A Durable Replacement Model for Symbolic vs. Utilitarian Consumption:An Integrated Cultural and Socio-Economic Perspective

Shijin Yoo,She-Woong Chung,Jin K. Han 연세대학교 동서문제연구원 2006 Global economic review Vol.35 No.2

premised upon identifying personal factors (e.g. demographics or psychographics) underlyingthe purchase decision. On a broader scope, however, consumer behavior is shaped by cultural andsocial factors, and our understanding would be incomplete without these considerations. To thisend, this study sets out to provide an integrative framework on durable consumption. Specifically,the proposed framework explores whether cultural differences do exist in the perception of aselected durable (e.g. automobile) on the symbolic/utilitarian dimension, which in turn, may affectthe length of the replacement cycle, likelihood of upgrading to a higher status model, as well as,van,pickup truck). Applying a multinomial logit model to Korean and US automobile transactiondata, the finding reveal that Korean consumers tend to have shorter replacement cycles, engage inmore upgrades but are less likely to change the product-type than American consumers.vers of the differences inperception and behavior are put forward. Managerial implications and directions for futureresearch are also discussed.

Pioneering New Markets: A Case study of SevenBräu

Yoo, Shijin,Kang, Myung Soo,Kim, Minjeong Korean Marketing Association 2019 ASIA MARKETING JOURNAL Vol.20 No.4

This paper reports a case study of SevenBräu, the first company to acquire a license for small and medium scale beer manufacturing in Korea. This study explores how SevenBräu analyzed its consumers, competition, and environment to set its target market and successfully positioned itself to explore new markets in Korea. The company accomplished this through a mixture of marketing strategies with differentiated products and consumer benefits. SevenBräu has been growing fast and establishing its image as a "high-quality craft beer locally produced in a traditional way" and a "beer with regional characteristics," with young consumers (aged 20 to 35) as the main target. Such remarkable growth of SevenBräu can be attributed to factors such as: (1) product differentiation to satisfy the needs of consumers for taste, flavor, diversity, and freshness, (2) developing brands with regional characteristics and actively communicating its strategy through earned and owned media, and (3) sustainable management, considering both social value creation and environmental performance. Lastly, this case study presents challenges in the areas of brand management, value delivery network, and communication that SevenBräu needs to address in the beer market that faces increasing competition.

The Synergy Effect of a Corporate-Level Loyalty Program Integration on Customer Equity

Park, Dae-Yun,Yoo, Shijin Korean Marketing Association 2019 ASIA MARKETING JOURNAL Vol.20 No.4

This study empirically examines the synergy effect of a corporate-level loyalty program on customer equity (CE) known as the lifetime value of current and future customers (Blattberg et al. 2009). A corporate-level loyalty program refers to a company-wide integration loyalty program at the corporate-level in which subsidiaries (multi-divisions) participate as program members. It does not merely examine whether there is an integration effect of a corporate-level loyalty program from the CE perspective, but it provides practical implications for a firm's strategic focus by identifying which value creation channels (i.e., acquisition, retention, and cross-selling), brand characteristics (i.e., size of the customer base before integration, diversity of products, and sales channel type), and consumer characteristics (i.e., customer relationship stage, transaction amount before integration, transaction period, and number of purchased brands) are affected the most by the synergy effect.

