• Korean Management Science Review
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• v.26 no.1
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• pp.183-196
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• 2009

Customer retention has been a pressing issue for companies to get and maintain the loyal customers in the competing environment. Lots of researchers make effort to seek the characteristics of the churning customers and the loyal customers using the data mining techniques such as decision tree. However, such existing researches don't consider relationships among customers. Social network analysis has been used to search relationships among social entities such as genetics network, traffic network, organization network and so on. In this study, a customer network is proposed to investigate the differences of network characteristics of churning customers and loyal customers. The customer networks are constructed by analyzing the real purchase data collected from a Korean cosmetic provider. We investigated whether the churning customers and the loyal customers have different degree centralities and densities of the customer networks. In addition, we compared products purchased by the churning customers and those by the loyal customers. Our data analysis results indicate that degree centrality and density of the churning customer network are higher than those of the loyal customer network, and the various products are purchased by churning customers rather than by the loyal customers. We expect that the suggested social network analysis is used to as a complementary analysis methodology with existing statistical analysis and data mining analysis.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.4
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• pp.57-72
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• 2009

As development of information technologies, customer retention has been an important issue in the competing environment. A lot of researches focus on prediction of the churning customers and seeking their characteristics. However, relationships among customers or products have not been considered in existing researches. In this study, product networks are proposed and analyzed to investigate the differences of network characteristics of products purchased by potential churning customers and those of loyal customers. The product networks are constructed from real product purchase data collected from a Korean department store. We investigated the characteristic differences, such as the degree centrality, degree centralization, and density, of two product networks constructed by potential churning customers and the loyal customers. The results indicate that degree centrality, density and degree centralization of the product network of the loyal customers are higher than those of the potential churning customers. And the promotional products of the department store are resulted to be effective in attracting the loyal customers.

• Journal of Distribution Science
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• v.14 no.10
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• pp.73-79
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• 2016

Purpose - Customer satisfaction has been considered important as a way to retain current customers. Specifically, the retention of current customers through customer satisfaction has been considered important in an industry where competition between companies is fierce. Major Korean airlines have confronted fierce competition with the growth of low cost carriers (LCCs). In order to survive, these airlines need to retain their customers. This research aims to investigate the relationships between customer satisfaction and the customer intention to remain loyal. Moreover, this study examines how the influence of customer satisfaction on customer loyalty is moderated by gender. Research design, data, and methodology - A regression model is developed in which customer satisfaction, gender, and an interaction of satisfaction and gender are predictors and the customer's intention to remain loyal is a dependent variable. To analyze this research model, data were collected from 402 university students taking a marketing class in universities in Seoul, Chung-Cheong province, and Kangwon province. After eliminating data from students who had never flown and data with missing values, a final sample of 201 was analyzed. The hypotheses were tested using SPSS 21.0. Internal reliability was supported by the results of Cronbach's α. Multiple regression was performed. Results - Empirical results showed that customer satisfaction toward the airline's service had a positive influence on the customer intention to remain loyal to the airlines. Moreover, this influence was moderated by gender. More specifically, a male customer's intention to remain loyal was more determined by his satisfaction toward airline service than a female customer's. Conclusions - This research contributes to the aviation service marketing literature by showing how customer satisfaction influences customer intention to remain loyal and how this influence is moderated by gender. More specifically, male customer loyalty is more determined by airline service satisfaction than female customers. These results have manager implications for major Korean airlines in terms of customer satisfaction and gender as ways to enhance customer retention.

• Journal of the Korean Society of Clothing and Textiles
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• v.32 no.10
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• pp.1497-1508
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• 2008

The objective of this study is to identify the types of relationship quality of department store fashion consumers. This study also aims to look at if consumers form different type of relationship quality with various relation partners. In this study, qualitative research was conducted on 25 female consumers to come to a comprehensive and in-depth understanding of fashion consumers' diverse loyal relationships. Fashion consumer's relationship quality consisted of 'self attachment', 'symbolic', 'trust', 'intimacy', 'compensational bind', and 'habitual alternative'. 6 relationship quality dimensions were distinguished according to each dimension's emotional involvement level and conscious activeness level of consumers. While self attachment was classified as emotional and active relationship quality, compensational bind and habitual alternative were typical relationship quality types of fashion store loyalty such as department store loyalty, thus classified as inertial and cognitive relationship quality type. This study might provide a useful direction to apparel brands and retailers in finding out which relationship quality type is more effective for differentiated marketing strategies.

• Journal of Fashion Business
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• v.8 no.3
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• pp.34-48
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• 2004

This study aims to determine any possible causation between identifying which major factors affect CRM(Customer Relationship Management) in terms of promotion strategies for fashion goods and classifying customers into several categories, so that it can seek reasonable strategic measures based on CRM. This study suggested a model by selecting several variables meeting its goals, and used total 672 sheets of questionnaire for final analysis. In addition, a structural equation model was analyzed As a result, it was found that pricing flexibility had more or less influential relationships with trust, satisfaction and commitment in CRM, although having a negative relationship with commitment. Salesperson's role was also significantly correlated with trust, satisfaction and commitment in CRM, and especially, there were more influential relationships with satisfaction than any other factor. Service quality had relatively high influential relationships with trust, satisfaction and commitment in CRM. Retained customers showed more or less influential relationships with trust, satisfaction and commitment, while loyal customers did so with satisfaction and commitment, except for trust.

