. Second, CNN models show better classification performance than MLP models. This is interesting because it has shown good performance in binary classification problems which it rarely have been applied to, as well as in the fields where it's effectiveness has been proven. Third, the LSTM algorithm seems to be unsuitable for binary classification problems because the training time is too long compared to the performance improvement. From these results, we can confirm that some of the deep learning algorithms can be applied to solve business binary classification problems.