• Journal of Intelligence and Information Systems
• /
• v.16 no.4
• /
• pp.213-225
• /
• 2010

Data mining has empowered the managers who are charge of the tasks in their company to present personalized and differentiated marketing programs to their customers with the rapid growth of information technology. Most studies on customer' response have focused on predicting whether they would respond or not for their marketing promotion as marketing managers have been eager to identify who would respond to their marketing promotion. So many studies utilizing data mining have tried to resolve the binary decision problems such as bankruptcy prediction, network intrusion detection, and fraud detection in credit card usages. The prediction of customer's response has been studied with similar methods mentioned above because the prediction of customer's response is a kind of dichotomous decision problem. In addition, a number of competitive data mining techniques such as neural networks, SVM(support vector machine), decision trees, logit, and genetic algorithms have been applied to the prediction of customer's response for marketing promotion. The marketing managers also have tried to classify their customers with quantitative measures such as recency, frequency, and monetary acquired from their transaction database. The measures mean that their customers came to purchase in recent or old days, how frequent in a period, and how much they spent once. Using segmented customers we proposed an approach that could enable to differentiate customers in the same rating among the segmented customers. Our approach employed support vector regression to forecast the purchase amount of customers for each customer rating. Our study used the sample that included 41,924 customers extracted from DMEF04 Data Set, who purchased at least once in the last two years. We classified customers from first rating to fifth rating based on the purchase amount after giving a marketing promotion. Here, we divided customers into first rating who has a large amount of purchase and fifth rating who are non-respondents for the promotion. Our proposed model forecasted the purchase amount of the customers in the same rating and the marketing managers could make a differentiated and personalized marketing program for each customer even though they were belong to the same rating. In addition, we proposed more efficient learning method by separating the learning samples. We employed two learning methods to compare the performance of proposed learning method with general learning method for SVRs. LMW (Learning Method using Whole data for purchasing customers) is a general learning method for forecasting the purchase amount of customers. And we proposed a method, LMS (Learning Method using Separated data for classification purchasing customers), that makes four different SVR models for each class of customers. To evaluate the performance of models, we calculated MAE (Mean Absolute Error) and MAPE (Mean Absolute Percent Error) for each model to predict the purchase amount of customers. In LMW, the overall performance was 0.670 MAPE and the best performance showed 0.327 MAPE. Generally, the performances of the proposed LMS model were analyzed as more superior compared to the performance of the LMW model. In LMS, we found that the best performance was 0.275 MAPE. The performance of LMS was higher than LMW in each class of customers. After comparing the performance of our proposed method LMS to LMW, our proposed model had more significant performance for forecasting the purchase amount of customers in each class. In addition, our approach will be useful for marketing managers when they need to customers for their promotion. Even if customers were belonging to same class, marketing managers could offer customers a differentiated and personalized marketing promotion.

• Journal of Korean Society of Rural Planning
• /
• v.21 no.2
• /
• pp.137-147
• /
• 2015

In this study, consumers who have experience of visiting Jeongsun Arirang Market has been selected as samples to understand the characteristics of agricultural products purchase. For this, double hurdle model was used in order to resolve sample selection problem and obtain consistent estimator. The key points are the following. First, as the age increases(up to 59.8 years), chances of purchasing the products at traditional market increase as income increases. Second, when the residence area is outside of Gangwon-province, the purchase amount of the products increased compared to those from visitors within the Gangwon province. Also, visitors who use public transportations purchase less products compared to those who use their own car. Third, probability of agricultural products increase as the visitors consider positive effect the product purchase leads to the local farmers. Fourth, if the visitors consider the quality of the agricultural products, probability of purchasing agricultural product at the site increases. However, if the visitors consider the freshness of the agricultural products, the purchase amount rather drops. Fifth, the probability of purchase increases as visitors consider the brand of traditional market.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2008.10a
• /
• pp.179-190
• /
• 2008

