• Title/Summary/Keyword: relationship satisfaction. customer loyalty

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A Methodology of Customer Churn Prediction based on Two-Dimensional Loyalty Segmentation (이차원 고객충성도 세그먼트 기반의 고객이탈예측 방법론)

  • Kim, Hyung Su;Hong, Seung Woo
    • Journal of Intelligence and Information Systems
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    • v.26 no.4
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    • pp.111-126
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    • 2020
  • Most industries have recently become aware of the importance of customer lifetime value as they are exposed to a competitive environment. As a result, preventing customers from churn is becoming a more important business issue than securing new customers. This is because maintaining churn customers is far more economical than securing new customers, and in fact, the acquisition cost of new customers is known to be five to six times higher than the maintenance cost of churn customers. Also, Companies that effectively prevent customer churn and improve customer retention rates are known to have a positive effect on not only increasing the company's profitability but also improving its brand image by improving customer satisfaction. Predicting customer churn, which had been conducted as a sub-research area for CRM, has recently become more important as a big data-based performance marketing theme due to the development of business machine learning technology. Until now, research on customer churn prediction has been carried out actively in such sectors as the mobile telecommunication industry, the financial industry, the distribution industry, and the game industry, which are highly competitive and urgent to manage churn. In addition, These churn prediction studies were focused on improving the performance of the churn prediction model itself, such as simply comparing the performance of various models, exploring features that are effective in forecasting departures, or developing new ensemble techniques, and were limited in terms of practical utilization because most studies considered the entire customer group as a group and developed a predictive model. As such, the main purpose of the existing related research was to improve the performance of the predictive model itself, and there was a relatively lack of research to improve the overall customer churn prediction process. In fact, customers in the business have different behavior characteristics due to heterogeneous transaction patterns, and the resulting churn rate is different, so it is unreasonable to assume the entire customer as a single customer group. Therefore, it is desirable to segment customers according to customer classification criteria, such as loyalty, and to operate an appropriate churn prediction model individually, in order to carry out effective customer churn predictions in heterogeneous industries. Of course, in some studies, there are studies in which customers are subdivided using clustering techniques and applied a churn prediction model for individual customer groups. Although this process of predicting churn can produce better predictions than a single predict model for the entire customer population, there is still room for improvement in that clustering is a mechanical, exploratory grouping technique that calculates distances based on inputs and does not reflect the strategic intent of an entity such as loyalties. This study proposes a segment-based customer departure prediction process (CCP/2DL: Customer Churn Prediction based on Two-Dimensional Loyalty segmentation) based on two-dimensional customer loyalty, assuming that successful customer churn management can be better done through improvements in the overall process than through the performance of the model itself. CCP/2DL is a series of churn prediction processes that segment two-way, quantitative and qualitative loyalty-based customer, conduct secondary grouping of customer segments according to churn patterns, and then independently apply heterogeneous churn prediction models for each churn pattern group. Performance comparisons were performed with the most commonly applied the General churn prediction process and the Clustering-based churn prediction process to assess the relative excellence of the proposed churn prediction process. The General churn prediction process used in this study refers to the process of predicting a single group of customers simply intended to be predicted as a machine learning model, using the most commonly used churn predicting method. And the Clustering-based churn prediction process is a method of first using clustering techniques to segment customers and implement a churn prediction model for each individual group. In cooperation with a global NGO, the proposed CCP/2DL performance showed better performance than other methodologies for predicting churn. This churn prediction process is not only effective in predicting churn, but can also be a strategic basis for obtaining a variety of customer observations and carrying out other related performance marketing activities.

Categorizing Quality Features of Franchisees: In the case of Korean Food Service Industry (프랜차이즈 매장 품질요인의 속성분류: 국내 외식업을 중심으로)

