• Title/Summary/Keyword: Sales promotions

Search Result 57, Processing Time 0.026 seconds

A Study on the Current Customer's Defection Due to Promotions Focused on New Customer Acquisition (신규고객 유치에 따른 기존고객의 이탈가능성 연구)

  • Lee, Ki-Soon;Kim, Sang-Yong
    • Journal of the Korean Operations Research and Management Science Society
    • /
    • v.32 no.1
    • /
    • pp.105-124
    • /
    • 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.

An Empirical Research on Factors Affecting Mobile User's Attitude towards Mobile Marketing in India

  • Satish Kumar, G.N.
    • Asia-Pacific Journal of Business
    • /
    • v.3 no.1
    • /
    • pp.10-16
    • /
    • 2012
  • India is having a high growth rate of Mobile subscribers which has opened up a new marketing channel of communication with customers. There is a need to study the factors affecting Mobile user's attitude towards Mobile marketing and the relationship between these factors. To study the mobile users attitude towards mobile marketing 489 mobile users opinion is taken on 12 statements for a period of 5 months. Using factor analysis method these 12 statements are grouped into 5 groups they are Mobile advertisement, Mobile Usability, Mobile Promotions, Mobiles shopping and Mobile Marketing. Confirmatory Factor Analysis (CFA) was performed to confirm the findings. SPSS Statistics 17.0 is used to conduct factor analysis and the validity of the model. Once the model was validated, SPSS Amos 18.0 was used to fit a model based on Structure Equation Model to analyze the factors affecting Mobile user's attitude and the relationship between these factors. The present study revealed that Mobile Advertisement and Mobile Sales Promotion are having positive effect on Mobile Marketing where as Mobile Shopping and Mobile Phone Usability is having negative effect on Mobile Marketing. The impact of indicators like Mobile Phone user's permission and personalization of Mobile Phone communication on Mobile Marketing are also discussed in this article.

  • PDF

A Risk Management Framework for New Product Development: A Case Study

  • Kasemset, Chompoonoot;Wannagoat, Jaruwan;Wattanutchariya, Wassanai;Tippayawong, Korrakot Y.
    • Industrial Engineering and Management Systems
    • /
    • v.13 no.2
    • /
    • pp.203-209
    • /
    • 2014
  • This research designed and implemented a supply chain risk management platform and applied it to a case study of reduced-fat Lanna pork sausage as a new product development project. The proposed framework has three stages: risk identification, risk assessment, and risk mitigation. Seventeen risk agents with 17 risk events were identified based on SWOT analysis and the Porter Five Forces concept through the process of planning, sourcing, making and delivering, partially captured from the supply chain operations reference model in the first stage. In the second stage, an house of risk (HOR) framework was applied to present the impacts of each risk agent. In the third stage, eight risk agents with high impact were selected to design 21 preventive actions. Finally, three preventive actions with the highest effectiveness to difficulty ratio scores-'sales evaluation of familiar products', 'increasing distribution channels and promotions to improve sales', and 'work flow improvement for work safety'-were then recommended for this new product development.

A Study on a Sales Promotion Strategy for HMR Products in Discount Stores (대형마트 HMR 판매촉진전략 연구)

  • Kim, Kwang-Ji
    • Culinary science and hospitality research
    • /
    • v.19 no.4
    • /
    • pp.256-267
    • /
    • 2013
  • This study is a case study that drew efficient HMR sales promotions and verified their applications to business. An analysis of customer needs for HMR products in discount stores showed that diverse menu was ranked 1st with 29.1%, followed by packaging with 23.6%, price with 22%, menu information with 14.2%, and quality of food with 11.0%.. Main results of this study are indicated below. First, there were significant differences in sales before (3,932,313 won, a daily average 187,253 won) and after (4,840,063 won, a daily average 230,479 won) packaging improvement. Second, there were significant differences in sales of salad products before (4,627,508 won, a daily average 220,356 won) and after (5,238,365 won, a daily average 249,446 won) information improvement. The implications of this study are shown as follows. From a theoretical perspective, this study identified the sales promotion methods of HMR products through direct observation, interviews, and a survey to the customers who visited the stores. From a practical standpoint, this study measured the effects of theoretically confirmed sales promotion methods such as packaging, menu information, and diverse menu by analyzing the change in sales resulting from application of these methods at HMR business in discount stores.

