- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
Vol.13 No.5
Abstract
Purpose - Loyalty programs enable retailers to maintain longer and better customer relationships. In successful services, customers actively use and value these programs. As the proximity to the goal (goal gradient) might signal active participation, this study empirically examines customer's goal gradient behavior in a multi-vendor loyalty program. We also consider the effect of customer's accrual diversity on goal gradients, which is a differentiating feature in a multi-vendor loyalty program, and is further examined. Research Design, Data, and Methodology - The data consists of6,646 OK Cashbag members' individual transaction records from 2006 to 2009. The goal gradient hypothesis was tested as an increase in both the speed and the amount of accumulated award points. Result - The findings suggest that the goal gradient is also observed in a multi-vendor loyalty program, occurring more strongly among members with high accrual diversity. Conclusions - The results indicate that customers with high accrual diversity attend strongly to goal gradients in multi-vendor loyalty programs; hence, it is important for such program managers to better inform members about affiliated partners.
Abstract
Purpose - Transparency, seller reputation, and website security are considered to be important factors that influence online customer purchasing decisions in China. This paper empirically examines the relative influence of Taobao.com on customers' online purchasing decisions. Research design, data, and methodology - We perform structural equation analysis, with a sample of 306 observations. The data comes from consumers' real transaction experiences from a specific website. This gives the results of our study more generalizability than studies using subjects who are not asked to engage in real transactions. Results - The results of this study reveal that perceived security and perceived reputation are critical factors affecting consumer trust and perceived transparency is most closely associated with purchase intention. Conclusions - The findings suggest that perceived transparency plays a significant role in increasing online consumer's purchase intention. The knowledge of the relative impacts of these factors and their roles in the customer transaction experience will be useful in developing customized sales strategies. The results of this study reveal that perceived transparency exerts a stronger effect than perceived reputation on consumer purchase intentions.
Abstract
Purpose - This study investigated competitive counteractions necessary for continuous growth in a rapidly changing logistics environment in Northeast Asia. Research Design, Data, and Methodology - Using a time series analysis, the study first investigated Northeast Asian trade scale and volume by examining online and offline material from the Ministry of Ocean and Fisheries, Busan Port Authority, and other government agencies. A literature survey was done to investigate the state and prospect of the logistics environment in Northeast Asia including changes in freight volume at major ports in the three Northeast Asian countries. Result - The results of the study suggest using the Trans-Korean Railroad (TKR), as well as promoting the North Pole and South Pole routes, to compete against changes in trade volume and the logistics environment in Northeast Asia. A SWOT analysis was done to examine the effectiveness of these strategies. Conclusions - The findings indicate that the TKR impact, using the Busan Port connecting the Trans-China Railway (TCR), the Trans-Siberian (TSR), and the North Pole Route, may be uncertain in practice considering the uncertainty in international politics.
Abstract
Purpose - This study examined the Italian eyeglass industry and the status of the franchise market. Luxottica's global growth strategy was analyzed to provide insight into the strategy and development of the Italian eyeglass industry and its franchise business. Research design, data, methodology - Luxottica's annual report, public media material, and website were examined, in addition to data from professional institutions. For the domestic eyeglass industry and franchise business, data from professional organizations, franchise information disclosure documents of the Fair Trading Commission, media materials, and related papers were investigated. Results - The success factor turned out to be securing a global wholesaler with retailers in overseas markets. This successful strategy was based on the strong entrepreneurial spirit of the founder, innovative craftsmanship, and an excellent corporate culture including corporate social responsibility (CSR). Conclusions - Considering the current environment, for Luxottica to be a leading global company, it had to review and adopt a successful vertical integration strategy, from R&D to distribution, M&A of overseas wholesalers and retailers, creative design and technical development, and sustainable cultural development
Abstract
