• Journal of Distribution Science
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• v.8 no.3
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• pp.27-35
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• 2010

As the population, buying power, and intensity of self-expression of the elderly generation increase, its importance as a market segment is also growing. Therefore, the mass marketing strategy for the elderly generation must be changed to a micro-marketing strategy based on the results of sub-segmentation that suitably captures the characteristics of this generation. Furthermore, as a customer access strategy is decided by sub-segmentation, proper segmentation is one of the key success factors for micro-marketing. Segments or sub-segments are different from sectors, because segmentation or sub-segmentation for micro-marketing is based on the homogeneity of customer needs. Theoretically, complete segmentation would reveal a single voice. However, it is impossible to achieve complete segmentation because of economic factors, factors that affect effectiveness, etc. To obtain a single voice from a segment, we sometimes need to divide it into many individual cases. In such a case, there would be a many segments to deal with. On the other hand, to maximize market access performance, fewer segments are preferred. In this paper, we use the term "sub-segmentation" instead of "segmentation," because we divide a specific segment into more detailed segments. To sub-segment the elderly generation, this paper takes their lifestyles and life stages into consideration. In order to reflect these aspects, various surveys and several rounds of expert interviews and focused group interviews (FGIs) were performed. Using the results of these qualitative surveys, we can define six sub-segments of the elderly generation. This paper uses five rules to divide the elderly generation. The five rules are (1) mutually exclusive and collectively exhaustive (MECE) sub-segmentation, (2) important life stages, (3) notable lifestyles, (4) minimum number of and easy classifiable sub-segments, and (5) significant difference in voices among the sub-segments. The most critical point for dividing the elderly market is whether children are married. The other points are source of income, gender, and occupation. In this paper, the elderly market is divided into six sub-segments. As mentioned, the number of sub-segments is a very key point for a successful marketing approach. Too many sub-segments would lead to narrow substantiality or lack of actionability. On the other hand, too few sub-segments would have no effects. Therefore, the creation of the optimum number of sub-segments is a critical problem faced by marketers. This paper presents a method of evaluating the fitness of sub-segments that was deduced from the preceding surveys. The presented method uses the degree of homogeneity (DoH) to measure the adequacy of sub-segments. This measure uses quantitative survey questions to calculate adequacy. The ratio of significantly homogeneous questions to the total numbers of survey questions indicates the DoH. A significantly homogeneous question is defined as a question in which one case is selected significantly more often than others. To show whether a case is selected significantly more often than others, we use a hypothesis test. In this case, the null hypothesis (H0) would be that there is no significant difference between the selection of one case and that of the others. Thus, the total number of significantly homogeneous questions is the total number of cases in which the null hypothesis is rejected. To calculate the DoH, we conducted a quantitative survey (total sample size was 400, 60 questions, 4~5 cases for each question). The sample size of the first sub-segment-has no unmarried offspring and earns a living independently-is 113. The sample size of the second sub-segment-has no unmarried offspring and is economically supported by its offspring-is 57. The sample size of the third sub-segment-has unmarried offspring and is employed and male-is 70. The sample size of the fourth sub-segment-has unmarried offspring and is not employed and male-is 45. The sample size of the fifth sub-segment-has unmarried offspring and is female and employed (either the female herself or her husband)-is 63. The sample size of the last sub-segment-has unmarried offspring and is female and not employed (not even the husband)-is 52. Statistically, the sample size of each sub-segment is sufficiently large. Therefore, we use the z-test for testing hypotheses. When the significance level is 0.05, the DoHs of the six sub-segments are 1.00, 0.95, 0.95, 0.87, 0.93, and 1.00, respectively. When the significance level is 0.01, the DoHs of the six sub-segments are 0.95, 0.87, 0.85, 0.80, 0.88, and 0.87, respectively. These results show that the first sub-segment is the most homogeneous category, while the fourth has more variety in terms of its needs. If the sample size is sufficiently large, more segmentation would be better in a given sub-segment. However, as the fourth sub-segment is smaller than the others, more detailed segmentation is not proceeded. A very critical point for a successful micro-marketing strategy is measuring the fit of a sub-segment. However, until now, there have been no robust rules for measuring fit. This paper presents a method of evaluating the fit of sub-segments. This method will be very helpful for deciding the adequacy of sub-segmentation. However, it has some limitations that prevent it from being robust. These limitations include the following: (1) the method is restricted to only quantitative questions; (2) the type of questions that must be involved in calculation pose difficulties; (3) DoH values depend on content formation. Despite these limitations, this paper has presented a useful method for conducting adequate sub-segmentation. We believe that the present method can be applied widely in many areas. Furthermore, the results of the sub-segmentation of the elderly generation can serve as a reference for mature marketing.