  • Byun, Sook-Eun;Cho, Eun-Seong
    • Journal of Distribution Research
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    • v.16 no.1
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    • pp.95-115
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    • 2011
  • Food service is the major part of franchise business in Korea, accounting for 69.9% of the brands in the market. As the food service industry becomes mature, many franchisees have struggled to survive in the market. In general, consumers have higher levels of expectation toward service quality of franchised outlets compared that of (non-franchised) independent ones. They also tend to believe that franchisees deliver standardized service at the uniform food price, regardless of their locations. Such beliefs seem to be important reasons that consumers prefer franchised outlets to independent ones. Nevertheless, few studies examined the impact of qualify features of franchisees on customer satisfaction so far. To this end, this study examined the characteristics of various quality features of franchisees in the food service industry, regarding their relationship with customer satisfaction and dissatisfaction. The quality perception of heavy-users was also compared with that of light-users in order to find insights for developing differentiated marketing strategy for the two segments. Customer satisfaction has been understood as a one-dimensional construct while there are recent studies that insist two-dimensional nature of the construct. In this regard, Kano et al. (1984) suggested to categorize quality features of a product or service into five types, based on their relation to customer satisfaction and dissatisfaction: Must-be quality, Attractive quality, One-dimensional quality, Indifferent quality, and Reverse quality. According to the Kano model, customers are more dissatisfied when Must-be quality(M) are not fulfilled, but their satisfaction does not arise above neutral no matter how fully the quality fulfilled. In comparison, customers are more satisfied with a full provision of Attactive quality(A) but manage to accept its dysfunction. One-dimensional quality(O) results in satisfaction when fulfilled and dissatisfaction when not fulfilled. For Indifferent quality(I), its presence or absence influences neither customer satisfaction nor dissatisfaction. Lastly, Reverse quality(R) refers to the features whose high degree of achievement results in customer dissatisfaction rather than satisfaction. Meanwhile, the basic guidelines of the Kano model have a limitation in that the quality type of each feature is simply determined by calculating the mode statistics. In order to overcome such limitation, the relative importance of each feature on customer satisfaction (Better value; b) and dissatisfaction (Worse value; w) were calculated following the formulas below (Timko, 1993). The Better value indicates how much customer satisfaction is increased by providing the quality feature in question. In contrast, the Worse value indicates how much customer dissatisfaction is decreased by providing the quality feature. Better = (A + O)/(A+O+M+I) Worse = (O+M)/(A+O+M+I)(-1) An on-line survey was performed in order to understand the nature of quality features of franchisees in the food service industry by applying the Kano Model. A total of twenty quality features (refer to the Table 2) were identified as the result of literature review in franchise business and a pre-test with fifty college students in Seoul. The potential respondents of our main survey was limited to the customers who have visited more than two restaurants/stores of the same franchise brand. Survey invitation e-mails were sent out to the panels of a market research company and a total of 257 responses were used for analysis. Following the guidelines of Kano model, each of the twenty quality features was classified into one of the five types based on customers' responses to a set of questions: "(1) how do you feel if the following quality feature is fulfilled in the franchise restaurant that you visit," and "(2) how do you feel if the following quality feature is not fulfilled in the franchise restaurant that you visit." The analyses revealed that customers' dissatisfaction with franchisees is commonly associated with the poor level of cleanliness of the store (w=-0.872), kindness of the staffs(w=-0.890), conveniences such as parking lot and restroom(w=-0.669), and expertise of the staffs(w=-0.492). Such quality features were categorized as Must-be quality in this study. While standardization or uniformity across franchisees has been emphasized in franchise business, this study found that consumers are interested only in uniformity of price across franchisees(w=-0.608), but not interested in standardizations of menu items, interior designs, customer service procedures, and food tastes. Customers appeared to be more satisfied when the franchise brand has promotional events such as giveaways(b=0.767), good accessibility(b=0.699), customer loyalty programs(b=0.659), award winning history(b=0.641), and outlets in the overseas market(b=0.506). The results are summarized in a matrix form in Table 1. Better(b) and Worse(w) index indicate relative importance of each quality feature on customer satisfaction and dissatisfaction, respectively. Meanwhile, there were differences in perceiving the quality features between light users and heavy users of any specific franchise brand in the food service industry. Expertise of the staffs was labeled as Must-be quality for heavy users but Indifferent quality for light users. Light users seemed indifferent to overseas expansion of the brand and offering new menu items on a regular basis, while heavy users appeared to perceive them as Attractive quality. Such difference may come from their different levels of involvement when they eat out. The results are shown in Table 2. The findings of this study help practitioners understand the quality features they need to focus on to strengthen the competitive power in the food service market. Above all, removing the factors that cause customer dissatisfaction seems to be the most critical for franchisees. To retain loyal customers of the franchise brand, it is also recommended for franchisor to invest resources in the development of new menu items as well as training programs for the staffs. Lastly, if resources allow, promotional events, loyalty programs, overseas expansion, award-winning history can be considered as tools for attracting more customers to the business.

