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Correlation among Ownership of Home Appliances Using Multivariate Probit Model (다변량 프로빗 모형을 이용한 가전제품 구매의 상관관계 분석)

  • Kim, Chang-Seob;Shin, Jung-Woo;Lee, Mi-Suk;Lee, Jong-Su
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.2
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    • pp.17-26
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    • 2009
  • As the lifestyle of consumers changes and the need for various products increases, new products are being developed in the market. Each household owns various home appliances which are purchased through the choice of a decision maker. These appliances include not only large-sized products such as TV, refrigerator, and washing machine, but also small-sized products such as microwave oven and air cleaner. There exists latent correlation among possession of home appliances, even though they are purchased independently. The purpose of this research is to analyze the effect of demographic factors on the purchase and possession of each home appliances, and to derive some relationships among various appliances. To achieve this purpose, the present status on the possession of each home appliances are investigated through consumer survey data on the electric and energy product. And a multivariate probit(MVP) model is applied for the empirical analysis. From the estimation results, some appliances show a substitutive or complementary pattern as expected, while others which look apparently unrelated have correlation by co-incidence. This research has several advantages compared to previous literatures on home appliances. First, this research focuses on the various products which are purchased by each household, while previous researches such as Matsukawa and Ito(1998) and Yoon(2007) focus just on a particular product. Second, the methodology of this research can consider a choice process of each product and correlation among products simultaneously. Lastly, this research can analyze not only a substitutive or complementary relationship in the same category, but also the correlation among products in the different categories. As the data on the possession of home appliances in each household has a characteristic of multiple choice, not a single choice, a MVP model are used for the empirical analysis. A MVP model is derived from a random utility model, and has an advantage compared to a multinomial logit model in that correlation among error terms can be derive(Manchanda et al., 1999; Edwards and Allenby, 2003). It is assumed that the error term has a normal distribution with zero mean and variance-covariance matrix ${\Omega}$. Hence, the sign and value of correlation coefficients means the relationship between two alternatives(Manchanda et al., 1999). This research uses the data of 'TEMEP Household ICT/Energy Survey (THIES) 2008' which is conducted by Technology Management, Economics and Policy Program in Seoul National University. The empirical analysis of this research is accomplished in two steps. First, a MVP model with demographic variables is estimated to analyze the effect of the characteristics of household on the purchase of each home appliances. In this research, some variables such as education level, region, size of family, average income, type of house are considered. Second, a MVP model excluding demographic variables is estimated to analyze the correlation among each home appliances. According to the estimation results of variance-covariance matrix, each households tend to own some appliances such as washing machine-refrigerator-cleaner-microwave oven, and air conditioner-dish washer-washing machine and so on. On the other hand, several products such as analog braun tube TV-digital braun tube TV and desktop PC-portable PC show a substitutive pattern. Lastly, the correlation map of home appliances are derived using multi-dimensional scaling(MDS) method based on the result of variance-covariance matrix. This research can provide significant implications for the firm's marketing strategies such as bundling, pricing, display and so on. In addition, this research can provide significant information for the development of convergence products and related technologies. A convergence product can decrease its market uncertainty, if two products which consumers tend to purchase together are integrated into it. The results of this research are more meaningful because it is based on the possession status of each household through the survey data.

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An Empirical Study on the Influencing Factors of Perceived Job Performance in the Context of Enterprise Mobile Applications (업무성과에 영향을 주는 업무용 모바일 어플리케이션의 주요 요인에 관한 연구)

