- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
Vol.12 No.12
Abstract
Purpose - The purpose of this study is to examine the possible ways to minimize damage by analyzing the influence that may be exerted upon the business process of the distribution industry by unexpected climate change. Research design, data, and methodology - The optimum business process is to be implemented after dividing the diversified business process of the distribution industry into the four stages of the Business Continuity Plan (BCP). Results - First, the upper-level risks that would be impacted most sensitively by climate change have been selected. Second, the impact and characteristics of the environment have been discovered. Third, weighted values by criteria item of upper-level business risks have been analyzed. Fourth, it was possible to define the business priority order based on the individual and then to adjust the Recovery Time Objective (RTO). Conclusion - In this study, the priority order has been defined quantitatively by calculating the priority order score. Further, the priority order has been determined depending on whether any targeted business unit is applicable to the items of the business nature criteria.
Abstract
Purpose - This paper aims to test the effects of Korean food service franchisors' and franchisees' TSI (Transaction Specific Investment) on dependence and trust toward the franchisor and re-contract intention. The study examines the effects of both franchisors' and franchisees' TSI on dependence and trust, as compared with Ganesan (1994). Research design, data, and methodology - Data were collected from 495 Korean food service franchisees and analyzed with structural equation modeling using path analysis through SPSS 18.0 and AMOS 18.0. Results - 1) The franchisor's TSI has positive effects on the franchisee's dependence and trust toward the franchisor. 2) The franchisee's TSI has a positive effect on the franchisee's dependence toward the franchisor. 3) The franchisee's dependence and trust have positive effects on commitment. 4) The franchisee's dependence, trust, and commitment have a positive effect on re-contract intention. Conclusions - The franchisor's and franchisee's TSI affect the franchisee's dependence and trust toward the franchisor. The franchisee's dependence and trust influence commitment and re-contract intention. This has managerial implications for franchisors striving to raise franchisees' re-contract intention.
Abstract
Purpose - This study examines various reservation service components that would increase customers' brand attachment and loyalty, while discussing how reservation service components would affect the customer behaviors. Research design, data, and methodology - This study theoretically analyzed the hotel package product reservation system, the customer expectations, the brand attachment, and the brand loyalty, while reviewing previous studies. Results - This study analyzed the distribution channels of the hotel package products from various angles and, as for more extensive research, the study explained the different results caused by each different reservation system type that may be preferred by each individual customer. Conclusions - It was confirmed that, of the hotel reservation service components, the convenience factors, the reliability factors, the information factors, and the other factors other than the human factors, have a significant influence on the customer expectations. Further, the study also revealed that the customer expectation has an important effect on the brand attachment. In addition, the study improved the prevailing understanding on the relation between the brand attachment and the brand loyalty.
Abstract
Purpose - This study examines how perceived benefits and costs of traditional market support affect relationship quality and support for a marketeer. In addition, it investigates whether support for traditional market aid programs leads to support for the government. The author developed a structural model comprising several variables, in which perceived benefits and costs comprising economic, social, and environmental costs were proposed, to affect the relationship quality (satisfaction and trust) of traditional market aid programs and the government. Consequently, marketeers satisfied and trusted by traditional market aid programs and the government would support the traditional market aid program, resulting in higher support for the government. The model proposed that customer satisfaction would improve customer loyalty and business performance. Thus, the relationship quality (satisfaction and trust) of the traditional market aid program and government was proposed as a core mediating variable between perceived benefits and costs and support. Research design, data, and methodology - To analyze the proposed model, this study investigates the scenario with a traditional marketeer. Data were collected from 331 respondents, and analyzed with SPSS/PC 18.0 and AMOS 18.0. To test the unidimensionality and nomological validity of the measures of each construct, we employed a scale refinement procedure. The result of the reliability test with Cronbach's and confirmatory factor analysis warranted unidimensionality of the measures for each construct. In addition, nomological validity of the measures was warranted from the result of correlation analysis. Results - First, perceived benefit affects the relationship quality of traditional market aid programs and government. Second, perceived costs affect the satisfaction of traditional market aid programs and government. Third, the relationship quality of a traditional market aid program affects the support of a traditional market aid program, and the relationship quality of government affects the support of government. Finally, the support of traditional market aid program affects support of government. The results confirm the findings of previous studies that local development positively influences support, based on the social exchange theory. Conclusions - The theoretical and managerial contributions of this study are as follows. First, it is the first such study, and defines mediating variables, analyzing relationship quality (satisfaction and trust) between perceived benefits and costs and support for the traditional market industry. Further, it investigates the structural relationships between them with the AMOS program. Second, while most previous studies investigating the relationship between similar variables and those of the present study analyzed how perceived benefits and costs influenced support, this study identified the transfer relationship between the support for traditional market programs and support for the government. This study confirms that support for traditional market aid program increases support for the government. Therefore, government policy makers for traditional market aid programs should explain to marketeers the benefits and costs of traditional market development in terms of economic, social, and environmental factors. At the end, limitations, further research directions, and implications are suggested.
