• Journal of the Korean Operations Research and Management Science Society
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• v.39 no.3
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• pp.63-82
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• 2014

The main objective of this research is to investigate whether the RFM (recency-frequency-monetary value) information of a customer's redemption behavior of loyalty points can improve the prediction of future value of the customer. The conventional measurement of customer value has been primarily based on purchase transactions behavior although a customer's future behavior can be also influenced by other interactions between the customer and the firm such as redemption of rewards in a loyalty program. We theorize why a customer's redemption behavior can influence her future purchases and thereby the customer's total value based on operant learning theory, goal gradient hypothesis, and lock-in effect. Using a dataset from a major book store in Korea spanning three years between 2008 and 2010, we analyze both purchase transactions and redemption records of over 10,000 customers. The results show that the redemption-based RFM information does improve the prediction accuracy of the customer's future purchases. Based on this result, we also propose an improved estimate of customer lifetime value (CLV) by combining purchase transactions and loyalty points redemption data. Managerial implications will be also discussed for firms managing loyalty programs to maximize the total value customers.

• Journal of Industrial Convergence
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• v.13 no.2
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• pp.25-37
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• 2015

The purpose of this study is about the influence of the Service quality on the customer loyalty depending on the customer value(social and psychological value, functional value) because of the dynamic business environment is react quickly and flexibly, many of today's companies are required to consult an expert. According to the circumstances, Service Firms(Hotel) should be provide a differentiated service for each customer. And this paper attempt to theoretical organize and take advantage of practical in Service industry. The questionaries of 154 from the companies which have received Service in 3 years in the metropolis and small and medium-sized cities were used to test hierarchical regression model with mediating effects of customer value between Service quality and Customer loyalty by SPSS(PASW) 18.0 version. From these analyses, the following results were obtained: First, social-psychological value have partially mediated effect on the tangibility, responsibility, assurance and customer loyalty. Second, functional value have partially mediated effects on the between tangibles, reliability and customer loyalty. The result suggests that 'tangibility', 'reliability', 'responsibility', 'assurance', 'empathy' are the most important factors to affect customer loyalty, and there are partially mediated effects of customer intention between Service quality and Customer loyalty. In conclusion, to improve the specific and actual meaning and value about the Hotel service quality and to give the suggestions on the Hotel's marketing communication by understanding the customer action.

• Korean journal of food and cookery science
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• v.28 no.3
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• pp.285-298
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• 2012

This study was undertaken to understand the interrelationships among customer's perceptions of service encounters, customer value, and behavioral intent in a family restaurant. Based on 331 samples obtained from empirical research, we reviewed the reliability and fitness of a research model and verified three hypotheses using a structural equation model. The results showed that physical environment (${\beta}$ = .418) and a customer interaction with the service provider (${\beta}$ = .265) had a significant effect on the customer's hedonic value. Additionally, physical environment (${\beta}$ = .126) and customer interaction with service providers (${\beta}$ = .264) had a significant effect on customer utilitarian value. Customer's hedonic (${\beta}$ = .538) and utilitarian value (${\beta}$ = .382) triggered by service encounters had a significant effect on their behavioral intent. Limitations and future research directions are discussed.

• Culinary science and hospitality research
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• v.13 no.4
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• pp.80-91
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• 2007

The purpose of the study is to investigate how customer reward programs that are provided strategically to develop customer favors are assessed by customers, if they affect customer loyalty and what effect using membership card(how many possess and use it) takes. The findings from the study can be summarized as follows. Firstly, customer loyalty showed high when shared value and convenient value are felt for preference and referring effect and when shared value and allied value were felt for revisit. Secondly, when the number of cards in possession was a lot, high customer loyalty existed. Thirdly, when the number of cards in use was a lot, the customer loyalty was high. The customer's awareness of values, e.g. economic, shared, use, convenience and allied values, put a very meaningful positive effect on loyalty, i.e. preference, referring effect and revisit. The more the number of food service provider's' membership cards in use and in possession was, the higher customer loyalty was. This implies that continued development of business partners and quality control are critical for various benefits and shared value of the customer reward pro-grams and service upgrade.

• The Journal of the Korea Contents Association
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• v.8 no.1
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• pp.75-85
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• 2008

The corporate image in the modern competitive industry is one of the most important factors that invites customer's desire of purchase. The purpose of this study is to find out how the corporate image influences to the customer value and loyalty deciding customer's desire of repurchase and is to know the important factors of corporate image. The results of this study is that corporate image has an effect on customer value and satisfaction. Also customer value influences on customer satisfaction. Customer value and satisfaction have an effect on customer loyalty as the important factors. Through the results, customer's high recognition of the corporate has an influence on customer value.

