• Management Science and Financial Engineering
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• v.16 no.3
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• pp.49-70
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• 2010

Customer population management models can be classified into three categories: the first category includes the models that analyze the customer population at cohort level; the second one deals with the customer population at aggregate level; the third one has interest in the interactions among the customer populations in the competitive market. Our study proposes a model that can analyze the dynamics of customer population in consumer-durables market at aggregate level. The dynamics of customer population includes the retention curves from the purchase or at a specific duration time, the duration time expectancy at a specific duration time, and customer population growth or decline including net replacement rate, intrinsic rate of increase, and the generation time of customer population. For this study, we adopt mathematical ecology models, redefine them, and restructure interdisciplinary models to analyze the dynamics of customer population at aggregate level. We use the data of previous research on dynamic customer population management at cohort level to compare its results with those of ours and to demonstrate the useful analytical effects which the precious research cannot provide for marketers.

• The Journal of the Korea Contents Association
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• v.17 no.3
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• pp.556-570
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• 2017

The purpose of this study is to examine the structural relationships among relational benefits of the franchise coffee shop, customer satisfaction, switching cost and relationship retention intention. The results of this study are as follows: First, among relational benefits, social benefits, psychological benefits, customization benefits and economic benefits had a significant influence on customer satisfaction. Second, among relational benefits, social benefits, psychological benefits, customization benefits and economic benefits had a significant influence on switching cost. Third, customer satisfaction had a significant influence on relationship retention intention. Fourth, switching cost had a significant influence on relationship retention intention. Finally, the conclusion section suggested strategic implications to induce relational benefits, customer satisfaction, switching cost and relationship retention intention based on the findings.

• Asia-Pacific Journal of Business
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• v.2 no.1
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• pp.23-48
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• 2011

Generally, higher brand equity ends up with higher market share and higher profitability. However, superior brand equity does not guarantee the success in the market. That is, consumer choice is closely related to brand equity but we need more than brand equity to explain this complex phenomenon. We adopt the customer equity concepts: value equity, brand equity, and retention equity. By incorporating value equity and retention equity into customer equity, it is possible to avoid the problems of using the brand equity only. In the paper, we apply this customer equity concepts to cellular phone and investigate the effects of antecedent variables such as exposure, knowledge, positive experience and negative experience on the components of customer equity. In addition, as surrogate measure of customer lifetime value, the weighted measure of purchase intention, consideration set inclusion, and next purchase is used as dependent variable. We estimate the effects of components of customer equity at the brand level and aggregate level using SURE model. Estimation results show that Apple has currently low market share but has high future potentials and Korean firms have currently high market share but has rather low future potentials.

• Journal of Information Management
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• v.40 no.1
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• pp.183-197
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• 2009

With development of the internet, internet shopping is taking its place as one of digitalization industries transcending time and space beyond the scope of commercial activities as the means of goods sales and purchase. We studied about the relations of customer value, environment of internet shopping mall, customer satisfaction and loyalty. Customer value is customers' subjective evaluation, which is formed after their purchasing and consuming. Customer satisfaction can be characterized as post-purchase evaluation of product quality given pre-purchase expectations. Customer loyalty is a potentiality or ensure of durative relationship between customer and enterprises. Customer satisfaction functions as an antecedent of customer loyalty, while customer value does customer satisfaction. It prevents customer churn and consolidates retention, thereby constituting an important cause of customer loyalty. This study shows that customer value, environment of internet shopping mall and customer satisfaction are each found to have a direct effect on customer loyalty. The results provide empirical support for relation between customer satisfaction and loyalty. To increase customer satisfaction and customer loyalty in internet shopping mall is the primary purpose of this study. We believe that only high quality based customer programs accompanied by well designed loyalty programs can be effective in increasing customer retention.

• The Journal of the Korea Contents Association
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• v.13 no.11
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• pp.856-865
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• 2013

The customer retention of internet shopping mall become important nowadays as internet shopping mall is expanding quickly. In this situation, the present study aims to analyze the components of internet shopping mall service quality and it's relationship with satisfaction, and retention. The CRM is a very important point for company marketing, it is also necessary to construct trust and commitment. Especially it has been recognized that when we deal with online shopping, the correlation with customers is very important. At this point one purpose of this study is to find out those effects on satisfaction of the service quality. Another purpose is to find the factors which effect retention. Structural equation modeling is used to test the model building in this paper based on the data from survey of 223 online shopping mall customers. The results in the study provide our supports to the model and indicate that: first, service quality has a positive effect on satisfaction. Second, satisfaction, trust and commitment have strong relations and they affect customer retention in the internet shopping mall service.

• Asia Marketing Journal
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• v.20 no.4
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• pp.21-47
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• 2019

This study empirically examines the synergy effect of a corporate-level loyalty program on customer equity (CE) known as the lifetime value of current and future customers (Blattberg et al. 2009). A corporate-level loyalty program refers to a company-wide integration loyalty program at the corporate-level in which subsidiaries (multi-divisions) participate as program members. It does not merely examine whether there is an integration effect of a corporate-level loyalty program from the CE perspective, but it provides practical implications for a firm's strategic focus by identifying which value creation channels (i.e., acquisition, retention, and cross-selling), brand characteristics (i.e., size of the customer base before integration, diversity of products, and sales channel type), and consumer characteristics (i.e., customer relationship stage, transaction amount before integration, transaction period, and number of purchased brands) are affected the most by the synergy effect.