Abstract
Purpose - In urban regeneration projects, considerations for rejuvenating traditional public markets are becoming increasingly important. That is because the traditional market is not just a commercial space but also a living center for local people's existence. Cultural contents like these are invaluable assets in the contemporary economy. However, traditional markets are gradually declining because of changes in distribution systems and consumer lifestyles. New distribution systems such as modern distribution markets, home shopping, and online shopping malls made traditional markets less competitive. Further, traditional markets have not been able to adapt to the changing consumption styles of younger generations. Some say that it is a natural phenomenon that cannot be stopped. However, traditional markets are not just another distribution system but also a valuable resource that encapsulates the local people's tradition and history. Thus, a revitalization strategy for traditional public markets has become an urgent task in contemporary urban regeneration projects. This study aimed to find ways to activate traditional public markets by making it a community landmark based on visual merchandising perspectives. Research design and methodology - This study focused on analyzing Granville Island (Vancouver, Canada) as a role-model project for rejuvenating the traditional market. It investigated Granville Island both with walk-through evaluation and literature reviews. Results - We found that it has been developed not only to improve visual aspects, but also to promote cultural contents with high value added. For example, the developers maintained the visual elements that tell the original history of the site as an industrial factory. The renewal project had a balance between improving the outer look and creating attractive contents. The following are the merits of Granville Island that Korean traditional markets should note. First, they kept the whole area clean and hygienic. Second, merchants are well educated, business-savvy, and consumer-oriented. Third, the area's total environmental designs were done by professionals of a high caliber. Fourth, the city government and the merchants'association were collaborating well in their efforts to accommodate the changing needs of consumers. Conclusions - This study made the following suggestions as a conclusion. First, it will be a very powerful tool to rejuvenate the traditional market if we can discover unique cultural resources and develop them as cultural products, experiences, and events. Consumers of the 21st century have a strong tendency to consume not only material products, but also the experiences and memories attached to them. Second, in order to maintain the unique characteristics of traditional markets, fostering the viability of the merchants' association and local residents' society would be essential. Third, it is necessary to make the traditional market into a cultural place not only for the shopping patronage of local residents, but also for attracting tourists to increase sales. Finally, professional management and design approaches are needed in order to make the traditional market a pleasant space from a visual merchandising standpoint.
