Korean Management Science Review (경영과학)

The Korean Operations Research and Management Science Society (한국경영과학회)
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A Decision-making Strategy to Maximize the Information Value of Weather Forecasts in a Customer Relationship Management (CRM) Problem of the Leisure Industry

레저산업의 고객관계관리 문제에서 기상예보의 정보가치를 최대화시키는 의사결정전략 분석

  • Received : 2009.11.13
  • Accepted : 2009.12.30
  • Published : 2010.03.31
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Abstract

This paper presents a method for the estimation and analysis of the economic value of weather forecasts for CRM decision-making problems in the leisure industry. Value is calculated in terms of the customer's satisfaction returned from the user's decision under the specific payoff structure, which is itself represented by a customer's satisfaction ratio model. The decision is assessed by a modified cost-loss model to consider the customer's satisfaction instead of the loss or cost. Site-specific probability and deterministic forecasts, each of which is provided in Korea and China, are applied to generate and analyze the optimal decisions. The application results demonstrate that probability forecasts have greater value than deterministic forecasts, provided that the users can locate the optimal decision threshold. This paper also presents the optimal decision strategy for specific customers with a variety of satisfaction patterns.

Keywords

References

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