• Asia Marketing Journal
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• v.22 no.1
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• pp.1-26
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• 2020

Firms employing hierarchical loyalty programs (HLPs) periodically demote customers from higher to lower status level to divest from unprofitable customers and boost profitability. However, existing literature lacks objective evidence on how customer demotion affects demoted customers' future purchase behaviors and ultimately profitability for the firm. Moreover, customers in the HLP's higher position may respond to customer demotion differently from those in the HLP's lower position. Drawing upon emotions and equity theories, this study quantifies how the profits that customers contribute to the firm change after customer demotion, and compares demoted customers' behavioral reactions from top-tier with those from bottom-tier based on customers' actual behavior data from a major retail bank in South Korea. The findings show that withdrawing customer status actually deteriorates customer profitability, and customers with top-tier status decrease their profitability more dramatically than those with bottom-tier status after demotion. The results contribute to previous literature on customer demotion and relationship marketing, and provide specific guidelines into how firms should design and implement customer demotion in HLPs.

• International Journal of Quality Innovation
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• v.9 no.1
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• pp.181-187
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• 2008

Every company tries to know who the best and idealistic customers are and how to identify them by use of the special methods. To solve this problem the diamond model of customer stratification, which is the conceptual model, is introduced in this research. We modified the customer stratification model developed by Narayanan et al. (2007). By use of this model we can find out the most profitable customers and then we can plan to improve the profitability of the rest customer groups.

• Korea Journal of Hospital Management
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• v.7 no.4
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• pp.152-171
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• 2002

The research objective is segmenting outpatients for CRM(Customer Relationship Management) in medical service. Using modified RFM(Recently, Frequency, Monetary) method based on frequency and profitability in the hospital, the data were analyzed with the data mining technique. The result can be summarized as follows : The outpatients were semented into the four groups: 1) the loyal patient group, who have kept visiting until recently and give high profitability; 2) potential loyal patient group, who give lower profitability but high frequency of use, 3) potential withdrawer patient group, who have lower frequency of use but give high profitability and; 4) withdrawer patient group, who give low frequency of use and have not visited recently.

• Proceedings of the CALSEC Conference
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• 2004.02a
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• pp.255-257
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• 2004

Customer Relationship Management CRM(Customer Relationship Management) is a customer-focused business strategy designed to optimized profitability, revenus and customer satisfaction [Gartner Group](omitted)

• Journal of Korea Trade
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• v.24 no.8
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• pp.81-100
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• 2020

Purpose - Based on complexity theory, this study develops a configurational model to predict the profitability of Halal cosmetics firms in the Indonesian and Malaysian markets. The proposed research model involves two level configurations-industry context and selling strategies-to predict high and low scores of a firm's profitability. The industry context configuration model comprises industry stability, product homogeneity, price sensitivity, and switching cost. Selling strategies include customer-focused, competitor-focused, and margin-focused approaches. Design/methodology - This is the first empirical study that calculates causal models using a combination of industry context and selling strategy factors to predict profitability. Data obtained from the marketing managers of cosmetics firms are used to test the proposed configurational model using fuzzy-set qualitative comparative analysis (fsQCA). It contributes to the current knowledge of business marketing by identifying the factors necessary to achieve profitability using analysis of condition (ANC). Findings - The results revealed that unique and distinct models explain the conditions for high and low profitability in the Indonesian and Malaysian halal cosmetic markets. While customer-focused selling strategy is necessary to attain a higher profit in both the markets, margin-focused selling strategy appears to be an essential factor only in Malaysia. Complexity of the interactions of selling strategies with industry factors and differences between across two study markets confirmed that complexity theory can support the research configurational model. The theoretical and practical implications are also illustrated. Originality/value - Despite the rapid growth of the global halal industry, there is little knowledge about the halal cosmetic market. This study contributes to the current literature of the halal market by performing a set of asymmetric analytical approaches using a complex theoretical model. It also deepens our understating of how the Korean firms can approach the Muslim consumer's needs to generate more beneficial turnover/revenue.

• Proceedings of the CALSEC Conference
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• 2004.02a
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• pp.251-254
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• 2004

1. Research Background ·Customer support or service in organization is one of the most important business improvement theme in improving their business competences. -Many customers view customer support as one of the most impotant criteria when evaluating a product or a service(Foo et al., 2000) -Customer service has a strong link to customer satisfaction, which then yields customer loyalty and long-term profitability(Szymanski ＆ Henard, 2001： McKenna, 1991)(omitted)

• Journal of Information Management
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• v.39 no.2
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• pp.235-249
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• 2008

The combination of information and technology makes dramatically increase both information quality and quantity. Almost of company utilize customer information for the purpose of increasing sales amount and profitability. The purpose of this paper is to discover customer information's utilization practices in the Korean financial industry. The case of K Bank's information analysis in the inbound and outbound marketing is provided, The customer segmentation is used for the inbound marketing by using RFM analysis. And the loan card model is used for the outbound marketing by using logit analysis.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2004.05a
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• pp.211-214
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• 2004

In railway system, the transportation plan corresponds to master plan for transport services. This service plan must be constructed to minimize operational cost or maximize revenue considering transportation demands and resource capacities in the operation company, and includes several sub-planning activities such as train operation frequency plan, train (schedule) plan, train capacity assignment plan, and rolling stock requirement plan. In this paper, we present profitability evaluation system for current transportation plan. The proposed system can be used for evaluating profitability by estimating train service revenue considering customer demands.

• Proceedings of the KSR Conference
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• 2004.10a
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• pp.1538-1545
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• 2004

In the train schedule plan corresponds to a master plan for transport services. This service plan must be constructed to minimize operational cost or maximize revenue considering transportation demands and resource capacities in the operation company, and it includes several sub-planning activities such as train operation frequency plan, train schedule plan, train capacity assignment plan, and rolling stock requirement plan. In this paper, we present profitability evaluation system for the current train schedule plan. The proposed system can be used for evaluating profitability by estimating train service revenue considering customer demands.

• 한국디지털정책학회:학술대회논문집
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• 2003.12a
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• pp.11-24
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• 2003

It is far more expensive for companies to acquire new customers than it is to retain customers. As a result, companies are turning to Customer Relationship Management (CRM) in order to make decisions about managing the relationship and the profitability of those customer relationships. CRM is a strategy that integrates the concepts of Knowledge Management, Data Mining and Data Warehousing in order to support the organization's decision -making process to retain long-term and profitable relationships with its customers. This paper examines the design implications that CRM poses to data warehousing. We then present a robust data warehouse schema to support CRM analyses and decisions. For example, the proposed schema could be used to calculate customer profitability and to identify social networks of influence between customers. The paper also discusses future areas for research pertaining to CRM data warehousing and data mining.