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Article

Peiman Alipour Sarvari, Alp Ustundag and Hidayet Takci

The purpose of this paper is to determine the best approach to customer segmentation and to extrapolate associated rules for this based on recency, frequency and monetary…

Abstract

Purpose

The purpose of this paper is to determine the best approach to customer segmentation and to extrapolate associated rules for this based on recency, frequency and monetary (RFM) considerations as well as demographic factors. In this study, the impacts of RFM and demographic attributes have been challenged in order to enrich factors that lend comprehension to customer segmentation. Different types of scenario were designed, performed and evaluated meticulously under uniform test conditions. The data for this study were extracted from the database of a global pizza restaurant chain in Turkey. This paper summarizes the findings of the study and also provides evidence of its empirical implications to improve the performance of customer segmentation as well as achieving extracted rule perfection via effective model factors and variations. Accordingly, marketing and service processes will work more effectively and efficiently for customers and society. The implication of this study is that it explains a clear concept for interaction between producers and consumers.

Design/methodology/approach

Customer relationship management, which aims to manage record and evaluate customer interactions, is generally regarded as a vital tool for companies that wish to be successful in the rapidly changing global market. The prediction of customer behaviors is a strategically important and difficult issue because of the high variance and wide range of customer orders and preferences. So to have an effective tool for extracting rules based on customer purchasing behavior, considering tangible and intangible criteria is highly important. To overcome the challenges imposed by the multifaceted nature of this problem, the authors utilized artificial intelligence methods, including k-means clustering, Apriori association rule mining (ARM) and neural networks. The main idea was that customer clusters are better enhanced when segmentation processes are based on RFM analysis accompanied by demographic data. Weighted RFM (WRFM) and unweighted RFM values/scores were applied with and without demographic factors and utilized to compose different types and numbers of clusters. The Apriori algorithm was used to extract rules of association. The performance analyses of scenarios have been conducted based on these extracted rules. The number of rules, elapsed time and prediction accuracy were used to evaluate the different scenarios. The results of evaluations were compared with the outputs of another available technique.

Findings

The results showed that having an appropriate segmentation approach is vital if there are to be strong association rules. Also, it has been determined from the results that the weights of RFM attributes affect rule association performance positively. Moreover, to capture more accurate customer segments, a combination of RFM and demographic attributes is recommended for clustering. The results’ analyses indicate the undeniable importance of demographic data merged with WRFM. Above all, this challenge introduced the best possible sequence of factors for an analysis of clustering and ARM based on RFM and demographic data.

Originality/value

The work compared k-means and Kohonen clustering methods in its segmentation phase to prove the superiority of adopted segmentation techniques. In addition, this study indicated that customer segments containing WRFM scores and demographic data in the same clusters brought about stronger and more accurate association rules for the understanding of customer behavior. These so-called achievements were compared with the results of classical approaches in order to support the credibility of the proposed methodology. Based on previous works, classical methods for customer segmentation have overlooked any combination of demographic data with WRFM during clustering before proceeding to their rule extraction stages.

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Article

Ana S. Branca

The purpose of this paper is to examine how demographic characteristics contribute to consumers' decision on bank delivery channels' usage, namely the direct and indirect…

Abstract

Purpose

The purpose of this paper is to examine how demographic characteristics contribute to consumers' decision on bank delivery channels' usage, namely the direct and indirect demographic influence on channel usage frequency via cognitive and affective mediators.

Design/methodology/approach

The consumer usage frequency pattern concerning the main bank delivery channels and its determinants are modelled and analysed with a questionnaire sent to 24,000 bank customers. This stage was preceded by a series of in‐depth interviews to bank managers and bank customers.

Findings

Empirical evidence suggests that demographic variables' influence over consumers' usage frequency decision has both a direct and indirect component. These influences are identified by delivery channel.

Research limitations/implications

The main limitation derives from the nature of empirical results and their generalization to other samples and contexts. Nevertheless, precautions recommended in the literature to overcome this limitation were followed.

Practical implications

Bank managers will benefit from knowing, by channel, which demographic characteristics have the desired direct and indirect impact on usage frequency. This information will improve bank managers' efforts to encourage customers to favour a specific delivery channel.

Originality/value

In the literature, only the direct influence of demographics is compared to the innovation attributes in order to explain the innovation adoption decision. By clarifying the impact of demographic variables, the paper provides a more robust perception on their role as determinants of the bank delivery channels' usage.

Details

International Journal of Bank Marketing, vol. 26 no. 4
Type: Research Article
ISSN: 0265-2323

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Book part

Barbara S Lawrence

Organizational demography research tends to invoke multi-level concepts that require multi-level theories and analysis. Scholars originally paid little attention to this…

Abstract

Organizational demography research tends to invoke multi-level concepts that require multi-level theories and analysis. Scholars originally paid little attention to this multi-level work. However, the complex issues involved in studying multi-level demographic phenomena are receiving increasing scrutiny. Three historical oppositions in social science have contributed to current limitations: the disciplinary differences between psychology and sociology; the analytical antagonism between quantitative and qualitative analysis; and the rhetorical distinctions between deductive and inductive discussion. These oppositions suggest that a more qualitative, inductive approach may uncover new directions for multi-level demographic theory. Two possibilities are discussed. One is to refocus on the phenomena themselves instead of their outcomes. Another is to explore how demographic misperceptions influence individual behavior.