• Fashion & Textile Research Journal
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• v.24 no.5
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• pp.605-617
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• 2022

The purpose of this study was to investigate the influence of retailing types on consumers' omnichannel experience while purchasing fashion products. The omnichannel experience occurs when retailers provide seamless customer experience across the various touchpoints of retail channels. In this empirical study, retail types were categorized into single-brand stores and multi-brand stores, and the relationship among store loyalty, brand loyalty, and customer retention was observed by the research model. A survey was conducted on the global consumers who had experience in purchasing fashion products via the omnichannel using Amazon Mechanical Turk; as a result, 351 responses were analyzed. The mediating and moderating effects of loyalty constructs and retail types were analyzed using Process Macro 4.0. The results indicated that a seamless omnichannel experience affects customer retention by mediating store loyalty and brand loyalty; additionally, the dual mediating effect of store loyalty and brand loyalty was significant. The moderating effect according to retail type was identified, and the moderated mediation effect of store loyalty was validated. The results showed that multi-branded retailers' store loyalty had a stronger influence on customer retention than that of single-brand retailers and exhibited the relationship between store loyalty and brand loyalty as well as retail types (single vs multi) in a seamless omnichannel customer experience.

• Journal of the Korean Operations Research and Management Science Society
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• v.28 no.4
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• pp.85-104
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• 2003

Customer retention is more emphasized for internet business than off-line shopping-malls. The loyals not only purchase a lot but also recommend the mall to new customers quickly using internet media, and there have been many studies on this subject. In this study, customer satisfaction and trust are suggested as preceding variables that have an influence on customer loyalty, and switching gains are suggested as a moderating variable between customer satisfaction & trust and customer loyalty. Many people think it would be easier to change business connection and customer loyalty for internet shopping-malls would be very low. This study, however, concluded that customer satisfaction and trust had a significant influence on customer loyalty even in internet shopping-mall, and that switching gains had moderating effect between satisfaction-attitudinal loyalty and trust-behavioral loyalty. These results are meaningful in that customer satisfaction or trust should be emphasized even on internet business and that switching gains can be strategic focus in building up customer loyalty and retention.

• Asia Marketing Journal
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• v.13 no.3
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• pp.25-53
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• 2011

This study probes the effect of loyalty program on the customer retention based on the real transaction data(n=2,892) acquired from education service industry. We try to figure out the outcomes of reward program through more than 1 year-long data gathered and analyzed according to quasi-experimental design(i.e., before and after design). We adopt this kinds of research scheme in regard that previous studies measured the effect of loyalty program by dividing the customers into two group(i.e., members vs. non-members) after the firms or stores had started the program. We believe that it might not avoid the self-selection bias. The research questions of this study could be explained such as: First, most research said that the loyalty programs could increase the customer loyalty and contribute to the sustainable growth of company. But there are little confirmation that this promotional tool could be justified in terms of financial perspective. Thus, we are interested in both the retention rate and financial outcomes caused by the introduction of loyalty programs. Second, reward programs target mainly current customer. Especially CRM(customer relationship management) said that it is more profitable for company to build positive relationship with current customer instead of pursuing new customer. And it claims that reward program is excellent means to achieve this goal. For this purpose, we check in this study whether there is a interaction effect between loyalty program and customer type in retaining customer. Third, it is said that dis-satisfied customers are more likely to leave the company than satisfied customers. While, Bolton, Kannan and Bramlett(2000) claimed that reward program could contribute to minimize the effect of negative service by building emotional link with customer, it is not empirically confirmed. This point of view explained that the loyalty programs might work as exit barrier to current customer. Thus, this study tries to identify whether there is a interaction effect between loyalty program and service experience in keeping customer. To achieve this purpose, this study adopt both Kaplan-Meier survival analysis and Cox proportional hazard model. The research outcomes show that the average retention period is 179 days before introducing loyalty program but it is increased to 227 days after reward is given to the customers. Since this difference is statistically significant, it could be said that H1 is supported. In addition, the contribution margin coming from increased transaction period is bigger than the cost for administering loyalty programs. To address other research questions, we probe the interaction effect between loyalty program and other factors(i.e., customer type and service experience) affecting it. The analysis of Cox proportional hazard model said that the current customer is more likely to engage in building relationship with company compared to new customer. In addition, retention rate of satisfied customer is significantly increased in relation to dis-satisfied customer. Interestingly, the transaction period of dis-satisfied customer is notably increased after introducing loyalty programs. Thus, it could be said that H2, H3, and H4 are also supported. In summary, we found that the loyalty programs have values as a promotional tool in forming positive relationship with customer and building exit barrier.

• Korean Management Science Review
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• v.21 no.3
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• pp.85-99
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• 2004

The retention of customer is an increasingly pressing issue in today's competitive environment. The proposes of this paper is a personalized defection detection and the procedure of prevention based on economic analysis of customer defection possibility, and behaviour state transition cost. This procedure is based on the observation that potential defectors have a tendency to take a couple of months or weeks to gradually change their behaviour before their eventual withdrawal. In this procedure, the SOM(Self-Organizing Map) is used to determine the possible states of customer behaviour from past behaviour data, and to prevent the defection of potential defectors, the proposed procedure recommends the desirable behaviour state for the next period based on the analysis of transition cost. and likelihood of defection. The case study has been conducted for a Korean on-line game provider to evaluate of this procedure.