Purpose - Augmented reality (AR) content used in mobile media today can accommodate a wide variety of contextual information. This indicates that making people experience a sense of presence and flow is a very significant factor in augmented reality content. Flow represents a rich immersion potential as representing the progress of emotion and the means to facilitate the operation of the smart phone. Therefore, users will have friendly relational continuance behavior with products and brands that supply this experience. Based on that, the purpose of this study is to investigate the relationships among smart phone AR application traits, presence, flow experience, and relational continuance behavior. First, AR application traits are defined as three categories sensory immersion, navigation, and manipulation, based on preceding studies. This study then examines the influence of AR application traits on the presence and flow experience and looks into the relation among presence, flow experience, and relational continuance behavior. This analysis suggests more detailed and concentrated strategic implications. Research design, data, and methodology - A research model is designed to examine the relation among AR application traits, presence, flow experience, and relational continued behavior. For data collection, questionnaire surveys were composed of multi-items for each component and the direct interview method was used for the interviews. To collect the data, after running the smart phone AR applications, the consumer behaviors of the respondents were generally determined. The questionnaire surveys were conducted for one month, October 2014. A total of 300 questionnaires were distributed with 278 questionnaires used for analysis, excluding the unanswered and insincere questionnaires. The data were analyzed using SPSS ver. 20.0 and LISREL ver. 8.51. Results - The following results are found: First, AR application traits have a significantly positive effect on presence with sensory immersion, navigation, and manipulation all having a significantly positive effect. Second, sensory immersion and manipulation among the AR application traits have a significantly positive effect on flow. However, navigation did not have a significantly positive effect on flow. Third, presence has a significantly positive effect on flow and has a significantly positive effect on relational continuance behavior. Moreover, flow also has a significantly positive effect on relational continuance behavior. This behavior tends to be formed since brands want to encourage relational continuance behavior and positive emotions with the brands being used. Relational continuance behavior accompanies repeat purchasing, positive word-of-mouth and recommendation activities, and forms of trust with the brand. Conclusions - The research results showed that smart phone AR traits had significantly positive effect on presence, flow, and relational continuance behavior. Based on this, smart phone AR application providers should establish an aggressive marketing strategy to accommodate more realistic problems in order to positively influence user behavior. Additionally, the marketers should make efforts to provide fun or convenience in the AR application operation process of the user.
Abstract
Purpose - The purpose of this paper is to shed light on the importance of the slope and curvature of the volatility curve implied in option prices in the KOSPI 200 options index. A number of studies examine the implied volatility curve, however, these usually focus on cross-sectional characteristics such as the volatility smile. Contrary to previous studies, we focus on time-series characteristics; we investigate correlation dynamics among slope, curvature, and level of the implied volatility curve to capture market information embodied therein. Our study may provide useful implications for investors to utilize current market expectations in managing portfolios dynamically and efficiently. Research design, data, and methodology - For our empirical purpose, we gathered daily KOSPI200 index option prices executed at 2:50 pm in the Korean Exchange distribution market during the period of January 2, 2004 and January 31, 2012. In order to measure slope and curvature of the volatility curve, we use approximated delta distance; the slope is defined as the difference of implied volatilities between 15 delta call options and 15 delta put options; the curvature is defined as the difference between out-of-the-money (OTM) options and at-the-money (ATM) options. We use generalized method of moments (GMM) and the seemingly unrelated regression (SUR) method to verify correlations among level, slope, and curvature of the implied volatility curve with statistical support. Results - We find that slope as well as curvature is positively correlated with volatility level, implying that put option prices increase in a downward market. Further, we find that curvature and slope are positively correlated; however, the relation is weakened at deep moneyness. The results lead us to examine whether slope decreases monotonically as the delta increases, and it is verified with statistical significance that the deeper the moneyness, the lower the slope. It enables us to infer that when volatility surges above a certain level due to any tail risk, investors would rather take long positions in OTM call options, expecting market recovery in the near future. Conclusions - Our results are the evidence of the investor's increasing hedging demand for put options when downside market risks are expected. Adding to this, the slope and curvature of the volatility curve may provide important information regarding the timing of market recovery from a nosedive. For financial product distributors, using the dynamic relation among the three key indicators of the implied volatility curve might be helpful in enhancing profit and gaining trust and loyalty. However, it should be noted that our implications are limited since we do not provide rigorous evidence for the predictability power of volatility curves. Meaning, we need to verify whether the slope and curvature of the volatility curve have statistical significance in predicting the market trough. As one of the verifications, for instance, the performance of trading strategy based on information of slope and curvature could be tested. We reserve this for the future research.