  • Chung, Sunghun;Kim, Kimin
    • Asia pacific journal of information systems
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    • v.24 no.1
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    • pp.31-50
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    • 2014
  • The ubiquitous accessibility of information through mobile devices has led to an increased mobility of workers from their fixed workplaces. Market researchers estimate that by 2016, 350 million workers will be using their smartphones for business purposes, and the use of smartphones will offer new business benefits. Enterprises are now adopting mobile technologies for numerous applications to increase their operational efficiency, improve their responsiveness and competitiveness, and cultivate their innovativeness. For these reasons, various organizational aspects concerning "mobile work" have received a great deal of recent attention. Moreover, many CIOs plan to allocate a considerable amount of their budgets mobile work environments. In particular, with the consumerization of information technology, enterprise mobile applications (EMA) have played a significant role in the explosive growth of mobile computing in the workplace, and even in improving sales for firms in this field. EMA can be defined as mobile technologies and role-based applications, as companies design them for specific roles and functions in organizations. Technically, EMA can be defined as business enterprise systems, including critical business functions that enable users to access enterprise systems via wireless mobile devices, such as smartphones or tablets. Specifically, EMA enables employees to have greater access to real-time information, and provides them with simple features and functionalities that are easy for them to complete specific tasks. While the impact of EMA on organizational workers' productivity has been given considerable attention in various literatures, relatively little research effort has been made to examine how EMA actually lead to users' job performance. In particular, we have a limited understanding of what the key antecedents are of such an EMA usage outcome. In this paper, we focus on employees' perceived job performance as the outcome of EMA use, which indicates the successful role of EMA with regard to employees' tasks. Thus, to develop a deeper understanding of the relationship among EMA, its environment, and employees' perceived job performance, we develop a comprehensive model that considers the perceived-fit between EMA and employees' tasks, satisfaction on EMA, and the organizational environment. With this model, we try to examine EMA to explain how job performance through EMA is revealed from both the task-technology fit for EMA and satisfaction on EMA, while also considering the antecedent factors for these constructs. The objectives of this study are to address the following research questions: (1) How can employees successfully manage EMA in order to enhance their perceived job performance? (2) What internal and/or external factors are important antecedents in increasing EMA users' satisfaction on MES and task-technology fit for EMA? (3) What are the impacts of organizational (e.g. organizational agility), and task-related antecedents (e.g., task mobility) on task-technology fit for EMA? (4) What are the impacts of internal (e.g., self-efficacy) and external antecedents (e.g., system reputation) for the habitual use of EMA? Based on a survey from 254 actual employees who use EMA in their workplace across industries, our results indicate that task-technology fit for EMA and satisfaction on EMA are positively associated with job performance. We also identify task mobility, organizational agility, and system accessibility that are found to be positively associated with task-technology fit for EMA. Further, we find that external factor, such as the reputation of EMA, and internal factor, such as self-efficacy for EMA that are found to be positively associated with the satisfaction of EMA. The present findings enable researchers and practitioners to understand the role of EMA, which facilitates organizational workers' efficient work processes, as well as the importance of task-technology fit for EMA. Our model provides a new set of antecedents and consequence variables for a TAM involving mobile applications. The research model also provides empirical evidence that EMA are important mobile services that positively influence individuals' performance. Our findings suggest that perceived organizational agility and task mobility do have a significant influence on task-technology fit for EMA usage through positive beliefs about EMA, that self-efficacy and system reputation can also influence individuals' satisfaction on EMA, and that these factors are important contingent factors for the impact of system satisfaction and perceived job performance. Our findings can help managers gauge the impact of EMA in terms of its contribution to job performance. Our results provide an explanation as to why many firms have recently adopted EMA for efficient business processes and productivity support. Our findings additionally suggest that the cognitive fit between task and technology can be an important requirement for the productivity support of EMA. Further, our study findings can help managers in formulating their strategies and building organizational culture that can affect employees perceived job performance. Managers, thus, can tailor their dependence on EMA as high or low, depending on their task's characteristics, to maximize the job performance in the workplace. Overall, this study strengthens our knowledge regarding the impact of mobile applications in organizational contexts, technology acceptance and the role of task characteristics. To conclude, we hope that our research inspires future studies exploring digital productivity in the workplace and/or taking the role of EMA into account for employee job performance.

A Study of Task and Approach for the Insurance Fee Application of Packed Medical Herbs (첩약의 보험급여 적용을 위한 과제 및 접근방안에 대한 연구)

