• Title/Summary/Keyword: service loyalty

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A Study on Efficiently Designing Customer Rewards Programs (고객 보상프로그램의 효율적 구성에 관한 연구)

  • Kim, Sang-Cheol
    • Journal of Distribution Science
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    • v.10 no.1
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    • pp.5-10
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    • 2012
  • Currently, the rewards programs offered by many companies to strengthen customer relationships have been working quite well. In addition, many companies' rewards programs, designed for stabilizing revenue, are recognized to be effective. However, these rewards programs are not significantly differentiated between companies and there are no accurate conclusions currently, which can be made about their effects. Because of this, a company with a customer rewards program may not comprehend the true level of active participation. In this environment some companies' rewards programs inadvertently hinder business profitability as a side effect while attempting to increase customer loyalty. In fact, airline and oil companies pass on the financial cost of their programs to the customer, and as a result, they have been criticized publicly. The result of this is that the corporations with bad rewards programs tend to get a bad image. In this study of stores' rewards programs, we centered our focus on the design of the program. The main problem in this study is to recognize the financial value of the rewards program and whether it can create a competitive edge for the companies despite the cost issues experienced by them. Customers receiving financial rewards for their business may be just as satisfied with a particular company or store versus those who are not, and the program, perhaps, does not form a distinctive competitive advantage. When the customer is deciding between competing companies to secure their product needs with, we wanted to figure out how much of an affect a valuable reward program had on their decision making. To evaluate this, we set the first hypothesis as, "based on the level of involvement of the customers, there is a difference between customers' preferences for rewards programs." In the results of Experiment 1 we saw that in a financial compensation program for high-involvement groups and low-involvement groups, significant differences appeared and Hypothesis 1 was partially supported. As for the second hypothesis that "customers will have different preferences between a financial rewards programs (SE) and a joint rewards programs (JE)," the analysis showed that the preference for JE was significantly higher than that for other programs. In addition, through Experiment 2, we were able to find meaningful results, which revealed that consumers have shown a significant difference in their preferences between SE and JE. The purpose of these experiments was to enable the designing of a rewards program by learning how to enhance service information distribution and strengthen customer relationships. From the results, there should be a great amount of value for future service-related endeavors and academic research programs. The research is significant, because the results can be found to have a positive effect on reward program designs however, it does have the following limitations. First, this study was performed using an experiment, and all experiments have limitations. Second, although there was an individual evaluation and a joint evaluation, setting a proper evaluation criteria was difficult. In this study, 1,000 Korean won (KRW) in the individual evaluation had a value of 2 points, and, in the joint evaluation, 1,000 KRW had a value of 1 point. There may have been alternative ways to differentiate the evaluations to obtain the proper results. In this study, since there was no funding, the experiments were performed orally however, this was complementary to the study. Third, the subjects who participated in this experiment were students. Conducting this study through experimentation was unavoidable for us, and future research should be conducted using an actual program with the target customers.

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Media Scholars and Power: The politicized intellectuals hanging on the dangerous rope (언론학자와 권력: 정치화된 지성의 위험한 줄타기)

  • Choi, Nakjin;Kim, Sunghae
    • Korean Journal of Legislative Studies
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    • v.22 no.2
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    • pp.113-156
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    • 2016
  • Media scholars take a lion stake in power circle. Not only do they take a part in media policies but seize prestigious positions like board members in Korea Communication Commission(KCC). Unfortunately, though, little has been known about who they are, what qualifications they have, and whether they meet public interests. This paper attempts to unveil the mechanism of those politicized intellectuals who are specialized on the media. Two categories divided into 'representative' and 'expertise' are employed for this purpose. On the one hand, the representative means the degree of committment into such public services as participation in conferences or non-profit organizations. On the other hand, the number of research articles, books and projects belong to the expertise. Evaluation levels consist of 'excellence, good and average' were allocated to those scholars who are(were) in 'Power Hole,' where decision makings come into being. Some interesting observations were made though this study. First of all, such criteria as representative and expertise vaguely suggested by the laws were hardly fit into those intellectuals, Rarely did they commit into public service let alone showing vigilance in academic activities. Secondly, both ideological loyalty and political activities in line with the government had much to do with taking such positions. Thirdly, not surprisingly, it showed that to graduate from Seoul National University and have Ph.D. degree from U.S.A. was one of the most essential factors. In final, most of them were very good at taking advantage of the press in way of boosting their publicity. To attend at policy making processes either in form of board members or advisers is inevitable for media experts. However, as shown in this study, such qualification of public service and academic eagerness shouldn't be underestimated. Academic integrity not selling intelligence solely for private interests needs to be protected as well. The authors hope this study to provide a valuable opportunity to establish a kind of ethical standards in participating into politics.

