• Journal of Fashion Business
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• v.6 no.5
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• pp.136-150
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• 2002

In this study, we proposed a method to be standing customers as the supporting system for the improvement of fashion garment industry which was the marginal growth getting into full maturity of market. As for the customer creation method of Fashion garment company is developing a marketing program to be standing customer as customer scoring to estimate a existing customer‘s buying power, and figure out minimum fixed sales of company to use a future purchasing predict. This study was a result of data from total sixty thousands data to be created for the 11 months from september. 2000 to July. 2001. The data is part of which the company leading the Korean fashion garment industry has a lot of a customer purchasing history data. But this study used only 48,845 refined purchased data to discriminate from sixty thousands data and 21,496 customer case with the exception of overlapping purchased data among of those. The software used to handle sixty thousands data was SAS e-miner. As the analysis process is put in to operation the analysis of the purchasing customer’s profile firstly, and the second come into basket analysis to consider the buying associations for Association goods, the third estimate the customer grade of Customer loyalty by 3 ways of logit regression analysis, decision tree, Artificial Neural Network. The result suggested a method to be estimate the customer loyalty as 3 independent variables, 2 coefficients. The 3 independent variables are total purchasing amount, purchasing items per one purchase, payment amount by one purchasing item. The 2 coefficients are royal and normal for customer segmentation. The result was that this model use a logit regression analysis was valid as the method to be estimate the customer loyalty.

• Proceedings of the KAIS Fall Conference
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• 2003.11a
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• pp.141-148
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• 2003

Customer retention is a common concern for many industries and a critical issue for the survival in today's greatly compressed marketplace. Current customer retention models only focus on detection of potential defectors based on the likelihood of defection by using demographic and customer profile information. In this paper, we propose a dynamic procedure for defection detection and prevention using past and current customer behavior by utilizing SOM and Markov chain. The basic idea originates from the observation that a customer has a tendency to change his behavior (i.e. trim-out his usage volumes) before his eventual withdrawal. This gradual pulling out process offers the company the opportunity to detect the defection signals. With this approach, we have two significant benefits compared with existing defection detection studies. First, our procedure can predict when the potential defectors could withdraw and this feature helps to give marketing managers ample lead-time for preparing defection prevention plans. The second benefit is that our approach can provide a procedure for not only defection detection but also defection prevention, which could suggest the desirable behavior state for the next period so as to lower the likelihood of defection. We applied our dynamic procedure for defection detection and prevention to the online gaming industry. Our suggested procedure could predict potential defectors without deterioration of prediction accuracy compared to that of the MLP neural network and DT.

• Journal of Intelligence and Information Systems
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• v.21 no.4
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• pp.93-110
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• 2015

The recommender system is a system which recommends products to the customers who are likely to be interested in. Based on automated information filtering technology, various recommender systems have been developed. Collaborative filtering (CF), one of the most successful recommendation algorithms, has been applied in a number of different domains such as recommending Web pages, books, movies, music and products. But, it has been known that CF has a critical shortcoming. CF finds neighbors whose preferences are like those of the target customer and recommends products those customers have most liked. Thus, CF works properly only when there's a sufficient number of ratings on common product from customers. When there's a shortage of customer ratings, CF makes the formation of a neighborhood inaccurate, thereby resulting in poor recommendations. To improve the performance of CF based recommender systems, most of the related studies have been focused on the development of novel algorithms under the assumption of using a single profile, which is created from user's rating information for items, purchase transactions, or Web access logs. With the advent of big data, companies got to collect more data and to use a variety of information with big size. So, many companies recognize it very importantly to utilize big data because it makes companies to improve their competitiveness and to create new value. In particular, on the rise is the issue of utilizing personal big data in the recommender system. It is why personal big data facilitate more accurate identification of the preferences or behaviors of users. The proposed recommendation methodology is as follows: First, multimodal user profiles are created from personal big data in order to grasp the preferences and behavior of users from various viewpoints. We derive five user profiles based on the personal information such as rating, site preference, demographic, Internet usage, and topic in text. Next, the similarity between users is calculated based on the profiles and then neighbors of users are found from the results. One of three ensemble approaches is applied to calculate the similarity. Each ensemble approach uses the similarity of combined profile, the average similarity of each profile, and the weighted average similarity of each profile, respectively. Finally, the products that people among the neighborhood prefer most to are recommended to the target users. For the experiments, we used the demographic data and a very large volume of Web log transaction for 5,000 panel users of a company that is specialized to analyzing ranks of Web sites. R and SAS E-miner was used to implement the proposed recommender system and to conduct the topic analysis using the keyword search, respectively. To evaluate the recommendation performance, we used 60% of data for training and 40% of data for test. The 5-fold cross validation was also conducted to enhance the reliability of our experiments. A widely used combination metric called F1 metric that gives equal weight to both recall and precision was employed for our evaluation. As the results of evaluation, the proposed methodology achieved the significant improvement over the single profile based CF algorithm. In particular, the ensemble approach using weighted average similarity shows the highest performance. That is, the rate of improvement in F1 is 16.9 percent for the ensemble approach using weighted average similarity and 8.1 percent for the ensemble approach using average similarity of each profile. From these results, we conclude that the multimodal profile ensemble approach is a viable solution to the problems encountered when there's a shortage of customer ratings. This study has significance in suggesting what kind of information could we use to create profile in the environment of big data and how could we combine and utilize them effectively. However, our methodology should be further studied to consider for its real-world application. We need to compare the differences in recommendation accuracy by applying the proposed method to different recommendation algorithms and then to identify which combination of them would show the best performance.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.57 no.8
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• pp.1342-1348
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• 2008

