• Journal of the Korean Operations Research and Management Science Society
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• v.32 no.1
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• pp.105-124
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• 2007

CRM (Customer Relationship Management) becomes a crucial paradigm as the environment of the market changes. About the CRM actively maintaining and managing customers that have been already acquired, the research has been done as a plan to lure loyal customers who bring lucrative profits in the long term for the company in order to increase the value to the customers. However, in practice, the focus is on putting spurs to attracting new customers in a short term rather than retaining existing customers who give profitable revenues. If the company puts high emphasis on drawing the new customers, in a CRM's point of view in relation to the value of the customers, it can incur a loss in the long run. The reason is that if the firm conducts discriminative sales promotion, the existing clients with high loyalty will feel relatively treated inappropriately and they will have negative feelings such as being betrayed from the company they prefer. This occurrence of negative emotion can in-crease the possibility of highly profitable clients' secession. In consequence, this paper focusing on the process of the client segmentation at the mobile telecommunication services shows that the sales promotion strategy for the new customer attraction can lead to negative effect on the loyalty of the existing customers.

• Journal of applied mathematics & informatics
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• v.30 no.5_6
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• pp.749-757
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• 2012

We consider the M/PH,G/1 queue with two classes of customers in which class-1 customers have deterministic impatience time and have preemptive priority over class-2 customers who are assumed to be infinitely patient. The service times of class-1 and class-2 customers have a phase-type distribution and a general distribution, respectively. We obtain performance measures of class-2 customers such as the queue length distribution, the waiting time distribution and the sojourn time distribution, by analyzing the busy period of class-1 customers. We also compute the moments of the queue length and the waiting and sojourn times.

• Management Science and Financial Engineering
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• v.11 no.3
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• pp.47-60
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• 2005

Well-known e-CRM strategy is to focus on profitable customers and pay less attention to unprofitable ones. Moreover, some researchers recommend not serving unprofitable ones any more. However, it often neglects customers indirect value. Deselecting unprofitable customers can raise the issue of bad word-of-mouth publicity especially in the age of the Internet. Some studies pointed out that a customers decision to buy a product or service is often strongly influenced by others. In this paper, we consider customers' word-of-mouth effect on quality learning of inexperienced customers. We show that firms implementing e-CRM must take the effect into the consideration when deselecting unprofitable customers.

• Journal of the Korean Operations Research and Management Science Society
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• v.39 no.1
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• pp.69-81
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• 2014

Financial products entail either gains or losses, and customers' psychological reaction to these gains and losses affect the selection of the financial products. This study explains the financial customers' behavior by introducing consumers' psychological variables such as regulatory focus and construal levels. According to the regulatory focus theory, there are two distinct motivational orientations called promotion focus and prevention focus. And, construal level theory proposes that people use more abstract and higher levels of construal to represent objects that are more distant on psychological distance. We have incorporated these two psychological variables into financial consumer behaviors. In the experiment 1, the results have showed that promotion focused customers prefer fund products to deposit products, whereas prevention focused customers have showed the opposite result. In the experiment 2, both regulatory focus and construal level were considered. Specifically, under the high level message, promotion focused customers have showed higher preference to fund products than the prevention focused customers, and no significant difference for the deposit products. On the contrary, given the low level message, prevention focused customers have showed higher preference to both fund and deposit products than the promotion focused customers. Therefore, it comes to the conclusion that it will be efficient for the financial companies to use high level messages for the promotion focused customers and low level messages for the prevention focused customers. Implications and limitations are discussed to establish more effective marketing strategies based on the results of this study.

• Journal of the Korean Home Economics Association
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• v.44 no.5 s.219
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• pp.21-33
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• 2006

The purpose of this study were 1) to analyze customer relationship management(CRM) based on the online customer experiences by product types (i.e., men's, women's, casual, sports wear), 2) to analyze CRM based on the off-line customer experiences by product type, and 3) to examine customer purchase behavior of fashion products and internet usage behavior by product types. Survey and 1:1 interview were conducted from January 13th to May 16th, 2005. Six consumers from each brand (i.e., 3 loyal customers and 3 general customers) in a total of 24 customers were selected from each product type. For the data analysis, content analysis and descriptive statistics (i.e. frequency) were used. Among the key study findings first, as a result of the on-line CRM experience, the customers of men's wear preferred receiving customized information through e-mail or SMS service. The customers of sports wear preferred receiving a different level of information and participating in customized product service. Second, as a result of the off-line CRM experience, the customers of men's wear need to be encouraged to join a membership at a sales encounter and the customers of women's wear preferred receiving quick information of new products and participating in a design development planning of the merchandising process. Third, the purchasing behavior of the customers of women's wear are influenced mostly by the salesperson and the store atmosphere when they purchase clothes and the customers of men's wear are price-sensitive. The results of this study can be used when fashion brands perform strategic planning and decision making on CRM.