Details

Multi-level Issues in Organizational Behavior and Processes
Type: Book
ISBN: 978-1-84950-269-6

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Book part

Ursula Pregernig

Demographic faultlines (i.e., potential subgroup splits based on demographic attributes) have been argued to have effects over and above those of diversity. Yet…

Abstract

Demographic faultlines (i.e., potential subgroup splits based on demographic attributes) have been argued to have effects over and above those of diversity. Yet, faultlines, much like diversity, do not seem to have positive or negative effects on performance per se, but to be affected by contextual variables as well as intermediate outcomes, such as relationship conflict. Relationship conflicts, a major threat to teamwork, are particularly likely to arise between subgroups. Thus, with the objective to shed some light on why and how exactly faultlines impact group outcome, we investigate the effect of faultline strength and distance on performance through relationship conflict as well as the effect of faultline strength on performance via relationship conflict, contingent on the level of faultline distance. To test our hypotheses we used data gathered in a laboratory setting with 267 graduate students. Results provide strong support for the extension of the faultline model.

Details

Distance in International Business: Concept, Cost and Value
Type: Book
ISBN: 978-1-78743-718-0

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Article

Sydney Roslow, Tiger Li and J.A.F. Nicholls

Explores seasonal differences in the purchase behaviour of shoppers in Cyprus. The analysis investigates situational factors and demographic/lifestyle attributes

Abstract

Explores seasonal differences in the purchase behaviour of shoppers in Cyprus. The analysis investigates situational factors and demographic/lifestyle attributes associated with consumers’ shopping behaviour in summer and winter. The situational factors include the frequency with which consumers shopped in a large Cypriot market, the usual time of day they shopped, their travel time to the market, the time they spent in it, and whether they were motivated by price/value considerations; the demographic/lifestyle elements encompassed age, gender, education, income, and the transportation mode consumers employed to reach the market. Differences were found in shopping patterns between the two seasons. For instance, in the winter, consumers purchased adult’s clothing to a greater extent than in the summer. In contrast, in the summer consumers purchased more food or beverage and spent more money than in the winter. Based on the findings, the paper includes explicit recommendations for marketing action. The results indicate that store managers can be proactive in their marketing efforts by being aware of situational influences on customers’ purchase behaviour.

Details

European Journal of Marketing, vol. 34 no. 9/10
Type: Research Article
ISSN: 0309-0566

Keywords

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Book part

Priti Pradhan Shah and Kurt T Dirks

Social networks provide the architecture to facilitate important socio-emotional and task related exchanges within groups. However, researchers have just begun to explore…

Abstract

Social networks provide the architecture to facilitate important socio-emotional and task related exchanges within groups. However, researchers have just begun to explore how relationships form in groups comprised of individuals who differ on one or more dimensions. This paper investigates the role of social categorization and social network theories on the formation of social networks within diverse groups. We suggest that each perspective offers an alternative, but incomplete, understanding of how relationships may arise in diverse groups. Specifically, we integrate these two perspectives to provide a more complete understanding of how different types of diversity impact tie formation and allow individuals in diverse groups to achieve their socio-emotional and task-related objectives.

Details

Identity Issues in Groups
Type: Book
ISBN: 978-1-84950-168-2

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Book part

Lisa H. Nishii and Jack A. Goncalo

Despite the oft made argument that demographic diversity should enhance creativity, little is known about this relationship. We propose that group diversity, measured in…

Abstract

Despite the oft made argument that demographic diversity should enhance creativity, little is known about this relationship. We propose that group diversity, measured in terms of demographic faultlines, affects creativity through its effects on group members’ felt psychological safety to express their diverse ideas and the quality of information sharing that takes place across subgroup boundaries. Further, we propose that the relationship between faultlines and creativity will be moderated by task interdependence and equality of subgroup sizes. Finally, we provide suggestions for how organizations can establish norms for self-verification and use accountability techniques to enhance creativity in diverse groups.

Details

Diversity and Groups
Type: Book
ISBN: 978-1-84855-053-7

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Article

Sadia Mansoor, Erica French and Muhammad Ali

A narrow focus of past diversity research and inconsistent findings have contributed to a lack of understanding of how to manage diversity for positive outcomes. Focusing…

Abstract

Purpose

A narrow focus of past diversity research and inconsistent findings have contributed to a lack of understanding of how to manage diversity for positive outcomes. Focusing on age, gender and ethnic diversity, this paper aims to review literature on group objective demographic diversity and individual perceived demographic diversity to present an integrated multilevel framework for our improved understanding and to present testable propositions.

