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A Study on the Strategic Use of an IMC Planning Model for the Distribution Industry (유통업 IMC 기획모델의 전략적 활용에 관한 연구)

  • Mo, Sun-Jong;Song, In-Am
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.2
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    • pp.113-145
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    • 2008
  • Marketing for the distribution industry is making an ongoing progress in the changes of customers, the competitive environment, and the internal marketing environment. Integrated marketing communication activities are required for the enhancement of efficiency in the market.oriented activities. In this study, IMC is defined as "a notion that a market oriented business integrated marketing communication means, conducting and evaluating marketing activities with consistent messages in order to communicate with customers based on databases." In this study, an IMC planning model for the improvement of marketing efficiency in the distribution industry was derived from a pilot study. This model may be broken down into the following phases: IMC goals setting, situational analysis (customer analysis, competition analysis and company analysis), customer data analysis, contact management, budgeting, the establishment of an IMC strategy, the IMC mix and execution, an evaluation system, and feedback. In consideration of the characteristics of the distribution industry, this study was accompanied by a vocational study on IMC means employed by, in particular, department stores and other distributors such as: advertising, sales promotion, sales promotion advertising, direct marketing, public relations, personal selling, the Internet, mobile, visual merchandising, words of mouth. In addition, this study also covered the correlation among variables such as IMC activities of distributors, the process of forming customer's brand attitudes, brand loyalty and repurchase intention. This research would enhance the utilization of IMC. The analysis on customer's brand attitudes toward the IMC activities of distributors requires the simultaneous consideration of how they are linked to purchase as well as their attitudes toward both distributors and stores. The formation of brand loyalty and repurchase intention is related to the integration of marketing communication and the maintenance of consistency in contents, which requires integrated brand communication (IBC) strategies. IBC is a concept of using IMC means to manage the brand in a continuing and consistent manner and measuring their effect, which is a process to establish enterprise.level brand identity and maximize brand loyalty and repurchase intention by integrating IMC means. For an empirical analysis in this study, an online questionnaire survey was conducted among those department store customers from 20's to 50's who reside either in the Seoul and Gyeonggi areas and have made purchase at department stores. In this study, the research model consisted of four theoretical variables: IMC activities, IMC attitudes, brand loyalty, and repurchase intention, on which variables a pilot study was conducted. A number of hypotheses were constructed on the relations between IMC activities and IMC attitudes, between IMC attitudes and repurchase intention, and between brand loyalty and repurchase intention. The test of the hypotheses may be summarized as follows: Firstly, the test of the hypothesis concerning the relation between IMC attitudes and IMC activities - advertising, sales promotion, direct marketing, public relations, personal selling, the Web, mobile, visual merchandising, and word of mouth - indicates that advertising, sales promotion, direct marketing, public relations, personal selling, mobile, visual merchandising, and word of mouth have significant impact on IMC activities. In addition to the result similar to those of previous studies that such marketing communication means as word of mouth, advertising, personal selling and sales promotion, in particular, play very important roles, a notable finding of this study is that visual merchandising performed by department stores is shown to have very significant impact on IMC activities. On a separate note, it is also noteworthy that Internet marketing activities engaged by department stores are not shown to have significant impact on IMC attitudes. Secondly, the test of the hypothesis on the relation between IMC attitudes and brand loyalty attests that IMC attitudes for the distribution industry significantly affect brand loyalty. Thirdly, the test of the hypothesis concerning the relation between IMC attitudes and repurchase intention confirms that IMC attitudes for the distribution industry significantly affect repurchase intention. Fourthly, the test of the hypothesis concerning the relation between brand loyalty and repurchase intention indicates that brand loyalty significantly affect repurchase intention. A comprehensive view of these findings points to the conclusion that the IMC activities for the distribution industry do affect IMC attitudes, brand loyalty, and repurchase intention.

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Current Status and Future Prospect of Plant Disease Forecasting System in Korea (우리 나라 식물병 발생예찰의 현황과 전망)

