본문 바로가기
KERD
논문KCI 등재

Investigation on the Impact of Product Design and Advertising on the Repeated Purchase Behaviors

유정석|황규영|김도현
한국기업경영학회 (Korean Corporation Management Association)|2012.02|기업경영연구 (Korean Corporation Management Review)|제19권 제1호|pp. 1-24

0

조회

0

다운로드

2

인용

0

참고문헌

키워드

New Product Design신제품개발최적제어 이론경제모델Economic ModelRepeated Purchase DemandOptimal Control Theory반복구매수요
주제분류경영학

초록

While the repeated purchase patterns are very common for the various non-durable good items, the most past studies on the product designing have focused on only the first time purchasing. This study examines how the product design and advertising affect the repeated purchase behaviors. In the proposed mathematical model, the repeated purchasing is represented as the special demand pattern, which is affected by consumers’ past experiences in some specific types of product features. Meanwhile, the seller can attract the trial purchase by enhancing the portrayal product features or advertising the product. The proposed mathematical model generates the optimal decisions on designing product features and advertising, which maximize the sellerʼs profit. In order to investigate the impact of the several environmental factors on the sellerʼs profit and figure out the specific patterns of the optimal decisions on the enhancement in product design and advertising under various conditions, this study analyzes the numerical examples with the different initial market shares, costs, and market share changes. The results of the analyses show that the seller should increase the enhancement in product designing and advertising and made the most of it at the beginning, if the condition is relatively favorable. Under the situation of lower unit cost or higher market change related to the experience -based product features, however, the seller needs to increase the level of the enhancement in both portrayal and experience-based product features, and the heavy enhancement should be delayed later. These results provide useful managerial implications for the seller who manufactures and sells the products with the repeated purchase demand pattern

Abstract

While the repeated purchase patterns are very common for the various non-durable good items, the most past studies on the product designing have focused on only the first time purchasing. This study examines how the product design and advertising affect the repeated purchase behaviors. In the proposed mathematical model, the repeated purchasing is represented as the special demand pattern, which is affected by consumers’ past experiences in some specific types of product features. Meanwhile, the seller can attract the trial purchase by enhancing the portrayal product features or advertising the product. The proposed mathematical model generates the optimal decisions on designing product features and advertising, which maximize the sellerʼs profit. In order to investigate the impact of the several environmental factors on the sellerʼs profit and figure out the specific patterns of the optimal decisions on the enhancement in product design and advertising under various conditions, this study analyzes the numerical examples with the different initial market shares, costs, and market share changes. The results of the analyses show that the seller should increase the enhancement in product designing and advertising and made the most of it at the beginning, if the condition is relatively favorable. Under the situation of lower unit cost or higher market change related to the experience -based product features, however, the seller needs to increase the level of the enhancement in both portrayal and experience-based product features, and the heavy enhancement should be delayed later. These results provide useful managerial implications for the seller who manufactures and sells the products with the repeated purchase demand pattern

참고문헌 (54)

