• Journal of Intelligence and Information Systems
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• v.24 no.1
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• pp.25-52
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• 2018

This study performs social network analysis based on consumer sentiment related to a location in Seoul using data reflecting consumers' web search activities and emotional evaluations associated with commerce. The study focuses on large commercial districts in Seoul. In addition, to consider their various aspects, social network indexes were combined with the trading area's public data to verify factors affecting the area's sales. According to R square's change, We can see that the model has a little high R square value even though it includes only the district's public data represented by static data. However, the present study confirmed that the R square of the model combined with the network index derived from the social network analysis was even improved much more. A regression analysis of the trading area's public data showed that the five factors of 'number of market district,' 'residential area per person,' 'satisfaction of residential environment,' 'rate of change of trade,' and 'survival rate over 3 years' among twenty two variables. The study confirmed a significant influence on the sales of the trading area. According to the results, 'residential area per person' has the highest standardized beta value. Therefore, 'residential area per person' has the strongest influence on commercial sales. In addition, 'residential area per person,' 'number of market district,' and 'survival rate over 3 years' were found to have positive effects on the sales of all trading area. Thus, as the number of market districts in the trading area increases, residential area per person increases, and as the survival rate over 3 years of each store in the trading area increases, sales increase. On the other hand, 'satisfaction of residential environment' and 'rate of change of trade' were found to have a negative effect on sales. In the case of 'satisfaction of residential environment,' sales increase when the satisfaction level is low. Therefore, as consumer dissatisfaction with the residential environment increases, sales increase. The 'rate of change of trade' shows that sales increase with the decreasing acceleration of transaction frequency. According to the social network analysis, of the 25 regional trading areas in Seoul, Yangcheon-gu has the highest degree of connection. In other words, it has common sentiments with many other trading areas. On the other hand, Nowon-gu and Jungrang-gu have the lowest degree of connection. In other words, they have relatively distinct sentiments from other trading areas. The social network indexes used in the combination model are 'density of ego network,' 'degree centrality,' 'closeness centrality,' 'betweenness centrality,' and 'eigenvector centrality.' The combined model analysis confirmed that the degree centrality and eigenvector centrality of the social network index have a significant influence on sales and the highest influence in the model. 'Degree centrality' has a negative effect on the sales of the districts. This implies that sales decrease when holding various sentiments of other trading area, which conflicts with general social myths. However, this result can be interpreted to mean that if a trading area has low 'degree centrality,' it delivers unique and special sentiments to consumers. The findings of this study can also be interpreted to mean that sales can be increased if the trading area increases consumer recognition by forming a unique sentiment and city atmosphere that distinguish it from other trading areas. On the other hand, 'eigenvector centrality' has the greatest effect on sales in the combined model. In addition, the results confirmed a positive effect on sales. This finding shows that sales increase when a trading area is connected to others with stronger centrality than when it has common sentiments with others. This study can be used as an empirical basis for establishing and implementing a city and trading area strategy plan considering consumers' desired sentiments. In addition, we expect to provide entrepreneurs and potential entrepreneurs entering the trading area with sentiments possessed by those in the trading area and directions into the trading area considering the district-sentiment structure.