• The Journal of Information Systems
• /
• v.30 no.2
• /
• pp.105-126
• /
• 2021

Purpose The purpose of this study is to implement a optimal machine learning model about the cancellation prediction performance in car sales business. It is to apply the data set of accumulated contract, cancellation, and sales information in sales support system(SFA) which is commonly used for sales, customers and inventory management by imported car dealers, to several machine learning models and predict performance of cancellation. Design/methodology/approach This study extracts 29,073 contracts, cancellations, and sales data from 2015 to 2020 accumulated in the sales support system(SFA) for imported car dealers and uses the analysis program Python Jupiter notebook in order to perform data pre-processing, verification, and modeling that is applying and learning to Machine learning model after then the final result was predicted using new data. Findings This study confirmed that cancellation prediction is possible by applying car purchase contract information to machine learning models. It proved the possibility of developing and utilizing a generalized predictive model by using data of imported car sales system with machine learning technology. It can reduce and prevent the sales failure as caring the potential lost customer intensively and it lead to increase sales revenue by predicting the cancellation possibility of individual customers.

• Journal of Korea Multimedia Society
• /
• v.24 no.1
• /
• pp.146-154
• /
• 2021

Conspicuous consumption is often investigated in Korea and consumers purchase a product to publicly display economic power or social status. The existing studies argue that brand loyalty and luxury brand preferences escalate conspicuous consumption, and it is important to identify different visual perception to understand irrational consumers' behavior. Car emblem as brands' visual identity represents the brand's image, mission and message. Irrational consumers thus are expected have different visual perception to the emblem or logo. To understand the impact of irrational consumer behavior on visual perception, this study explored how brand loyalty and luxury brand preferences impact on the visual perception of car emblems between Korean domestic brand and imported brand. This study used eye tracking technology to measure the respondents' attention on an emblem of the cars. Eye tracking tools analyze fixations and measure the attention on a specific area of interests (AOI). This study explored the maintaining time and frequency on AOI, as well as explored the size of pupil to identify the respondents' attention on the AOI. In this experiment, the logos of domestic cars (i.e., Hyundai and Kia) and foreign cars (i.e., Mercedes-Benz and BMW) were swapped to see how irrational consumer behavior impact on visual perception of car emblem.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.19 no.12
• /
• pp.118-127
• /
• 2018

The purpose of this study is to identify the relationships between satisfaction, behavioral intention and recommended intention of luxury consumers identified in the preceding study as reasons for the explosive growth in the Korean imported car market. Research results found that brand quality, fashion, self-display, and store atmosphere had positive effects on satisfaction, while independent variables influenced behavioral intention. However, it was found that the store atmosphere did not affect satisfaction. Satisfaction expressed a strong positive effect on behavioral intention. In addition, behavioral intention was shown to positively affect recommendation intention. These results imply that consumers are significantly influenced by psychological factors when purchasing imported cars, and that consumers value psychological factors even when resold or recommended to others. The theoretical implications of the study are the empirical analysis of the consumption factors of imported cars using the existing Luxury consumption factors. The practical implications are to provide the importers with a basis for their marketing strategy. Although there are many studies on quality and service in import car markets, there is a lack of research on relevant psychological factors.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.43 no.4
• /
• pp.93-106
• /
• 2020

This research explores how imported automobile companies can develop their strategies to improve the outcome of their recalls. For this, the researchers analyzed patterns of recall demand, classified recall types based on the demand patterns and examined response strategies, considering plans on how to procure parts and induce customers to visit workshops, recall execution capacity and costs. As a result, recalls are classified into four types: U-type, reverse U-type, L- type and reverse L-type. Also, as determinants of the types, the following factors are further categorized into four types and 12 sub-types of recalls: the height of maximum demand, which indicates the volatility of recall demand; the number of peaks, which are the patterns of demand variations; and the tail length of the demand curve, which indicates the speed of recalls. The classification resulted in the following: L-type, or customer-driven recall, is the most common type of recalls, taking up 25 out of the total 36 cases, followed by five U-type, four reverse L-type, and two reverse U-type cases. Prior studies show that the types of recalls are determined by factors influencing recall execution rates: severity, the number of cars to be recalled, recall execution rate, government policies, time since model launch, and recall costs, etc. As a component demand forecast model for automobile recalls, this study estimated the ARIMA model. ARIMA models were shown in three models: ARIMA (1,0,0), ARIMA (0,0,1) and ARIMA (0,0,0). These all three ARIMA models appear to be significant for all recall patterns, indicating that the ARIMA model is very valid as a predictive model for car recall patterns. Based on the classification of recall types, we drew some strategic implications for recall response according to types of recalls. The conclusion section of this research suggests the implications for several aspects: how to improve the recall outcome (execution rate), customer satisfaction, brand image, recall costs, and response to the regulatory authority.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.41 no.4
• /
• pp.146-159
• /
• 2018

This study analyzed what premium features significantly affect customer satisfaction and their recommendation, and what factors significantly affect product attributes. In the process, first, the loyalty program and the customer compensation program were studied to determine the impact of the customer satisfaction and recommendation. The study analyzed that quality and design of product properties had significant effects on all factors, but the brand was not significantly affected. Second, while superiority, differentiation and scarcity of luxury items are significant to customer satisfaction but superiority is only significant in relation to recommendation intention. Third, the preceding study shows that the customer compensation program has a significant impact on sales growth, but the study found that it was not for imported luxury car customers. Fourth, if the royalties program is low in awareness, it has been analyzed that the scarcity and customer satisfaction relationships among luxury goods have been adjusted. On the contrary, if there is a high level of awareness, it is analyzed that there is a control effect customer satisfaction and differentiation among luxury brands. In the conclusion, in order to satisfy customers at the import luxury car market, the differentiation of luxury goods by standard index must be strengthened and the brand must be strengthened among the attributes of the product. In addition, by raising awareness of the royalties program, the relationship between differentiation and customer satisfaction can be enhanced.

• Asia Marketing Journal
• /
• v.12 no.4
• /
• pp.183-201
• /
• 2011

In case of Aju capital, it adopted a strategy to use a single brand not two separate brands after M&A was completed. In order to implement this strategy, it has endeavored to effectively process the work of shifting existing marketing infrastructure of DAEWOO capital, the mergee, spending enough transition time for the brand migration. In the process of merging, Aju capital picked the strategy to use the brand of mergee first, which is the Daewoo Capital brand, and then took a transition time for a while to converge to the single brand of Aju capital. Putting another way, even if the M&A deal was completed back in 2005, it maximized the effect of launching its final brand "Aju capital" by capitalizing on the positive image of "Daewoo" during the transition time and changing its name just in the right moment. In a bid to implement this strategy successfully, it established a cautious but sophisticated brand migration strategy. 1) "Brand bridge" strategy through reinforcing brand power of "Naegeron", which is an individual product brand of Daewoo Capital 2) Establishing a good brand image through reinforcing customer satisfaction 3) It implemented and completed its brand transition initiative by going through the step of Aju Capital brand unification (from Sept 09 to present) Currently, the sales unit of Aju Capital is realizing quality growth through specialization. It's strategy is to construct a systematic sales portfolio in terms of both quality and quantity through product-by-product specialization where the existing practice was selling a variety of products in a single branch. Back in 2009, it opened a branch that specialize in imported cars and expanded its used car business to 6 specialized locations. Besides, the specialized locations for personal loan named "Naegeron" was expanded from 3 to 11 locations. Recently, it is expected that it will inject vigor to retail and corporate financing business alongside with its core business, which is auto financing.