Consumers earn a number of points for every purchase and then they can exchange a specified number of points for a desired reward in a typical loyalty program. The immediate payoff of their effort given as points is not the real reward they actually care about. It is merely an instrument (or medium) which has no value in itself. In a real world, consumers frequently choose the option with a bigger medium even though the economic value of the option is not changed by the medium. We call it 'medium effect'. In this study we explored if the size of medium affects on consumers' preferences. For this we controlled the reward options with three types of medium (small, medium, big) and measured the magnitude of preference difference among the three types of reward options. In addition, we manipulated comparability of reward options with wine and gas discount coupon. We confirmed that choosing one of two wines was easier than that of the two gas coupons. 164 respondents were allocated into three experimental groups and one control group. In three experimental groups, the ratios of the focused reward option's medium to the compared reward option's medium were different. For example, the focused reward option has 10 million points whereas the compared reward option has 10 million points for 1 million won purchase amount in the first group. Then each respondent was asked to choose one of two loyalty programs (focused program vs. compared program) in two different conditions (comparability between reward options: easiness vs. difficulty). To compare the medium effects among the experiment conditions we used chi-squares tests. The empirical results show the medium effect increases and then decreases as the ratio of reward mileages/points to purchase amount increases. Additionally, they let us know that comparability of alternatives affects on the medium effects depending on the ratio of reward mileages/points to purchase amount.

• Korean Journal of Human Ecology
• /
• v.14 no.6
• /
• pp.973-983
• /
• 2005

This study examined the practice of the impulsive purchase and the factors influencing it among college consumers. The data were collected from 481 college students in Busan and Gyeongnam areas through a self-administered questionnaire. Frequencies, Cronbach's alpha, factor analysis, Pearson's correlation analysis, and regression analysis were conducted by SPSS Windows. The results from this study were as follows: First, the level of the impulsive purchase of college consumers was not that high. Second, as a result of regression analysis for the group of the high level of impulsive purchase, the allowance amount, price-discount factor, credit card use, psychological factor, and attitudes towards money (ostentatious way, and symbol of success), affected the impulsive purchase. These results suggest that consumer education regarding values about money and strategies to resist impulsive purchase should be conducted at home and in school.

• Journal of Families and Better Life
• /
• v.21 no.2
• /
• pp.61-74
• /
• 2003

Recently, the number of consumers who buy various goods using the shopping channels on cable TV has increased. The objectives of this study are to examine the propensity of consumers to make an impulse purchase through cable TV, and to investigate the factors that influence consumers' impulse purchase. The following was found in this study: (1) The propensity of consumers to make impulse purchases on cable TV is somewhat low, Among sub-areas of impulse purchase, the propensity to make impulse purchase by suggestion is the highest. (2) Among the variables that affect consumers' impulse purchase on cable TV, the most influential variable is the psychological factor, followed by the frequency of shopping on cable TV, positive testimony from consumers who have used the product, and the amount of time spent in watching shopping channels on cable TV, in that order.

• Journal of Distribution Science
• /
• v.17 no.5
• /
• pp.95-102
• /
• 2019

Purpose - The purpose of the research is to identify the demographic characteristics of the customers with high private label purchase intention. According to the previous research demographics such as gender, age, income, and residence type affect private label purchase intention indirectly through psychographics rather than directly. For instance, higher income group is time pressured, price-insensitive, quality-sensitive, less likely to enjoy shopping utilitarian products, and less likely to be variety-seeking. The main contribution of this research is to verify the results found in the previous empirical foreign research using scanner data and to investigate the differences of the characteristics of private label users between Korea and the foreign countries. Research design, data, and methodology - In order to empirically test the proposed hypotheses, scanner data of a Korean major super center was analyzed. Results - Empirical results show that private labels are more favored by old people over 50s, dwellers in individual house, lower income group, and frequent store visitors. Age of 30s, dwellers in the apartment of 30 pyung, higher income group, and consumers who purchased a large amount are less likely to purchase private labels. Gender turned out not to affect private label purchase. It should be noted that there is a significant multicollinearity among independent variables. Conclusions - The research findings provide managerial implication for retailers' private label strategy. In general, retailers heavily send private label coupons to the customers with high purchase volume. According to the research, however, store visit frequency is much more positively associated with private label purchase than purchase amount. The study has some limitations. The samples are only consumers with private label purchase experience. The data were drawn from one store and only 8 commodity products were used for the analysis. Also, if more demographics were available, a more complete description on the private brand users' profile could have been derived. We propose the following future research. Research using the data including consumers without private label experience, research investigating direction of causality between private label loyalty and store loyalty, and research using hedonic private label products such as TV and PC could be promising.