• Journal of Digital Convergence
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• v.1 no.1
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• pp.235-253
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• 2003

In this research, we have developed a model that can explain the potential customer's needs for the potable Internet service, a concept with 'QoS guaranteed lower-price high speed mobile Internet service. Based on the developed model, we have also derived some empirical implications for the business firms interest in the potable Internet market. The developed model is incorporating a survey result, answering of potential customer's attitude for the portable Internet service, from the subscribers to the Internet service, wireless LAN service, and mobile Internet service. As a result, we have found that a very innovative group, such as wireless LAN users and 20's age group using mobile Internet service, could be the most attractive market segment. Moreover, the aspects of the service coverage and the price competitiveness at the service launching stage could be the most critical success factors for the portable Internet service.

• Proceedings of the Korea Inteligent Information System Society Conference
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• 2005.05a
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• pp.274-282
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• 2005

Customer retention is one of the major issued in life insurance industry, in which competition is increasingly fierce. There are many things to do to retain customers. One of those things is to be continuously in touch with all customers. The objective of this study is to design the contact scheduling system(CSS) to support the planers who must touch the customers without having subjective information. Support-planers suffer from lack of information which can be used to intimately touch. CSS that is developed in this study generates contact schedule to touch customers by taking into account existing contact history. CSS has a two stage process. In the first stage, it segments customers according to his or her demographics and contract status data. Then it finds typical pattern and pattern is combined to business rules for each segment. We expert that CSS would support support-planers to make uncontacted customers' experience positive.

• Culinary science and hospitality research
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• v.24 no.1
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• pp.50-62
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• 2018

The purpose of this study was to overview the meaning of customer loyalty to segment customers based on their loyalty and to analyze the difference of loyal customers' perception of relational benefits in the restaurant industries. A self-administered questionnaire was distributed to 500 adults with dining experience at restaurants. Participants were given a brief description of loyalty and were made to choose a specific restaurant they felt loyal to and one with no loyalty. Attitudinal and behavioral loyalty were used in cluster analysis resulting 4 cluster groups. Each group was named true, spurious, latent, and low loyalty. After the groups were separated, ANOVA was used to see if the score of perceived relational benefit showed difference. All four relational benefit including social, psychological, economic, and customization benefit showed significant difference(p<.001). True loyal customers perceived relational benefit as the highest while low loyal customers showed the lowest. For latent and spurious loyal customers, it was found that latent loyal customers showed higher perception than spurious customers.

• Journal of Intelligence and Information Systems
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• v.9 no.3
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• pp.23-47
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• 2003

Traditional studies for customer relationship management (CRM) generally focus on static CRM in a specific time frame. The static CRM and customer behavior knowledge derived could help marketers to redirect marketing resources fur profit gain at that given point in time. However, as time goes, the static knowledge becomes obsolete. Therefore, application of CRM to an online retailer should be done dynamically in time. Customer-based analysis should observe the past purchase behavior of customers to understand their current and likely future purchase patterns in consumer markets, and to divide a market into distinct subsets of customers, any of which may conceivably be selected as a market target to be reached with a distinct marketing mix. Though the concept of buying-behavior-based CRM was advanced several decades ago, virtually little application of the dynamic CRM has been reported to date. In this paper, we propose a dynamic CRM model utilizing data mining and a Monitoring Agent System (MAS) to extract longitudinal knowledge from the customer data and to analyze customer behavior patterns over time for the Internet retailer. The proposed model includes an extensive analysis about a customer career path that observes behaviors of segment shifts of each customer: prediction of customer careers, identification of dominant career paths that most customers show and their managerial implications, and about the evolution of customer segments over time. furthermore, we show that dynamic CRM could be useful for solving several managerial problems which any retailers may face.