• Journal of the Korean Society of Clothing and Textiles
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• v.35 no.4
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• pp.408-420
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• 2011

This study identifies the fashion luxury customer segments grouped by expenditures and the number of purchasing brands to verify the effects of perceived luxury consumption values on the intention to maintain a brand relationship for each group. A survey questionnaire was developed and implemented to collect data to measure fashion luxury expenditures, number of purchasing brands, luxury customer values, intention to maintain brand relationships, and demographic variables. A total of 326 responses were analyzed by factor analysis, multiple regression, one-way ANOVA, and $X^2$ analysis with SPSS18.0. Respondents were grouped by luxury expenditures; in addition, the number of purchasing brands were grouped into four segments of Switching/Heavy (31.6%), Switching/Light (19.9%), Loyal/Heavy (31.3%), and Loyal/Light (7.2%) Customer Group, that was different in terms of age and marital status. When the luxury customer value for the most patronized luxury brand was factor analyzed, five distinctive sub dimensions were identified, such as Social Value, Aesthetic/Expressive Value, Experiential Value, Quality Value, and Economic Value. For the Loyal/Heavy Group, the Experiential Value had a significant effect on the customer intention to maintain a brand relationship. For the Loyal/Light group, the Aesthetic /Expressive and Economic Value had a significant effect, and for the Switching/Heavy and Switching/Light Group, Quality and Economic Value had a significant effect on the customer intention to maintain a brand relationship. In conclusion, each luxury customer value in the behavioral segments works differently in influencing the intention to maintain a brand relationship. In addition, the implications for retail strategy were discussed based on the findings.

• Culinary science and hospitality research
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• v.16 no.3
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• pp.147-160
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• 2010

This study aims to analyze the effect of emotional response from dining out experience on satisfaction after dining out based on the customers who have visited a luxurious Korean restaurant. For this study, it designed a research model through literary research and derived hypotheses. For the empirical analysis, 250 copies of the questionnaire using the self-administered method were distributed and 230(94%) copies were collected. Among them, 220(88%) copies were used for the analysis. SPSS WIN Version 12.0 statistical package program was used for the analysis of data processing, the frequency analysis, reliability analysis and factor analysis were operated, and the hypothesis testing was verified by the regression analysis. The results of the analyses are as follows. For the hypothesis that "the dining-out consumption pattern will have a significant effect on the emotional response," it was verified that the style which pursues health and the style which is loyal to relationships had significant effects on pleasure while the style which pursues rest didn't. Also, the style which pursues health and the style which is loyal to relationships had significant effects on arousal while the style which pursues rest didn't. For the hypothesis that "emotional response will have a significant effect on satisfaction," it was verified that pleasure and simulation had significant effects on satisfaction. As a result of the study, the current dining-out consumption pattern is changed from the purpose of having meals for the biological needs in the past to considering emotional response such as preferred taste or mood.

• Knowledge Management Research
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• v.14 no.3
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• pp.15-35
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• 2013

Nowadays, online shopping has become popular among consumers. As such, gaining loyal online shopping customers has become a rising concern for online shopping vendors. In this study, we investigated the hierarchical relationships among Lewicki and Bunker's three different types of trust, namely, calculus-based trust, knowledge-based trust, and identification-based trust, in the context of online shopping and their impacts on customer satisfaction and loyalty. A total of 104 responses from online shopping users were analyzed to test the proposed model and its hypotheses using Partial Least Squares (PLS). The results showed that, in the online environment, hierarchical relationships between different types of trust exist and that, among them, knowledge-based trust has the strongest impact on customer satisfaction. This finding implied that practitioners should focus on developing appropriate online strategies for building trust-based relationships with online customers.

• Journal of the Korean Society of Clothing and Textiles
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• v.32 no.8
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• pp.1299-1308
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• 2008

Customers’ loyalty to an online store may be worth up to ten times as much as its average customer. To develop a loyal customer base, most online stores try their best to continually satisfy their customers and to generate long-run relationships with them. This study investigates the effects of product attributes on customer satisfaction, trust, and loyalty in the context of online shopping for apparels. A self-administered questionnaire with multi-item scale was developed based on literatures. A total of 356 usable questionnaires were obtained from respondents and were analyzed using by LISREL 8.54 Program. The results showed that attributes of apparel products (e.g., products variety, price, and information) have indirectly influenced customer loyalty, which are moderated by customers’ satisfaction and trust. Additionally, customer satisfaction plays an important role to develop customer loyalty of online apparel stores. The findings suggest that, to satisfy their customers, online apparel stores should focus on product variety, and reasonable/economic prices of their apparel products, while they should provide the information about contents/care of apparels in building trusting relationships with their customers. In light of the major findings, this study sets forth strategic implications for customer loyalty in online settings of apparel store.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.2
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• pp.69-77
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• 2019

As information technology advances, the penetration of smart devices connected to the Internet, such as smart phone and tablet PC, has rapidly expanded, and as sensor prices have fallen the Internet of Things has begun to be introduced in the industry. Today's industry is rapidly changing and evolving, requiring companies to respond to the new paradigm of business. In this situation, companies need to actively manage and maintain customer relationships in order to acquire loyal customers who bring them a high return. The purpose of this study is to suggest a method to manage customer relationship using real time IoT data including IoT product usage data, customer characteristics and transaction data. This study proposes a method of segmenting customers through RFM analysis and transition index analysis. In addition, a real-time monitoring through control charts is used to identify abnormalities in product use and suggest ways of differentiating marketing for each group. In the study, 44 samples were classified as 9 churn customers, 10 potential customers, and 25 active customers. This study suggested ways to induce active customers by providing after-sales benefit for product reuse to a group of churn customers and to promote the advantages or necessity of using the product by setting the goal of increasing the frequency of use to a group of potential customers. Finally, since the active customer group is a loyal customer, this study proposed an one-on-one marketing to improve product satisfaction.