• Title/Summary/Keyword: type of reward

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Optimal Incentives for Customer Satisfaction in Multi-channel Setting (멀티채널에서의 고객만족제고 인센티브 연구)

  • Kim, Hyun-Sik
    • Journal of Distribution Research
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    • v.15 no.1
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    • pp.25-47
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    • 2010
  • CS is one of the major concerns of managers in the world because it is well known to be a key medium construct for firms' superior outcome. One of the major agents for CS management is retailers. Firms try to manage not only employees but also retailers to promote CS behaviors. And so diverse incentives are used to promote their CS behaviors under diverse channel setting such as multi-channel. However in spite of the rising needs there has been scarce studies on the optimal incentive structure for a manufacturer to offer competing retailers at the multi-channel. In this paper, we try to find better way for a manufacturer to promote the competing retailers' CS behaviors. We investigated how to promote the retailers' CS behavior via game-theoretic modeling. Especially, we focus on the possible incentive, CS bonus type reward introduced in the studies of Hauser, Simester, and Wernerfelt(1994) and Chu and Desai(1995). We build up a multi stage complete information game and derive a subgame perfect equilibrium using backward induction. Stages of the game are as following. (Stage 1) Manufacturer sets wholesale price(w) and CS bonus($\eta$). (Stage 2) Both retailers in competition set CS effort level($e_i$) and retail price($p_i$) simultaneously. (Stage 3) Consumers make purchasing decisions based on the manufacturer's initial reputation and retailers' CS efforts.

    Structure of the Model We investigated four issues about the topic as following: (1) How much total incentive is adequate for a firm of a specific level of reputation to promote retailers' CS behavior under multi-channel setting ?, (2) How much total incentive is adequate under diverse level of complimentary externalities between the retailers' CS efforts to promote retailers' CS behavior?, (3) How much total incentive is adequate under diverse level of cost to make CS efforts to promote retailers' CS behavior?, (4) How much total incentive is adequate under diverse level of competition between retailers to promote retailers' CS behavior? Our findings are as following. (1) The higher reputation has the manufacturer, the higher incentives for retailers at multi-channel are required in the equilibrium.
    shows the increasing pattern of optimal incentive level along the manufacturer's reputation level(a) under some parameter conditions(b=1/2;c=0;$\beta$=1/2). (2) The bigger complimentary externalities exists between the retailers' CS efforts, the higher incentives are required in the equilibrium.
    shows the increasing pattern of optimal incentive level along the complimentary externalities level($\beta$) under some parameter conditions(a=1;b=1/2;c=0). (3) The higher is the retailers' cost, the lower incentives are required in the equilibrium.
    shows the decreasing pattern of optimal incentive level along the cost level(c) under some parameter conditions(a=1;b=1/2;$\beta$=1/2). (4) The more competitive gets those two retailers, the higher incentives for retailers at multi-channel are required in the equilibrium.
    shows the increasing pattern of optimal incentive level along the competition level(b) under some parameter conditions(c=0;a=1;$\beta$=1/2). One of the major contribution points of this study is the fact that this study is the first to investigate the optimal CS incentive system under multi-channel setting.

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A Study on the Design of Case-based Reasoning Office Knowledge Recommender System for Office Professionals (사례기반추론을 이용한 사무지식 추천시스템)

  • Kim, Myong-Ok;Na, Jung-Ah
    • Journal of Intelligence and Information Systems
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    • v.17 no.3
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    • pp.131-146
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    • 2011
  • It is becoming more essential than ever for office professionals to become competent in information collection/gathering and problem solving in today's global business society. In particular, office professionals do not only assist simple chores but are also forced to make decisions as quickly and efficiently as possible in problematic situations that can end in either profit or loss to their company. Since office professionals rely heavily on their tacit knowledge to solve problems that arise in everyday business situations, it is truly helpful and efficient to refer to similar business cases from the past and share or reuse such previous business knowledge for better performance results. Case-based reasoning(CBR) is a problem-solving method which utilizes previous similar cases to solve problems. Through CBR, the closest case to the current business situation can be searched and retrieved from the case or knowledge base and can be referred to for a new solution. This reduces the time and resources needed and increase success probability. The main purpose of this study is to design a system called COKRS(Case-based reasoning Office Knowledge Recommender System) and develop a prototype for it. COKRS manages cases and their meta data, accepts key words from the user and searches the casebase for the most similar past case to the input keyword, and communicates with users to collect information about the quality of the case provided and continuously apply the information to update values on the similarity table. Core concepts like system architecture, definition of a case, meta database, similarity table have been introduced, and also an algorithm to retrieve all similar cases from past work history has also been proposed. In this research, a case is best defined as a work experience in office administration. However, defining a case in office administration was not an easy task in reality. We surveyed 10 office professionals in order to get an idea of how to define a case in office administration and found out that in most cases any type of office work is to be recorded digitally and/or non-digitally. Therefore, we have defined a record or document case as for COKRS. Similarity table was composed of items of the result of job analysis for office professionals conducted in a previous research. Values between items of the similarity table were initially set to those from researchers' experiences and literature review. The results of this study could also be utilized in other areas of business for knowledge sharing wherever it is necessary and beneficial to share and learn from past experiences. We expect this research to be a reference for researchers and developers who are in this area or interested in office knowledge recommendation system based on CBR. Focus group interview(FGI) was conducted with ten administrative assistants carefully selected from various areas of business. They were given a chance to try out COKRS in an actual work setting and make some suggestions for future improvement. FGI has identified the user-interface for saving and searching cases for keywords as the most positive aspect of COKRS, and has identified the most urgently needed improvement as transforming tacit knowledge and knowhow into recorded documents more efficiently. Also, the focus group has mentioned that it is essential to secure enough support, encouragement, and reward from the company and promote positive attitude and atmosphere for knowledge sharing for everybody's benefit in the company.