Design/methodology/approach

The authors conducted a thorough review of 51 empirical studies of demographic diversity at individual and group levels to propose a multilevel framework.

Findings

Drawing on information elaboration theory, social categorization theory and social identity theory, an integrated multilevel framework is proposed at individual and group levels. The framework suggests that demographic diversity (age, gender and ethnicity) aids positive information elaboration processes, while also causing negative social categorization processes. These processes impact individual and group outcomes. The framework also identifies moderating factors not sufficiently addressed in the demographic diversity literature. Propositions and implications for future research in the field of demographic diversity are presented.

Originality/value

This review provides an integrated multilevel framework of objective and perceived demographic diversity and its positive and negative processes and effects at both individual and group levels, drawn from information elaboration, social categorization and social identity theories.

Details

Management Research Review, vol. 43 no. 5
Type: Research Article
ISSN: 2040-8269

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Article

Jabir Ali, Sanjeev Kapoor and Janakiraman Moorthy

The purpose of this paper is to develop a marketing strategy for a modern food/grocery market based on consumer preferences and behaviour.

Abstract

Purpose

The purpose of this paper is to develop a marketing strategy for a modern food/grocery market based on consumer preferences and behaviour.

Design/methodology/approach

A total of 101 households having sufficient purchasing power were personally surveyed with a structured questionnaire. These households are spread across the well‐developed Gomtinagar area of Lucknow city. Simple statistical analysis such as descriptive statistical analysis, frequency distribution, cross tabulation, analysis of variance, and factor analysis to assess the consumers' preferences for food and grocery products and market attributes were carried out.

Findings

The preferences of the consumers clearly indicate their priority for cleanliness/freshness of food products followed by price, quality, variety, packaging, and non‐seasonal availability. The consumers' preference of marketplace largely depends on the convenience in purchasing at the marketplace along with the availability of additional services, attraction for children, basic amenities and affordability. Results suggest that most of the food and grocery items are purchased in loose form from the nearby outlets. Fruits and vegetables are mostly purchased daily or twice a week due to their perishable nature, whereas grocery items are less frequently purchased.

Research limitations/implications

This paper analyses the buying behaviour of the consumers under survey with respect to food and grocery items. These consumers are in a relatively advantageous position in terms of purchasing power and awareness of health and nutrition.

Practical implications

The results may help the food processors and outlet owners to understand a diversified set of preferences for products and market attributes, so that they can make better decisions in the emerging organized food and grocery retail environment.

Originality/value

The topic is relatively less researched in emerging markets especially where organized retail is still in its early stages.

Details

British Food Journal, vol. 112 no. 2
Type: Research Article
ISSN: 0007-070X

Keywords

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Article

Henning Ahlf, Sven Horak, Andreas Klein and Sung-Won Yoon

The purpose of this study is to understand how employees of an organization build and maintain successful business relationships by analyzing major antecedents of…

Abstract

Purpose

The purpose of this study is to understand how employees of an organization build and maintain successful business relationships by analyzing major antecedents of relationship quality and relationship commitment.

Design/methodology/approach

In this study, the authors develop a conceptual framework and formulate hypotheses regarding the relationships between demographic homophily, interpersonal communication, trust and dependent variables of perceived relationship quality and relationship commitment. This paper tests hypotheses presented in this study with the help of a structural equation model, based on a data sample from South Korea.

Findings

Unlike common thinking, demographic homophily does not directly increase the perceived relationship quality. The authors find a significant direct effect of interpersonal communication on relationship commitment but no effect of commitment on perceived relationship quality. Both seem to play independent roles but are positively influenced through the emergence of trust.

Research limitations/implications

By applying demographic homophily and interpersonal communication as antecedents and trust as mediator and main driver, the authors research effects on perceived intra-organizational relationship commitment and perceived relationship quality. In detail, the authors confirm the hypothesized centrality of trust in intra-organizational relationships between demographic homophily, interpersonal communication and dependent variables of perceived relationship quality and relationship commitment. Nevertheless, the authors surprisingly find neither significant evidence that demographic homophily increases the perceived quality of a relationship, nor does it lead to higher communication intensity directly, even in an environment (i.e. Korea), where it would be expected.

Practical implications

Based on the findings of this study, there are several practical implications. Understanding the interpersonal relationship characteristics in an intra-organizational setting enables managers to optimize organizational efficiency and effectiveness. Intra-organizational relationships between employees’ are highly dependent on mutual trust as an indicator for relationship quality and relationship commitment. Organizations can also benefit from the understanding of the mechanisms of demographic homophily and interpersonal communication for the establishment of interpersonal trust as well.

Originality/value

Research about the effect of demographic homophily and interpersonal communication and the central role of trust in an intra-organizational approach to business relationships on perceived relationship quality and relationship commitment is scarce. The mutual testing of the effects and interaction of established constructs like demographic homophily, interpersonal communication and trust on perceived relationship quality and commitment constitutes the main contribution of this study to the literature on management and business relationships. The insights of this study about interpersonal bonding help companies to establish long-term business relationships.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

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