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A Study on the Factors Affecting Mobile Commerce User' Post-Adoptive Behavior (모바일 커머스 수용 후 행동에 관한 연구)

  • Jo, Dong Hyuk;Park, Jong Woo
    • Journal of Information Technology Services
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    • v.14 no.3
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    • pp.163-182
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    • 2015
  • The spread of mobile commerce due to popularization of smartphones not only broke down the boundary between online and offline, but also changed the consumer life, and hence brought change of commerce paradigm that creates new demand. The success of innovative information technology such as mobile shopping can be defined as an individual accepting the technology and continuously using it, but the studies on the usage behavior after the acceptance have been done in very restrictively, despite its importance. In this study, in order to empirically investigate the factors that influence the continuance in mobile shopping usage experience and its causal relationship, Social Cognitive Theory and Habit Theory were applied to IS Continuance Model, and the extended IS Continuance Model was suggested and proved. As a result, the usefulness, enjoyment, and self-efficacy perceived in usage experience significantly influence satisfaction, and usefulness, self-efficacy, and satisfaction influence habit. Also, usefulness, self-efficacy, satisfaction, and habit significantly influence continuance intention. This study provides a valuable asset in providing an opportunity to understand the usage behavior of mobile shopping service users after the acceptance, and furthermore proving directionality in improving customer loyalty.

The Moderating Effect of Service Type on the Customer Delight-Behavioral Intention Relationships (서비스 유형의 조절 효과에 따른 기업의 고객감동과 행동 의도의 관계)

  • Kim, MiJeong;Yoon, Ju Ok
    • Journal of Service Research and Studies
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    • v.9 no.4
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    • pp.81-95
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    • 2019
  • The concept of customer satisfaction is very important issue in the service firms. All service firms should delight theirs customers? Which service contexts creating customer delight results in better positive performance? This study is to examine the moderating effect of service type on the customer delight-behavioral intention relationship. Data from consumers across two distinct service contexts (retail banks and upscale restaurants) were obtained. Using the multiple moderating regression analysis, the proposed hypotheses in this study were tested. The results reveal that customer delight had a greater positive impact on both revisit and referral intention in the hedonic service than the utilitarian service. This study suggests specific service contexts where customer delight strategies generate better desirable results. The customer delight strategy is able to be applied in both hedonic and utilitarian services, but it is more effective to lead customer loyalty in the hedonic service than utilitarian services. Service firms need a strategic approach to customer satisfaction strategies. This study provide strategic implications for service firms to efficiently manage and allocate resources, and can help them in making decisions about establishing and implementing customer satisfaction strategies.

A Study on Service Quality Evaluation Model and Priority of Quality Factors in Customer Center

  • Park, Deuk
    • Journal of the Korea Society of Computer and Information
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    • v.25 no.1
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    • pp.159-165
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    • 2020
  • In spite of various studies on the service quality of customer center, the previous studies are mainly focused on the studies on the relationship between customer satisfaction and loyalty, rather than on the evaluation model of service quality. In this study, we reviewed the service quality of customer center factors discussed in previous studies and developed a hierarchical model for measuring customer service quality based on Brady and Cronin's (2001) model. The first level consists of interaction (process) quality, physical environment (system) quality, and outcome quality, and the second level consists of kindness, positiveness, professionalism, systematic, convenience, accessibility, accuracy, promptness, and reliability. In addition, based on the developed hierarchical model, the priority of each factor that customer center users consider important is analyzed by AHP methodology. As a result, the interaction quality was important in the first level, and professionalism, kindness, and accuracy were important in the second level. Such a study can be a guideline for establishing a standard for evaluating the service quality of customer center or for managing more importantly in practice.

