Purpose - Loyalty programs enable retailers to maintain longer and better customer relationships. In successful services, customers actively use and value these programs. As the proximity to the goal (goal gradient) might signal active participation, this study empirically examines customer's goal gradient behavior in a multi-vendor loyalty program. We also consider the effect of customer's accrual diversity on goal gradients, which is a differentiating feature in a multi-vendor loyalty program, and is further examined. Research Design, Data, and Methodology - The data consists of6,646 OK Cashbag members' individual transaction records from 2006 to 2009. The goal gradient hypothesis was tested as an increase in both the speed and the amount of accumulated award points. Result - The findings suggest that the goal gradient is also observed in a multi-vendor loyalty program, occurring more strongly among members with high accrual diversity. Conclusions - The results indicate that customers with high accrual diversity attend strongly to goal gradients in multi-vendor loyalty programs; hence, it is important for such program managers to better inform members about affiliated partners.
In this study, we attempted to improve hospital food delivery service quality and customer satisfaction by using FMEA (Failure Mode and Effect Analysis), which is applied to the quality control of products in manufacturing plants. Subjective food delivery service quality improvement was judged based on a 5-point likert scale. Traditional FMEA uses an RPN (Risk priority number) to evaluate the risk level of a component or process. The RPN index was determined by calculating the product of severity, occurrence, and detection indexes. In our results, total RPN value (P<0.01) significantly decreased after FMEA introduction, whereas customer satisfaction (P<0.001) and food delivery service quality (P<0.001) significantly increased. Specifically, foodservice errors (P<0.01) and loss cost (P<0.01) were significantly improved by FMEA introduction. Taken together, we suggest that FMEA reduces critical activities and errors in foodservice delivery caused by simple priority selection.
Purpose - The quality of the hotel depends on the Oriental arts established. Customers tend to believe that high prices reflect the offered services. This research expounds on the effects of Oriental interior designs in the hospitality industry in enhancing hotel profitability, opportunities for development, and the growth of urban hotels. Research design, Data, and methodology - This study conducted the comprehensive literature analysis to obtain suitable contents about the effect of Oriental Art for Urban Hotel Business Plan. the literature analysis method systematically assesses the value of qualitative data. Resources are organized into groups using a coding frame. Result - The adoption of the Oriental arts in the interior designs in the hotel industry will lead to customer attraction, improved competitive advantage, customer loyalty, and the preservation of the societal values of culture. Therefore, the marketing practitioners should adopt oriental arts as an integral aspect of interior designs to enhance customer satisfaction Conclusion - Marketing practitioners also use the oriental arts to enhance customers' willingness to pay. This is because oriental arts serve as the cues that enable the consumers to feel that the hotel's products are of quality. When oriental arts are used in interior hotel designs, the customer's willingness to pay increases. Thus the firm's relationships with customers are boosted.
The role of customers in product, service production and delivery is getting more important. Especially, customers' progressive participation in service circumstance bring to success of service delivery and improve service quality. Recently, the studies related to Customer Citizenship Behavior (CCB) which leaves to the discretion of customer is conducting in marketing area. However, the prior study concentrates on antecedents of CCB but it mixed antecedents of CCB and customer participation behavior. Also, there is insufficient related to the consequence of CCB in long-term relationship between service organization and customer. This study examines the effect of customer citizenship behavior on long-term orientation between service organization and customer. The results show that significant effects of citizenship behavior of customer. First, the relationship between customer's perception of justice and CCB was significant. Second, the relationship between customer's perception of support from service organization and CCB was significant. Third, the relationship between customer's perception of value and CCB was significant. Lastly, CCB significantly affect on Long-Term Orientation between service organization and customer.
Journal of Korean Institute of Industrial Engineers
/
v.28
no.2
/
pp.187-192
/
2002
In this paper we consider an M/G/1 queueing system with vacation. The length of vacation period may be controlled by the waiting time of the first customer. The server goes on vacation as soon as the system is empty, and resumes service either when the waiting time of the leading customer reaches a predetermined value, or when the vacation period is expired, whichever comes first. We consider two types of vacation, say, multiple vacation type and N-policy type. We derive the steady-state distributions of the number of customers at arbitrary time and arbitrary customer's waiting time by means of decomposition property. Also, the mean lengths of busy period, idle period and a cycle time are given.
