• Proceedings of the Korea Inteligent Information System Society Conference
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• 2000.04a
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• pp.187-196
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• 2000

A lot of Internet shopping malls strive for obtaining a competitive advantage over others in an increasingly tighter electronic marketplace. To this end, understanding customer preference toward products (or services) and administering appropriate marketing strategy is essential for their continuous survival. However, only a few marketing researchers and practicioners focused on this issue, compared with academic and industry efforts devoted to traditional market segmentation. In this paper, we suggest a methodology of conjoint segmentation for electronic shopping malls. Traditional market segmentation methodologies based on customer's profile sometimes fail to utilize abundant information given while navigating around cyber shopping malls. In this methodology, we do not impose information overload to the customer for preference elicitation, but this methodology, we do not impose information overload to the customer for preference elicitation, but capture automatically generated surfing or buying data and analyze them to get useful market segmentation information. The methodology consists of 4-stages: 1) analyzing legacy homepages, 2) data preparation, 3) estimating and interpreting the result, and 4) developing marketing mix. Our methodology was to give useful guidelines for market segmentation to companies working in the electronic marketplace.

• Asia pacific journal of information systems
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• v.20 no.1
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• pp.81-99
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• 2010

Lately, in consumers' markets the number of new items is rapidly increasing at an overwhelming rate while consumers have limited access to information about those new products in making a sensible, well-informed purchase. Therefore, item providers and customers need a system which recommends right items to right customers. Also, whenever new items are released, for instance, the recommender system specializing in new items can help item providers locate and identify potential customers. Currently, new items are being added to an existing system without being specially noted to consumers, making it difficult for consumers to identify and evaluate new products introduced in the markets. Most of previous approaches for recommender systems have to rely on the usage history of customers. For new items, this content-based (CB) approach is simply not available for the system to recommend those new items to potential consumers. Although collaborative filtering (CF) approach is not directly applicable to solve the new item problem, it would be a good idea to use the basic principle of CF which identifies similar customers, i,e. neighbors, and recommend items to those customers who have liked the similar items in the past. This research aims to suggest a hybrid recommendation procedure based on the preference boundary of target customer. We suggest the hybrid recommendation procedure using the preference boundary in the feature space for recommending new items only. The basic principle is that if a new item belongs within the preference boundary of a target customer, then it is evaluated to be preferred by the customer. Customers' preferences and characteristics of items including new items are represented in a feature space, and the scope or boundary of the target customer's preference is extended to those of neighbors'. The new item recommendation procedure consists of three steps. The first step is analyzing the profile of items, which are represented as k-dimensional feature values. The second step is to determine the representative point of the target customer's preference boundary, the centroid, based on a personal information set. To determine the centroid of preference boundary of a target customer, three algorithms are developed in this research: one is using the centroid of a target customer only (TC), the other is using centroid of a (dummy) big target customer that is composed of a target customer and his/her neighbors (BC), and another is using centroids of a target customer and his/her neighbors (NC). The third step is to determine the range of the preference boundary, the radius. The suggested algorithm Is using the average distance (AD) between the centroid and all purchased items. We test whether the CF-based approach to determine the centroid of the preference boundary improves the recommendation quality or not. For this purpose, we develop two hybrid algorithms, BC and NC, which use neighbors when deciding centroid of the preference boundary. To test the validity of hybrid algorithms, BC and NC, we developed CB-algorithm, TC, which uses target customers only. We measured effectiveness scores of suggested algorithms and compared them through a series of experiments with a set of real mobile image transaction data. We spilt the period between 1st June 2004 and 31st July and the period between 1st August and 31st August 2004 as a training set and a test set, respectively. The training set Is used to make the preference boundary, and the test set is used to evaluate the performance of the suggested hybrid recommendation procedure. The main aim of this research Is to compare the hybrid recommendation algorithm with the CB algorithm. To evaluate the performance of each algorithm, we compare the purchased new item list in test period with the recommended item list which is recommended by suggested algorithms. So we employ the evaluation metric to hit the ratio for evaluating our algorithms. The hit ratio is defined as the ratio of the hit set size to the recommended set size. The hit set size means the number of success of recommendations in our experiment, and the test set size means the number of purchased items during the test period. Experimental test result shows the hit ratio of BC and NC is bigger than that of TC. This means using neighbors Is more effective to recommend new items. That is hybrid algorithm using CF is more effective when recommending to consumers new items than the algorithm using only CB. The reason of the smaller hit ratio of BC than that of NC is that BC is defined as a dummy or virtual customer who purchased all items of target customers' and neighbors'. That is centroid of BC often shifts from that of TC, so it tends to reflect skewed characters of target customer. So the recommendation algorithm using NC shows the best hit ratio, because NC has sufficient information about target customers and their neighbors without damaging the information about the target customers.

• Information Systems Review
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• v.9 no.1
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• pp.85-103
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• 2007

The purpose of this study is to evaluate the performance of collaborative filtering recommender algorithms for better prediction accuracy of the customer's preference. The accuracy of customer's preference prediction is compared through the MAE of neighborhood based collaborative filtering algorithm and correspondence mean algorithm. It is analyzed by using MovieLens 1 Million dataset in order to experiment with the prediction accuracy of the algorithms. For similarity, weight used in both algorithms, commonly, Pearson's correlation coefficient and vector similarity which are used generally were utilized, and as a result of analysis, we show that the accuracy of the customer's preference prediction of correspondence mean algorithm is superior. Pearson's correlation coefficient and vector similarity used in two algorithms are calculated using the preference rating of two customers' co-rated movies, and it shows that similarity weight is overestimated, where the number of co-rated movies is small. Therefore, it is intended to increase the accuracy of customer's preference prediction through expanding the number of the existing co-rated movies.

