Electronic commerce, commonly known as e-commerce or eCommerce, has become a major business trend in these days. The amount of trade conducted electronically has grown extraordinarily by developing the Internet technology. Most electronic commerce has being conducted between businesses to customers; therefore, the researches with respect to e-commerce are to find customer's needs, behaviors through statistical methods. However, the statistical researches, mostly based on a questionnaire, are the static researches, They can tell us the dynamic relationships between initial purchasing and repurchasing. Therefore, this study proposes dynamic research model for analyzing the cause of initial purchasing and repurchasing. This paper is based on the System-Dynamic theory, using the powerful simulation model with some restriction, The restrictions are based on the theory TAM(Technology Acceptance Model), PAM, and TPB(Theory of Planned Behavior). This article investigates not only the customer's purchasing and repurchasing behavior by passing of time but also the interactive effects to one another. This research model has six scenarios and three steps for analyzing customer behaviors. The first step is the research of purchasing situations. The second step is the research of repurchasing situations. Finally, the third step is to study the relationship between initial purchasing and repurchasing. The purpose of six scenarios is to find the customer's purchasing patterns according to the environmental changes. We set six variables in these scenarios by (1) changing the number of products; (2) changing the number of contents in on-line shopping malls; (3) having multimedia files or not in the shopping mall web sites; (4) grading on-line communities; (5) changing the qualities of products; (6) changing the customer's degree of confidence on products. First three variables are applied to study customer's purchasing behavior, and the other variables are applied to repurchasing behavior study. Through the simulation study, this paper presents some inter-relational result about customer purchasing behaviors, For example, Active community actions are not the increasing factor of purchasing but the increasing factor of word of mouth effect, Additionally. The higher products' quality, the more word of mouth effects increase. The number of products and contents on the web sites have same influence on people's buying behaviors. All simulation methods in this paper is not only display the result of each scenario but also find how to affect each other. Hence, electronic commerce firm can make more realistic marketing strategy about consumer behavior through this dynamic simulation research. Moreover, dynamic analysis method can predict the results which help the decision of marketing strategy by using the time-line graph. Consequently, this dynamic simulation analysis could be a useful research model to make firm's competitive advantage. However, this simulation model needs more further study. With respect to reality, this simulation model has some limitations. There are some missing factors which affect customer's buying behaviors in this model. The first missing factor is the customer's degree of recognition of brands. The second factor is the degree of customer satisfaction. The third factor is the power of word of mouth in the specific region. Generally, word of mouth affects significantly on a region's culture, even people's buying behaviors. The last missing factor is the user interface environment in the internet or other on-line shopping tools. In order to get more realistic result, these factors might be essential matters to make better research in the future studies.
Shin, Chang-Hoon;Lee, Ji-Won;Yang, Han-Na;Choi, Il Young
Journal of Intelligence and Information Systems
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v.18
no.4
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pp.19-42
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2012
Consumer consumption patterns are shifting rapidly as buyers migrate from offline markets to e-commerce routes, such as shopping channels on TV and internet shopping malls. In the offline markets consumers go shopping, see the shopping items, and choose from them. Recently consumers tend towards buying at shopping sites free from time and place. However, as e-commerce markets continue to expand, customers are complaining that it is becoming a bigger hassle to shop online. In the online shopping, shoppers have very limited information on the products. The delivered products can be different from what they have wanted. This case results to purchase cancellation. Because these things happen frequently, they are likely to refer to the consumer reviews and companies should be concerned about consumer's voice. E-commerce is a very important marketing tool for suppliers. It can recommend products to customers and connect them directly with suppliers with just a click of a button. The recommender system is being studied in various ways. Some of the more prominent ones include recommendation based on best-seller and demographics, contents filtering, and collaborative filtering. However, these systems all share two weaknesses : they cannot recommend products to consumers on a personal level, and they cannot recommend products to new consumers with no buying history. To fix these problems, we can use the information which has been collected from the questionnaires about their demographics and preference ratings. But, consumers feel these questionnaires are a burden and are unlikely to provide correct information. This study investigates combining collaborative filtering with the centrality of social network analysis. This centrality measure provides the information to infer the preference of new consumers from the shopping history of existing and previous ones. While the past researches had focused on the existing consumers with similar shopping patterns, this study tried to improve the accuracy of recommendation with all shopping information, which included not only similar shopping patterns but also dissimilar ones. Data used in this study, Movie Lens' data, was made by Group Lens research Project Team at University of Minnesota to recommend movies with a collaborative filtering technique. This data was built from the questionnaires of 943 respondents which gave the information on the preference ratings on 1,684 movies. Total data of 100,000 was organized by time, with initial data of 50,000 being existing customers and the latter 50,000 being new customers. The proposed recommender system consists of three systems : [+] group recommender system, [-] group recommender system, and integrated recommender system. [+] group recommender system looks at customers with similar buying patterns as 'neighbors', whereas [-] group recommender system looks at customers with opposite buying patterns as 'contraries'. Integrated recommender system uses both of the aforementioned recommender systems to recommend movies that both recommender systems pick. The study of three systems allows us to find the most suitable recommender system that will optimize accuracy and customer satisfaction. Our analysis showed that integrated recommender system is the best solution among the three systems studied, followed by [-] group recommended system and [+] group recommender system. This result conforms to the intuition that the accuracy of recommendation can be improved using all the relevant information. We provided contour maps and graphs to easily compare the accuracy of each recommender system. Although we saw improvement on accuracy with the integrated recommender system, we must remember that this research is based on static data with no live customers. In other words, consumers did not see the movies actually recommended from the system. Also, this recommendation system may not work well with products other than movies. Thus, it is important to note that recommendation systems need particular calibration for specific product/customer types.