Recently, searching agent systems to help purchase of products between business and customer have been actively studied in Electronic Commerce(EC). However, the most of comparative searching agent systems are only provided customers with searching results by the keyword-based search, and is not support the efficient decision models to be selected products considering the customer's requirements. This paper proposes the decision agent system applied decision model as well as searching functions based on the keyword-input to be selected useful products in EC. The proposed decision agent system is consist of the user interface, provider interface, decision model. Especially, as the example of the decision model, this paper is designed and implemented the prototype of decision agent system which is normalized the searching data and value of customer's preference weight as to each attribute, and orderly provided customers with computed results. This agent system is also carried out sensitive analysis according to the reflection ratio of the each attribute.
This research studied the effect of customer experience characteristics in offline home appliance stores on perceived value and revisit intention. Among the offline distribution of home appliances with more than 100 stores nationwide, two home appliance retailers (HiMart, E-Land), three hypermarkets (E-Mart, Homeplus, Lotte Hi-Mart), and two home appliance stores (LG Best Shop, Samsung Digital Plaza) were selected, and a survey was conducted on men and women in their 20s or older in Seoul, Gyeonggi, and Incheon who had visited and purchased the home appliance store within the last 6 months. As a result of the survey, a statistical analysis was conducted on a total of 330 samples using the PLS (Partial Least Squares) structural equation model and SPSS statistical package. Through this study, the following research results can be obtained. First, educational experience, deviant experience, and aesthetic experience had a positive (+) effect on the functional value. However, entertainment experience did not affect functional value. Second, educational experience, deviant experience, and aesthetic experience all had a positive (+) effect on emotional value. Third, both functional and sensory values had a positive (+) effect on the revisit intention. Fourth, it was confirmed that brand loyalty had no moderating effect between functional value and sensory value revisit intention. The results of this study show the structural relationship between customer experience characteristics, perceived value (functional value, sensory value), and revisit intention. This result provides guidelines on what activities home appliance offline stores should do at a time when online channels threaten the survival of offline channels.
This study is a study on the methodology of establishing an innovation strategy centering on the customer experience, which is essential in order to transform the existing collection and preservation-centered mutual aid company service into a visitor-centered service. To this end, we conducted literature research on environmental changes in the funeral industry from the perspective of service science and the significance and value of customer experiences within them, good customer experiences and bad customer experiences from the perspective of customer experience management. A study was conducted to present and prove a specific model. The customer experience-oriented innovation strategy of the funeral industry means to search for various alternatives that can reach the target state from the present state, focusing on the customer, and select the most appropriate transformation plan among them. As an effect of application, it was found that it is a source of differentiation by generating positive emotions to customers, and that customer experience data is highly helpful in making important decisions for the actual resource input of the parent company. This innovation model was presented, and its value was firstly proved by analyzing the difference from the existing evaluation method. Finally, as a result of analyzing the causal relationship through regression analysis using the customer experience measurement procedure, customer experience diagnosis/evaluation, customer experience innovation strategy, and cooperative company's performance as variables, the relationship proved to be significant.
With the recent revitalization of the shared economy, bike-sharing services are gaining huge popularity in the bicycle sector. Bike-sharing services are characterized by reducing environmental pollution and borrowing bicycles at low prices. This study investigated the mechanisms for the formation of customer's continuance intention toward bike-sharing services. The theoretical framework clarified the role of perceived value and trust in enhancing customer's continuance intention. Perceived usefulness, perceived ease of use and perceived enjoyment are considered as the vital factors of enhancing perceived value and trust in a service provider. The research model was validated by data from 217 bike-sharing users in China. Both perceived value and trust in a service provider had a significant impact on user's continuance intention. However, the analysis results showed that perceived usefulness does not have a significant impact on both perceived value and trust in a service provider. Perceived ease of use and perceived enjoyment played a significant role in enhancing both perceived value and trust in a service provider. Our results are expected to provide academic and practical implications for bike-sharing services.