Estimating the Switching Cost in the Korean Residential Electricity Market Using Discrete Choice Model (이산선택모형을 이용한 주거용수용가의 전력서비스 전환비용 추정)

  • Lee, Jongsu;Lee, Dongheon;Lee, Jeong-Dong;Park, Yuri
    • Environmental and Resource Economics Review
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    • v.13 no.2
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    • pp.219-243
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    • 2004
  • Generally, electricity market has monopoly market structure because of need of enormous investment for infrastructure. However, the introduction of competition in network industry as electricity is a tendency of the world with decreasing the effects of economy of scale due to the advancement of technology. Now, electricity industry restructuring is in progress but the competition in electricity retail market is not in force yet in Korea. Whether a effective competition exist or not is very important to policy decision maker who drive restructuring, but there are small numbers of quantitative researches on that. In this study, we estimated the effectiveness of competition in the electricity retail market through switching costs. If switching costs are high, consumers actually can be locked in incumbent firm in spite of introduction of competition. Therefore switching is a critical factor to determine effectiveness of competition and to estimate the size of switching costs quantitatively can proffer the information about whether the competition in the electricity retail market is effective or not in the future. We estimated switching costs using consumer' stated-preference data by conjoint analysis. In according to estimation results, the cost of switching process is not so high, but the relative brand loyalty of an incumbent company is significantly high. And the price is considered as the most important factor choosing an electric service commodity. Based on the empirical results, it is possible to analyze the relationship between suppliers' competitiveness resulted from management efficiency and customers' switching possibilities. The paper therefore provides guidance for suppliers in deciding to enter into retail competition and for policy makers in introducing retail competition. And it has a significance of estimating the switching costs directly.

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Research on Practical Shopping Value and Consumer Attitudes on PB Products According to Perceived Quality (실용적 쇼핑가치와 지각된 품질에 따른 PB제품에 대한 소비자태도에 관한 연구)

  • Kim, Eun-Hee
    • Journal of Distribution Science
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    • v.10 no.10
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    • pp.35-43
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    • 2012
  • Purpose - The current analysis has been done in order to verify the difference between consumer attitudes on the distributor's PB products in terms of practical shopping value and attitudes about the product according to its perceived quality. Research design, data, and methodology - The target respondents of this study were those who have bought PB products at large-scale discount stores within the past six months. We asked homemakers, office workers, and students who live in Seoul or Daejon to respond to a questionnaire by filling out self-evaluations, and collected the completed questionnaires. To test the hypothesis, a t-test was carried out by group for 25 percent of the high and low rankings, including a quarter of the total respondents, to verify attitudes toward products and brands, purchase satisfaction, and re-purchase intention according to the practical shopping value and recognized quality of PB products. A variance analysis was conducted to see if there were differences among groups in terms of practical shopping value and perceived quality. Scheffe's back testing was used to identify differences between groups. Results - The result of the investigation of consumer attitudes according to practical shopping value is as follows. First, it was verified that consumer attitudes about PB products increase as practical shopping value increases. Second, there was no significant. Third, it was verified that repurchase intentions for PB products get higher as the practical shopping value of the consumer increases. The following is the result of the investigation of consumer attitudes according to the perceived quality of PB products. First, it was verified that the product attitude improves as the perceived quality of PB products increases. Second, the research confirmed that the brand attitude improves as the perceived quality of PB products increases. Third, consumer satisfaction is higher when the perceived quality of PB products is high. Fourth, this study verified that repurchase intentions for PB products are higher as the perceived quality of the product increases. Finally, the results of identifying differences between groups for perceived quality and shopping value are as follows. It was identified that there were differences in shopping value according to the characteristics of the groups. However, perceived quality does not change according to the characteristics of groups. Conclusions - These results have practical implications for the marketing strategy of PB products in order to satisfy consumer demands and provide a differentiated service by the distributor. In addition, it is suggested that a communication strategy may be necessary to increase brand loyalty and ensure the continual growth and value creation of PB products as symbolic products for distributors.

