• Journal of the Korean Society of Clothing and Textiles
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• v.27 no.3_4
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• pp.384-394
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• 2003

The purpose of this research is to provide the apparel companies with a successful business strategy by analyzing the concept, function and current status of mileage programs; and examining how customer's attitude, recognition, experience, compensation method of the mileage program in apparel companies affect its brand loyalty. In this research simple random sampling was performed. The sample pool was based on 494 people which included college students and employed men and women in their twenties and thirties living in Seoul and in the metropolitan area. The data analysis was completed on the basis of SPSS package, using frequency, percentage, mean, standard deviation, factor analysis, variation, Scheffe test, regression, t-test, and X/sup2/. The following results were found in this research: It is effective to maintain brand loyalty through continuous relationship with consumers as fierce competition increases in apparel companies. A mileage program is a win/win strategy that allows clothing companies to increase its sales and brand loyalty while consumers feel greater satisfaction.

• Korean Management Science Review
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• v.27 no.3
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• pp.149-160
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• 2010

This paper focuses on frequent flyer programs (FFPs), which have long been used by most airlines as a powerful marketing tool. Since the preference for FFPs reward services and the customer perceived values of mileage points differ among FFPs members, airlines should design a customer-oriented reward service based on customer preference to motivate the use of mileage points. The intention for using mileage points is affected by various kinds of attributes such as reword items, consuming mileage points for rewards and time of usage. In this paper, we focus on evaluating customer perceived values of attributes of FFPs reward services. A conjoint analysis model is applied to get the preference value of each attribute. Some empirical experiments are conducted in relation to Korean customers. From the empirical survey, the preference values of attributes are evaluated for different scenarios with respect to the number of mileage points. With the preference values of attributes, we can find several implications for airlines regarding the development of various FFPs strategies.

• The Korean Journal of Air & Space Law and Policy
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• v.25 no.2
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• pp.163-199
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• 2010

A frequent flyer program is a loyalty program offered by many airlines. Typically, airline customers enrolled in the program accumulate frequent flyer miles corresponding to the distance flown on that airline or its partners. There are other ways to accumulate miles. In recent years, more miles were awarded for using co-branded credit and debit cards than for air travel. Acquired miles can be redeemed for free air travel; for other goods or services, such as travel class upgrades, airport lounge access or priority bookings. The first modern frequent flyer program was created Texas International Airlines in 1979. This program was also adopted in Korean Air in 1984. Since then, the mileage programs have grown enormously. As of June 2009, the total member of two national airlines in Korea had been over thirty million. However, accumulated miles could be burden of airlines, because the korean corporations should record the annual financial report the accumulate mileage on a liability account by 'the international financial report standards(IFRS)' next year. The korean airlines need to minimize the accumulated miles, so that for instance Korean Airlines SKYPASS-miles expire 5 years after being earned. It means that miles earned on or after July 2008 will expire after five years if unredeemed. Thus, this paper attempt to analyze the unfairness of the mileage rules of korean airlines by examining a specific portion of the conditions relating to consumer protection, because many mileage users has difficulties using mileage programs and complained the amendment of the mileage rules. In conclusion, the contemporary mileage rules in Korea are rather unsatisfactory, because airlines is not only recognizing a mileage into a kind of benefit but also denying inheritance of mileage and the legal nature of mileage as a property right. It is necessary to amend relevant mileage rules in view of consumer protection, because air mileage is not simple benefit but a right of mileage user.

• Culinary science and hospitality research
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• v.16 no.2
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• pp.110-135
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• 2010

The purpose of this study was to examine the effects of a mileage program on consumers' negative emotions and behavior when the program failed. To accomplish the purpose of this study, the failures in mileage programs were classified into three types(refusal, delay, reduced advantages) with two types of customers' commitment(affective and calculative), and an experimental design was used to verify the effect of customers' negative emotions on their negative behavior when the programs fail. A total of 600 university students in Seoul and Pusan areas were surveyed from 1st of Sept. to 30th in 2009. The result suggests that both consumers with affective commitment and those with calculative commitment felt negative emotions(regret, disappointment) when a mileage program failed. Consumers with affective commitment to a company are expected to give negative words of mouth to others. Also, consumers with calculative commitment to a company are expected to complain and give negative words of mouth to others.