  • PDF

A System Dynamics Approach to Building a Dynamic Customer Satisfaction Model (동태적 고객만족 모형의 전략적 활용 - 통신서비스를 중심으로 -)

  • 연승준;박상현;김상욱
    • Korean System Dynamics Review
    • /
    • v.4 no.1
    • /
    • pp.5-31
    • /
    • 2003
  • Customer satisfaction is generally assumed to be a significant determinant of repeat sales, positive word-of-mouth, and customer loyalty. Therefore most companies in telecommunication industry have tried to satisfy customers with high quality at low price in Korea. Even though these efforts have been tried by companies, customers are not satisfied with discrepancy between their expectation and perceived quality. Moreover, the expectation has dynamic and variable characteristics in results from various effects such n technical progress, improved quality and promotions by companies, word-of-mouth, and so on, Therefore, there are not political leverages in assessing the quality and surveying customer satisfaction index in a point of time. As an initial attempt to tackle the questions listed above, this paper puts an effort to make a dynamic customer satisfaction model to understand customer satisfaction in variable situations by introducing 'systems thinking'.

  • PDF

A Study on the Sales Promotion of the Foodservice Industry (외식산업의 판매촉진에 관한 탐색적 연구)

  • 나영선
    • Culinary science and hospitality research
    • /
    • v.4
    • /
    • pp.25-42
    • /
    • 1998
  • In order to promote a foodservice professionally, the operator must carefully plan of enterprise goals and how to meet them. This is especially truth of foodservices in which both production and service aspects take place under one roof. In such a case, the foodservice operator sells products and services not just one. It is up to the foodservice operator to package the products and services in a manner that is most pleasing customers. The first stop here is to determine who the customers are and what hey want. The process of answering these questions and developing a program to meet the needs identified is called marketing. This study deals primarily with internal promotional concepts, in this study it is important to cover a few of the basic concepts of marketing as well. Thus this study is try to present the merchandising food. In this study, the merchandising food is based on training employees, planning special promotions, featuring special menu items, creating atmosphere, developing good public relations using promotional materials.

  • PDF

The analysis of value chains for the chestnut industry in Chungcheongnam-do

  • Lee, Bo-Hwi;Ji, Dong-Hyun;Kang, Kil-Nam;Kim, Se-Bin
    • Korean Journal of Agricultural Science
    • /
    • v.45 no.2
    • /
    • pp.298-307
    • /
    • 2018
  • The aim of this study was to enhance the value of the chestnut industry by analyzing the value chain structure. Based on the value chain theory, it is divided into primary activities and support activities. Thus, in total, 27 subjects from Gongju, Buyeo, and Cheongyang were interviewed and self-administered questionnaire. Regarding the value chain structure of the chestnut industry, the primary activities consisted of production followed by cultivation and storing, sorting and packaging, transportation and marketing sales. The support activities were divided into production infrastructure, policy, R&D, and systematization. The primary activities are able to maximize profits through cost reductions. The production was divided into general and environmentally friendly cultivation. Depending on the labor force, it is family-centered labor. However, the installation of harvest nets depends on a hired labor force (40 - 60%) such that it would be necessary to have a mechanized harvest to replace the manpower for the cost reduction. Transportation, marketing sales, and backdoor selling (38.1%) were higher than the existing channels (31.0%) using the National Agricultural Cooperative Federation. The enhancement of value could be created by maximizing profits through the reinforcement of the links between each subject. The production showed strong connections with cultivation/storing, sorting/packing, and backdoor selling and the National Forestry Cooperative Federation. The processing stage is a very simple structure, it would be necessary to have R&D and to support promotions, infrastructure, machines, and sales increases, which should be expanded by connections with other industries like the food industry.

Tobacco Use Among Students Aged 13-15 Years in South Korea: The 2013 Global Youth Tobacco Survey