5An Empirical Study on effect between Mobile Device Property and Customer Satisfaction (이동전화단말기 속성이 고객만족에 미치는 영향에 관한 실증적 연구)

  • Choi, Seung-Il;Kim, Dong-Il
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.11 no.5
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    • pp.1856-1862
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    • 2010
  • Last rapidly changing mobile handset market in many industries, as well as market conditions affect the prevalence of various content types of consumer spending in general is affecting. Changes in mobile handset market by separating the various consumer-tier analysis, or differentiated in consumers' purchasing behavior are being reflected in the property analysis and overview of customer satisfaction can be assessed by measuring. These mobile devices and the purchase of the devices to investigate the tendency to analyze and weigh the various content industries, you can see how important one can be considered. The development of mobile communication systems and wireless internet and multimedia applications can lead the industry accelerated. In this study, tried to investigate that the mobile communication systems in consideration of the special form of mobile handsets, and customer satisfaction of mobile phone handsets, and the relationship between customer loyalty. Outcome of this study, the mobile properties and the mobile handset brand, price, design and related details to be statistically significant variables were analyzed. In this study, the characteristics of future mobile handset market with a wide range of content-based guidelines for the development of the industry is expected to be able to provide.

The Effects of Fairness and Service Quality on the Loyalty in the R&D Processes: Mediation Effect of Trust (연구개발 과정에서 공정성과 서비스 품질이 충성도에 미치는 영향: 신뢰의 매개효과)

  • Jeong, Yonggil;Sohn, Minho
    • Journal of Service Research and Studies
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    • v.8 no.4
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    • pp.77-88
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    • 2018
  • Collaboration works on R&D project have many characteristics in interoranizational relationships. There are many variables on explaining the their relationships. In the previous study, I chose some relevant variables and some hypotheses. Base on service marketing theories and relationship marketing perspective I suggest 5 hypotheses. Independent variables are fairness and quality, and dependent variable is loyalty. And trust are treated as the intervening variable between the independent variables and dependent variable. To test the research model and some hypothesis empirically, I collected the data using the questionnaire. Sample size was 448, it was enough to analyze statistically. Data were analysed using the SPSS and AMOS. In the previous study, H1($fairness{\rightarrow}trust$), H2($quality{\rightarrow}trust$), H5($trust{\rightarrow}loyalty$) were accepted, but H3 and H4 were rejected. The reason H3($fairness{\rightarrow}loyalty$) and H4($quality{\rightarrow}loyalty$) were not accepted might be attributed to the fact that trust was the mediating variable between fairness and loyalty, quality and loyalty. Specific research methodologies and statistical findings from AMOS were referred in the previous study(Jeong 2018). In this study, I suggested some hypotheses on the mediating role trust between fairness and loyalty and service quality and loyalty. Using the PROCESS-macro, I found that trust was the mediating variable between fairness and loyalty as well as service quality and loyalty. This research is the complementary and extended study from previous research.

The Study of the Effect of Shopping Value on Customer Satisfaction, and Actual Purchase Behavior (쇼핑가치가 고객만족과 구매행동에 미치는 영향에 관한 연구 - 백화점 쇼핑행동을 중심으로 -)

  • Ahn, Kwangho;Lim, Byunghoon;Jung, Suntae
    • Asia Marketing Journal
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    • v.10 no.2
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    • pp.99-123
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    • 2008
  • Consumer satisfaction/dissatisfaction is key determinant of brand loyalty and store patronage behavior. But the results of many customer satisfaction surveys implemented by department stores show that consumer satisfactions do not predict the actual patronage behaviors well. The main reason of these surprising results would be that the consumer satisfaction indexes do not include some important determinants of consumer satisfaction. Many customer satisfaction surveys mainly focus on the evaluation of functional benefits including product assortments, merchandise prices and locational convenience. Recent studies indicate that emotional/hedonic benefits strongly influence the consumer satisfaction, intention to repurchase and intention to revisit. Our study suggests that both functional values and hedonic values should be included in developing the index of consumer satisfactions. The purpose of our study is to investigate the relationship between shopping value and consumer satisfaction, and actual patronage behavior. Shopping values is defined as the difference between total benefits and total shopping costs. Total benefits include the dimensions of product quality, service quality, and hedonic benefits. Total costs are classified as the monetary costs and non-monetary cost. The conceptual framework developed for this empirical study is as follows.