One important objective of the electricity market is to decrease the price by ensuring stability in the market operation. Interconnected to this is another objective; namely, to realize sustainable consumption of electricity by equitably distributing the effects and benefits of participating in the market among all participants of the industry. One method that can help achieve these objectives is the ^{(R)}$demand-response program, - which allows for active adjustment of the loadage from the demand side in response to the price. The demand-response program requires a customer baseline load (CBL), a criterion of calculating the success of decreases in demand. This study was conducted in order to calculate undistorted CBL by analyzing the correlations between such external or seasonal factors as temperature, humidity, and discomfort indices and the amounts of electricity consumed. The method and findings of this study are accordingly explicated.

• Journal of Intelligence and Information Systems
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• v.17 no.2
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• pp.61-75
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• 2011

A Geographic Information System(GIS) is a system that captures, stores, analyzes, manages and presents data with reference to geographic location data. In the later 1990s and earlier 2000s it was limitedly used in government sectors such as public utility management, urban planning, landscape architecture, and environmental contamination control. However, a growing number of open-source packages running on a range of operating systems enabled many private enterprises to explore the concept of viewing GIS-based sales and customer data over their own computer monitors. K telecommunication company has dominated the Korean telecommunication market by providing diverse services, such as high-speed internet, PSTN(Public Switched Telephone Network), VOLP (Voice Over Internet Protocol), and IPTV(Internet Protocol Television). Even though the telecommunication market in Korea is huge, the competition between major services providers is growing more fierce than ever before. Service providers struggled to acquire as many new customers as possible, attempted to cross sell more products to their regular customers, and made more efforts on retaining the best customers by offering unprecedented benefits. Most service providers including K telecommunication company tried to adopt the concept of customer relationship management(CRM), and analyze customer's demographic and transactional data statistically in order to understand their customer's behavior. However, managing customer information has still remained at the basic level, and the quality and the quantity of customer data were not enough not only to understand the customers but also to design a strategy for marketing and sales. For example, the currently used 3,074 legal regional divisions, which are originally defined by the government, were too broad to calculate sub-regional customer's service subscription and cancellation ratio. Additional external data such as house size, house price, and household demographics are also needed to measure sales potential. Furthermore, making tables and reports were time consuming and they were insufficient to make a clear judgment about the market situation. In 2009, this company needed a dramatic shift in the way marketing and sales activities, and finally developed a dedicated GIS_based market analysis and sales management system. This system made huge improvement in the efficiency with which the company was able to manage and organize all customer and sales related information, and access to those information easily and visually. After the GIS information system was developed, and applied to marketing and sales activities at the corporate level, the company was reported to increase sales and market share substantially. This was due to the fact that by analyzing past market and sales initiatives, creating sales potential, and targeting key markets, the system could make suggestions and enable the company to focus its resources on the demographics most likely to respond to the promotion. This paper reviews subjective and unclear marketing and sales activities that K telecommunication company operated, and introduces the whole process of developing the GIS information system. The process consists of the following 5 modules : (1) Customer profile cleansing and standardization, (2) Internal/External DB enrichment, (3) Segmentation of 3,074 legal regions into 46,590 sub_regions called blocks, (4) GIS data mart design, and (5) GIS system construction. The objective of this case study is to emphasize the need of GIS system and how it works in the private enterprises by reviewing the development process of the K company's market analysis and sales management system. We hope that this paper suggest valuable guideline to companies that consider introducing or constructing a GIS information system.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.10
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• pp.4626-4631
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• 2011

In this paper, we design an ubiquitous-type shopping mall using RFID(Radio Frequency IDentification) technology and a location analysis system which can locate customers in real time at off-line shopping malls as a way to provide any services to customers, based on the results of environmental analysis data. We also suggest an intelligent agent system which can provide a personalized information in time.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.32 no.3B
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• pp.175-182
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• 2007

