• Journal of the Korean Operations Research and Management Science Society
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• v.38 no.1
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• pp.183-199
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• 2013

This study investigates customers' different behavior in accumulating and redeeming points and focuses on the moderating effect of usage level. We measure the hedonic accumulation and redemption ratio and usage level using loyalty program transaction data and link them to the survey data of loyalty and satisfaction. By doing so, we examine the effects of hedonic accumulation and redemption ratio on a consumer's loyalty intention and his or her satisfaction and the moderating effect of usage level. The result shows that there is a significant positive effect of hedonic accumulation and redemption ratio on customer loyalty and the mediating role of satisfaction on customer loyalty in both stages. And accumulation and redemption most importantly, we find an interaction effect of usage level on outlet type in point redemption stage while no effect in accumulation stage. That is if customers accumulate and redeem points at a hedonic outlets in both stages, it will give him a feeling of satisfaction and finally it will enhance the loyalty toward the focal loyalty program. And light buyers' loyalty increase more than those of heavy buyers when they redeem points in hedonic outlet. Our findings will help marketing managers of loyalty program to apply the effective segmentation strategy to the reward program which affects the customer's satisfaction and loyalty.

• Journal of the Korean Operations Research and Management Science Society
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• v.37 no.3
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• pp.13-21
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• 2012

In this note, a recent work in Won (2011) which investigates properties of the newsvendor model under progressive multiple discounts is revisited and a complete proof is provided for the conjecture on the consistent advantage of progressive multiple discounts over no-discounts in terms of the expected profit. The proof considers the generalized newsvendor model under progressive multiple discounts extended with positive shortage cost and salvage value which have not been considered in the previous newsvendor models under progressive multiple discounts. Without relying on derivatives, we prove that the expected profit under progressive multiple discounts are consistently greater than or equal to the one under no-discounts for every order quantity as far as her multiple discounts do not decrease customer demand, and therefore, the optimal expected profit under progressive multiple discounts is always greater than or equal to the one under no-discounts. As by-products from the proof, some interesting features of the generalized newsvendor model under progressive multiple discounts are revealed.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.7
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• pp.481-491
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• 2016

This study analyzed the customer's revisit concepts and storytelling by restaurant customers to identify the elements that can attract the attention of customers. The restaurant concept or advertising, restaurant decor will also have to change to emphasize the comparative advantage of the features in the menu of a restaurant or other restaurants / service that tells a story. Membership cards or money, or the same convenience and use of the restaurant non-monetary 'transition cost' can compensate for the negative emotions and low satisfaction level of restaurant customers and help them choose to revisit the restaurant. Therefore, if such a transition takes full account of the effects of the cost to the customer, it can be used as an effective means. In class restaurants, such as the food and customer service, the increased levels of the restaurant atmosphere and empirical elements, such as store concept and physical environment, can improve the positive consumer sentiment, strengthen the customer satisfaction and have a positive effect on the customers' revisit intention. It is also important to improve the level of visual texture using light. In addition, positive consumer sentiment can be induced using the store concept, the physical environment, and experiential elements. In other words, membership cards, mileage points, and various financial and non-financial inducements as a marketing tool will have a positive impact on the customer's revisit intention.

• Journal of the Korean Operations Research and Management Science Society
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• v.40 no.3
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• pp.73-95
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• 2015

Firms have reexamined and restructured their supply chain based on a long-term and partnership perspective as a firm's competitive advantage increasingly relies on its supply chain capability. A number of scholar works has provided evidence to support the positive effects of supply chain collaboration; however, the relationship between collaboration and performance is still inconclusive. This study refuses to have blinded faith on supply chain collaboration, but rather this paper suggests that the contribution of collaboration to supply chain performance improvement can be limited and vary along the contextual characteristics of a buyer-supplier relationship. Moreover, we argue that the relationship between supply chain collaboration and performance can be curvilinear. This paper provides and test hypotheses regarding the relationship between supply chain collaboration and performance. By using data of the Manufacturing Panel Survey (MPS), this study empirically validates the hypotheses. Overall, the results of the study support our hypotheses about a limited contribution of supply chain collaboration to manufacturing performance, which is opposite to a conventional expectation. Particularly, the effects of supply chain collaboration differ depending on the dimensions of performance such as customer satisfaction, quality, cost, delivery, and flexibility as well as the dependency in the buyer-supplier relationship. Moreover, the results of the study indicate that supply chain collaboration and performance may have curvilinear relationships in a certain context. Through a comprehensive model and empirical evidence, this study presents a better understanding of supply chain collaboration and provokes an open discussion about the effects of collaboration. This study also provides insightful implications for managers of buyers as well as suppliers who wish to foster stronger supply chain performance via a deep buyer-supplier relationship and collaboration.

• Asia pacific journal of information systems
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• v.19 no.4
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• pp.29-45
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• 2009

In the information age, cheap price of information processing and advances in personalization technology have allowed companies to enhance the relationships with their existing customers and to expand their customer base by effectively attracting new customers. However, most customers are reluctant to provide their personal information to companies. This study explores the tension between companies' desire to collect personal information to offer personalized services and their customers' privacy concerns. The psychological reactance theory suggests that when individuals feel that their behavioral choice is threatened or restricted, they are motivated to restore their freedom. Therefore, despite the expected benefits from personalized services, customers may perceive the services to be restrictive of their freedom to choose. This adverse effect may undermine the relationships between companies and their customers. We conducted experiments to explore the dynamic roles of transactional and environmental factors in motivating customers to provide personal information. We revisited online privacy issues from the perspective of psychological reactance. For the experiments, we created an online shop and randomly assigned the participants to one of the two experimental conditions-high and low levels of information requirements. The results of the experiment indicate that threatening the free choice serves as a transactional cost in online profiling. On the other hand, the expected benefits of personalization services have positive correlations with customers' willingness to provide personal information. This study explains privacy based on transactional and environmental factors. Our findings also indicate that the environmental factors such as the Internet privacy risk and trust propensity do not significantly affect the willingness to provide personal information when firms required much personal information. Implications and contributions are discussed.

• Korea Real Estate Review
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• v.24 no.1
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• pp.91-104
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• 2014

This paper studied condo selection attributes that affected satisfaction, recommendation and revisitation, in particular, investigated gender and age differences. Research target is the group who revisited time-sharing condominium within one year. The paper seeks to understand factors that affect and contribute to customer satisfaction and intentions for reuse. This study model was analyzed by the basic statistical analysis, factor analysis, reliability analysis and multiple analysis, using SPSS 18.0 and AMOS 18.0. We found that 5 condo selection attributes that have significant affect on user satisfaction: facility, service, product, accessibility and expense. Furthermore it was evident that user satisfaction has a significant effect on condo recommendation and intentions of reuse. With regard to sex, for male users expense, accessibility and service had a significant effect on their satisfaction level, while for female users, product was most important. User satisfaction both have a significant effect on recommendation and intentions of reuse but for females this was more evident. Regarding the age, for 20~30 age band, service and product factor had a significant effect on user satisfaction in order, whereas, for the age band of over 40s, expense, product and facility factors were important. User satisfaction of both have a significant effect on recommendation and intentions of reuse. In the meantime user satisfaction of 20~30 age band had a bigger positive significant effect on recommendation and intentions of reuse than the age band over 40s.