• The Journal of Information Systems
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• v.13 no.2
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• pp.119-134
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• 2004

This research investigates the rising new role of mileage system as private e-money in a exploratory study. The key research questions are "How does mileage system evolve with expansion of e-business and what are the cases for real experiences in 'money-like' mileage and their implications?" This research focuses on the proposition that mileage points created in commercial transactions as a royalty program are observed to serve a new role as payment tool. In an attempt to identify factors that determine mileage system as private money, we employ three factors: confidence, transaction cost, and monetary freedom. Also, this research proposes a direction for further research and follow-up studies to establish legal and institutional issues and the relevant architecture, all of which are essential elements to make the mileage points global money with a certain trade ratio in the near future.

• Proceedings of the Korea Association of Information Systems Conference
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• 2004.11a
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• pp.444-453
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• 2004

This research investigates the rising new role of mileage system as private e-money in a exploratory study. The key research questions are 'How does mileage system evolve with expansion of e-business and what are the cases for real experiences in 'money-like' mileage and their implications?' This research focuses on the proposition that mileage points created in commercial transactions as a royalty program are observed to serve a new role as payment tool. In an attempt to identify factors that determine mileage system as private money, we employ three factors: confidence, transaction cost, and monetary freedom. Also, this research proposes a direction for further research and follow-up studies to establish legal and institutional issues and the relevant architecture, all of which are essential elements to make the mileage points global money with a certain trade ratio in the near future.

• The Journal of the Korea Contents Association
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• v.5 no.4
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• pp.28-35
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• 2005

This paper examines empirically the effect of mileage program in e-Business on brand loyalty, and the mediating role of customers' trust and relational commitment. The results show that customer's benefits and convenience of the program significantly influences positively customer's trust. In addition, customer's trust also influences positively relational commitment, and relational commitment significantly influences positively brand loyalty. Thus, trust and relational commitment should be considered in the mileage program to improve the brand loyalty of internet shopping mall. Implications and limitations of this study are suggested.

• Journal of Practical Engineering Education
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• v.11 no.2
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• pp.305-311
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• 2019

Many universities offer mileage system as part of their student reward program. The mileage system provides mileage to students who participated in on-campus extracurricular programs, and awards scholarships regardless of grades based on the mileage earned. The purpose of this study is to identify the effect of students' perception of college mileage system on loyalty and to compare the difference in loyalty between those who received mileage and those who did not. To this end, the effect of loyalty was studied empirically by classifying the perception of college mileage into five categories: the cash value, aspirational value, diversity of benefits, convenience, and relevance. The results showed that aspirational value, diversity of benefits and relevance had a positive effect on loyalty, while cash value and convenience did not. In addition, the effect of cash value on loyalty was higher in those who received mileage than those who did not. In terms of relevance, higher loyalty was found in group that did not receive mileage than those who did.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.22 no.1
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• pp.95-107
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• 2014

A customer loyalty program (i.e., FFP) has become more important to keep loyal customers especially for legacy airlines. Therefore, the researchers intended to examine the elements of an airline loyalty program and how these elements influenced the effects of the loyalty program. To set up the research framework, the commitment-trust model (i.e., KMV model) in the loyalty program was used in this study. Shared values, benefits, serviceabilities, and affiliated companies were considered as independent variables (i.e., elements of FFP). Trust and commitment added as mediating variables and customers' loyalty were examined as a dependent variable. A survey has been conducted. All independent variables had positive relationships with trust and commitment and trust influenced commitment. Lastly, the mediating variables had positive effects on customers' loyalty.

• Information Systems Review
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• v.7 no.1
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• pp.137-152
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• 2005

The mileage program has been one of the most popular royalty and promotion programs in marketing. With the remarkable growth and rapid pervasiveness of information technologies including the Internet, new and a variety of many other applications of mileage system than traditional ones have been observed. The objective of this research is to investigate the rising role of mileage point as a new private electronic money. In an attempt to identify the new role, we employ two factors: monetary confidence and monetary efficiency. This paper analyzes the status quo in the monetary uses of the mileage system by answering to those questions that "is it money?," and "what are the cases for real experiences in 'money-like' mileage and their implications?" with OK Cashbag case. Results show that OK Cashbag point is taking a different development route of money and performs limited monetary functions as private electronic money.