  1. Baesens, B, "Bayesian Neural Network Learning for Repeat Purchase Modelling in Direct Marketing", European Journal of Operational Research, 138(1), pp.191~211 (2002)
  2. Banerjee, B, "Advertising Competition under Consumer Inertia", Marketing Science, 22(1), pp.131~144 (2003)
  3. Blattberg, R, "Tracker: An Early Test Market Forecasting and Diagnostic Model for New Product Planning", Journal of Marketing Research, 15(2), pp.192~202 (1978)
  4. Bowden, J., "The Process of Customer Engagement : A Conceptual Framework", Journal of Marketing Theory and Practice, 17(1), pp.63~74 (2009)
  5. Bronnenberg, B. J, "The Emergence of MarketStructure in New Repeat-Purchase Categories : The Interplay of Market Share andRetailer Distribution", Journal of MarketingResearch, 37(1), pp.16~31 (2000)
  6. Bucklin, R. E, "A Relationship between MarketShare Elasticities and Brand SwitchingProbabilities", Journal of Marketing Research, 35(1), pp.99~113 (1998)
  7. Bulkley, G., "The Role of Loyalty Discounts When Consumers Are Uncertain of the Value of Repeat Purchases", International Journal of Industrial Organization, 10(1), pp.91~101 (1992)
  8. Butcher, K, "Effect of Social Influence on RepurchaseIntentions", The Journal of Services Marketing, 16(6), pp.503~514 (2002)
  9. Butler, D., "Market Structure, Brand Effectiveness and the Profitable Approach to New products and Line Extensions", Journal of the Market Research Society, 36(1), pp.5~17 (1994)
  10. Carter, F. J, "Forecasting Sales in a PersonalSelling Intensive Industry: An Applicationof a Repeat Purchase Diffusion Model", American Marketing Association. ConferenceProceedings, 12(1), pp.12~19 (2001)
  11. Chandrashekaran, M, "Isolating the Determinants of Innovativeness : A Split-Population Tobit(SPOT)Duration Model of Timing and Volume of First and Repeat Purchase", Journal of Marketing Research, 32(4), pp.444~456 (1995)
  12. Choi, S. C, "Product Positioning Under PriceCompetition", Management Science, 36(2), pp.175~199 (1990)
  13. Deighton, J., "The Effects of Advertising onBrand Switching and Repeat Purchasing", Journal of Marketing Research, 31(1), pp.28~43 (1994)
  14. Fandos, C, "Intrinsic and Extrinsic Quality Attributes, Loyalty and Buying Intention : An Analysis for a PDO Product", British Food Journal, 108(8), pp.646~662 (2006)
  15. Gonul, F., "Consumer Purchase Behavior in a Frequently Bought Product Category: Estimation Issues and Managerial Insights from a Hazard Function Model with Heterogeneity", Journal of the American Statistical Association, 88(424), pp.1219~1227 (1993)
  16. Green, P. E, "A General Approach to ProductDesign Optimization Via Conjoint Analysis", Journal of Marketing, 45(3), pp.17~37 (1981)
  17. Grewal, R, "The Timing of Repeat Purchases of Consumer Durable Goods : The Role of Functional Bases of Consumer Attitudes", Journal of Marketing Research, 41(1), pp.101~115 (2004)
  18. Hanson, W, "Optimal Bundle Pricing", Management Science, 36(2), pp.155~174 (1990)
  19. Hoyer, W. D, "An Examination of Consumer Decision Making for a Common Repeat Purchase Product", Journal of Consumer Research, 11(3), pp.822~829 (1984)
  20. Inman, J. J, "Regret in Repeat Purchase versus Switching Decisions : The Attenuating Role of Decision Justifiability", Journal of Consumer Research, 29(1), pp.116~128 (2002)
  21. Jones, J. M, "Adding Explanatory Variables to a Consumer Purchase Behavior Model : An Exploratory Study", Journal of Marketing Research, 17(3), pp.323~334 (1980)
  22. Jones, J. M, "Relating Deal Purchases and Consumer Characteristics to Repeat Purchase Probability", Journal of the Market Research Society, 23(2), pp.84~99 (1981)
  23. Kalyanaram, G, "Dynamic Effects of the Order of Entry on Market Share, Trial Penetration, and Repeat Purchases for Frequently Purchased Consumer Goods", Marketing Science, 11(3), pp.235~250 (1992)
  24. 김영갑, "막걸리의 선택 속성이 만족도와 추천 의도, 재구매 의도에 미치는 영향", 동아시아식생활학회지, 20(3), pp.389~395 (2010), 동아시아식생활학회
  25. Kumar, P, "The Impact of Performance, Cost, and Competitive Considerations on the Relationship between Satisfaction and Repurchase Intent in Business Markets", Journal of Service Research, 5(1), pp.55~68 (2002)
  26. Lee, J. R, "Study on the Relationship among Product Attributes, Overall Satisfaction, Repurchase Intention, and Recommendation Intention: Focus on Chinese Automobile Customers", Korean Academic Society of Business Administration Conference, pp.1~25 (2009)
  27. 이민훈, "만족도와 재구매 간 관계에 있어서 상황적 영향의 조절효과에 관한 연구 - 인지 종결 욕구와 일시적 자아 해석의 조절효과를 중심으로 -", 아시아마케팅저널, 11(4), pp.95~119 (2010), 한국마케팅학회
  28. Lilien, G. L, "Bayesian Estimation and Control of DetailingEffort in a Repeat Purchase DiffusionEnvironment", Management Science, 27(5), pp.493~506 (1981)
  29. Macdonald, E. K, "Brand Awareness Effects on Consumer Decision Making for a Common, Repeat Purchase Product : A Replication", Journal of Business Research, 48(1), pp.5~15 (2000)
  30. Mallik, S, "Optimal Temporal Product Introduction Strategies under Valuation Changes and Learning", European Journal of Operational Research, 172(2), pp.430~452 (2006)
  31. Mesak, H. I., "Incorporating Price and Replacement Purchases in New Product Diffusion Models for Consumer Durables", Decision Sciences, 26(4), pp.425~449 (1995)
  32. Meyer-Waarden, L, "The Effects of Loyalty Programs on Customer Lifetime Duration and Share of Wallet", Journal of Retailing, 83(2), pp.223~236 (2007)
  33. Meyer-Waarden, L, "The Impact of Loyalty Programmes on Repeat Purchase Behaviour", Journal of Marketing Management, 22(1-2), pp.61~88 (2006)
  34. Nakanishi, M., "Advertising and Promotion Effects on Consumer Response to New Products", Journal of Marketing Research, 10(3), pp.242~249 (1973)
  35. Parfitt, J. H, "Use of Consumer Panels for Brand-share Prediction", Journal of Marketing Research, 5(2), pp.131~145 (1968)
  36. Park, S. H., "Diffusion Model for Repeatedly Purchased New Product", Korean Marketing Review(Korean Marketing Association), 6(1), pp.1~25 (1991)
  37. Prince, J. T, "Repeat Purchase amid Rapid Quality Improvement : Structural Estimation of Demand for Personal Computers", Journal of Economics and Management Strategy, 17(1), pp.1~33 (2008)
  38. Rao, A. G, "Forecasting With A Repeat Purchase Diffusion Model", Management Science, 34(6), pp.734~752 (1988)
  39. Raymond, M. A, "Maintaining Customer Relationships inDirect Sales: Stimulating Repeat PurchaseBehavior", The Journal of Personal Sellingand Sales Management, 14(4), pp.67~76 (1994)
  40. Sachs, W. S, "Forecasting New Product Outcomes In Packaged Goods", The Journal of Business Forecasting Methods and Systems, 6(4), pp.20~23 (1987)
  41. Sankaranarayanan, R, "Innovation and the Durable Goods Monopolist: The Optimality of Frequent New-Version Releases", Marketing Science, 26(6), pp.774~791 (2007)
  42. Scott, C. A., "The Effects of Trial and Incentives on Repeat Purchase Behavior", Journal of Marketing Research, 13(3), pp.263~269 (1976)
  43. Sethi, S. P, "Optimal Control Theory: Applications to Management Science" (1981), Martinus Nijhoff
  44. Shocker, A. D, "Multiattribute Approaches for Product Concept Evaluation and Generation : A Critical Review", Journal of Marketing Research, 16(2), pp.159~180 (1979)
  45. Sibly, H., "Price Dynamics in Repeat-Purchase Markets", Economic Record, 71(213), pp.179~190 (1995)
  46. Sibly, H., "Price Inflexibility in Markets with Repeat Purchasing", Journal of Macroeconomics, 23(3), pp.459~475 (2001)
  47. Silk, A. J., "Pre-Test- Market Evaluation of New Packaged Goods: A Model and Measurement Methodology", Journal of Marketing Research, 15(2), pp.171~191 (1978)
  48. Sudharshan, D, "NICHER: An Approach to IdentifyingDefensible Product Positions", EuropeanJournal of Operational Research, 84(2), pp.292~309 (1995)
  49. Urban, G. L, "PERCEPTOR: A Model for Product Positioning", Management Science, 21(8), pp.858~871 (1975)
  50. Viaene, S, "Wrapped Input Selection Using Multilayer Perceptions for Repeat-Purchase Modeling in Direct Marketing", International Journal of Intelligent Systems in Accounting, Finance and Management, 10(2), pp.115~126 (2001)
  51. Vilcassim, N. J, "Modeling Purchase-Timing and Brand-Switching Behavior Incorporating Explanatory Variables and Unobserved Heterogeneity", Journal of Marketing Research, 28(1), pp.29~41 (1991)
  52. Von Ungern-Sternberg, T, "The Supply of Quality on aMarket for “Experience Goods", The Journalof Industrial Economics, 33(4), pp.531~540 (1985)
  53. Zufryden, F. S., "ZIPMAP-A Zero-One Integer Programming Model for Market Segmentation and Product Positioning", Journal of the Operational Research Society, 30(1), pp.63~70 (1979)
  54. Zufryden, F. S, "Using Conjoint Analysis to Predict Trial and Repeat-Purchase", Decision Sciences, 19(1), pp.55~71 (1979)

