Study of a structure analysis method for customer loyalty based on text data

Kenta Mikawa, Tsutomu Takahashi, Masayuki Goto

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Recently, marketing activities are gradually shifting from making new customers to keeping current customers because of the intensifying market competition. Hence, keeping customers is related to improving customer satisfaction and customer loyalty. Ultimately keeping a customer means improving of lifetime value. In addition, it has been found that there are many effects for the company. Therefore, companies aiming to improve their profits need to focus on the components of customer loyalty. However, it is difficult to specify those factors because the structure of customer loyalty is very complex and its composition differs from customer to customer. This research uses a methodology interview and free-ended questionnaire data to map the customer loyalty structure. In order to clarify constitutes customer loyalty, the method of morphological analysis as the way of natural language techniques is introduced. This is used because there is much free-ended text data that companies can accumulate easily as the result of developing information technologies. Using these data, text mining can be applied, which is one of the important ways of obtaining information for CRM(customer relationship management). Through analysis, using the concept of text mining and the introduction of knowledge of the field in the study of customer loyalty, we find the structure of loyalty and consider how to improve these assumptions. Principal component analysis using the structure extracted from the text type comments of customers and vector spaces made by the structure and word frequency in each text gives us various findings about customer loyalty.

Original languageEnglish
Pages (from-to)182-192
Number of pages11
JournalJournal of Japan Industrial Management Association
Volume58
Issue number3
Publication statusPublished - 2007
Externally publishedYes

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Keywords

  • Customer loyalty
  • Morphological analysis
  • Structure diagram
  • Text mining

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering
  • Engineering (miscellaneous)

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