Introduction As consumers' purchase behavior change into a rational and practical direction, the discount store industry came to have keen competition along with rapid external growth. Therefore as a solution, distribution businesses are concentrating on developing PB(Private Brand) which can realize differentiation and profitability at the same time. And as improvement in customer loyalty beyond customer satisfaction is effective in surviving in an environment with keen competition, PB is being used as a strategic tool to improve customer loyalty. To improve loyalty among PB users, it is necessary to develop PB by examining properties of a customer group, first of all, quality level perceived by consumers should be met to obtain customer satisfaction and customer trust and consequently induce customer loyalty. To provide results of systematic analysis on relations between antecedents influenced perceived quality and variables affecting customer loyalty, this study proposed a research model based on causal relations verified in prior researches and set 16 hypotheses about relations among 9 theoretical variables. Data was collected from 400 adult customers residing in Seoul and the Metropolitan area and using large scale discount stores, among them, 375 copies were analyzed using SPSS 15.0 and Amos 7.0. The findings of the present study followed as; We ascertained that the higher company reputation, brand reputation, product experience and brand familiarity, the higher perceived quality. The study also examined the higher perceived quality, the higher customer satisfaction, customer trust and customer loyalty. The findings showed that the higher customer satisfaction and customer trust, the higher customer loyalty. As for moderating effects between PB and NB in terms of influences of perceived quality factors on perceived quality, we can ascertain that PB was higher than NB in the influences of company reputation on perceived quality while NB was higher than PB in the influences of brand reputation and brand familiarity on perceived quality. These results of empirical analysis will be useful for those concerned to do marketing activities based on a clearer understanding of antecedents and consecutive factors influenced perceived quality. At last, discussions about academical and managerial implications in these results, we suggested the limitations of this study and the future research directions. Research Model and Hypotheses Test After analyzing if antecedent variables having influence on perceived quality shows any difference between PB and NB in terms of their influences on them, the relation between variables that have influence on customer loyalty was determined as Figure 1. We established 16 hypotheses to test and hypotheses are as follows; H1-1: Perceived price has a positive effect on perceived quality. H1-2: It is expected that PB and NB would have different influence in terms of perceived price on perceived quality. H2-1: Company reputation has a positive effect on perceived quality. H2-2: It is expected that PB and NB would have different influence in terms of company reputation on perceived quality. H3-1: Brand reputation has a positive effect on perceived quality. H3-2: It is expected that PB and NB would have different influence in terms of brand reputation on perceived quality. H4-1: Product experience has a positive effect on perceived quality. H4-2: It is expected that PB and NB would have different influence in terms of product experience on perceived quality. H5-1: Brand familiarity has a positive effect on perceived quality. H5-2: It is expected that PB and NB would have different influence in terms of brand familiarity on perceived quality. H6: Perceived quality has a positive effect on customer satisfaction. H7: Perceived quality has a positive effect on customer trust. H8: Perceived quality has a positive effect on customer loyalty. H9: Customer satisfaction has a positive effect on customer trust. H10: Customer satisfaction has a positive effect on customer loyalty. H11: Customer trust has a positive effect on customer loyalty. Results from analyzing main effects of research model is shown as
, and moderating effects is shown as
. Results This study is designed with 16 research hypotheses, Results from analyzing their main effects show that 9 of 11 hypotheses were supported and other 2 hypotheses were rejected. On the other hand, results from analyzing their moderating effects show that 3 of 5 hypotheses were supported and other 2 hypotheses were rejected. H1-1: (SPC: Standardized Path Coefficient)=-0.04, t-value=-1.04, p>. 05). H1-2: (${\Delta}\chi^2$=1.10, df=1, p> 0.05). H1-1 and H1-2 are rejected, so it is prove that perceived price is not a significant decision variable having influence on perceived quality and there is no significant variable between PB and NB in terms of influence of perceived price on perceived quality. H2-1: (SPC=0.31, t-value=3.74, p<. 