  • Park Yong-Sin;Cho Byung-Hee;Kim Ho;Lee Si-Baek
    • Journal of Society of Preventive Korean Medicine
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    • v.7 no.1
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    • pp.17-28
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    • 2003
  • We met results like the followings through the literatures and questionnaires about the tasks and solutions about the insurance fee of packed medical herbs. 1) It's turned out that 74.8% of herb doctors agrees to the insurance fee of packed medical herbs. However, in comparison with the same survey of the herb doctor association the percentage of general approval went somewhat lower, and especially the percentage of 'positive approval' became notably lower$(43.7%{\rightarrow}26.5%)$ and the percentage of 'active objection' raised about 2 times$(6.8%{\rightarrow}12.9%)$. Inquiring into the approval reasons on the insurance fee application of packed medical herbs some heads such as 'development toward treatment medical science' and 'decrease of publics burden' were higher than the one of 'management income and expenditure.' 2) As a result of the research, 36.0% of the patients and 42.8% of the residents recognized that the pay range of Chinese herb health insurance is narrow. They recognized that less people have the experiences of Chinese medical hospital use and internal application of the packed medical herbs as they are older, men rather than women. 85.4% of the patients and 74.9% of the residents agreed on the insurance pay of packed medical herbs. It's shown that they agree on the Chinese medical hospital use more as the economic standard is lower, on the insurance pay as they have ever taken the packed medical herbs. In the aspect of increase of insurance fee, 66.7% of the patients and 44.3% of the residents agreed on the insurance pay of packed medical herbs, and 18.1% and 36.1% disagreed on the insurance pay of packed medical herbs. The main objective reason why they disagree on the insurance pay of packed medical herbs was 'because the insurance fee goes up higher,' which answered 95.2% of the patients and 78.8% of the residents. 7.22% of the patients and 1.80% of the residents answered that they can pay more insurance fee in case of the insurance pay of packed medical herbs. However, in the priority order of the insurance pay, it hold the 5th position between 2 target research groups which was less than medical examination, charges for hospital accommodation and taking MRI. 3) According to the result of analysis about the cost of packed medical herbs, current practice price is 115,000 won and the average prime cost of a packed medical herb is 73,000 to 106,000 won. It's examined that the herb doctors regard that 95,000 won will be reasonable when the packed medical herb is payed in insurance. However, it was found out that the public generally thinks that the price would be appropriate on the level of 30,000 to 40,000 won and the percentage of the answers of 20,000 won to 30,000 was fairly high. 4) the central system of a prescription should be change into the central system of demonstration and the sick and wounded. 5) To solve this problem, the government should regulate it to pass by the circulation gradation of [importer, $peasantry{\rightarrow}manufacturer{\rightarrow}wholesaler{\rightarrow}distributor$(Chinese medical hospital, pharmacy dispensary of Chinese medicine)]And it should intervene into the quality and the circulation steps of Chinese medicine through 'the office or organization which is in charge of certification of Chinese medicine' and 'the office or organization which is in charge of the circulation of Chinese medicine.' And some actions such as simple severance, lavation, drying should be included into the conception of manufacture and the boundary between food and medical supplies should be made at a manufactory. And the regulation of standardized goods at one's own house should be improved so that, the peasantry can sell the materials of Chinese medicine only to the manufacturer. 6) In company with the insurance pay of packed medical herbs, the study about the separation of dispensary from medical practice in the Chinese medicine should be accomplished.

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Personification of On-line Shopping Mall -Focusing on the Social Presence- (온라인 쇼핑몰의 의인화 전략 -사회적 실재감을 중심으로-)

  • Park, Ju-Sik
    • Management & Information Systems Review
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    • v.31 no.2
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    • pp.143-172
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    • 2012
  • While e-commerce market(B2C) grows rapidly, many experts argue that EC(B2C) transactions have not reached its full potential. A notable difference between online and offline consumer markets that is suppressing the growth of EC(B2C) is the decreased presence of human and social elements in the online shopping environments. Generally online shopping lacks human warmth and sociability. In this study, social presence in online shopping mall was proposed as a substitute for face-to-face social interaction in the traditional commerce and author explored what variables affect social presence(human warmth and sociability) on online shopping malls and how human warmth and sociability can influence on online store loyalty. To achieve research objectives, we reviewed literatures related with marketing, psychology and communication research areas. Based on literature review, we proposed a research model on the online shopping mall. To examine the proposed research model, we gathered data by using a self-report questionnaire. Respondents consists of online shoppers with at least five or more times of purchase experience in online shopping malls. Because social presence is a feeling which needs frequent contacts with malls to experience, respondents must have enough purchase experiences. The empirical results are as follows : First, shopping mall's customization efforts influence perceived social presence on the mall significantly. Second, shopping mall's responsiveness influences perceived social presence significantly. Third, perceived activity of community of online shopping mall influences perceived social presence significantly. Mall managers have to activate their customer community to reinforce social presence, resulting in trust building. Finally, perceived social presence influences trust and enjoyment on the mall significantly. And then trust and enjoyment on the mall affect store loyalty significantly. From these findings it can be inferred that perceived social presence appears determinant which is critical to the formation of core variables(trust and loyalty) in existing online shopping papers.