구전연구에 관한 문헌적 고찰

류강석(Ryu, Gangseog),유시진(Yoo, Shijin) 한국마케팅학회 2015 마케팅연구 Vol.30 No.1

본 연구에서는 마케팅 분야의 주요 국내 학술지인 마케팅연구, Asia Marketing Journal(구: 한국마케팅저널), 소비자학연구, 경영학연구 등에 최근 10년간 게재된 구전과 관련된 논문을 대상으로 문헌고찰을 실시하여, 주요 연구결과를 정리하고 향후 연구방향을 제시하였다. 본 논문의 저자들은 그 동안의 연구를 크게 (1) 구전의 발생 및 정보의 전달, (2) 구전의 효과 및 정보의 수신, 그리고 (3) 보상된 구전과 사회연결망 등 세 흐름으로 구분하여 분석하였으며, 국내학술지에 게재된 구전에 관한 연구의 수는 꾸준히 증가하는 추세를 나타내고, 연구 주제와 방법론도 다양해지고 있다는 결과를 발견하였다. 특히, 소비경험과 품질, 서비스 실패, 소비자 및 상황요인, 구전차원 및 유형, 메시지특성 등 다양한 변수들이 구전발생의 선행 및 영향요인 혹은 구전효과의 조절요인으로 다루어졌다. 더불어, 보상된 구전과 사회연결망에 대한 연구는 이 기간 동안 새로이 부각된 주제이며, 최근에는 온라인 구전 연구가 매우 큰 비중을 차지하는 것으로 밝혀졌다. 마지막으로, 구전의 발생 및 온라인 구전에 고유한 요인의 파악, 구전의 발생과 효과 혹은 소비자반응과 기업성과를 아우르는 전체모형에 대한 고찰, 그리고 연구방법과 관련하여 현장실험, 2차 자료, 복수의 연구방법론 활용 등이 향후 연구방향 및 주제로서 제안되었다. This research conducts a critical review of the papers on word-of-mouth(WOM) published in the four Korean academic journals of marketing(i.e., Journal of Korean Marketing Association, Asia Marketing Journal, Journal of Consumer Studies, and Korean Management Review) between 2004 and 2014. The authors highlight key findings of the studies and suggest future directions for WOM research. After offering an overview of the basic characteristics of WOM, the authors perform the literature review according to the three sub-areas: (1) WOM generation - information transmission, (2) WOM effects -information reception, and (3) two special topics - rewarded WOM and social networks. The results show that the number of papers has been increasing and that the topics and methods have become more diversified. Specifically, scholars have proposed a variety of antecedents to consumers" WOM generation and moderators of WOM effects, which can be categorized as consumption experience and product quality, service failure, consumer and situational factors, type and dimension of WOM, and message characteristics. In addition, the two new research areas of rewarded WOM and social networks emerged during this period, and online WOM has gained much popularity in more recent years. Lastly, the authors suggest that future research should focus on the aspects unique to WOM generation and online WOM, develop a comprehensive model that covers both WOM generation and effects, and both consumer responses and firm"s performances, and methodologically more utilize field experiments, secondary data, multiple research methods.

Strategic delegation, quality competition, and new product profitability

Shin, Hyun,Shin, Jongtae,Yoo, Shijin,Song, Joon,Kim, Alex Emerald Group Publishing Limited 2015 MANAGEMENT DECISION Vol.53 No.3

<P><B>Purpose</B></P> <P> – The purpose of this paper is to present a new perspective on the marketing-R & D interface by modelling firms that develop new products in a duopolistic market. </P> <P><B>Design/methodology/approach</B></P> <P> – By using a game-theoretic modelling approach, this study examines strategic delegation, through which the marketing and R & D managers of each firm are given authority over pricing and new products’ quality levels. </P> <P><B>Findings</B></P> <P> – Interestingly, the study finds that the case where two managers with conflicting incentives negotiate (the horizontal coordination case) might produce a better financial outcome than when the managers’ decisions are perfectly coordinated by a profit-maximizing CEO (the vertical control case). In addition, the study identifies several conditions that guarantee horizontal coordination’s generation of higher profit, such as high (or low) sensitivity to the quality (or price) of a new product. The paper further shows that two competing firms may select horizontal coordination as a Nash equilibrium. </P> <P><B>Practical implications</B></P> <P> – These findings provide new insights into the role of marketing-R & D interaction under strategic delegation, which may allow rival firms to “spend smart” on R & D, avoid excessive (and unnecessary) quality competition, and thus enhance the profitability of new products. Such insights would be useful for any firms under budget constraints. </P> <P><B>Originality/value</B></P> <P> – To the authors’ knowledge, this paper represents the first attempt to analyze how delegation interacts with the conflicting incentives of marketing and R & D managers, which in turn affects the quality investment decisions, competitive intensity, and, ultimately, the financial outcomes of new products developed competing firms.</P>

The Drivers of Competitive Reaction Volatility

Jimi Park(박지미),Shijin Yoo(유시진) 한국경영과학회 2016 한국경영과학회 학술대회논문집 Vol.2016 No.10

Does the Variance of Customer Satisfaction Matter for Firm Performance?

Lee, Eun Young,Yoo, Shijin,Lee, Dong Wook Korean Marketing Association 2017 ASIA MARKETING JOURNAL Vol.18 No.4

Although much attention has been paid to customer satisfaction (CS) as a leading indicator of firm performance, few studies have investigated the role of CS distribution across individual customers. With 10 years of National Customer Satisfaction Index (NCSI) data in Korea, we examine the relationship between the variance of CS and key corporate performance measures such as revenue, profit, Tobin's q, and stock return. There are three main findings. First, we confirm the findings of previous studies that the average CS for a firm is related to the firm's economic performance. Second, we find a moderating effect of CS variance such that the relationship between the level of CS and firm performance is attenuated by the variance of CS. Finally, the variance of CS is found to directly affect firm performance over and above the CS level effect. More specifically, the variance decreases sales and stock return.

The Synergy Effect of a Corporate-Level Loyalty Program Integration on Customer Equity

Park, Dae-Yun,Yoo, Shijin Korean Marketing Association 2018 ASIA MARKETING JOURNAL Vol.20 No.4

This study empirically examines the synergy effect of a corporate-level loyalty program on customer equity (CE) known as the lifetime value of current and future customers (Blattberg et al. 2009). A corporate-level loyalty program refers to a company-wide integration loyalty program at the corporate-level in which subsidiaries (multi-divisions) participate as program members. It does not merely examine whether there is an integration effect of a corporate-level loyalty program from the CE perspective, but it provides practical implications for a firm's strategic focus by identifying which value creation channels (i.e., acquisition, retention, and cross-selling), brand characteristics (i.e., size of the customer base before integration, diversity of products, and sales channel type), and consumer characteristics (i.e., customer relationship stage, transaction amount before integration, transaction period, and number of purchased brands) are affected the most by the synergy effect.