  • Kim, Choong-Hoe
    • Research in Plant Disease
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    • v.8 no.2
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    • pp.84-91
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    • 2002
  • Disease forecasting in Korea was first studied in the Department of Fundamental Research, in the Central Agricultural Technology Institute in Suwon in 1947, where the dispersal of air-borne conidia of blast and brown spot pathogens in rice was examined. Disease forecasting system in Korea is operated based on information obtained from 200 main forecasting plots scattered around country (rice 150, economic crops 50) and 1,403 supplementary observational plots (rice 1,050, others 353) maintained by Korean government. Total number of target crops and diseases in both forecasting plots amount to 30 crops and 104 diseases. Disease development in the forecasting plots is examined by two extension agents specialized in disease forecasting, working in the national Agricul-tural Technology Service Center(ATSC) founded in each city and prefecture. The data obtained by the extension agents are transferred to a central organization, Rural Development Administration (RDA) through an internet-web system for analysis in a nation-wide forecasting program, and forwarded far the Central Forecasting Council consisted of 12 members from administration, university, research institution, meteorology station, and mass media to discuss present situation of disease development and subsequent progress. The council issues a forecasting information message, as a result of analysis, that is announced in public via mass media to 245 agencies including ATSC, who informs to local administration, the related agencies and farmers for implementation of disease control activity. However, in future successful performance of plant disease forecasting system is thought to be securing of excellent extension agents specialized in disease forecasting, elevation of their forecasting ability through continuous trainings, and furnishing of prominent forecasting equipments. Researches in plant disease forecasting in Korea have been concentrated on rice blast, where much information is available, but are substan-tially limited in other diseases. Most of the forecasting researches failed to achieve the continuity of researches on specialized topic, ignoring steady improvement towards practical use. Since disease forecasting loses its value without practicality, more efforts are needed to improve the practicality of the forecasting method in both spatial and temporal aspects. Since significance of disease forecasting is directly related to economic profit, further fore-casting researches should be planned and propelled in relation to fungicide spray scheduling or decision-making of control activities.

Pre-Evaluation for Prediction Accuracy by Using the Customer's Ratings in Collaborative Filtering (협업필터링에서 고객의 평가치를 이용한 선호도 예측의 사전평가에 관한 연구)

  • Lee, Seok-Jun;Kim, Sun-Ok
    • Asia pacific journal of information systems
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    • v.17 no.4
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    • pp.187-206
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    • 2007
  • The development of computer and information technology has been combined with the information superhighway internet infrastructure, so information widely spreads not only in special fields but also in the daily lives of people. Information ubiquity influences the traditional way of transaction, and leads a new E-commerce which distinguishes from the existing E-commerce. Not only goods as physical but also service as non-physical come into E-commerce. As the scale of E-Commerce is being enlarged as well. It keeps people from finding information they want. Recommender systems are now becoming the main tools for E-Commerce to mitigate the information overload. Recommender systems can be defined as systems for suggesting some Items(goods or service) considering customers' interests or tastes. They are being used by E-commerce web sites to suggest products to their customers who want to find something for them and to provide them with information to help them decide which to purchase. There are several approaches of recommending goods to customer in recommender system but in this study, the main subject is focused on collaborative filtering technique. This study presents a possibility of pre-evaluation for the prediction performance of customer's preference in collaborative filtering before the process of customer's preference prediction. Pre-evaluation for the prediction performance of each customer having low performance is classified by using the statistical features of ratings rated by each customer is conducted before the prediction process. In this study, MovieLens 100K dataset is used to analyze the accuracy of classification. The classification criteria are set by using the training sets divided 80% from the 100K dataset. In the process of classification, the customers are divided into two groups, classified group and non classified group. To compare the prediction performance of classified group and non classified group, the prediction process runs the 20% test set through the Neighborhood Based Collaborative Filtering Algorithm and Correspondence Mean Algorithm. The prediction errors from those prediction algorithm are allocated to each customer and compared with each user's error. Research hypothesis : Two research hypotheses are formulated in this study to test the accuracy of the classification criterion as follows. Hypothesis 1: The estimation accuracy of groups classified according to the standard deviation of each user's ratings has significant difference. To test the Hypothesis 1, the standard deviation is calculated for each user in training set which is divided 80% from MovieLens 100K dataset. Four groups are classified according to the quartile of the each user's standard deviations. It is compared to test the estimation errors of each group which results from test set are significantly different. Hypothesis 2: The estimation accuracy of groups that are classified according to the distribution of each user's ratings have significant differences. To test the Hypothesis 2, the distributions of each user's ratings are compared with the distribution of ratings of all customers in training set which is divided 80% from MovieLens 100K dataset. It assumes that the customers whose ratings' distribution are different from that of all customers would have low performance, so six types of different distributions are set to be compared. The test groups are classified into fit group or non-fit group according to the each type of different distribution assumed. The degrees in accordance with each type of distribution and each customer's distributions are tested by the test of ${\chi}^2$ goodness-of-fit and classified two groups for testing the difference of the mean of errors. Also, the degree of goodness-of-fit with the distribution of each user's ratings and the average distribution of the ratings in the training set are closely related to the prediction errors from those prediction algorithms. Through this study, the customers who have lower performance of prediction than the rest in the system are classified by those two criteria, which are set by statistical features of customers ratings in the training set, before the prediction process.