Abstract
Purpose - Distribution of agricultural products is collapsing due to recent changes in the environment balance between retailers and producers. Further, the increase in the imports of agricultural products due to free trade has caused revenue problems for producers. Agricultural producers are faced with increasing difficulties, and the organized producing center's importance is growing each day. Korean organized producing centers' policies have been conducted since 2000, and have thus been sustained for more than 10 years. Organizing a producing center's business is focused on agricultural cooperative and farming association corporation this has already have been carried out. In addition, it has achieved significant results through these organizations, but it still has many problems. Research design, data, and methodology - Organized producing centers were classified for each type. The survey covered 90 organizations, based on factor analysis, analysis of balance, and logistic regression analysis. The results of the conducted factor analysis are as follows. Production, marketing, human resources management, organizational skills, post management, safety, and scale were classified as the seven kinds of factors. These are the factors that affect the organized producing centers through the variance analysis and logistic regression analysis. The purpose of such research and analysis is to suggest the direction for the future organized producing centers' policies. Result - Results of the analysis of the variance are listed below. Items by type, production, marketing, human resource management, and organizational skills are shown to depict differences between the factors. Organization form results show that production and marketing showed a difference between the factors. The size of the organization, production, and marketing showed the difference between the factors. The factors affect organized producing centers differently depending on the type shown, as seen from the results. In contrast, the logistic regression results of the analysis are as follows. Considering the results by the type of item, and the horticulture type of marketing, human resource management has a (+) influence. Grain type and production showed a (+) influence. New types of income affecting organizational skills have a (+) influence. Considering the results for each type of organization, the agricultural cooperative type of marketing and human resource management have (+) influence. Farming association corporation type of production has a (+) influence. As a result, the size of the organization is as follows. Large organizations are production, expressed in marketing with a (+) impact. Medium-size organizations are expressed with their size factor having a (+) impact. Small organizations are expressed with a safety factor having a (+) impact. Conclusions - The types of factors display different effects. One factor is that the type of a (+) represents the influence of other factors (-) as per factor symptomatology. Therefore, the type of measures to organize a strategy to maximize the benefits of your organization should be pursued. In addition, based on the support for small organizations, improving the quality of the producer organization should be considered.
Abstract
Purpose - Due to the rapidly changing environment, the needs of information distribution are emphasized more than ever before. As information changes to cater to diversity, professionalism, and detailed segmentation, this information is produced exponentially. Many researchers working in intelligence agencies are feeling the need to establish a comprehensive information management and information distribution system in a systematic and more effective manner. Mobile marketing is based on communication when consumers can access information using GPS systems whatever their location may be when they are on a trip. Until recently, Korean companies have been struggling to perform well in the larger mobile tourism information service (MTIS) for Chinese tourists, which is regarded as a blue ocean area. The principal dimensions of the characteristics of a mobile tourism information service were analyzed, and the influence on perceived value and satisfaction was identified. Moreover, the relationship among the variable satisfaction and using intentions was empirically analyzed. Research design, data, and methodology - This study examined the structural relationship among mobile tourism information features, perceived value, satisfaction, and behavioral intentions. It is based on analyzed data from questionnaires involving advanced research. A questionnaire survey targeting Chinese students using a mobile tourism information service in Korea was conducted. A total of 230 questionnaires were circulated, and 221 questionnaires were used for empirical analysis, excluding invalid data. The data were analyzed with structural equation modeling with SPSS 21.0 statistic package reliability analysis, factor analysis, and regression analysis were implemented, and the effects of the mobile tourism information service features on perceived value, satisfaction, and using intentions were presented. Results - First, mobile tourism information service features have a direct positive effect on the practical value, and do not affect the hedonic value. Second, perceived value has a statistically positive effect on satisfaction. Third, perceived value has a positive effect on behavioral intentions. Fourth, satisfaction has a direct positive effect on behavioral intentions. Conclusion - MTIS (mobile tourism information service) involves personal, social, and technical characteristics. We have analyzed the effects of mobile tourism information service on perceived value, and on satisfaction and using intentions. First, the study shows that the characteristics of mobile tourism information service and perceived value in relation to mobile tourism information service usage are important for marketing in the Chinese market. Moreover, after using a mobile tourism information service, the effect on practical value is more than on hedonic value. We could not analyze the program for tourism information service extensively, and used only questionnaires from Chinese students in Korea. In the future, there should be research on the programs for a tourism information service. We expect to study the MTIS program in greater detail, and to improve the quality and reputation of MTIS through the analysis of its program. We hope that this research will allow an evaluation of the relationship between Korea and China regarding MTIS.