Abstract
Purpose - This study investigates whether the effectiveness of self trait-advertisement versus communion-focused advertisement on product evaluations depends on a type of pride felt as ambient emotion. It also explores whether the mediating roles of cognitive and affective response to the effect of the advertisement type on product evaluation are moderated by types of pride such as hubristic pride or authentic pride. Research Design, Data, and Methodology - This research uses a restaurant service as the experimental object and employs a 2 (pride type: hubristic pride vs. authentic pride) × 2 (advertisement type: self trait-focused advertisement versus communion-focused advertisement) between-subjects design, with cognitive response and affective response as within-subject. Each experimental group consisted of 40 undergraduate students assigned to participate in the experiment. One questionnaire from the authentic pride and self-trait focused advertisement group and two questionnaires from the hubristic pride and communion-focused advertisement group were removed due to answer errors, resulting in a participant number of 157. The author conducts a 2 (pride type: hubristic pride vs. authentic pride) × 2 (advertisement type: self trait-focused advertisement versus communion-focused advertisement) ANOVA on advertised product evaluations, and to better understand the interaction effects, also conducts separate analysis of the hubristic and the authentic pride groups. Additionally, the study conducts mediated moderation analysis to check the mediation role difference of the cognitive response and the affective response to each advertisement on the interaction effects on product evaluations between the hubristic and the authentic pride groups. Results - The findings indicate that participants in the hubristic pride group more positively evaluate the product in self-trait focused advertisement, whereas participants in the authentic pride group more positively evaluate the product in communion-focused advertisements. In addition, the mediating role of cognitive response on the positive interaction effect of advertisement type and pride type on product evaluation is partially moderated by the pride type. However, the mediating role of affective response on the positive interaction effect of advertisement type and pride type on the product evaluation is not moderated by the pride type. Conclusions - The results of this study contribute to advertisement theory development by exploring interaction effects of ambient pride type and advertisement type on product evaluation, as well as to the theory of consumer behavior by exploring how pride type moderates the mediating roles of cognitive response on the positive interaction effect of advertisement type and pride type on product evaluation. From the perspective of the current research, advertisers should research what kinds of events consumers have experienced to increase the effectiveness of their advertisements, and use self-trait advertisements when consumers are grouped under ambient hubristic pride, and use communion-focused advertisements when consumers are grouped under ambient authentic pride. However, future research is necessary to discover the reasons why the mediating role of affective response to advertisements in the interaction effects of pride type and advertisement type on product evaluation is not moderated by pride type.
Abstract
Purpose - The purpose of this study is to investigate risk price implied from the pricing kernel of Korean stock distribution market. Recently, it is considered that the quantitative easing programs of major developed countries are contributing to a reduction in global uncertainty caused by the 2007~2009 financial crisis. If true, the risk premium as compensation for global systemic risk or economic uncertainty should show a decrease. We examine whether the risk price in the Korean stock distribution market has declined in recent years, and attempt to provide practical implications for investors to manage their portfolios more efficiently, as well as academic implications. Research design, data and methodology - To estimate the risk price, we adopt a non-parametric method; the minimum norm pricing kernel method under the LOP (Law of One Price) constraint. For the estimation, we use 17 industry sorted portfolios provided by the KRX (Korea Exchange). Additionally, the monthly returns of the 17 industry sorted portfolios, from July 2000 to June 2014, are utilized as data samples. We set 120 months (10 years) as the estimation window, and estimate the risk prices from July 2010 to June 2014 by month. Moreover, we analyze correlation between any of the two industry portfolios within the 17 industry portfolios to suggest further economic implications of the risk price we estimate. Results - According to our results, the risk price in the Korean stock distribution market shows a decline over the period of July 2010 to June 2014 with statistical significance. During the period of the declining risk price, the average correlation level between any of the two industry portfolios also shows a decrease, whereas the standard deviation of the average correlation shows an increase. The results imply that the amount of systematic risk in the Korea stock distribution market has decreased, whereas the amount of industry-specific risk has increased. It is one of the well known empirical results that correlation and uncertainty are positively correlated, therefore, the declining correlation may be the result of decreased global economic uncertainty. Meanwhile, less asset correlation enables investors to build portfolios with less systematic risk, therefore the investors require lower risk premiums for the efficient portfolio, resulting in the declining risk price. Conclusions - Our results may provide evidence of reduction in global systemic risk or economic uncertainty in the Korean stock distribution market. However, to defend the argument, further analysis should be done. For instance, the change of global uncertainty could be measured with funding costs in the global money market; subsequently, the relation between global uncertainty and the price of risk might be directly observable. In addition, as time goes by, observations of the risk price could be extended, enabling us to confirm the relation between the global uncertainty and the effect of quantitative easing. These topics are beyond our scope here, therefore we reserve them for future research.