• Health Policy and Management
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• v.20 no.3
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• pp.1-20
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• 2010

Objectives : This study is purposed to segment dental service markets with reflecting customer's preference and to suggest some marketing strategies applied to each segmented market. Methods : The customer's data collected from a series of online survey comprise such factors as expertise of dentist, courtesy, clinic size, equipment, price and distance, including some socio-demographics. A conjoint analysis and a clustering analysis with estimated coefficients were performed to find out some dental market segments for three dental service types such as dental caries, esthetic treatments and dental implants. Results : Three or four market segments for each dental service type are derived from the analysis, and subsequently market characteristics for each derived segment are explored. Furthermore, some dental marketing strategies for each segment are suggested for better management. Conclusion : A conventional way of developing dental marketing strategies can be improved, while specific customer's preference are responded.

• CRM연구
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• v.4 no.1
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• pp.55-68
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• 2011

Recently with the development of Web services by utilizing a variety of web content, the studies on user experience and personalization based on web usage has attracted much attention. Majority of personalized analysis are have been carried out based on existing data, primarily using the database and statistical models. These approaches are difficult to reflect in a timely mannerm, and are limited to reflect the true behavioral characteristics because the data itself was just a result of customers' behaviors. However, recent studies and commercial products on web analytics try to track and analyze all of the actions from landing to exit to provide personalized service. In this study, by analyzing the customer's click-stream behaviors, we define U-Score(Usage Score), P-Score (Preference Score), M-Score(Mania Score) to indicate variety of customer preferences. With the devised three indicators, we can identify the customer's preferences more precisely, provide in-depth customer reports and customer relationship management, and utilize personalized recommender services.

• Journal of Global Scholars of Marketing Science
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• v.16 no.3
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• pp.61-86
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• 2006

The main purpose of this study is to conceptualize and investigate the relationships between the antecedents and outcomes of customer satisfaction and the linking variables of brand preference and repurchase intention in service industries. To achieve this objective, the study tries to validate the structural equation model and causal relationships among the model's elements involving antecedents to customer satisfaction(perceived quality, value, equity), consequences(brand preference, repurchase intention), and moderating variable/switching cost, customer loyalty). Empirical findings are as follows: First, the effect of two antecedents/perceived quality and value) on customer. satisfaction was accepted but perceived equity was rejected. Second, I found out that there were direct or indirect relationships between the mediating variables/switching cost, customer loyalty, brand preference) and repurchase intention. This means that the proper management concerned with indirect path is probably more important for the success of services industries. Third, the direct effects of customer satisfaction and switching cost on repurchase intention were not significant against the existing studies excepting brand preference. This implies that repurchase intention was mainly intensified by the indirect path, 'customer loyalty${\rightarrow}$brand preference${\rightarrow}$repurchase intention' and 'switching cost${\rightarrow}$brand preference${\rightarrow}$repurchase intention.' The service marketers make efforts not only to strengthen the direct casual linkage but also to consolidate the indirect connections leading to create repurchase intention. Finally, the proper management of these structural relationships will help clarify the role of service marketer resulting in increasing sustainable competitive advantage in service industries.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.27 no.1
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• pp.38-46
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• 2004

To be successful in increasingly competitive Internet marketplace, it is essential to capture customer loyalty. This paper deals with an intelligent agent approach to incorporate customer's sensibility into an one-to-one recommendation service in on-line shopping mall. In this paper the focus of interest is on-line recommendation service algorithm for development of Human Sensibility based web agent system. The recommendation agent system composed of seven services including specialized algorithm. The on-line recommendation service algorithm use human sensibility ergonomics and on-line preference matching technologies to tailor to the customer the suggestion of goods and the description of store catalog. Customizing the system's behavior requires the parallel execution of several tasks during the interaction (e.g., identifying the customer's emotional preference and dynamically generating the pages of the store catalog). Most of the present shopping malls go through the catalog of goods, but the future shopping malls will have the form of intelligent shopping malls by applying the on-line recommendation service algorithm.

• Asia pacific journal of information systems
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• v.9 no.2
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• pp.133-150
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• 1999

With the increase of using internet in business, the gathering of customer information with real time process is emphasized more and more. This paper summarized the several characteristics of internet survey as a tool of gathering information of customer, and did empirical test for the effect of the design of cyber shopping mall on the customer's buying decision using internet survey. The survey result shows that the customer's buying decision in cyber shopping mall is affected by design factors such as multimedia and consistent framework of homepage. The survey also shows that as the intention of using cyber shopping mall is high, the more preference for navigation aid, and as the internet experience is long, the less preference for the animation and too much using of graphics.

• 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.

• The KIPS Transactions:PartD
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• v.11D no.1
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• pp.241-246
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• 2004

The importance of electronic commerce system has been growing rapidly due to development of information technology and acceleration of enterprise e-business. Electronic commerce system must provide convenient interface, easy and fast searching function, and product information satisfied customer's. A study about the system that used a reasoning technique and an Agent technology for this is required. In this paper, we designs electronic commerce system with customer preference and sales agent which is composed of case-based reasoning and rule-based reasoning for high customer satisfaction. Also, we were shown on an appropriateness of a proposal system by an experiment.