Abstract
Purpose - A business ecosystem refers to mutually dependent systems interconnected by a loose foundation of various ecosystem members such as customers, suppliers, partners, and other stakeholders. The ecosystem-based strategy attempts to achieve competitive advantage for firms by enriching a business ecosystem or building a sustainable business ecosystem through the collaboration and co-evolution of its members. A sustainable business ecosystem is a source of competitiveness for firms anda manageable resource for gaining a competitive advantage. Customers represent the core membership of the business ecosystem and play a pivotal role in building a sustainable business ecosystem. This study examines the effects of customer participation on economic and social value in the business ecosystem and suggests a course of action for building a sustainable business ecosystem. Research design, data, and methodology - Two business cases of South Korea are selected from two different business types: business-to-business (B2B) and business-to-customer (B2C) firms. Business ecosystems for B2B and B2C firms reflect contrasting characteristics. Data was collected from in-depth interviews with four representatives of four firms. Results - The study suggested seven propositions for the relationships between customer participation and a sustainable business ecosystem through multiple case studies based on in-depth interviews. The results reveal the following four strategic actions for building sustainable business ecosystems based on the suggested propositions: alignment, systemization, socialization, and co-evolution. Alignment refers to achieving a harmonic balance or virtuous circle among the firm's mission, investment, and value creation. Systemization refers to building and implementing management and infrastructure systems rooted in the corporate culture. Socialization of customers in the business ecosystem reinforces the harmony or virtuous cycle. Finally, co-evolution is associated with the relationship between firms and customers as buyer firms in a restricted business ecosystem. Conclusions - This study considers multiple cases for the execution of a sustainable business ecosystem in collaboration with customers and suggests seven propositions and four strategic actions. The results are based on qualitative data from interviews with business associates from two firms in an open business ecosystem and two firms in a restricted business ecosystem, both in South Korea. Our research results regarding two contrasting business ecosystems shed light on business issues and policy making in Asian business environments, which are in the transition stages from a traditional conglomerate-driven to an inclusive growth-driven economy. The business ecosystem itself should be considered a manageable resource for firms' competitive positions in the market. A customer is a member of the business ecosystem and should thus be viewed not only as a purchasing entity and an object of relationship management but also as a co-creator of value. Therefore, firms should collaborate with customers to build sustainable business ecosystems. For this, firms must create social value, which cannot be created by customers alone, within the business ecosystem. Then, customers participate in a business ecosystem and build it to be favorable to them. Implications for academics and practitioners were suggested.
Abstract
Purpose - This study investigated the effect of the negative affect on compulsive buying and the interaction effect of the negative affect depending on the level of mindfulness. Compulsive buying is defined as chronic, repetitive purchasing that becomes an overlearned and automatic way to cope with negative feelings, and compulsive buyers may be particularly susceptible to cognitive narrowing when shopping. Mindfulness may be defined as a coordinative regulatory process to increase the level of attention by recognizing the present experiences non-judgmentally. Hence, mindfulness can be related with negative psychological results such as general mental distress, especially compulsive buying. The purpose of the current study is to examine the relationship between compulsive buying and mindfulness. In another words, this study investigated the effect of the internal regulatory mechanism (that is, mindfulness) on the mental disorder resulting from negative affect in the area of consumption (that is, compulsive buying). Research design, data, and methodology - One hundred and twenty-five college students were recruited for this study. The subjects were classified into two groups according to the degree of the negative affect (High Negative Affect Group vs. Low Negative Affect Group) by the mean value of negative affect (=2.47). The subjects were classified into two other groups according to the degree of mindfulness (High Mindfulness Group vs. Low Mindfulness Group) by the mean value of mindfulness (= 3.47). To analyze the effect of negative affect on compulsive buying, the degree of compulsive buying of the High and Low Negative Affect Groups were compared. To examine the moderating effect of mindfulness by using factorial design, the interaction effect of the negative affect (High vs. Low) and the mindfulness (High vs. Low) were analyzed. Results - The degree of the compulsive buying was higher when the degree of the negative affect was higher than lower (3.06High Negative Affect Group vs. 2.87Low Negative Affect Group, p=.014). The difference in the degree of the compulsive buying was larger when the degree of the mindfulness was lower than higher. In other words, the interaction effect of the negative affect and the mindfulness on the compulsive buying could be found (F(1,124)=10.098, p<.01). Conclusions - The results of the current study showed that the compulsive buying is influenced by the negative affect and that the effect of the negative affect on the compulsive buying varies depending on the level of the mindfulness. These results can be interpreted to imply that consumers who are in a state of high mindfulness pay attention to every minute of experience and activate the coordinatory function and that, eventually, habitual and reflective responses such as compulsive buying are restricted. It is concluded that consumers' mindfulness can facilitate the self-regulatory responses and alleviate the influence of negative affect on compulsive buying. Based on these results, the theoretical and practical implications of this research were discussed and the limitations and future research areas were suggested.