• The Korean Journal of Community Living Science
• /
• v.27 no.2
• /
• pp.305-318
• /
• 2016

This study was conducted to investigate the effects of service quality and food quality on purchase intention in the electronic commerce of food products. Specifically, the relationship between purchase intention and food quality and service quality was tested based on customer satisfaction and trust, which were measured using the structural equation modeling method. Quality of service was found to affect purchase intention; however, food quality had no positive effects on purchase. Additional analyses should be conducted owing to the conflicting results of the present study. Although the amount of food bought online is increasing rapidly every year, research regarding online food purchasing is not being actively conducted. The results of the present study will help food sellers, buyers, and researchers.

• Journal of the Korean Data and Information Science Society
• /
• v.19 no.4
• /
• pp.1123-1131
• /
• 2008

A considerable amount of research has focused on the dimensionality of service failure and recovery construct. This paper is focused on service failure and recovery in the Korean native cattle and imported beef restaurant industry in the Korea. So, this paper has adapted Kau and Loh's Service recovery measurement scale so that restaurant managers can use it to determine how customers perceive the service quality in Korean native cattle beef restaurant and imported beef restaurant. The purpose of this research is to test the difference in pre-purchase expectation and post-purchase actual performance of 4 dimensions between the restaurants that sell the beef of Korean native cattle and imported cattle. The paired t -test is used to test difference of pre-purchase expectation and post-purchase actual performance for service recovery measurement scale's 4 dimensions of the 2 restaurant types. But, there is significant difference between pre-purchase expectation and post-purchase actual performance in the 2 restaurant types.

• Journal of Korean Institute of Industrial Engineers
• /
• v.33 no.3
• /
• pp.339-348
• /
• 2007

Since the 1980s, the marketing paradigm has rapidly changed from product-driven marketing to customer-driven marketing. Recently, due to an increase in the amount of information, customer-differentiation strategies have been emphasized more than product-differentiation strategies. This paper suggests a methodology for new customer segmentation and purchase forecasting using changes in customer behavior. This methodology includes a segmentation method for new customers using existing customer's characteristics and a purchase-forecasting system using the purchase-behavior patterns of existing customers. The proposed methodology not only provides differential services from a segmentation system but also recommends differential items from the purchase forecasting system for new and existing customers.

• Journal of the Korean Society of Clothing and Textiles
• /
• v.24 no.4
• /
• pp.498-509
• /
• 2000

This study is designed to find out the effects of price on the consumers'perceived quality, value and purchase willingness of clothing in order to get the basic information that is needed in helping clothing manufacturer's strategy for merchandising promotion on price. This study was conducted by means of a questionnaire survey of university students in seoul. SAS program was used for analysis. The conclusions of this study as follow: first, with respect to the price level of clothing, consumers evaluate the perceived quality of high-price case higher than that of low-price case, and evaluate the perceived value and purchase willingness of low-price case higher than those of high-price case. Second, with respect to the brand name level of clothing, consumers evaluate the perceived quality, perceived value and purchase willingness of well-known brand case higher than those of unknown brand can. Third, the interaction between price and brand dosen't appear. Thus from this result we can know that price and brand have the same amount of effect in both single-quo case and multi-que case. Forth, with respect to the price and brand name level of clothing, there exist significant differences in perceived quality, perceived value, and brand name level. Fifth, in the study of the relationship between perceived quality and purchase willingness and the relationship between the perceived value and purchase willingness, perceived value has more effect on purchase willingness than perceived quality.