001). H2-2: (${\Delta}\chi^2$=3.93, df=1, p< 0.05). H2-1 and H2-2 are supported, so it is proved that company reputation is a significant decision variable having influence on perceived quality and, in terms of influence of company reputation on perceived quality, PB has relatively stronger influence than NB. H3-1: (SPC=0.26, t-value=5.30, p< .001). H3-2: (${\Delta}\chi^2$=16.81, df=1, p< 0.01). H3-1 and H3-2 are supported, so it is proved that brand reputation is a significant decision variable having influence on perceived quality and, in terms of influence of brand reputation on perceived quality, NB has relatively stronger influence than PB. H4-1: (SPC=0.31, t-value=2.65, p< .05). H4-2: (${\Delta}\chi^2$=1.26, df=1, p> 0.05). H4-1 is supported, but H4-2 is rejected, Therefore, it is proved that product experience is a significant decision variable having influence on perceived quality and, on the other hand, there is no significant different between PB and NB in terms of influence of product experience on product quality. H5-1: (SPC=0.24, t-value=3.00, p<. 05). H5-2: (${\Delta}\chi^2$=5.10, df=1, p< 0.05). H5-1 and H5-2 are supported, so it is proved that brand familiarity is a significant decision variable having influence on perceived quality and, in terms of influence of brand familiarity on perceived quality, NB has relatively stronger influence than PB. H6: (SPC=0.91, t-value=19.06, p< .001). H6 is supported, so a fact that customer satisfaction increases as perceived quality increases is proved. H7: (SPC=0.81, t-value=7.44, p<. 001). H7 is supported, so a fact that customer trust increases as perceived quality increases is proved. H8: (SPC=0.57, t-value=7.87, p< .001). H8 is supported, so a fact that customer loyalty increases as perceived quality increases is proved. H9: (SPC=0.08, t-value=0.76, p> .05). H9 is rejected, so it is proved influence of customer satisfaction on customer trust is not significant. H10: (SPC=0.21, t-value=4.34, p< .001). H10 is supported, so a fact that customer loyalty increases as customer satisfaction increases is proved. H11: (SPC=0.40, t-value=5.68, p< .001). H11 is supported, so a fact that customer loyalty increases as customer trust increases is proved. Implications Although most of existing studies have used function, price, brand, design, service, brand name, store name as antecedent variables for perceived quality, this study used different antecedent variables in order to analyze and distinguish purchase group PB and NB through preliminary research. Therefore, this study may be used as preliminary data for a empirical study that is designed to be helpful for practical jobs. Also, this study is made to be easily applied to any practical job because SEM(Structural Equation Modeling), most strongly explaining the relation between observed variable and latent variable, is used for this study. This study suggests a new strategic point that, in order to increase customer loyalty, customer's perceived quality level should satisfied for inducing customer satisfaction, customer trust, and customer loyalty. Therefore, after finding an effective differentiating factors in perceived quality in order to increase customer loyalty through increasing perceived quality, this factor was made to be applied to PB and NB. Because perceived quality factors which is recognized as being important by consumers is different between PB and NB, this study suggests how to efficiently establish marketing strategy by enhancing a factor. Companies have mostly focused on profitability in terms of analyzing customer loyalty, but this study included positive WOM(word of mouth). Hence, this study suggests that it would be helpful for establishing customer loyalty when consumers have cognitive satisfaction and emotional satisfaction together. Limitations This study used variables perceived price, company reputation, brand reputation, product experience, brand familiarity in order to determine whether each constituent factor has different influence on perceived quality between purchase group PB and NB. These characteristic variables are made up on the basis of the preliminary research, but it is expected that more precise research result would be obtained if additional various variables are included in study. This study selected a practical product that is non-durable, low-priced and bestselling product in a discount store through the preliminary research because it can be easily estimated by consumers. Therefore. generalization of study would be more easily obtained if more various product characteristics is included. Regarding a sample used in this study, it was only based on consumers who purchase products in a large-scale discount store located in Seoul and in the capital area. Accordingly, this sample has some geographical limitation, If a study is expanded by including more areas, more representative research results may be produced. Because this study is only designed to analyze consumers who purchase a product in a large-scale discount store, some difference may be found according to characteristics of each business type. In other words, there is certainly some application limitation, so research result from this study may not be applied to other business types. Future research may have fruitful results if it adjusts a variable to each business type.
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