Abstract
Purpose - This study reviews the achievements of a pilot project for the revitalization of a commercial district performed for three years after its establishment in 2011. The project for the revitalization of the commercial district was performed to create a new local community space in connection with the traditional market and nearby districts. Although it was a pilot project, the project for the revitalization of the commercial district has been performed for almost three years. Therefore, this seems a proper time to conduct an interim evaluation of the project. This study aims to review and evaluate how the government support policy is influential for the revitalization of the commercial district. In other words, this research aims to identify what projects positively affected consumers' intention to revisit the downtown commercial area among the commercial district revitalization projects-promotion events, promotion activities, education, merchants cooperation system, IT projects, cultural events, and residents' communication. Research design, data, and methodology - This study designated seven management improvement projects affecting commercial district revitalization based on preceding studies. The survey of the degree of satisfaction on seven management improvement projects was executed targeting consumers who visited the commercial areas. Additionally, visitors' revisit intentions regarding currently visited commercial areas were also investigated. Therefore, revisit intention was set as a dependent variable and the satisfaction degrees of the respective management improvement projects were set as the independent variables. A total of 1,209 consumers were examined in six districts in the country. Result - Multiple regression analysis results showed that cultural events, education, the merchants' cooperation system, and IT projects brought statistically significant effects to the revisit intentions of consumers. In contrast, promotion events, resident communication projects, and promotion activities did not affect the revisit intentions of consumers. Particularly, the residents' communication project did not show significant influence because of consumers' recognition that it is similar to a cultural event. Conclusion - The following implications for the revitalization of business districts in the urban central area are drawn. From a general perspective, the businesses of culture, education, and cooperative system among seven businesses play positive roles regarding the intention to revisit so that the project is required to be promoted periodically through unique performances differentiated for each district, the merchant training reinforced for professionalism, and the expansion of joint events of merchants. Moreover, the sales promotion project and public relations activity are shown to be not influential to the intention to revisit. Therefore, while short-term sales promotion such as one-time gift events are required, sales promotion and public relation activities to induce revisits by mileage savings and accumulated gift presentation to attract long-term customers are required. The IT business is positively influential to the intention of revisit. Therefore, detailed information on the revitalized commercial district should be provided and additional functions such as discount coupons for continuous utilization should be included in the mobile app and the website.