관련 논문AI추천

An Integrated New Product Development Model with an Overlapping Sales Period for Existing and New Products김대수, 박명섭, 편제범한국생산관리학회 · 한국생산관리학회지2016 · 제27권 제4호Optimal Lot Sizing, Pricing and Process Reliability Investment Model for an Imperfect Production System with Customer Return김대수, 박명섭, 유승호한국생산관리학회 · 한국생산관리학회지2010 · 제21권 제1호The Model of a New Self-owned Brand Product’ Ad Expenditure and PricingCAO Jiantao한국세무회계학회 · 세무회계연구2019 · 제60호Experience Goods Monopolist: Freeware as an AdvertisementLE DUC NIEM경제연구소 · Seoul Journal of Economics2017 · 제30권 제2호Couponing When Preferences Change: To Whom and How Many?정회상한국계량경제학회 · 계량경제학보2017 · 제28권 제1호The Short-Term Effect of Low-Quality Sellers’ Voluntary Information Disclosure허승중소기업융합학회 · 융합정보논문지2021 · 제11권 제1호

이 간행물의 다른 논문 (14건)

소비자의 자아개념과 기업개성의 동일시가 브랜드 애착 및 충성도에 미치는 영향박소영, 정기한, 박귀정pp. 25-40선진국, 신흥국 및 ASEAN간 주가변동성의 커플링현상에 대한 연구김경수pp. 41-61DEA Window 모형과 Tier 분석을 이용한 축제의 효율성 분석김재윤, 강인규, 이수현pp. 63-82은행서비스에서의 서비스품질, 고객만족도 및 교차구매의도 간의 관계연구: 한․중 은행 간 비교이상석pp. 83-106K-IFRS에 따른 자산재평가 기업의 재평가 전 이익조정에 관한 연구김문현pp. 107-122
원문 보기