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Performance of Collaboration Activities upon SME's Idiosyncrasy (중소기업 특성에 따른 외부 협업 활동이 혁신성과에 미치는 영향)

  • Lee, Hye Sun;Oh, Junseok;Lee, Jaeki;Lee, Bong Gyou
    • Journal of Internet Computing and Services
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    • v.14 no.6
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    • pp.95-105
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    • 2013
  • Recently, SME's Collaboration activities have become one of a vital factor for sustaining competitive edge. This is because of the rapidly changing and competitive market environment, and also to leverage performance by overcoming obstacles of having limited internal resources. Discussing about the effects and relationships of the firm's collaboration activities and its outputs are not new. However, as ICT and various technologies have been diffused into the traditional industries, boundaries and practice capabilities within the industries are becoming ambiguous. Thus contents of the products/services and their development methods are also go and come over the industries. Although many researchers suggested the relations of SME's collaboration activities and innovation performances, most of the previous literatures are focusing on broad perspectives of firm's environmental factors rather than considering various SME's idiosyncrasy factors such as their major product and customer types at once. Therefore, the purpose of this paper is to analyze how SME(Small Medium Enterprise)'s external collaboration activities by their idiosyncrasy act as an input to types of innovation performance. In order to analyze collaboration effects in detail, we defined factors that can represent the SME's business environment - Perceived importance of using external resources, Perceived importance of external partnership, Collaboration and Collaboration levels of Major Product types, Customer types and lastly the Firm Sizes. We have also specifically divided the performance of innovation types as product innovation and process innovation based on existing research. In this study, the empirical analysis is based on Probit Regression Model to observe the correlations with the impact of each SME's business environment and their activities. For the empirical data, 497 samples were collected which, this sample data was extracted from the 'Korean Open Innovation Survey' performed by ETRI(Korean Electronics Telecommunications Research Institute) in 2010. As a result, empirical test results indicated that the impact of collaboration varies depend on the innovation types (Product and Process Innovation). The Impact of the collaboration level for the product innovation tend to be more effective when SMEs are developing for a final product, targeting on for individual customers (B2C). But on the other hand, the analysis result of the Process innovation tend to be higher than the product innovation, when SMEs are developing raw materials for their partners or to other firms targeting on for manufacturing industries(B2B). Also perceived importance of using external resources has effected to both product and process innovation performance. But Perceived importance of external partnership was statistically insignificant. Interesting finding was that the service product has negative effects on for the process innovation performance. And Relationship between size of the firms and their external collaboration activities with their performance of the innovations indicated that the bigger firms(over 100 of employees) tend to have better for both product and process innovations. Finally, implications of the results can be suggested as performance of innovation can be varied depends on firm's unique business idiosyncrasy as well as levels of external collaboration activities. The Implication of this research can be considered for firms in selecting an appropriate strategy as well as for policy makers.

Data Mining and Construction of Database Concerning Effects of Vitis Genus (산머루 관련 정보수집 및 데이터베이스의 구축)