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An Empirical Study Applying the Self-Determination Factors to Flow and Satisfaction of SmartPhone (자기결정성 요인이 스마트폰 몰입과 만족에 미치는 영향)

  • Kwon, Do-Soon;Kim, Jin-Hwa;Yu, Cheol-Ha;Kim, Say-June
    • The Journal of Society for e-Business Studies
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    • v.16 no.4
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    • pp.197-220
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    • 2011
  • The smartphone is simply beyond the means of communication equipment, to line up the turning point of mobile convergence, is recognized as a service tool of new concept the camera, game, multimedia function, digital multimedia broadcasting, mobile internet etc, that use of smartphone is working toward developed a variety and new business models. The study is empirically studied casualties that self-determination influences flow and satisfaction which is intrinsic motivation of smartphone. There are many studies on flow, is intrinsic motivation, influencing satisfaction and Loyalty, but there are little studies which variables influences flow. this study is explore causality of autonomy, competence, relatedness which are major variables of self-determination theory that studied factors effecting intrinsic motivation influencing flow and satisfaction. This study developed a research model to explain the use of smartphone, and collected 670 survey responses from the office workers of seoul S company who had experiences with such smartphone. To prove the validity of the proposed research model, SEM analysis is applied with valid 670 questionnaires. The results, firstly, autonomy positively influences flow. secondly, competence significantly influences flow. thirdly, relatedness significantly influenced flow. also, upper above results shows that flow influences satisfaction.

A Study to analyze Management Perfomance Building BSC for Hotels (BSC시스템 구축을 위한 호텔기업의 전략적 탐색)

  • Chung, tae-woong
    • Proceedings of the Korea Contents Association Conference
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    • 2008.05a
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    • pp.343-347
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    • 2008
  • There are two kind of system in hotel for evaluating management. the first is infra system, for example Front management system - reservation system, C/I, C/O system, POS system , web system, call center management -, Back office system, interface system, and so on which manage direct control for hotel, and next is strategic system, for example BSC , CS . which is supporting hotel management. The purpose of this study was to find using the Balanced Scorecard to evaluate hotel management perfomance. Management performance is based on productivity, quality, time, effect, and responsiveness. Hotel economic value is not equal visual asset which is measured financial value. It is include hotel brand, image, customers who have good loyalty, employees who give customers special service, and systems which was affected by internal process. In conclusion, innovation, growth, internal system process, empioyee and customer have effect hotel performance. Therefore hotel has to know non-financial performance which has positively relate to financial performance.

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Impact of Lifestyle on Sportswear Benefit Pursuit among Participants in Badminton (배드민턴 참여자들의 라이프스타일이 스포츠웨어 추구혜택에 미치는 영향)

  • Moon, Tae-Young
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.11 no.7
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    • pp.2483-2490
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    • 2010
  • The purpose of this study is to offer information on the more effective sports wear to club members, who are participating in badminton, by closely examining influence in lifestyle of participants in badminton upon the sportswear benefit sought. The subjects of this study were selected male and female adults, who are joining now by subscribing to badminton club in Gangwondo Province, as the population. It sampled totally 206 people by convenience sampling, and carried out frequency analysis, reliability & factor analysis, and multiple regression analysis by using SPSS/PC+ 11.0 Version. The conclusions of this study are as follows. First, it was indicated that there is correlation between lifestyle and sportswear benefit sought of participants in badminton. Second, it was indicated to have influence upon the ideal benefit sought, which is the sportswear benefit sought, in order of the fashion sought bandwagon and the social orientation, which are sub-factors of lifestyle. Third, it was indicated to have influence upon the fashion & brand benefit sought, which is the sportswear benefit sought, in order of the material sought, the fashion sought bandwagon, and the satisfaction with reality, which are sub-factors of lifestyle. Fourth, it was indicated to have influence upon the convenience benefit sought, which is the sportswear benefit sought, in order of the self-loyalty, the social orientation, the health sought, and the satisfaction with reality, which are sub-factors of lifestyle. Fifth, lifestyle was indicated to have influence upon the youth & individuality benefit sought in order of the fashion sought bandwagon, the material sought, and the social orientation. The sportswear product in the better quality will be able to be expected for sports activity, by which the subjects of participating in sports activity correctly grasp the sportswear benefit sought, based on these results.