Abstract
Purpose - Due to the recent slowdown of growth in global luxury brands, which have been an engine of our domestic fashion market growth, there is an increasing need to develop a global market for domestic high-priced fashion brands. In spite of the large scale of trade between Korea and China with respect to fashion products, current trade concentrates on middle- and low-priced products rather than high-priced products. Diversification of the trade between Korea and China in terms of the price levels of trade products is needed. An understanding of Chinese consumption values and purchase intentions for luxury fashion brands will be very helpful for the establishment of strategies with the aim of increasing the level of trade with regard to high-priced fashion products. Therefore, the study aimed to identify the differences in the clothing consumption values of South Korean and Chinese women in their 20s, especially with reference to how those values affect their preference and purchase intention for luxury fashion brands. Research design, data, methodology - The study was implemented through a descriptive survey method using a self-administered questionnaire. The sample consisted of 283 Korean and 306 Chinese women in their 20s, residing in Seoul, Beijing, Guangzhou, and Shanghai. Data were collected from March 3 to 15, 2014. A total of 589 completed responses were analyzed. Data were analyzed by factor analysis, t-test, and multiple regression analysis. Results - Fivefactors for clothing consumption values were formulated: conspicuous/social value, fashionability value, personality expression value, hedonic value, and practical value. There were significant differences between Korean and Chinese consumers in clothing consumption values (except social value), preference, and purchase intention for luxury fashion brands. With regard to clothing consumption values, Chinese women attached more importance to fashionability value, personality expression value, hedonic value, and practical value than South Korean women. In addition, Chinese women's preference and purchase intention for luxury fashion brands were higher than South Korean women's. Second, in the case of South Korean women, social value, practical value, and fashionability value had positive effects on preferences for luxury fashion brands, while attractive/personality expression value and hedonic value had no influence. In contrast, in the case of Chinese women, social value and fashionability value had positive effects on preference for the luxury fashion brands. Third, in the case of South Korean women, social value and practical value had positive effects on purchase intentions for luxury fashion brands. In contrast, in the case of Chinese women, social value, personality expression value, and fashionability value had positive effects on purchase intention for luxury fashion brands. Conclusions - Considering the findings of the study, it is clear that differentiated marketing strategies are needed for luxury fashion brand markets in Korea and China. The results of the study could provide useful information that will help increase the effectiveness of luxury fashion brand marketing strategies in Korea and China.
Abstract
Purpose - Franchise industries are significant both socially and economically. However, with increasing interest, there are manifold problems. It is necessary to seek measures for mature operation constantly despite unprepared franchisors, negative perceptions of the media and society toward franchise, and rapid changes in business start-up trends and propensity to consume that make business start-ups difficult. The paper aims to explain the effects of relational commitment and performance on the franchisor's management characteristics and justice in the food service franchise system. Research design, data, and methodology - This is an exploratory survey examining franchising in Korea. Based on a literature synthesis, we extract five constructs: managerial characteristics, support, fairness, trust, and satisfaction. We hypothesize that these factors influence the trust, satisfaction, and performance of franchisees. To examine these hypotheses empirically, we conducted a survey on the database of the Franchising Council of Korea. The study employs data from May to September 2014. In total, 135 completed questionnaires were received, of which 128 were usable. The data was analyzed with SPSS/PC 22.0. First, to test unidimensionality and nomological validity of the measures of each construct, we employed a scale refinement procedure. The result of a reliability test with Cronbach's α and factor analysis warranted unidimensionality of the measures for each construct. In addition, nomological validity of the measures was warranted from the result of the correlation and regression analysis. By analyzing the data, we can confirm most hypotheses. Results - Frist, franchisor characteristics have a positive effect on trust and satisfaction. Second, franchisor fairness has an effect on trust and satisfaction. Third, franchisor support has an effect on satisfaction. Further, the franchisee trust has an effect on satisfaction. Fourth, the satisfaction of a franchisee with a franchisor affects the performance of a franchisee. Finally, there is a possibility that not only franchisee performance but also increasing the credibility and improving the image of the franchisor through communication between franchisor and franchisee can improve franchisees' performance and satisfaction by motivating the franchisee for sustainable growth. Franchisers should endeavor for franchisees to obtain stable revenue with continuous and practical support. They should recognize that they can expand their business by supporting their franchisees. Franchisors should not only instantly respond to franchisees' troubles with interactive communications but also raise the ability of supervisors for better support. Franchisors should share their visions and goals with their franchisees and provide systematic and continuous support based on trust and clear company management. Franchisees should understand franchisors' position as well as participate in establishing the basic franchise system. Contributions - The paper contributes to understanding franchising in Korea. It offers insights and assistance to franchisors hoping to start franchises. This paper explores measurement issues related to franchisee performance by estimating its determinant factors (managerial characteristics, support, fairness, trust, and satisfaction). This study provides franchisors and practitioners planning to extend their franchising business with some practical knowledge.