  • Kim, Min-A;Jo, Yun-Ju;Shin, Jee-Young;Shin, Min-Kyu;Bae, Hyun-Su;Hong, Moo-Chang;Kim, Yang-Seok
    • Journal of Physiology & Pathology in Korean Medicine
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    • v.26 no.4
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    • pp.551-556
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    • 2012
  • The database for the oriental medicine had been existed in documentation in past times and it has been developed to the database type for random accesses in the information society. However, the aspects of the database are not so diversified and the database for the bio herbal material exists in widened type dictionary style. It is a situation that the database which handles the in-depth raw herbal medicines is not sufficient in its quantity and quality. Korean wild grape is a deciduous plant categorized into the Vitaceae and it was found experimentally that it has various medical effects. It is one of the medical materials with higher potentiality of academic study and commercialization recently because it has a bigger possibility to be applied into diverse industrial fields including the medical product for health, food and beauty. We constituted the cooperative system among the Muju cluster business group for Korean mountain wild grapes, Physiology Laboratory in Kyung Hee University Oriental Medicine and Medical Classics Laboratory in Kyung Hee University Oriental Medicine with a view to focusing on such potentiality and a database for Korean wild grapes was made a touchstone for establishing the in-depth database for the single bio medical materials. First of all, the literatures based on the North East Asia in ancient times had been categorized into the classical literature (Korean literature published by government organization, Korean classical literature, Chinese classical literature and classical literature fro Korean and Chinese oriental medicine) and modern literature (Modern literature for oriental medicine, modern literature for domestic and foreign herbal medicine) to cover the eastern and western research records and writings related to Korean wild grapes and the text-mining work has been performed through the cooperation system with the Medical Classics Laboratory in Kyung Hee University Oriental Medicine. First of all, the data for the experiment and theory for Korean wild grape were collected for the Medline database controlled by the Parliament Library of USA to arrange the domestic and foreign theses with topic for Korean wild grapes and the network hyperlink function and down load function were mounted for self-thesis searching function and active view based on the collected data. The thesis searching function provides various auxiliary functions and the searching is available according to the diverse searching/queries such as the name of sub species of Korean wild grape, the logical intersection index for the active ingredients, efficacy and elements. It was constituted for the researchers who design the Korean wild grape study to design of easier experiment. In addition, the data related to the patents for Korean wild grape which were collected from European Patent Office in response to the commercialization possibility and the system available for searching and view was established in the same viewpoint. Perl was used for the query programming and MS-SQL for database establishment and management in the designing of this database. Currently, the data is available for free use and the address is as follows. http://163.180.41.43:8011/index.html

A Clinical Study of Pulmonary Hamartoma -Analysis of 41 Reported Cases in Korea Including 13 Cases in Severance Hospitol- (폐과오종에 대한 임상적 고찰 -국내 문헌 보고 41예를 포함한 세브란스 병원 13예에 대한 분석-)

  • Kim, Sung-Eun;Lee, Hong-Lyeol;Kim, Se-Kyu;Chang, Joon;Ahn, Chul-Min;Kim, Sung-Kyu;Lee, Won-Young;Choe, Kyu-Ok;Chung, Kyung-Young;Shin, Dong-Hwan
    • Tuberculosis and Respiratory Diseases
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    • v.40 no.5
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    • pp.565-574
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    • 1993
  • Background: Pulmonary hamartomas are benign tumors that occur in the parenchyma or in the bronchi. They present as a solitary pulmonary nodule(SPN) or as a cause of bronchial obstruction. The incidence, once minimal, is increasing in Korea. To get clinical spectrum about the tumor, we analyzed all the reported cases in Korea since 1964. Methods: We reviewed the clinical, radiological and pathological findings of 13 patients of intrapulmonary or endobronchial hamartomas in Severance Hospital and of 38 reported cases in Korea published in literatures from 1964 to 1992 retrospectively. Results: Including 17 endobronchial hamartomas, 54 cases were studied. There were 25 men and 29 women, with a mean age of 47.2 years; 45.3 years in endobronchial type and 51.3 years in parenchymal type. Pulmonary symptoms were present in 8 patients (22%) of intrapulmonary type and in all patients of endobronchial type: cough (65%), dyspnea (53%), sputum (35%), fever (29%) in order. On chest X-rays, atelectasis was seen in 10 patients (59%) in endobronchial type; but SPN was noted in 36 patients (97%) of intrapulmonary type. Calcification was present in 7 intapulmonary hamartomas (23%); but is in 2 endobronchial hamartomas (12%). The diagnostic yield was 6 out of 14(43%) in endobronchial ones; 4 out of 7(57%) in intrapulmonary ones. Fifty patients underwent operations as follows: lobectomy (28), enucleation (8), resection (8), bilobectomy (4), pneumonectomy (2). The hamartomas were 1.2 times more common in the right lung; mean transverse diameter at the time of operation was 2.3 cm in endobronchial type, 3.8 cm in intrapulmonary ones. Chondroid components were present in 11(65%) of 17 endobronehial ones but in 30(91%) of 33 intrapulmonary hamartomas. No malignant changes were seen perioperative period and up to early 1993. Conclusion: The younger age in endobronchial hamartomas, the preponderance of the female sex and the more incidence in the right lung, and the diagnostic choice of lobectomies were different from the studies of the Western countries.