The Influence of Organizational Communication Recognized by Irregular Workers on Job Satisfaction and Organizational Commitment (비정규직이 인식한 조직커뮤니케이션이 직무만족과 조직몰입에 미치는 영향)

  • Choi, Jae Won;Lee, Seok Kee;Chun, Sungyong
    • Journal of Digital Convergence
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    • v.19 no.8
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    • pp.101-111
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    • 2021
  • Irregular workers, which have recently caused various socio-economic issues and conflicts, generally have low loyalty to the organization and job satisfaction due to anxiety about employment. As a way to improve this, this study attempted to analyze the effect of organizational communication satisfaction of irregular workers on job satisfaction and organizational commitment. Among the 7th Human Capital Companies panel survey data, irregular workers survey data were collected and analyzed using the structural equation model analysis. The results were as follows: First, it was analyzed that organizational communication recognized by irregular workers had a positive(+) effect on job satisfaction and organizational commitment. Second, it was analyzed that job satisfaction had a positive(+) effect on organizational commitment. Third, it was analyzed that job satisfaction plays a mediating role in the relationship between communication satisfaction and organizational commitment. This study is significant in that it expanded the research subject to irregular workers from the existing service industry-oriented research, and that it included more diverse industries. The results of this study suggest that mission and vision sharing and communication activation system are needed to improve organizational effectiveness of irregular workers.

The Effects of Brand Attachment, Brand Name, and Brand Image Congruence on Brand Attitude, WOM and Revisit Intentions in the Restaurant Sector (브랜드 애착, 브랜드 네임, 브랜드 이미지 일치성이 태도, 구전 및 재방문의도에 미치는 영향)

  • KIM, Eun-Jung
    • The Korean Journal of Franchise Management
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    • v.13 no.2
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    • pp.53-66
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    • 2022
  • Purpose: How to build the attitude on brand is very important, because it affects the positive word of mouth and revisit intention. Brand attachment, brand name, and image congruence play important role on consumer behavior in terms of reinforcing consumers' perception of food service companies and differentiating them from competing brands. Following the planned behavior theory, this paper examines the effect of linking brand attitude to word-of-mouth and revisit intentions in the restaurant sector. Research design, data, and methodology: This paper examines the structural relationship among brand attachment, brand name, image congruence, brand attitude, WOM, and revisit intention. In order to test the purposes of this study, research model and hypotheses were developed. The questionnaire items were modified and used according to the content of this study based on previous studies. All constructs were measured by multiple items tested and developed in the previous research. The study is based on the quantitative method and considered 519 questionnaires fulfilled by customers of restaurants. The data were explored employing the partial least square-structural equation modelling (PLS-SEM). Frequency analysis was conducted to identify the general characteristics of the survey subjects. To measure the reliability and validity of the measurement tools, confirmatory factor analysis was conducted. Structural model analysis was conducted to verify the research model. Result: The findings demonstrate that brand attachment and brand name had positive effects on attitude while image congruence did not have. Also, attitude had positive effect on WOM and revisit intention. Conclusions: This study expands the literature about WOM and revisit intentions. This study expands prior research in a similar field to which the theory of planned behavior (TPB) is applied, and reveals that brand attachment, brand name, and brand image congruence play an important role in developing brand attitude that affect revisit intention and WOM. And provide guidelines on how to enhance competitiveness in the restaurant sector based on understanding of linking brand attitude to customer loyalty and repeat business. By putting into practice these suggestions in the restaurant industry, brands can easily build up their attitude and boost a positive WOM and the intention to revisit.