• Journal of Distribution Science
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• v.10 no.11
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• pp.79-88
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• 2012

Purpose - The objective of this paper is to suggest that a company's CRM activities have an effect on customer loyalty in the Korean retail industry. Typically, Korean customers use large local marts with convenience in the absence of any other choice. Therefore, this study aims to shed light on the fact that customers do not break away from their preferred retail stores, either owing to their stringent loyalty (the lie loyalty) or difficulty in turning to alternative choices. Research design, data, methodology - By surveying a sample of 200 hyper-markets through a questionnaire, and excluding dubious and missing responses, I obtained 181 samples to be included in the empirical analysis. The survey was conducted for two weeks during October 2011. AMOS and SPSS18 statistical packages were used for conducting statistical analysis for this study. This paper was developed using the concept of customer equity on CRM, which is known to have a positive impact on customer loyalty through the satisfaction and switching-barrier parameters. The hypothesis of this paper is that customer equity is composed of relationship equity, value equity and brand equity, and that the relationship equity variable has positive effects on the value equity and brand equity amongst other types of customer equity. Moreover, customer equity influences customer loyalty through parameters including customer satisfaction and switching costs in the Korean retail industry. Results - According to the results of the analysis, it was confirmed that relationship value had a positive effect (+) on all variables, including the perceived QoS (Quality of Service), store brand images, economic value, and store convenience. It was also confirmed that the assumption that the perceived QoS (Quality of Service), economic value, and store convenience had a positive effect on customer satisfaction was shown to be statistically significant, with a p-value below 0.05. Only the store brand value variable had an effect on the switching-cost variable with respect to the causal sequence of the variables, including the perceived QoS, store brand value, economic value, and store convenience. The remaining variables did not seem to influence the switching-cost variable. On the other hand, another effect showed that customer satisfaction had a statistically significant influence on the switching-costs variable. Moreover, the customer satisfaction and switching-cost variables also had a statistical influence on customer loyalty. Conclusions - The CRM activities had an influence on various variables (including perceived QoS, perceived economic value, store brand value, and store convenience) pertaining to customer values. Customer satisfaction and switching-cost had some effects on customer loyalty as a parameter. This confirms that stringent loyalty exists with respect to customer loyalty in the retail industry. The fact that the variable had such a statistically significant influence on the switching-cost and store brand equity variables means that consumers react to the reputation of a brand, confidence about the store, and quality confidence. The implications of this study in the retail industry should be further extended to devise strategies for customer retention.

• Human Ecology Research
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• v.60 no.4
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• pp.521-533
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• 2022

Using Bernd H. Schmitt's experiential modules, this study investigated the effect of shopping value on recognizing the importance of customer experience. A survey was conducted with 400 adults aged in their 20s to 50s. To analyze the data, factor analysis, a reliability test, cluster analysis, and ANOVA were conducted. The results were as follows. First, the shopping values exhibited by sportswear consumers were a utilitarian shopping value and a hedonic shopping value. Through these, consumers were classified into four groups: a shopping value-oriented group, a utilitarian shopping value group, a shopping value-unconcern group, and a hedonic shopping value group. Second, the customer experience consisted of five factors: sensory experience, emotional experience, cognitive experience, behavioral experience, and relational experience. Third, a significant difference was observed in customers' perceived experiences according to shopping value type. In the shopping value-oriented group, all customer experiences were generally considered important, followed by the hedonic shopping value group and the shopping value-unconcern group, with the utilitarian shopping value group least likely to perceive customer experiences as important. In addition, cognitive and emotional experiences were rated highest among the five experiences, indicating that these were the most important store experiences among the various customer experience components.

• The Journal of the Korea Contents Association
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• v.16 no.4
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• pp.195-203
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• 2016

This study examined customer's purchase decision-making processes in a coffee chain context. We posit customer satisfaction, brand image, and perceive value as key drivers of forming customer's repurchase intention. From the perspective of multidimensional perceived value concept, the effects of utilitarian, hedonic, and social value on customer's decision-making processes were investigated. The proposed model was empirically tested by using survey data collected from 232 university students who often visit several coffee chains. LISREL has been used to perform these analysis. The proposed theoretical model accounts for 67% of the variance in repurchase intention and 73% of the variance in customer satisfaction. The analysis results indicate that customer satisfaction and brand image play an important role in forming customer's repurchase intention. Further, utilitarian and hedonic values significantly affect customer's repurchase intention, whereas social value negatively influences it.

• Korean Management Science Review
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• v.27 no.1
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• pp.33-43
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• 2010

This paper presents a method for the estimation and analysis of the economic value of weather forecasts for CRM decision-making problems in the leisure industry. Value is calculated in terms of the customer's satisfaction returned from the user's decision under the specific payoff structure, which is itself represented by a customer's satisfaction ratio model. The decision is assessed by a modified cost-loss model to consider the customer's satisfaction instead of the loss or cost. Site-specific probability and deterministic forecasts, each of which is provided in Korea and China, are applied to generate and analyze the optimal decisions. The application results demonstrate that probability forecasts have greater value than deterministic forecasts, provided that the users can locate the optimal decision threshold. This paper also presents the optimal decision strategy for specific customers with a variety of satisfaction patterns.

• Korean Management Science Review
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• v.20 no.1
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• pp.149-163
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• 2003

The emergence of Internal has established a huge virtual exchange market, and the innovative e-commerce has changed a way of distributing goods and services. This paper concerns the issues of customer's loyalty to maintain the customer retention between individual and Internet shopping mall. We use the concept of customer's perceived value, satisfaction, and trust, in order to explore and explain the formation process of customer loyalty. A survey data has been collected through the hep of internet research institution. A statistical analysis shows that a subset of customer's perceived value has positive Impact on satisfaction, which in turn has also positive influence on trust, Increasing the level of customer's loyalty. We also provide a brief discussion of strategic guidelines about analytic results.