A Survey of Korean Consumers' Awareness on Animal Welfare of Laying Hens (산란계 동물복지에 대한 국내 소비자의 인지도 조사)

  • Hong, Eui-Chul;Kang, Hwan-Ku;Park, Ki-Tae;Jeon, Jin-Joo;Kim, Hyun-Soo;Kim, Chan-Ho;Kim, Sang-Ho
    • Korean Journal of Poultry Science
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    • v.45 no.3
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    • pp.219-228
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    • 2018
  • This study was conducted twice to investigate egg purchase behavior and perception on animal welfare of Korean consumers. This study included women, who were the main decision makers and caretakers in the household, and men with one-person household. This survey was conducted with by the Computer Assisted Web Interview and Gang Survey methods. On the key considerations factor, the highest response rate was considered to be 'price', and the response rate of considering 'packing date' increased in the second survey. At a reasonable price based on 10 eggs, the response rate was the highest at 53.8% and 42.9% in both the first and second surveys and the appropriate price averages were 2,482 won and 2,132 won, respectively. The highest rate of purchase of egg consumers from 'Large Mart' followed by 'Medium sized supermarket' and 'Chain supermarket'. As for the awareness about animal welfare, the recognition ratio (73.5%) was higher in the result of the second survey than the first. The cognitive period of animal welfare was 59.0% before the insecticide egg crisis and 41.0% thereafter. Regarding whether or not they have ever seen an animal welfare certification mark and an animal welfare animal farm certification mark, 59.6% of respondents said that they saw it for the first time and 37.6% answered that they knew the animal welfare certification mark. On the animal welfare system, the 'free-range' response rate was the highest at 85.8%. The 'free-range' fit response decreased by 34.2%p, while the 'barn' and 'European type' fit response increased by 13.2%p and 24.1%p, respectively. The number of 'I have never seen' and 'I have ever eaten' responses to the recognition and eating experience of animal welfare certified eggs decreased while the number of those who answered 'Have ever seen' and 'Have eaten' increased. The answer of purchasing animal welfare certified eggs at department stores, organic farming cooperatives, and internet shopping malls was higher than that of buying conventional eggs. Of the total respondents, 92.0% were willing to purchase an animal welfare egg before the price was offered, but after offering the prices of animal welfare eggs, the intention to purchase was 62.7%, which was about 30%p lower than before. The reason for purchasing an animal welfare certified egg was the highest score of 71.0% for 'I think it is likely to be high in food safety', and 38.1% for 'I think the price is high' for lack of intention to purchase. In the sensory evaluation of animal welfare eggs, egg color and skin texture of conventional eggs were significantly higher than those of certified welfare eggs (P<0.05), and boiled eggs showed that egg whites of animal welfare certified eggs were more (P<0.05). As a result, the results of this study will contribute to the activation of the animal welfare certification system for laying hens by providing basic data on consumer awareness to animal welfare certified farmers.

Effects of firm strategies on customer acquisition of Software as a Service (SaaS) providers: A mediating and moderating role of SaaS technology maturity (SaaS 기업의 차별화 및 가격전략이 고객획득성과에 미치는 영향: SaaS 기술성숙도 수준의 매개효과 및 조절효과를 중심으로)

