• Title/Summary/Keyword: Net-based Customer Service

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Impact of Net-Based Customer Service on Firm Profits and Consumer Welfare

  • Kim, Eun-Jin;Lee, Byeong-Tae
    • 한국경영정보학회:학술대회논문집
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    • 2007.06a
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    • pp.141-146
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    • 2007
  • The importance of the net-based customer service in delivering supplementary after-sale services associated with product has been well documented. The strategic advantages of a well-implemented the net-based customer service are enhanced customer loyalty and higher lock-in of customers, and the resulting reduction in competition and the consequent increase in profits. However, not all customers utilize such the net-based customer service. This is partly due to the e-commerce divide, and partly due to privacy and security concerns of the customer for sharing personal information with firms. The limited level of customer adoption of the net-based customer service affects the firm profits and the customers' welfare. We use a game-theoretic model in which we model the net-based customer service system as a mechanism to enhance customers' loyalty. We find that an increase in adoption of the net-based customer service by the customer base is not always desirable for firms. and that customers who utilize such services are better off only when the overall adoption is limited.

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Impact of Net-Based Customer Service on Firm Profits and Consumer Welfare (기업의 온라인 고객 서비스가 기업의 수익 및 고객의 후생에 미치는 영향에 관한 연구)

  • Kim, Eun-Jin;Lee, Byung-Tae
    • Asia pacific journal of information systems
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    • v.17 no.2
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    • pp.123-137
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    • 2007
  • The advent of the Internet and related Web technologies has created an easily accessible link between a firm and its customers, and has provided opportunities to a firm to use information technology to support supplementary after-sale services associated with a product or service. It has been widely recognized that supplementary services are an important source of customer value and of competitive advantage as the characteristics of the product itself. Many of these supplementary services are information-based and need not be co-located with the product, so more and more companies are delivering these services electronically. Net-based customer service, which is defined as an Internet-based computerized information system that delivers services to a customer, therefore, is the core infrastructure for supplementary service provision. The importance of net-based customer service in delivering supplementary after-sale services associated with product has been well documented. The strategic advantages of well-implemented net-based customer service are enhanced customer loyalty and higher lock-in of customers, and a resulting reduction in competition and the consequent increase in profits. However, not all customers utilize such net-based customer service. The digital divide is the phenomenon in our society that captures the observation that not all customers have equal access to computers. Socioeconomic factors such as race, gender, and education level are strongly related to Internet accessibility and ability to use. This is due to the differences in the ability to bear the cost of a computer, and the differences in self-efficacy in the use of a technology, among other reasons. This concept, applied to e-commerce, has been called the "e-commerce divide." High Internet penetration is not eradicating the digital divide and e-commerce divide as one would hope. Besides, to accommodate personalized support, a customer must often provide personal information to the firm. This personal information includes not only name and address, but also preferences information and perhaps valuation information. However, many recent studies show that consumers may not be willing to share information about themselves due to concerns about privacy online. Due to the e-commerce divide, and due to privacy and security concerns of the customer for sharing personal information with firms, limited numbers of customers adopt net-based customer service. The limited level of customer adoption of net-based customer service affects the firm profits and the customers' welfare. We use a game-theoretic model in which we model the net-based customer service system as a mechanism to enhance customers' loyalty. We model a market entry scenario where a firm (the incumbent) uses the net-based customer service system in inducing loyalty in its customer base. The firm sells one product through the traditional retailing channels and at a price set for these channels. Another firm (the entrant) enters the market, and having observed the price of the incumbent firm (and after deducing the loyalty levels in the customer base), chooses its price. The profits of the firms and the surplus of the two customers segments (the segment that utilizes net-based customer service and the segment that does not) are analyzed in the Stackelberg leader-follower model of competition between the firms. We find that an increase in adoption of net-based customer service by the customer base is not always desirable for firms. With low effectiveness in enhancing customer loyalty, firms prefer a high level of customer adoption of net-based customer service, because an increase in adoption rate decreases competition and increases profits. A firm in an industry where net-based customer service is highly effective loyalty mechanism, on the other hand, prefers a low level of adoption by customers.

A Study on an Efficient e-business System based on .NET (.NET을 기반으로 한 효율적인 전자상거래 시스템에 관한 연구)

  • 나윤지
    • The Journal of the Korea Contents Association
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    • v.2 no.4
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    • pp.51-58
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    • 2002
  • A electronic business user is increased rapidly, and load of a electronic business system and network traffic are increased rapidly. Also, the data which included an audio and video is increasing in a electronic business system gradually, and According to this an Internet service businessman is paying for an enormous cost for management of a system and a maintenance of a line. It is brought a delay of a response speed about a service wish of a Web customer this system load and network traffic raise. Also, this decreases customer satisfaction and becomes an important factor to decrease competitive power of an e-business enterprise. In this study, we proposed the electronic business system that improved answer delay time about a Web customer in an e-business system based on the .net which was a the latest version of Microsoft company, and analyzed performance of a proposal system through an experiment. In the experiment result, the system that proposed it can have response time to have been improved and fast adaptability about various requests of a Web customer. Also, in a proposed system, a decrease gets a delay of a response speed to occur because of the multiple user done.