  • Choi, Sunhye;Kim, Yoonjung;Lee, Jihye;Kashiwabara, Mina;Oh, Kyungwon
    • Journal of Preventive Medicine and Public Health
    • /
    • v.50 no.1
    • /
    • pp.60-65
    • /
    • 2017
  • Objectives: We examined the prevalence of tobacco use and exposure to secondhand smoke among middle-school students in Korea using the Global Youth Tobacco Survey (GYTS) in 2013. Methods: The GYTS in Korea was conducted between July and August 2013 by the Korea Centers for Disease Control and Prevention. Data were collected using a self-administered anonymous questionnaire from a nationally representative sample of middle-school students aged 13-15 years in sampled classrooms. Results: The GYTS in Korea was completed by 4235 students aged 13-15 years in 43 middle schools. Approximately one in five of the students (17.8%) reported that they had tried cigarettes in the past, while 5.2% reported currently being cigarette smokers. Current cigarette smoking was higher in boys (7.5%) than in girls (2.6%). Of the students, 29.7% had been exposed to secondhand smoke at home, 47.4% inside enclosed public places, and 53.9% in outdoor public places. Of the current cigarette smokers, 25.7% bought their cigarettes from a store despite a law prohibiting this. Additionally, 58.0% of students noticed point-of-sale tobacco advertisements or promotions, 66.8% of current cigarette smokers wanted to stop smoking, and 70.9% of students had been taught about the dangers of tobacco use in school. Conclusions: These findings provide an opportunity to develop, implement, and evaluate a comprehensive tobacco control policy. The results suggest that youth have relatively easy access to cigarettes and are regularly exposed to secondhand smoke in public places, as well as to point-of-sale tobacco advertisements and promotions. Strict enforcement of the ban on tobacco sales to youth, expanding smoke-free areas, and advertising bans are needed to reduce tobacco use among youth.

A Study of the Fengshui Marketing Model in the Housing Industry (주택산업의 풍수마케팅 모형 정립에 관한 연구)

  • Kim, Jong-Seop
    • Journal of Distribution Science
    • /
    • v.10 no.5
    • /
    • pp.29-36
    • /
    • 2012
  • This paper aims to establish a Fengshui-based marketing model that companies engaged in selling dwelling spaces can utilize to increase their sales. The study is based on an investigation of appraisal statements and analysis techniques used in Fengshui. The Fengshui marketing model can be used for corporate advertising, sales promotions, public relations events, and for framing an overall marketing strategy according to changing consumer demand. As a sales promotion strategy, it can be used to influence consumer psychology and behavior. Although this study is limited to the all-pervasive advertising and marketing of houses by construction companies under installment plans, the Fengshui marketing method can also be used for the sale of store locations, space for product display, and so on. Initially, I analyze living spaces according to traditional Fengshui theory, and subsequently apply the modern method to study topographical space structures and geomagnetism disturbances. I present a standard form for writing the Fengshui appraisal statement based on the objective analytical method of Fengshui. With its shortcomings remedied, the appraisal statement can lead to high-quality advertising and increased valuations because it is based on objective data analysis and systematic evaluation of houses. In brief, I have designed the Fengshui marketing model as a sales promotion technique for the housing industry. I believe this study will contribute to the application of Fengshui in the housing industry's sales promotion efforts through high-quality advertising. Future research should evaluate Fengshui marketing in the housing industry based on case studies. Research questions to be addressed could include how Fengshui marketing has affected installment sales of houses and how Fengshui architectural practices affect general well-being. These studies would help propagate Fengshui marketing by validating its effectiveness. In addition, case studies should be undertaken to consider the practical applications of Fengshui marketing, how it can contribute to maximizing a company's image and profits, and how it can promote customer satisfaction.

  • PDF

The Effect of Price Promotional Information about Brand on Consumer's Quality Perception: Conditioning on Pretrial Brand (품패개격촉소신식대소비자질량인지적영향(品牌价格促销信息对消费者质量认知的影响))