Traditional companies with offline stores were unable to secure large display space due to the problems of cost. This limitation inevitably allowed limited kinds of products to be displayed on the shelves, which resulted in consumers being deprived of the opportunity to experience various items. Taking advantage of the virtual space called the Internet, online shopping goes beyond the limits of limitations in physical space of offline shopping and is now able to display numerous products on web pages that can satisfy consumers with a variety of needs. Paradoxically, however, this can also cause consumers to experience the difficulty of comparing and evaluating too many alternatives in their purchase decision-making process. As an effort to address this side effect, various kinds of consumer's purchase decision support systems have been studied, such as keyword-based item search service and recommender systems. These systems can reduce search time for items, prevent consumer from leaving while browsing, and contribute to the seller's increased sales. Among those systems, recommender systems based on association rule mining techniques can effectively detect interrelated products from transaction data such as orders. The association between products obtained by statistical analysis provides clues to predicting how interested consumers will be in another product. However, since its algorithm is based on the number of transactions, products not sold enough so far in the early days of launch may not be included in the list of recommendations even though they are highly likely to be sold. Such missing items may not have sufficient opportunities to be exposed to consumers to record sufficient sales, and then fall into a vicious cycle of a vicious cycle of declining sales and omission in the recommendation list. This situation is an inevitable outcome in situations in which recommendations are made based on past transaction histories, rather than on determining potential future sales possibilities. This study started with the idea that reflecting the means by which this potential possibility can be identified indirectly would help to select highly recommended products. In the light of the fact that the attributes of a product affect the consumer's purchasing decisions, this study was conducted to reflect them in the recommender systems. In other words, consumers who visit a product page have shown interest in the attributes of the product and would be also interested in other products with the same attributes. On such assumption, based on these attributes, the recommender system can select recommended products that can show a higher acceptance rate. Given that a category is one of the main attributes of a product, it can be a good indicator of not only direct associations between two items but also potential associations that have yet to be revealed. Based on this idea, the study devised a recommender system that reflects not only associations between products but also categories. Through regression analysis, two kinds of associations were combined to form a model that could predict the hit rate of recommendation. To evaluate the performance of the proposed model, another regression model was also developed based only on associations between products. Comparative experiments were designed to be similar to the environment in which products are actually recommended in online shopping malls. First, the association rules for all possible combinations of antecedent and consequent items were generated from the order data. Then, hit rates for each of the associated rules were predicted from the support and confidence that are calculated by each of the models. The comparative experiments using order data collected from an online shopping mall show that the recommendation accuracy can be improved by further reflecting not only the association between products but also categories in the recommendation of related products. The proposed model showed a 2 to 3 percent improvement in hit rates compared to the existing model. From a practical point of view, it is expected to have a positive effect on improving consumers' purchasing satisfaction and increasing sellers' sales.