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A study on factors that affect service quality of SNS based commerce (SNS에 기반을 둔 전자상거래의 서비스 품질에 영향을 미치는 요인에 대한 연구)

  • Choi, Jung-Woon;Lee, Ook
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.21 no.11
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    • pp.125-138
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    • 2020
  • Currently, the e-commerce market in Korea is growing rapidly, particularly in online commerce, and transactions through SNS are constantly increasing. This study assessed the quality of service based on SNS by modifying and combining SNS-based applications and services. Two hundred and sixteen surveys from an online survey conducted using a cumulative sampling technique were analyzed. The confidence, empathy, responsiveness, reliability, perceived usefulness, and customer satisfaction were independent variables. The perceived usefulness, customer satisfaction, and net profit were considered dependent variables. The results of 11 hypotheses were derived through SPSS 25. The results show that the perceived usefulness and customer satisfaction are affected by assurance, empathy, responsiveness, and reliability. In addition, SNS - based commerces show a significant relationship between perceived usefulness, customer satisfaction, and net benefits. The significant results are expected to help in future related research.

Comparative Analysis of Customer Feedback Metrics for Improving Predictability of Customer Loyalty (고객 충성도 예측력 제고를 위한 측정방법(CFM) 비교연구)

  • Kim, Joung-rae;Chung, Byoung-gyu
    • Journal of Venture Innovation
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    • v.1 no.2
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    • pp.61-73
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    • 2018
  • Many studies have focused on improving the predictability of influential variables in the area of customer services. For a long time, customer satisfaction index(CSI) were the best matrics of customer loyalty. In 2003, net promoter score(NPS) was introduced and in many cases this matrics was more predictive than CSI. In 2010, customer effort score(CES) was introduced and in the service areas this matrics was more predictive than CSI and NPS. This study compared with 3 matrics based on the criteria which composed of basic assumptions, time perspective, measuring items, objectives of matrics, application areas, and limitations of application. The dominant matric which was applied in all functions and industries was not exited. For the purpose of improving predictability, single or compound matrics are useful according to industries and usage.

Solving the Mystery of Consistent Negative/Low Net Promoter Score (NPS) in Cross-Cultural Marketing Research

  • Seth, Sanjay;Scott, Don;Svihel, Chad;Murphy-Shigematsu, Stephen
    • Asia Marketing Journal
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    • v.17 no.4
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    • pp.43-61
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    • 2016
  • This paper has identified some theoretical reasons and empirical evidence for negative scores that occur in Japan and Korea or unstable NPS scores that can be experienced. A psychological analysis of NPS results sheds light on the validity of the negative NPS scores that are often found in Japan and Korea. Usually customer experience surveys utilize a "single stimulus" such as the "company" or the "company's products / services." However, in the case of the "recommendation to friend" question of the NPS system there are two stimuli namely the "company product/service" and the influence of "friends." Hence, the survey outcomes from this question can be very different when compared with other single stimulus questions such as "overall satisfaction" or "repurchase." Japanese and Korean people may have a positive attitude towards the company but they will provide low NPS scores because they are reflecting that they would not run the risk of ruining their relationships with their friends by making a recommendation. As a result, in the NPS system these people will be labeled as "detractors" when in fact they are "ambivalent customers." Using several Japanese and Korean based marketing research industry examples and case studies, different strategies are proposed to address the issue of negative scores in the NPS system in Japan and Korea. The Customers Psyche appears to be the key determinant factors for both types of behavioural items (items with a single stimulus as well as items with two stimuli).

A Study on the Prediction of Referral Intension based on Customer Satisfaction in Construction Management (CM에서 고객만족도에 기반한 추천의향 예측에 관한 연구)

  • Jeong, Min;Lee, Ghang
    • Korean Journal of Construction Engineering and Management
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    • v.11 no.6
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    • pp.100-110
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    • 2010
  • The main roots of CM service contracts include existing customer repurchases and those made by new customers by existing ones. The study on customers and loyalty can be factors to strengthen CM's competitiveness. However, there have been little attempt to study customer satisfaction and customer loyalty. Construction Management (CM), the advanced construction management method, was introduced 15 years ago in the mid 1990's in the domestic market. The aim of this research is to build a model that can predict customer loyalty based on how much customers are satisfied with CM service. To measure customer satisfaction and loyalty, this research surveyed 135 decision-makers who have experienced CM services. Customer satisfaction was tested and analyzed according to different phases: planning, designing, procurement, construction, and post construction. Referral intention was tested based on NPS theory. Customer types were divided into detractors, passively satisfied and promoters according to the tested measurement and multinomial logistic regression between the satisfaction by construction phases and customer types. This research resulted to a model that can predict customer types: detractors, passively satisfied and promoters, which were determined according to satisfaction level. The initial planning phase also revealed which factor is most influential for a customer to become promoter. These results can be used to acquire customer loyalty by managing the satisfaction of customers through a project under an Internet-based environment. Such can provide the needed information in quickly exploring positive and negative word-of-mouth feedbacks.