In recent years, there have been active researches on the services of the next generation mobile communications. In particular, the services in the next generation mobile communications differ from the services in the conventional mobile communication services that they can provide the services customized at each user. The profile management technology becomes more important for such personalized services since it is closely related with providing services adaptively to user's current situation and preferences. However, the conventional profile management technologies have their limitations on providing personalized services because they put most of emphasis on the customer management. Even, it becomes more difficult with current profile management system to support the personalized services, where the service providers manage the user profiles independently each other. In this paper, we propose a novel profile management system called profile service provider, and describe the requirements to support personalized services in the next generation mobile communications.

• The Journal of the Korea Contents Association
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• v.11 no.5
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• pp.67-74
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• 2011

Collaborative recommendation is one of the most widely used methods of automated product recommendation in e-Commerce. For analyzing the customer's preference, traditional explicit ratings are less desirable than implicit ratings because it may impose an additional burden to the customers of e-commerce companies which deals with a number of products. Cardinal scales generally used for representing the preference intensity also ineffective owing to its increasing estimation errors. In this paper, we propose a new way of constructing the ordinal scale-based customer profile for collaborative recommendation. A Web usage mining technique and lexicographic consensus are employed. An experiment shows that the proposed method performs better than existing CF methodologies.

• Journal of Intelligence and Information Systems
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• v.18 no.2
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• pp.177-192
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• 2012

This is a study of match-making systems that considers the mutual satisfaction of matching partners. Recently, recommendation systems have been applied to people recommendation, such as recommending new friends, employees, or dating partners. One of the prominent domain areas is match-making systems that recommend suitable dating partners to customers. A match-making system, however, is different from a product recommender system. First, a match-making system needs to satisfy the recommended partners as well as the customer, whereas a product recommender system only needs to satisfy the customer. Second, match-making systems need to include as many participants in a matching pool as possible for their recommendation results, even with unpopular customers. In other words, recommendations should not be focused only on a limited number of popular people; unpopular people should also be listed on someone else's matching results. In product recommender systems, it is acceptable to recommend the same popular items to many customers, since these items can easily be additionally supplied. However, in match-making systems, there are only a few popular people, and they may become overburdened with too many recommendations. Also, a successful match could cause a customer to drop out of the matching pool. Thus, match-making systems should provide recommendation services equally to all customers without favoring popular customers. The suggested match-making system, called Mutually Beneficial Matching (MBM), considers the reciprocal satisfaction of both the customer and the matched partner and also considers the number of customers who are excluded in the matching. A brief outline of the MBM method is as follows: First, it collects a customer's profile information, his/her preferable dating partner's profile information and the weights that he/she considers important when selecting dating partners. Then, it calculates the preference score of a customer to certain potential dating partners on the basis of the difference between them. The preference score of a certain partner to a customer is also calculated in this way. After that, the mutual preference score is produced by the two preference values calculated in the previous step using the proposed formula in this study. The proposed formula reflects the symmetry of preferences as well as their quantities. Finally, the MBM method recommends the top N partners having high mutual preference scores to a customer. The prototype of the suggested MBM system is implemented by JAVA and applied to an artificial dataset that is based on real survey results from major match-making companies in Korea. The results of the MBM method are compared with those of the other two conventional methods: Preference-Based Matching (PBM), which only considers a customer's preferences, and Arithmetic Mean-Based Matching (AMM), which considers the preferences of both the customer and the partner (although it does not reflect their symmetry in the matching results). We perform the comparisons in terms of criteria such as average preference of the matching partners, average symmetry, and the number of people who are excluded from the matching results by changing the number of recommendations to 5, 10, 15, 20, and 25. The results show that in many cases, the suggested MBM method produces average preferences and symmetries that are significantly higher than those of the PBM and AMM methods. Moreover, in every case, MBM produces a smaller pool of excluded people than those of the PBM method.

• Journal of Information Technology Applications and Management
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• v.14 no.4
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• pp.221-233
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• 2007

Which factors should influence consumer consideration to subscribe to Voice over Internet Protocol (VoIP)? Policy issues, managerial concerns, and demographic variables are possible factors. This paper discusses policy and managerial issues regarding VoIP adoption. A model that explains VoIP adoption is proposed and tested. This study analyzes a survey of 750 prospective VoIP users in Korea. The testing is accompanied by logistic regression and discriminant analysis. The results show that trust in VoIP, relative comparison of Quality to fixed service, numbering plan, satisfactions of call Quality and customer services on both fixed and mobile services have impacts on the adoption of VoIP. Implications for VoIP providers and policy makers are presented.