Modern businesses are adopting new technologies to serve their markets better as well as to improve efficiency and productivity. The advertising industry has continuously experienced disruptions from the traditional channels (radio, television and print media) to new complex ones including internet, social media and mobile-based advertising. This case study focuses on proposing intelligent advertising business model in Seoul's metro network. Seoul has one of the world's busiest metro network and transports a huge number of travelers on a daily basis. The high number of travelers coupled with a well-planned metro network creates a platform where marketers can initiate engagement and interact with both customers and potential customers. In the current advertising model, advertising is on illuminated and framed posters in the stations and in-car, non-illuminated posters, and digital screens that show scheduled arrivals and departures of metros. Some stations have digital screens that show adverts but they do not have location capability. Most of the current advertising media have one key limitation: space. For posters whether illuminated or not, one space can host only one advert at a time. Empirical literatures show that there is room for improving this advertising model and eliminate the space limitation by replacing the poster adverts with digital advertising platform. This new model will not only be digital, but will also provide intelligent advertising platform that is driven by data. The digital platform will incorporate location sensing, e-commerce, and mobile platform to create new value to all stakeholders. Travel cards used in the metro will be registered and the card scanners will have a capability to capture traveler's data when travelers tap their cards. This data once analyzed will make it possible to identify different customer groups. Advertisers and marketers will then be able to target specific customer groups, customize adverts based on the targeted consumer group, and offer a wide variety of advertising formats. Format includes video, cinemagraphs, moving pictures, and animation. Different advert formats create different emotions in the customer's mind and the goal should be to use format or combination of formats that arouse the expected emotion and lead to an engagement. Combination of different formats will be more effective and this can only work in a digital platform. Adverts will be location based, ensuring that adverts will show more frequently when the metro is near the premises of an advertiser. The advertising platform will automatically detect the next station and screens inside the metro will prioritize adverts in the station where the metro will be stopping. In the mobile platform, customers who opt to receive notifications will receive them when they approach the business premises of advertiser. The mobile platform will have indoor navigation for the underground shopping malls that will allow customers to search for facilities within the mall, products they may want to buy as well as deals going on in the underground mall. To create an end-to-end solution, the mobile solution will have a capability to allow customers purchase products through their phones, get coupons for deals, and review products and shops where they have bought a product. The indoor navigation will host intelligent mobile-based advertisement and a recommendation system. The indoor navigation will have adverts such that when a customer is searching for information, the recommendation system shows adverts that are near the place traveler is searching or in the direction that the traveler is moving. These adverts will be linked to the e-commerce platform such that if a customer clicks on an advert, it leads them to the product description page. The whole system will have multi-language as well as text-to-speech capability such that both locals and tourists have no language barrier. The implications of implementing this model are varied including support for small and medium businesses operating in the underground malls, improved customer experience, new job opportunities, additional revenue to business model operator, and flexibility in advertising. The new value created will benefit all the stakeholders.
In relation to the extraction of opinion words, it may be difficult to directly apply most of the methods suggested in existing English studies to the Korean language. Additionally, the manual method suggested by studies in Korea poses a problem with the extraction of opinion words in that it takes a long time. In addition, English thesaurus-based extraction of Korean opinion words leaves a challenge to reconsider the deterioration of precision attributed to the one to one mismatching between Korean and English words. Studies based on Korean phrase analyzers may potentially fail due to the fact that they select opinion words with a low level of frequency. Therefore, this study will suggest the k-Structure (k=5 or 8) method, which may possibly improve the precision while mutually complementing existing studies in Korea, in automatically extracting opinion words from a simple sentence in a given Korean product review. A simple sentence is defined to be composed of at least 3 words, i.e., a sentence including an opinion word in ${\pm}2$ distance from the attribute name (e.g., the 'battery' of a camera) of a evaluated product (e.g., a 'camera'). In the performance experiment, the precision of those opinion words for 8 previously given attribute names were automatically extracted and estimated for 1,868 product reviews collected from major domestic shopping malls, by using k-Structure. The results showed that k=5 led to a recall of 79.0% and a precision of 87.0%; while k=8 led to a recall of 92.35% and a precision of 89.3%. Also, a test was conducted using PMI-IR (Pointwise Mutual Information - Information Retrieval) out of those methods suggested in English studies, which resulted in a recall of 55% and a precision of 57%.
Journal of the Korea Academia-Industrial cooperation Society
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v.21
no.6
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pp.574-583
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2020
The aim of this study is to investigate the expenditure items and expenses for companion dogs and the appropriate considerations when choosing companion dog food for consumers who purchase dog food through the internet. The survey subjects consisted of 39 males (6.8%) and 532 females (93.2%), and it was found that most women purchase dog food through the internet. According to the age of dog owner, 184 (32.2%) were in their 20s and 241 (42.2%) in their 30s and 146 (25.6%) in their 40s or older. According to the age of the dogs, 200 (35%) were under 3 years old, 202 (35.4%) over 8 years old, and 169 (29.6%) were between 4 and 7 years old. The most preferred ingredient was chicken, regardless of dogs' owner or the dogs' age. Spending less than 100,000 won was most frequency reported, regardless of dog owner and the age of the dog, and major dog food was reported to be purchased in the order of online shopping malls and animal hospitals. In order to improve health function, it was determined that improvement of skin and hair is the most important, and next, was improvement of tooth bone formation and digestibility. When choosing food for companion dogs, nutritional composition of all the products was the most important consideration, followed by brand products with recognition, color, smell, shape, functional improvement products, and price of the products. Therefore, when developing a new product for companion dog food, consideration must be given not only to the nutritional components of all products, but also the brands, color, odor, shape, nutritional balance, functional improvement and price.