Pricing Strategy for Access Charge of IPTV Network : A Dynamic Analysis (IPTV 망 임대의 가격책정 전략 : 동태적 분석)

  • Kim, Dong-Hee;Cha, Jeong-Hyun;Oh, Jung-Suk;Kim, Soo-Wook
    • Journal of the Korean Operations Research and Management Science Society
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    • v.35 no.3
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    • pp.45-58
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    • 2010
  • Due to rapid developments of IT technologies, convergence services like IPTV (Internet protocol television) are shown up. Even though expert and customer had great expectations for this innovative service, commercialization was delayed for years by the legal dispute between industry players. One of the biggest problems was that whether internet backbone providers have to share their internet network backbone with IPTV service providers (which don't have network backbone) or not. As other countries, Korean government set the rules that ISP have to offer indiscriminate access to other IPTV service provider. At the same time, internet backbone providers can charge access charge based on cost by way of compensation. Thus access charge is very critical to the IPTV industry players. The objective of this paper is to provide model that can calculate the reasonable access charge by system dynamics, based upon real data in Korean telecommunication industry.

Development of a Ream-time Facial Expression Recognition Model using Transfer Learning with MobileNet and TensorFlow.js (MobileNet과 TensorFlow.js를 활용한 전이 학습 기반 실시간 얼굴 표정 인식 모델 개발)

  • Cha Jooho
    • Journal of Korea Society of Digital Industry and Information Management
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    • v.19 no.3
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    • pp.245-251
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    • 2023
  • Facial expression recognition plays a significant role in understanding human emotional states. With the advancement of AI and computer vision technologies, extensive research has been conducted in various fields, including improving customer service, medical diagnosis, and assessing learners' understanding in education. In this study, we develop a model that can infer emotions in real-time from a webcam using transfer learning with TensorFlow.js and MobileNet. While existing studies focus on achieving high accuracy using deep learning models, these models often require substantial resources due to their complex structure and computational demands. Consequently, there is a growing interest in developing lightweight deep learning models and transfer learning methods for restricted environments such as web browsers and edge devices. By employing MobileNet as the base model and performing transfer learning, our study develops a deep learning transfer model utilizing JavaScript-based TensorFlow.js, which can predict emotions in real-time using facial input from a webcam. This transfer model provides a foundation for implementing facial expression recognition in resource-constrained environments such as web and mobile applications, enabling its application in various industries.

Brand Equity and Purchase Intention: The Fashion Market in China (상표자산이 구매의도에 미치는 영향: 중국패션시장에서)

  • Lee, Dong-Hae;Choi, Young-Ro
    • Journal of Distribution Science
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    • v.13 no.7
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    • pp.85-90
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    • 2015
  • Purpose - Global trends play a part to change the structure of the fashion industry. In particular, companies attempting to conduct innovative marketing centering on such products as SPA brands are growing into global companies. SPA stands for "Specialty Store Retailer of Private Label Apparel", meaning its activities are fully integrated from manufacturing through sales, including material procurement design, product, distribution, inventory management, and final sales. For this reason, more understanding of individual corporate profitability is very sensitive to consumer's attitudinal changes. The effects that corporate marketing activities on customer lifetime value through brand attitude were analyzed based on a structural equation model. Rust suggested value equity, brand equity, and relationship equity as customer equity driver. The study examines Chinese consumer because China is the fastest growing fashion market in the world. Research design, data, and methodology - The survey targeted Chinese college student age 20s. Only respondents who had purchased SPA brands in the past year were included for this research. A total of 303, except for 47 missing data of 350 distributed questionnaires were included in this research. The questionnaire is consists of six part to measure value, brand, relationship equity, attitude toward brand, purchase intention and demographic characteristics. This research conducted exploratory factor analysis and reliability test. To verify research hypotheses, structural equation model test was conducted. As for customer equity, diversified models in consideration of the scope of acquisition data, a method of collection of data, influencing factor, and predictability were suggested based on a net present value model. However, the history of customer equity study is relatively short, and sufficient empirical analyses have not been conducted, so more integrated analysis is required. In this study, the concept of driver suggested by Rust was applied to figure out the effects that consumer's attitude has on customer equity. The customer equity driver suggested by them consists of brand equity, value equity, and relationship equity. Results - This study reveals that value equity and brand equity have a positive influence on relationship equity. And, relationship equity has a positive influence on purchase intention through brand attitude. However, value equity and brand equity do not influence on brand attitude. Conclusion - The results of this research generated following implications. First, SPA brands need to take advantage of their value equity such as perceived low price and up-to-date fashion style to attract Chinese young consumer. Second, strong brand equity promises dominants position in the competitive market. As Chinese fashion market grows rapidly, SPA brands can consider branding strategy such as flagship store and celebrity marketing enhancing brand image. Third, the core concept of customer equity strategy is to maintain a relationship with their expecting and existing customers. The relationship equity is built by brand equity and value equity. When SPA brands serves product and service meet with individual customers, customers have intimacy to the brands.