• Information Systems Review
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• v.7 no.2
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• pp.23-40
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• 2005

Discovering customers' behavioral patterns from large data set and providing them with corresponding services or products are critical components in managing a current business. However, the diversity of customer needs coupled with the limited resources suggests that companies should make more efforts on understanding and managing specific groups of customers, not the whole customers. The key issue of this paper is based on the fact that the behavioral patterns extracted from the specific groups of customers shall be different from those from the whole customers. This paper proposes the idea of pre-segmentation before developing customer classification models. We collected three customers' demographic and transactional data sets from a credit card, a tele-communication, and an insurance company in Korea, and then segmented customers by major variables. Different churn prediction models were developed from each segments and the whole data set, respectively, using the decision tree induction approach, and compared in terms of the hit ratio and the simplicity of generated rules.

• Journal of Digital Contents Society
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• v.13 no.3
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• pp.385-392
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• 2012

The definition of the product market in a supplier's point of view can cause various problems in the market activities of companies because specific situations are excluded and the consideration for discontinuity is lacking by identifying segmented markets with processes, raw materials, the similarity of product functions and so forth. Furthermore, as this definition is static and general, it is difficult to express and predict the dynamic market changes. Meanwhile, customer-oriented market segment can be obtained by grouping substitutable products and related customers in the situation pursuing specific benefits. This definition of the product market enables us to find threats and opportunities emerging in markets and promotes effective performance assessments and resource allocation. The purpose of this paper is suggesting a framework to select data mining techniques proper for the customer data characteristics to identify customer oriented product market.

• Journal of KIISE:Information Networking
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• v.34 no.6
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• pp.466-474
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• 2007

Asymmetric networks that the downlink bandwidth is larger than the uplink bandwidth may cause the degradation of the TCP performance due to the uplink congestion. In order to solve this problem, this paper designs and implements the Dynamic Segment Size Control mechanism which offers a suitable segment size for current networks. The proposed mechanism does not require any changes in customer premises but suppress the number of ACKs using segment reassembly technique to avoid the uplink congestion. The gateway which adapted the Dynamic Segment Size Control mechanism, detects the uplink congestion condition and dynamically measures the bandwidth asymmetric ratio and the packet loss ratio. The gateway reassembles some of segments received from the server into a large segment and transmits it to the client. This reduces the number of corresponding ACKs. In this mechanism, the SACK option is used when occurs the bit error during the transmission. Based on the simulation in the GEO satellite network environment, we analyzed the performance of the Dynamic Segment Size Control mechanism.

• Journal of the Korea Institute of Building Construction
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• v.11 no.6
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• pp.609-617
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• 2011

For the past several decades, the residential housing market has been led by construction firms rather than consumers; in essence, it has been a suppliers' market. However, the market is experiencing a transition to a buyers' market, the implication of which is that there will be increased competition among the residential building suppliers. For this reason, it is necessary for construction firms to prepare new strategies to respond to the rapidly changing market environment. Furthermore, consumer satisfaction should be valued more highly than in the past, and should be a baseline in formulating construction product development strategy. For the pre-classified 13 apartment building segments, questionnaire surveys are conducted for the 50 CS (Customer Satisfaction) experts to evaluate their perceptions on the weighing of the quality of each apartment segment. Data obtained from a survey of experts was analyzed from an industry perspective utilizing the AHP technique. Analysis results indicate that the CS experts valued the kitchen & dining area more highly than all other segments. Specific analysis results and implications drawn from the study can be a valuable basis for marketing, product development, and quality management.

• Korean Security Journal
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• no.10
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• pp.35-52
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• 2005

This study is focused on the service quality and customer satisfaction. The survey on the service quality and customer satisfaction has the follows; First, man group compared to female group provision was receiving the service of good quality and also the customer satisfactory degree appeared highly. Also, the quality of the group one recording service where the age is many appeared customer satisfactory boat song highly. Second, the customer satisfaction regarding a high educational background one recording service quality did not appear highly and not to be with the thing recording where the educational background will be high provision to receive a more many serviceit is satisfied it appeared. It follows, consequently in member of society nine statistics quality and service quality of civil expense and the customer satisfaction is a difference and the recording customer where the service quality of civil expense will be high it goes round satisfactorily and there is possibility of saying that. Third, in service quality empathy characteristic of subordinate result, with the fact that static effect it will be going mad to a shedding of corporeal service satisfaction and a security facility satisfaction. The security facility satisfaction where the empathy characteristic and shedding of corporeal service quality will be good is high reflects a fact and it is giving. Fourth, market segment anger strategy and there is a necessity which will form the customer layer which is various. Also, the site for the service of good quality the operation of development and strategy elder brother system of the elder brother system which it fixes is necessary.