  • Lee, Min-Hoon;Lim, Hang-Seop
    • Journal of Global Scholars of Marketing Science
    • /
    • v.19 no.3
    • /
    • pp.17-27
    • /
    • 2009
  • Price promotion typically reduces the price for a given quantity or increases the quantity available at the same price, thereby enhancing value and creating an economic incentive to purchase. It often is used to encourage product or service trial among nonusers of products or services. Thus, it is important to understand the effects of price promotions on quality perception made by consumer who do not have prior experience with the promoted brand. However, if consumers associate a price promotion itself with inferior brand quality, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. More specifically, low qualitative perception through price promotion will undercut the economic and psychological incentives and reduce the likelihood of purchase. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. Previous literatures on the effects of price promotions on quality perception reveal inconsistent explanations. Some focused on the unfavorable effect of price promotion on consumer's perception. But others showed that price promotions didn't raise unfavorable perception on the brand. Prior researches found these inconsistent results related to the timing of the price promotion's exposure and quality evaluation relative to trial. And, whether the consumer has been experienced with the product promotions in the past or not may moderate the effects. A few studies considered differences among product categories as fundamental factors. The purpose of this research is to investigate the effect of price promotional informations on consumer's unfavorable quality perception under the different conditions. The author controlled the timing of the promotional exposure and varied past promotional patterns and information presenting patterns. Unlike previous researches, the author examined the effects of price promotions setting limit to pretrial situation by controlling potentially moderating effects of prior personal experience with the brand. This manipulations enable to resolve possible controversies in relation to this issue. And this manipulation is meaningful for the work sector. Price promotion is not only used to target existing consumers but also to encourage product or service trial among nonusers of products or services. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. If consumers associate a price promotion itself with inferior quality about unused brand, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. In addition, if the price promotion ends, the consumer that have purchased that certain brand will likely to display sharply decreased repurchasing behavior. Through a literature review, hypothesis 1 was set as follows to investigate the adjustive effect of past price promotion on quality perception made by consumers; The influence that price promotion of unused brand have on quality perception made by consumers will be adjusted by past price promotion activity of the brand. In other words, a price promotion of an unused brand that have not done a price promotion in the past will have a unfavorable effect on quality perception made by consumer. Hypothesis 2-1 was set as follows : When an unused brand undertakes price promotion for the first time, the information presenting pattern of price promotion will have an effect on the consumer's attribution for the cause of the price promotion. Hypothesis 2-2 was set as follows : The more consumer dispositionally attribute the cause of price promotion, the more unfavorable the quality perception made by consumer will be. Through test 1, the subjects were given a brief explanation of the product and the brand before they were provided with a $2{\times}2$ factorial design that has 4 patterns of price promotion (presence or absence of past price promotion * presence or absence of current price promotion) and the explanation describing the price promotion pattern of each cell. Then the perceived quality of imaginary brand WAVEX was evaluated in the scale of 7. The reason tennis racket was chosen is because the selected product group must have had almost no past price promotions to eliminate the influence of average frequency of promotion on the value of price promotional information as Raghubir and Corfman (1999) pointed out. Test 2 was also carried out on students of the same management faculty of test 1 with tennis racket as the product group. As with test 1, subjects with average familiarity for the product group and low familiarity for the brand was selected. Each subjects were assigned to one of the two cells representing two different information presenting patterns of price promotion of WAVEX (case where the reason behind price promotion was provided/case where the reason behind price promotion was not provided). Subjects looked at each promotional information before evaluating the perceived quality of the brand WAVEX in the scale of 7. The effect of price promotion for unfamiliar pretrial brand on consumer's perceived quality was proved to be moderated with the presence or absence of past price promotion. The consistency with past promotional behavior is important variable that makes unfavorable effect on brand evaluations get worse. If the price promotion for the brand has never been carried out before, price promotion activity may have more unfavorable effects on consumer's quality perception. Second, when the price promotion of unfamiliar pretrial brand was executed for the first time, presenting method of informations has impact on consumer's attribution for the cause of firm's promotion. And the unfavorable effect of quality perception is higher when the consumer does dispositional attribution comparing with situational attribution. Unlike the previous studies where the main focus was the absence or presence of favorable or unfavorable motivation from situational/dispositional attribution, the focus of this study was exaus ing the fact that a situational attribution can be inferred even if the consumer employs a dispositional attribution on the price promotional behavior, if the company provides a persuasive reason. Such approach, in academic perspectih sis a large significance in that it explained the anchoring and adjng ch approcedures by applying it to a non-mathematical problem unlike the previous studies where it wis ionaly explained by applying it to a mathematical problem. In other wordn, there is a highrspedency tmatispositionally attribute other's behaviors according to the fuedach aal attribution errors and when this is applied to the situation of price promotions, we can infer that consumers are likely tmatispositionally attribute the company's price promotion behaviors. Ha ever, even ueder these circumstances, the company can adjng the consumer's anchoring tmareduce the po wibiliute thdispositional attribution. Furthermore, unlike majority of previous researches on short/long-term effects of price promotion that only considered the effect of price promotions on consumer's purchasing behaviors, this research measured the effect on perceived quality, one of man elements that affects the purchasing behavior of consumers. These results carry useful implications for the work sector. A guideline of effectively providing promotional informations for a new brand can be suggested through the outcomes of this research. If the brand is to avoid false implications such as inferior quality while implementing a price promotion strategy, it must provide a clear and acceptable reasons behind the promotion. Especially it is more important for the company with no past price promotion to provide a clear reason. An inconsistent behavior can be the cause of consumer's distrust and anxiety. This is also one of the most important factor of risk of endless price wars. Price promotions without prior notice can buy doubt from consumers not market share.

  • PDF