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The Effect of Retro Restaurant Servicescape on Customer Satisfaction - Focused on Moderating Role of the SNS Trust- (레트로 식당의 서비스스케이프가 만족도에 미치는 영향 -SNS 신뢰 조절효과 중심-)

  • Yang, Dong-Hwi;Kim, Chan-Woo;Jo, Sung-Jin
    • The Journal of the Korea Contents Association
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    • v.21 no.1
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    • pp.407-416
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    • 2021
  • Recently, as retro restaurants began to appear nationwide, including Seoul, consumers are aware of the importance and use them according to the important factors of Servicescape and the use of SNS. The purpose of this study was to investigate the effect of Retro Restaurant's Servicescape and Customer Satisfaction, and the effect of SNS Trust in their relationship. Convenience sampling was used for customers with experience of using Retro Restaurant, which was recently created mainly in Seoul. The survey period lasted about one month from July 1, 2020, and the final 289 copies were used for analysis. The SPSS 21.0 statistical package program was used to verify the hypothesis. As a result of analysis, among the Servicescape factors of Hypothesis 1, attractiveness (β=.442, p<.001) and human service (β=.516, p<.001) had a significant effect on customer satisfaction. In the moderating effect of Servicescape and SNS Trust of Retro Restaurant in Hypothesis 2, attractiveness⁎SNS trust had a significant positive (+) influence. Accessibility⁎SNS trust had a significant negative (-) influence. Lastly, in the fierce food service industry environment, it aims to achieve a competitive advantage in the food service market through a differentiated servicescape such as Retro Restaurant. Through the SNS marketing strategy, the loyalty and re-visiting of customers visiting the restaurant is checked, and it is intended to be provided as useful data for establishing a customer-oriented marketing strategy.

The Effect on Satisfaction with Mediation of Trust Caused by Hypermarkets' Online Image (온라인에서 대형마트 쇼핑몰의 이미지가 신뢰를 매개로 만족에 미치는 영향)

  • Shin, Moon-Shik;Kim, Hyo-Jung
    • Journal of Distribution Science
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    • v.12 no.10
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    • pp.67-74
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    • 2014
  • Purpose - This study analyzed how image affects customer trust and satisfaction in the online shopping mall market, which is becoming more competitive; future implications for customer management in online shopping malls were presented. Consumers visit and prefer a few shopping mall sites instead of many sites. Consumers do not visit sites that cannot provide trust and satisfaction. Therefore, establishing trust and satisfaction with differentiated image is essential for survival and growth. Specifically analyzing company image, shop image, and brand image, I studied how symbolic image, functional image, and empirical image affect satisfaction mediated by trust in the online shopping malls of hypermarket retailers. Research design, data, and methodology - To investigate the relationship between image and satisfaction of big box retailers' shopping malls in the online market, the study is based on analyzed data from questionnaires involving advanced research. From May 1st to 20th in the year 2014, a questionnaire survey targeting university students using big box retailers' shopping malls in Seoul was conducted. A total of 282 questionnaires were conducted, and 276 questionnaires were used for empirical analysis, excluding invalid data. Using the SPSS 21.0 statistics package, factor analysis and regression analysis were implemented, and effects of image on trust and satisfaction were presented. Results - First, symbolic image can affect satisfaction with only trust. Among 3 image factors, symbolic image exerts the most influence on trust; trust is important in coupling the medium to satisfaction. Second, functional image and empirical image affect satisfaction directly and indirectly with trust. Conclusions - As I classified the image of hyper market retailers' online shopping malls into symbolic, functional, and empirical image, I analyzed the effects of image on trust and satisfaction empirically. The results of the study and strategic implications are as follows. First, symbolic image can affect satisfaction with only trust. Among 3 image factors, symbolic image exerts the most influence on trust; trust is important in coupling the medium to satisfaction. The establishment of a distinctive symbolic image, such as the online shopping mall's loyalty, level of awareness, and special service, is needed. With the establishment of symbolic image, trust and satisfaction could be improved. Second, functional image and empirical image affect satisfaction directly and indirectly with trust. Especially, as functional image affects trust more than empirical image, setting and implementing a strategy for empirical image based on the right price, service, and convenience could raise trust and satisfaction. Empirical image affects trust and satisfaction substantially. Even though empirical image's influence on trust is lower than that of other three image factors, empirical image's influence on satisfaction is higher than symbolic image. Therefore, it requires a strategy for providing joyful use, and information research functions and distinctive use experience are important to improve satisfaction. This study analyzed image characteristics of hyper-market retailers' online shopping malls in the fast-growing online market; future strategic implications were presented.