  • Chae, SeongWook;Park, Sungbum
    • Journal of Intelligence and Information Systems
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    • v.20 no.3
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    • pp.151-171
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    • 2014
  • Firms today have sought management effectiveness and efficiency utilizing information technologies (IT). Numerous firms are outsourcing specific information systems functions to cope with their short of information resources or IT experts, or to reduce their capital cost. Recently, Software-as-a-Service (SaaS) as a new type of information system has become one of the powerful outsourcing alternatives. SaaS is software deployed as a hosted and accessed over the internet. It is regarded as the idea of on-demand, pay-per-use, and utility computing and is now being applied to support the core competencies of clients in areas ranging from the individual productivity area to the vertical industry and e-commerce area. In this study, therefore, we seek to quantify the value that SaaS has on business performance by examining the relationships among firm strategies, SaaS technology maturity, and business performance of SaaS providers. We begin by drawing from prior literature on SaaS, technology maturity and firm strategy. SaaS technology maturity is classified into three different phases such as application service providing (ASP), Web-native application, and Web-service application. Firm strategies are manipulated by the low-cost strategy and differentiation strategy. Finally, we considered customer acquisition as a business performance. In this sense, specific objectives of this study are as follows. First, we examine the relationships between customer acquisition performance and both low-cost strategy and differentiation strategy of SaaS providers. Secondly, we investigate the mediating and moderating effects of SaaS technology maturity on those relationships. For this purpose, study collects data from the SaaS providers, and their line of applications registered in the database in CNK (Commerce net Korea) in Korea using a questionnaire method by the professional research institution. The unit of analysis in this study is the SBUs (strategic business unit) in the software provider. A total of 199 SBUs is used for analyzing and testing our hypotheses. With regards to the measurement of firm strategy, we take three measurement items for differentiation strategy such as the application uniqueness (referring an application aims to differentiate within just one or a small number of target industry), supply channel diversification (regarding whether SaaS vendor had diversified supply chain) as well as the number of specialized expertise and take two items for low cost strategy like subscription fee and initial set-up fee. We employ a hierarchical regression analysis technique for testing moderation effects of SaaS technology maturity and follow the Baron and Kenny's procedure for determining if firm strategies affect customer acquisition through technology maturity. Empirical results revealed that, firstly, when differentiation strategy is applied to attain business performance like customer acquisition, the effects of the strategy is moderated by the technology maturity level of SaaS providers. In other words, securing higher level of SaaS technology maturity is essential for higher business performance. For instance, given that firms implement application uniqueness or a distribution channel diversification as a differentiation strategy, they can acquire more customers when their level of SaaS technology maturity is higher rather than lower. Secondly, results indicate that pursuing differentiation strategy or low cost strategy effectively works for SaaS providers' obtaining customer, which means that continuously differentiating their service from others or making their service fee (subscription fee or initial set-up fee) lower are helpful for their business success in terms of acquiring their customers. Lastly, results show that the level of SaaS technology maturity mediates the relationships between low cost strategy and customer acquisition. That is, based on our research design, customers usually perceive the real value of the low subscription fee or initial set-up fee only through the SaaS service provide by vender and, in turn, this will affect their decision making whether subscribe or not.

SKU recommender system for retail stores that carry identical brands using collaborative filtering and hybrid filtering (협업 필터링 및 하이브리드 필터링을 이용한 동종 브랜드 판매 매장간(間) 취급 SKU 추천 시스템)

  • Joe, Denis Yongmin;Nam, Kihwan
    • Journal of Intelligence and Information Systems
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    • v.23 no.4
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    • pp.77-110
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    • 2017
  • Recently, the diversification and individualization of consumption patterns through the web and mobile devices based on the Internet have been rapid. As this happens, the efficient operation of the offline store, which is a traditional distribution channel, has become more important. In order to raise both the sales and profits of stores, stores need to supply and sell the most attractive products to consumers in a timely manner. However, there is a lack of research on which SKUs, out of many products, can increase sales probability and reduce inventory costs. In particular, if a company sells products through multiple in-store stores across multiple locations, it would be helpful to increase sales and profitability of stores if SKUs appealing to customers are recommended. In this study, the recommender system (recommender system such as collaborative filtering and hybrid filtering), which has been used for personalization recommendation, is suggested by SKU recommendation method of a store unit of a distribution company that handles a homogeneous brand through a plurality of sales stores by country and region. We calculated the similarity of each store by using the purchase data of each store's handling items, filtering the collaboration according to the sales history of each store by each SKU, and finally recommending the individual SKU to the store. In addition, the store is classified into four clusters through PCA (Principal Component Analysis) and cluster analysis (Clustering) using the store profile data. The recommendation system is implemented by the hybrid filtering method that applies the collaborative filtering in each cluster and measured the performance of both methods based on actual sales data. Most of the existing recommendation systems have been studied by recommending items such as movies and music to the users. In practice, industrial applications have also become popular. In the meantime, there has been little research on recommending SKUs for each store by applying these recommendation systems, which have been mainly dealt with in the field of personalization services, to the store units of distributors handling similar brands. If the recommendation method of the existing recommendation methodology was 'the individual field', this study expanded the scope of the store beyond the individual domain through a plurality of sales stores by country and region and dealt with the store unit of the distribution company handling the same brand SKU while suggesting a recommendation method. In addition, if the existing recommendation system is limited to online, it is recommended to apply the data mining technique to develop an algorithm suitable for expanding to the store area rather than expanding the utilization range offline and analyzing based on the existing individual. The significance of the results of this study is that the personalization recommendation algorithm is applied to a plurality of sales outlets handling the same brand. A meaningful result is derived and a concrete methodology that can be constructed and used as a system for actual companies is proposed. It is also meaningful that this is the first attempt to expand the research area of the academic field related to the existing recommendation system, which was focused on the personalization domain, to a sales store of a company handling the same brand. From 05 to 03 in 2014, the number of stores' sales volume of the top 100 SKUs are limited to 52 SKUs by collaborative filtering and the hybrid filtering method SKU recommended. We compared the performance of the two recommendation methods by totaling the sales results. The reason for comparing the two recommendation methods is that the recommendation method of this study is defined as the reference model in which offline collaborative filtering is applied to demonstrate higher performance than the existing recommendation method. The results of this model are compared with the Hybrid filtering method, which is a model that reflects the characteristics of the offline store view. The proposed method showed a higher performance than the existing recommendation method. The proposed method was proved by using actual sales data of large Korean apparel companies. In this study, we propose a method to extend the recommendation system of the individual level to the group level and to efficiently approach it. In addition to the theoretical framework, which is of great value.