Abstract
Purpose - This research aims to understand the different behaviors of consumers according to cognitive age. Specifically, this research is focused on pro-social behavior. Pro-social behavior is defined as behavior benefiting others, rather than behavior benefiting one's self. It often entails individual risk or cost, such as when giving resources to others, waiting in line, asking for or paying a fair price, or risking one's life in battle. Therefore, we sought to understand consumer psychology and cognitive age as a reflection of inner psychology. People frequently perceive themselves as younger or older than their chronological ages. This self-perceived or cognitive age is a subjective age perception independent of actual chronological age. The discrepancy degree between chronological and cognitive age represents how much individuals perceive themselves as younger than they are. This study examines the gap in donation intention based on cognitive age. In order to investigate cognitive age, composed of four sub-categories (feel-age, look-age, do-age, and interest-age), this study explores the differential donation intention based on cognitive age, which determines the relationship between the young age and old age. Research design, data, and methodology - Data research was conducted by gathering 216 survey samples, excluding those with unreliable answers. Data coding and cleaning were used and SPSS 19.0 software for the data analysis. The respondents were categorized into two types, younger cognitive ages and older cognitive ages. Additionally, we analyzed the moderating variables. In particular, we used cognitive age degree and congruency level (cognitive age low vs. cognitive age high) × (congruency close vs. congruency distant) between - subjects design. First, regression was done to verify the difference between chronological age and cognitive age. Second, a t-test was done to verify the difference of cognitive age level in donations. Third, ANOVA (analysis of variance) was done to verify the difference between cognitive age and congruency in donations. Last, ANOVA was done to verify the difference between cognitive age and moral judgments in donations. Result - The results show most respondents perceive themselves as younger than their chronological ages. In particular, older respondents feel they are younger than their actual age. Moreover, the result of the comparison between low degree and high degree groups of cognitive age, show high donations at the higher degree of cognitive age groups. In addition, the closer the distance to the beneficiaries, the higher the donation in high degree cognitive age groups. The higher moral judgment groups also show relatively high contributions in lower degree cognitive age groups. Conclusions - Donations belong to the category of pro-social behavior reflecting an individual's psychological state. Therefore, it is important in understanding cognitive age. This study implies that it is necessary to take into account both cognitive age and chronological age when segmenting donors. Moreover, this study confirmed that there are different factors affecting the motives behind donations. Thus, it may be utilized to create differential donation strategies.
Abstract
Purpose - This study aims to build a systematic frame for effective marketing performances by prioritizing product type and pertinent channel that are appropriate for digital channel characteristics. FCB grid model was used to define a product type, and Internet communication satisfaction index was considered as a marketing performance measuring tool for digital channel. Research design, data, and methodology - As systematic understanding for Digital marketing is still unfamiliar to even professional marketer, the hypothesis was established based on preliminary research by conducting a qualitative survey of marketing experts who already experienced digital marketing in the fields as well as existing related study literature. Through a preliminary research, the degree for understanding for digital marketing, current digital marketing (including product/channel mix) execution status, and difficulties for marketers who had experienced digital marketing were figured out. Based on preliminary research, the main part of survey was designed to examine which type of product would be effective for digital marketing and which digital channel would be effective to achieve marketing performance in line with marketing objectives. To collect data, the questionnaire survey was conducted for professional marketers who had experienced digital marketing in 10 different fields including FMCG, cosmetics, distribution industry for one month (July, 10, 2014~Aug, 10, 2014). A total of 90 questionnaire were distributed and 66 questionnaires were used for the analysis, excluding the unanswered and insincere questionnaires. The data were analysed using SPSS ver.18.0. Results - The analysis for product type which is pertinent to digital marketing and prioritization for digital channel per digital marketing performance type could be summarized as followings. First, high involvement buying decision type of product and rational purchasing decision type of product in FCB grid are more effective for digital marketing in terms of marketing performance. Therefore, marketers in field would prioritize considering product type before executing digital marketing. Second, factor for sales increase, potential consumer creation and brand awareness was represented respectively 31.25%, 21.9%, and 20.8% as a result of factor analysis in terms of digital marketing channel performance. Third, effective major digital channel per digital marketing performance factor was differently identified as each digital channel has its own peculiarity. For instance, search engine is more effective for increasing sales while social media such as facebook and Kakaotalk is more effective for encouraging consumer participation. Conclusions - As a result of this study, product type and peculiarity which were pertinently fit to digital marketing were identified by using FCB grid model, and also suggested framework for decision making of digital channel selection in line with marketing objectives for effective marketing performance. It also provided insight to professional marketer which type of product could be effective for digital marketing execution as well as which factors should be measured for digital marketing performance.
