Customer Satisfaction Analysis for Global Cosmetic Brands: Text-mining Based Online Review Analysis

Purpose: This study introduces a systematic framework to evaluate service satisfaction of cosmetic brands through online review analysis utilizing Text-Mining technique.Methods: The framework assumes that the service satisfaction is evaluated by positive comments from online reviews. That is, the service satisfaction of a cosmetic brand is evaluated higher as more positive opinions are commented in the online reviews. This study focuses on two approaches. First, it collects online review comments from the top 50 global cosmetic brands and evaluates customer service satisfaction for each cosmetic brands by applying Sentimental Analysis and Latent Dirichlet Allocation. Second, it analyzes the determinants that induce or influence service satisfaction and suggests the guidelines for cosmetic brands with low satisfaction to improve their service satisfaction.Results: For the satisfaction evaluation, online review data were extracted from the top 50 global cosmetic brands in the world based on 2018 sales announced by Brand Finance in the UK. As a result of the satisfaction analysis, it was found that overall there were more positive opinions than negative opinions and the averages for polarity, subjectivity, positive ratio, and negative ratio were calculated as 0.50, 0.76, 0.57, and 0.19, respectively. Polarity, subjectivity and positive ratio showed the opposite pattern to negative ratio, and although there was a slight difference in fluctuation range and ranking between them, the patterns are almost same.Conclusion: The usefulness of the proposed framework was verified through case study. Although some studies have suggested a method to analyze online reviews, they didn't deal with the satisfaction evaluation among competitors and cause analysis. This study is different from previous studies in that it evaluates service satisfaction from a relative point of view among cosmetic brands and analyze determinants.