The Effect of Expert Reviews on Consumer Product Evaluations: A Text Mining Approach (전문가 제품 후기가 소비자 제품 평가에 미치는 영향: 텍스트마이닝 분석을 중심으로)

  • Kang, Taeyoung;Park, Do-Hyung
    • Journal of Intelligence and Information Systems
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    • v.22 no.1
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    • pp.63-82
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    • 2016
  • Individuals gather information online to resolve problems in their daily lives and make various decisions about the purchase of products or services. With the revolutionary development of information technology, Web 2.0 has allowed more people to easily generate and use online reviews such that the volume of information is rapidly increasing, and the usefulness and significance of analyzing the unstructured data have also increased. This paper presents an analysis on the lexical features of expert product reviews to determine their influence on consumers' purchasing decisions. The focus was on how unstructured data can be organized and used in diverse contexts through text mining. In addition, diverse lexical features of expert reviews of contents provided by a third-party review site were extracted and defined. Expert reviews are defined as evaluations by people who have expert knowledge about specific products or services in newspapers or magazines; this type of review is also called a critic review. Consumers who purchased products before the widespread use of the Internet were able to access expert reviews through newspapers or magazines; thus, they were not able to access many of them. Recently, however, major media also now provide online services so that people can more easily and affordably access expert reviews compared to the past. The reason why diverse reviews from experts in several fields are important is that there is an information asymmetry where some information is not shared among consumers and sellers. The information asymmetry can be resolved with information provided by third parties with expertise to consumers. Then, consumers can read expert reviews and make purchasing decisions by considering the abundant information on products or services. Therefore, expert reviews play an important role in consumers' purchasing decisions and the performance of companies across diverse industries. If the influence of qualitative data such as reviews or assessment after the purchase of products can be separately identified from the quantitative data resources, such as the actual quality of products or price, it is possible to identify which aspects of product reviews hamper or promote product sales. Previous studies have focused on the characteristics of the experts themselves, such as the expertise and credibility of sources regarding expert reviews; however, these studies did not suggest the influence of the linguistic features of experts' product reviews on consumers' overall evaluation. However, this study focused on experts' recommendations and evaluations to reveal the lexical features of expert reviews and whether such features influence consumers' overall evaluations and purchasing decisions. Real expert product reviews were analyzed based on the suggested methodology, and five lexical features of expert reviews were ultimately determined. Specifically, the "review depth" (i.e., degree of detail of the expert's product analysis), and "lack of assurance" (i.e., degree of confidence that the expert has in the evaluation) have statistically significant effects on consumers' product evaluations. In contrast, the "positive polarity" (i.e., the degree of positivity of an expert's evaluations) has an insignificant effect, while the "negative polarity" (i.e., the degree of negativity of an expert's evaluations) has a significant negative effect on consumers' product evaluations. Finally, the "social orientation" (i.e., the degree of how many social expressions experts include in their reviews) does not have a significant effect on consumers' product evaluations. In summary, the lexical properties of the product reviews were defined according to each relevant factor. Then, the influence of each linguistic factor of expert reviews on the consumers' final evaluations was tested. In addition, a test was performed on whether each linguistic factor influencing consumers' product evaluations differs depending on the lexical features. The results of these analyses should provide guidelines on how individuals process massive volumes of unstructured data depending on lexical features in various contexts and how companies can use this mechanism from their perspective. This paper provides several theoretical and practical contributions, such as the proposal of a new methodology and its application to real data.