The development of IT expanded the scale of e-commerce, and grew large Internet shopping malls. As having raised the consumers' interest in overseas direct purchase(ODP) recently, the number and purchasing amount of ODP are constantly increasing. However, consumers need to pay attention to the potential problems which might happen by consumer's damage and conflict, as increasing the consumption through ODP. Because consumer's damages on utilizing ODP happen to the reason such as the trust problem between business and consumer due to the way which traded non face to face, non-compliance of goods delivery, returns, and refunds, and information asymmetry of items, a large number of consumer's damages in a wide range are much more likely to occur nowadays. The purpose of this study is to analyze the current state of ODP, and propose consumer damage's reduction and policy of the government through pre or post scheme for consumer damage's relief and consumer protection. As the compensation for consumer damages is actually inadequate, this study proposed a feasible alternative to the adoption of e-commerce insurance for both aggressive compensation and protection for consumer's damages and risk transfer and sustainable development of e-commerce.
Thanks to IEEE 802.11 technique, accessing Internet through a wireless LAN(Local Area Network) is possible in the most of the places including university campuses, shopping malls, offices, hospitals, stations, and so on. Most of the APs(access points) for wireless LAN are supporting 2.4 GHz band 802.11b and 802.11g protocols. This paper is introducing a C# library function which can be used to read RSSIs(Received Signal Strength Indicator) from APs. An LBS(Location Based Service) estimates the current location of the user and provides useful user's location-based services such as navigation, points of interest, and so on. Therefore, indoor, LBS is very desirable. However, an indoor LBS cannot be realized unless indoor position ing is possible. For indoor positioning, techniques of using infrared, ultrasound, signal strength of UDP packet have been proposed. One of the disadvantages of these techniques is that they require special equipments dedicated for positioning. On the other hand, wireless LAN-based indoor positioning does not require any special equipments and more economical. A wireless LAN-based positioning cannot be realized without reading RSSIs from APs. Therefore, our C# library function will be widely used in the field of indoor positioning. In addition to providing a C# library function of reading RSSI, this paper introduces implementation of indoor positioning modules making use of the library function. The methods used in the implementation are K-NN(K Nearest Neighbors), Bayesian and trilateration. K-NN and Bayesian are kind of fingerprinting method. A fingerprint method consists of off-line phase and realtime phase. The process time of realtime phase must be fast. This paper proposes a decision tree method in order to improve the process time of realtime phase. Experimental results of comparing performances of these methods are also discussed.
Journal of the Earthquake Engineering Society of Korea
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v.9
no.4
s.44
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pp.19-28
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2005
Long span structures with low natural frequencies such as shopping malls, large offices, and assembly rooms may experience signification dynamic responses due to human activities. In many cases, the group activities are common thing in comparison with the single activity. The purpose of this study is to evaluate the responses of building structure subjected to group human loads using mode shapes. For this purpose, equations to estimate the magnitudes ol responses ol structure subjected to group walking loads are derived. And the correlation of loads is verified for identifying the relation of each human load composing of group human loads using two load cells. The method is proposed for evaluating the responses of structure subjected to group loads using mode shapes and correlation function related to each human loads. The effectiveness ol the proposed method is verified analytically using a simple beam and floor and experimentally on a footbridge measuring the structural response induced by group pedestrians for the case of synchronization or not. Results indicate that the amplitudes of group walking loads can be easily estimated if the mode shapes are available, and that the corresponding structural responses can be estimated easily by the simple response measurement using the proposed method.
In the era of the 4th Industrial Revolution customers living began to come out, not inside the purchase funnel. Due to the diversity of product selection and the increase in digital channels, the way customers search for information and purchase it is changing innovatively. So, the customer journey in the digital age is much more complicated than the traditional funnel model suggests. Unlike many previous studies, this study was conducted for 1,200 customers in four product groups of fashion, automobile, cosmetics, and online shopping malls. As a result of the study, we investigated how digital self-efficacy plays a role in purchasing in a series of processes in which digital experience affects customer satisfaction and finally affects purchase. As a theoretical implication, as a result of introducing and testing digital self efficacy as moderated mediation effect. the digital self-efficacy between customer satisfaction and customer loyalty were determined to play a moderated mediation effect role. As a practical implication, it was necessary to actively utilize digital marketing for customers with high digital self-efficacy, but it was suggested that customers with low digital self-efficacy need to be careful about digital marketing fatigue.
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