Study on the Effects of Shop Choice Properties on Brand Attitudes: Focus on Six Major Coffee Shop Brands (점포선택속성이 브랜드 태도에 미치는 영향에 관한 연구: 6개 메이저 브랜드 커피전문점을 중심으로)

  • Yi, Weon-Ho;Kim, Su-Ok;Lee, Sang-Youn;Youn, Myoung-Kil
    • Journal of Distribution Science
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    • v.10 no.3
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    • pp.51-61
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    • 2012
  • This study seeks to understand how the choice of a coffee shop is related to a customer's loyalty and which characteristics of a shop influence this choice. It considers large-sized coffee shops brands whose market scale has gradually grown. The users' choice of shop is determined by price, employee service, shop location, and shop atmosphere. The study investigated the effects of these four properties on the brand attitudes of coffee shops. The effects were found to vary depending on users' characteristics. The properties with the largest influence were shop atmosphere and shop location Therefore, the purpose of the study was to examine the properties that could help coffee shops get loyal customers, and the choice properties that could satisfy consumers' desires The study examined consumers' perceptions of shop properties at selection of coffee shop and the difference between perceptual difference and coffee brand in order to investigate customers' desires and needs and to suggest ways that could supply products and service. The research methodology consisted of two parts: normative and empirical research, which includes empirical analysis and statistical analysis. In this study, a statistical analysis of the empirical research was carried out. The study theoretically confirmed the shop choice properties by reviewing previous studies and performed an empirical analysis including cross tabulation based on secondary material. The findings were as follows: First, coffee shop choice properties varied by gender. Price advantage influenced the choice of both men and women; men preferred nearer coffee shops where they could buy coffee easily and more conveniently than women did. The atmosphere of the coffee shop had the greatest influence on both men and women, and shop atmosphere was thought to be the most important for age analysis. In the past, customers selected coffee shops solely to drink coffee. Now, they select the coffee shop according to its interior, menu variety, and atmosphere owing to improved quality and service of coffee shop brands. Second, the prices of the brands did not vary much because the coffee shops were similarly priced. The service was thought to be more important and to elevate service quality so that price and employee service and other properties did not have a great influence on shop choice. However, those working in the farming, forestry, fishery, and livestock industries were more concerned with the price than the shop atmosphere. College and graduate school students were also affected by inexpensive price. Third, shop choice properties varied depending on income. The shop location and shop atmosphere had a greater influence on shop choice. The customers in an income bracket of less than 2 million won selected low-price coffee shops more than those earning 6 million won or more. Therefore, price advantage had no relation with difference in income. The higher income group was not affected by employee service. Fourth, shop choice properties varied depending on place. For instance, customers at Ulsan were the most affected by the price, and the ones at Busan were the least affected. The shop location had the greatest influence among all of the properties. Among the places surveyed, Gwangju had the least influence. The alternate use of space in a coffee shop was thought to be important in all the cities under consideration. The customers at Ulsan were not affected by employee service, and they selected coffee shops according to quality and preference of shop atmosphere. Lastly, the price factor was found to be a little higher than other factors when customers frequently selected brands according to shop properties. Customers at Gwangju reacted to discounts more than those in other cities did, and the former gave less priority to the quality and taste of coffee. Brand preference varied depending on coffee shop location. Customers at Busan selected brands according to the coffee shop location, and those at Ulsan were not influenced by employee kindness and specialty. The implications of this study are that franchise coffee shop businesses should focus on customers rather than aggressive marketing strategies that increase the number of coffee shops. Thus, they should create an environment with a good atmosphere and set up coffee shops in places that customers have good access to. This study has some limitations. First, the respondents were concentrated in metropolitan areas. Secondary data showed that the number of respondents at Seoul was much more than that at Gyeonggi-do. Furthermore, the number of respondents at Gyeonggi-do was much more than those at the six major cities in the nation. Thus, the regional sample was not representative enough of the population. Second, respondents' ratio was used as a measurement scale to test the perception of shop choice properties and brand preference. The difficulties arose when examining the relation between these properties and brand preference, as well as when understanding the difference between groups. Therefore, future research should seek to address some of the shortcomings of this study: If the coffee shops are being expanded to local areas, then a questionnaire survey of consumers at small cities in local areas shall be conducted to collect primary material. In particular, variables of the questionnaire survey shall be measured using Likert scales in order to include perception on shop choice properties, brand preference, and repurchase. Therefore, correlation analysis, multi-regression, and ANOVA shall be used for empirical analysis and to investigate consumers' attitudes and behavior in detail.

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