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Analysis of the Practical Reasoning Process Presented in Home Economics Textbooks of 2007 Revised Curriculum (2007년 개정 교육과정에 기초한 7학년 가정 교과서에 반영된 실천적 추론 과정의 분석)

  • Lee, Min-Jung;Yoo, Tae-Myung
    • Journal of Korean Home Economics Education Association
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    • v.22 no.4
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    • pp.109-138
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    • 2010
  • This study examined how practical reasoning process is reflected in the 2007 revised home economics textbook of the 7th grade that is being used in schools since 2010. For a textbook analysis of the components of practical reasoning process, 12 published textbooks were all analyzed, and analysis areas were decided by reconstructing the textbook system into introduction, body contents, learning activities, evaluation. Analysis criteria were extracted from the previous literatures. Practical reasoning process was classified into Valued Ends, Context and Background, Alternatives and Means, on sequence, and Action and Reflection. As a result of analyzing categories and problems that practical reasoning process is reflected in the textbook, firstly, here was a category, which Valued Ends was absent in the practical reasoning process. In the relevant category, general problem solving progress and practical reasoning process could not be differentiated, and activity was developed with 'strategies for solution' as objective. Second, there was a category that the practical reasoning process was reflected in body contents. In this category, knowledge, concept, principle, and theory were insufficiently dealt with. Third, there was a category that reflected components of practical reasoning process but was covered with general problem solving process. Fourth, there was a category that described theme of sub-unit and body contents from the different curriculum perspectives. A curriculum perspective works as the foundation of preparing class contents or consistency of methods when developing lessons. Therefore, confusion might occur when a teacher plans a class with this kind of textbook. Fifth, a category that suggested partial components of practical reasoning process was shown the most and this category is difficult to maximize effects of practical reasoning process.

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A Study on the Job Specifications of Teachers Working at Secondary Level Technical Vocational Education Institutes (중등단계 공업계열 직업교육기관 교사의 직무 인식)

  • Lee, Chan-Joo;Lee, Byung-Wook
    • 대한공업교육학회지
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    • v.42 no.1
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    • pp.30-52
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    • 2017
  • The purpose of this study is to investigate the duties of teachers working at secondary level technical vocational education institutes, and analyze job importance, difficulty and frequency of performance perceived by teachers. For deducing the duties of teachers working at secondary level technical vocational education institutes, they were theoretically devised by reviewing related legislations & regulations and domestic & overseas literatures. The devised duties were reviewed by 16 current teachers and 3 education experts to be revised and supplemented to complete the job model. Based on this, development of research tool was finalized, and questionnaires were used as the research tool. The results of this study are as follow. First, the job categories of teachers working at secondary level technical vocational education institutes consisted of 7 categories that are subject instruction, student instruction, class management, curriculum organization & administration, school affairs & administrative duties, PR & field practical training and expertise enhancement. Based on the CFA, they consisted of 46 sub-factors in 10 categories with 3 categories of lesson preparation & planning, lesson administration and academic evaluation for subject instruction, and 2 categories of extracurricular student guidance and school life guidance for student instruction, and class management, curriculum organization & administration, school affairs & administrative duties, PR & field practical training and expertise enhancement. Second, job importance perceived by teachers working at secondary level technical vocational education institutes was found to be high overall with 4.10, while above average in difficulty with 3.45 and average in frequency of performance with 3.12 (1-3 times a month). As for categories with high job importance, they were found to be in the order of academic evaluation (4.32), lesson preparation & planning (4.28), expertise enhancement (4.27), lesson administration (4.26), school life guidance (4.25), class management (4.17) and PR & field practical training (4.12). In regards to categories with high job difficulty, they were found to be in the order of PR & field practical training (4.07), curriculum organization & administration (3.73), expertise enhancement (3.55), school life guidance (3.48), academic evaluation (3.35) and extracurricular student guidance (3.22). As for categories with high frequency of job performance, they were found to be in the order of class management (3.88), lesson administration (3.77), school life guidance (3.52), school affairs & administrative duties (3.40) and lesson preparation & planning (3.17).

Designing an Intelligent Advertising Business Model in Seoul's Metro Network (서울지하철의 지능형 광고 비즈니스모델 설계)

  • Musyoka, Kavoya Job;Lim, Gyoo Gun
    • Journal of Intelligence and Information Systems
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    • v.23 no.4
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    • pp.1-31
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    • 2017
  • 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.