Abstract
Purpose - When it comes to first impressions of family restaurants, people basically think of the following factors: cozy, a refreshing space, indoor lighting, atmospheric music, the best-quality service through mutual interactions with employees, birthday events, follow-up customer management, brand image, and many others. Focusing on such family restaurants characteristics, with consumption experience and customer satisfaction determined as mediator variables, this study looks into the selection factors that affect customer loyalty when choosing a family restaurant. Subsequently, the study conducts an empirical analysis of these selection factors with the greatest influence. Research design, data, and methodology - This study analyzed 200 total surveys of family restaurant customers including college students, workers, housewives, and others. The survey was conducted over two weeks in May 2014. For statistical processing, SPSS 21 was used for factor analysis and reliability analysis as well as AMOS for structural equation analysis. In terms of a variable that would influence either consumption experience or customer satisfaction at the restaurants, the study introduced the concept of customer equity. The study designed a model based on a hypothesis developed using the following factors: customer encounter service value, customer convenience value, brand equity, relationship equity, and other factors defined as components of customer equity by Rust et al. (2000) determined as independent variables as well as with customer experience and customer satisfaction set as mediator variables. The hypothesis, after all, assumed that customer loyalty would be positively (+) influenced. Results - The analysis results from the study reported that brand value, customer encounter service value, and relationship value have positive (+) effects on consumption experience and customer satisfaction. However, as for customer convenience value, this turned out not to have a statistically significant influence on consumption experience and customer satisfaction. In regard to a relation between consumption experience and customer satisfaction, the results showed that the former affects the latter, and in terms of intervening variables, both of these appeared to have a positive (+) effect on customer loyalty. Conclusions - This study suggests that family restaurants should look for strategies that focus on how to promote customer relationships. For example, restaurants could try birthday events or discount events to achieve this goal. Since the study ended up realizing relatively low levels of suitability and statistical significance, the path of the study changed. After all, in order to increase suitability and statistical significance, the study had to eliminate factors such as service quality and others and for this reason the study was unable to conduct the analysis as initially planned. In addition, the data samples of the research were mainly gathered from students, which made it hard to say that the analysis was carried out on samples from every different group. Future research should analyze the characteristics of each group of customers for factors affecting customer satisfaction and customer loyalty in the family restaurant chain.
Abstract
Purpose - As the rapid development of ICT has been made recently, many domestic companies are trying to introduce smart work infrastructure. The purpose of institution of smart work is to enhance their performance. To this end, it is necessary to advance the way of working. Developing employees' collective intelligence should be regarded as a prerequisite for advancing the way of working. Job satisfaction of the employees is another important factor to enhance organizational performance. So this study aims to provide the theoretical background of systematic approach to smart work quality by empirically analyzing the effect of smart work quality on collective intelligence and job satisfaction. Research design, data, and methodology - A structural equation model was designed to examine cause-and-effect relationships among three latent variables(smart work quality, collective intelligence, job satisfaction). Three hypotheses were formulated. The first hypothesis is that the effect of smart work quality on collective intelligence will be positively and statistically significant. Likewise, the second hypothesis is that the effect of smart work quality on job satisfaction will be positively and statistically significant. Finally, the third hypothesis is that the effect of collective intelligence on job satisfaction will be positively and statistically significant. Based on the previous researches, 34 questionnaire items were developed to measure the effect of the three variables. The survey was conducted on 162 employees who are working under smart work environment. The number of the effective questionnaires for the analysis was 154. PASW Statistics 18 and AMOS 18 were used for the statistical analysis. Results - The validity and reliability test for questionnaire items have been carried out. From the factor analysis, 1 out of 34 items was eliminated. As a result, 33 out of 34 items were used for analyzing. The values of Cronbach's α ranged from 0.701 to 0.910, indicating the acceptable reliability of the questionnaire items. The values of χ2, df, CFI, TLI, RMSEA of the model are 102.838, 51, 0.949, 0.935, 0.082, respectively. So the structural equation model was statistically significant. The first and third hypotheses were supported. But the second hypothesis was rejected. Conclusions - An analysis using structural equation model showed meaningful implications about the effect of smart work quality on collective intelligence and job satisfaction. First, as the five quality elements of the smart work improved, the level of collective intelligence increased. Second, the statistical analysis showed smart work didn't have a direct effect on job satisfaction, which is inconsistent with the prior findings. The main purpose of smart work is to help achieve greater performance. The companies also need to make efforts to improve job satisfaction of their employees along with achieving greater performance. Third, an organization with higher level of collective intelligence showed greater job satisfaction. The companies under smart work environment need to develop functions to encourage participation, sharing, openness, and collaboration. This research will provide useful information for the companies which want to introduce smart work, distribution information system, management information system, etc.