• Journal of Korean Institute of Industrial Engineers
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• v.25 no.1
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• pp.130-140
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• 1999

This paper deals with a priority queueing model in an ATM system. Two types of customers are considered. Type-1 customers have push-put priority over type-2 customers. Type-1 customers can enter the service only when the number of type-2 customers is less than a threshold T. We derive the joint probability of the number of customers in the buffer, the mean waiting time, and the loss probabilities of each type. We also propose an optimal control policy that satisfies a given quality of service.

• Journal of the Korean Mathematical Society
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• v.32 no.2
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• pp.211-236
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• 1995

The purpose of this paper is to provide a transient diffusion approximation of queue size distribution for M/G/m/N system. The M/G/m/N system can be expressed as follows. The interarrival times of customers are exponential and the service times of customers have general distribution. The system can hold at most a total of N customers (including the customers in service) and any further arriving customers will be refused entry to the system and will depart immediately without service. The queueing system with finite capacity is more practical model than queueing system with infinite capacity. For example, in the design of a computer system one of the important problems is how much capacity is required for a buffer memory. It its capacity is too little, then overflow of customers (jobs) occurs frequently in heavy traffic and the performance of system deteriorates rapidly. On the other hand, if its capacity is too large, then most buffer memories remain unused.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.14 no.4
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• pp.101-109
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• 2006

This study investigates what criterion airline customers recognize important when evaluating airline firms. Specifically it is surveyed if different criterion are used by different groups of airline customers when choosing an airline firm. In addition customer group with high loyalty to 'K' airline, national carrier of Korea, is differently evaluate 'K' airline for the selection criterion over customer group without loyalty. Frequent flyer program is suggested most important by most of the customers being followed by flight schedule. Flight schedule, in-flight food and air fare of 'K' airline are differently evaluated according to level of royalty to the airline. However there appears no difference in the evaluation of seat and entertainment between two groups, customers with high loyalty and customers without loyalty.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.58 no.10
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• pp.1869-1880
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• 2009

Distribution line fault has been reduced gradually by the efforts on improving the quality of electrical materials and distribution system maintenance. However faults caused by medium voltage customers have been increased gradually even though we have done many efforts. The problem is that we don't know which customer will cause the fault. This paper presents the concept to find these customers using data mining techniques, which is based on accumulated fault records of medium voltage customers in the past. It also suggests the prediction model construction of medium voltage customers causing distribution line fault and methods to enhance the reliability of distribution system. We expect that we can effectively reduce faults resulted from medium voltage customers, which is 30% of total faults.

• Culinary science and hospitality research
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• v.9 no.3
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• pp.197-211
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• 2003

It is widely agreed that customers' purchase are strongly influenced by their emotions. despite the obvious importance of eliciting positive emotional responses from customers, we find no record that family restaurants have ever measured or used customers' emotions as a management tool. This study aimed to verify the importance of the customers' emotion in the relational performance of family restaurant business. In order to achieve the object of the study, the effect of emotional factors on service satisfaction, revisit, word-of-mouth were analysed. The data were collected from 450 customers who had visited five family restaurants in Seoul more than once during the last three months from September 20 to October 5, 2002. Emotional variables in service experience process were grouped as three factors; in the middle of having food, in entering and leaving restaurant and in the waiting line. It is proved that customers had different emotions in each process of family restaurant service experience. Multiple regression analysis was employed to explore the influence of three emotional factors on relational performances such as satisfaction, revisit and word-of-mouth. It was found that customers were influenced by emotional factors in entering and leaving restaurant, secondly influenced in the waiting line and least influenced in the middle of having food. Finally, the findings indicated that customers' emotional factors in whole service experience process from entering to leaving the restaurant should be successfully cared by service staff. Future research is recommended to find out which specific emotional factors affected on relational performance of family restaurant.