로열티 포인트 사용행동과 고객생애가치(Customer Lifetime Value) 분석

박대윤(Dae-Yun Park),유시진(Shijin Yoo) 한국경영과학회 2014 한국경영과학회지 Vol.39 No.3

The main objective of this research is to investigate whether the RFM (recency-frequency-monetary value) information of a customer’s redemption behavior of loyalty points can improve the prediction of future value of the customer. The conventional measurement of customer value has been primarily based on purchase transactions behavior although a customer’s future behavior can be also influenced by other interactions between the customer and the firm such as redemption of rewards in a loyalty program. We theorize why a customer’s redemption behavior can influence her future purchases and thereby the customer’s total value based on operant learning theory, goal gradient hypothesis, and lock-in effect. Using a dataset from a major book store in Korea spanning three years between 2008 and 2010, we analyze both purchase transactions and redemption records of over 10,000 customers. The results show that the redemption-based RFM information does improve the prediction accuracy of the customer’s future purchases. Based on this result, we also propose an improved estimate of customer lifetime value (CLV) by combining purchase transactions and loyalty points redemption data. Managerial implications will be also discussed for firms managing loyalty programs to maximize the total value customers.

권한 부여와 참여의 시너지

여민선(Minsun Yeu),유원상(Weon Sang Yoo),유시진(Shijin Yoo) 한국경영학회 2017 Korea Business Review Vol.21 No.3

기아자동차 슬로바키아공장은 현대자동차그룹 최초의 유럽 현지공략 거점이자 기아자동차 최초의 선진경제권 공장으로 준공 당시부터 세계적 수준의 생산성을 목표로 설립되었다. 2016년 현재 이 공장은 공신력 있는 외부 기관의글로벌 생산성 평가에서 권역별 1위, 현대자동차그룹 내부 역량평가에서 지속적 1위 등 대내외적으로 탁월한 성과를 보이고 있다. 기아자동차 슬로바키아공장의 뛰어난 성과와 성공은 현지 직원들에게 전폭적인 권한을 부여하는 현지화 전략과 직원들의 적극적인 참여가 창출한 시너지 효과가 큰 공헌을 하였다. 해외 거점 공장들은 통상적으로 4년마다 교체되는 주재원들에 의해 이루어졌기 때문에 현지 직원들의 적극적인 참여가 어려웠고, 현지 직원들은 주재원들에게 의존적이며 동기부여가 되어 있지 않았다. 이러한 해외 거점 공장의 한계를 넘어서기 위해 현지인 중심의 “전원 참여 상시혁신”을 추진하는 전략을 수립하였다. 이후 기아자동차 슬로바키아공장은 주재원 주도적 문화에서 현지인 주도의 문화로 변화하였으며, 이러한 경영진의 정책에 부응하는 현지 직원들의 적극적인 참여가 시너지를 발휘할 수 있었다. 이에 힘입어 기아자동차 슬로바키아공장은 생산, 품질, 수익, 노무 및 지원 등 경영의 전 분야에 걸쳐 획기적인 성과를 실현할 수 있었다. 본 연구에서는 현지 직원들에 대한 권한 부여와 참여를 기반으로 우수한 조직성과를 이끌어 낸 기아자동차 슬로바키아공장의 사례를 살펴봄으로써 해외 진출 및 현지화 과정에서 다양한 도전에 직면한 한국 기업들에게 지속 가능한 성장을 위한 의미 있는 시사점을 제공하고자 한다. Kia Motors Slovakia (KMS) is a manufacturing facility established by Hyundai Motor Group to cover the European market. The factory has played an important strategic role and consistently showed a top-level productivity and various business performances in both external and internal assessments. Factories in other countries, it is not easy to local employees actively participate. Also local employees were not motivated and depends on Korean managers. There are two of the most important success factors for KMS to overcome these limitations: empowerment and engagement. The management of this factory has unprecedentedly delegated its strategic roles and responsibilities to local employees (i.e., empowerment), which has successfully driven active and voluntary managerial participation of the local employees (i.e., engagement). A unique managerial practice, Core Factor System, has been deployed to facilitate the synergistic effects between empowerment and engagement at KMS. This managerial practice has significantly contributed to KMS to achieve globally recognized business performances in virtually all areas including productivity, product quality, labor-management relations, and profit. This case analyzes the success of Kia Motors Slovakia in detail to provide managerial implications for Korean companies facing various challenges in managing manufacturing facilities in foreign countries.