- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
Vol.12 No.8
Abstract
Purpose - The method of TV home shopping is a kind of retail method that provides the viewer with information about products and, further, sells the products to consumers through the media of television. The domestic home-shopping industry has been expanding since 1995, and there are six companies in this arena as of 2012. In this study, we evaluate the management efficiency of TV home-shopping companies and provide suggestions for improving efficiency, using the DEA (data envelopment analysis) model. Hence, we expect to contribute to the progress of the companies’ efficiency and the development of the TV home-shopping industry, where deepening competition is inevitable because it is experiencing the maturing market stage in its life cycle. Research design, data, and methodology - Efficiency is the ratio of the quantity of input to the quantity of output of a product or service. It is necessary to estimate aggregate inputs and aggregate outputs, which are calculated by applying a weighting to a number of input and output factors, to measure the efficiency. The DEA model is divided into the CCR model and the BCC model. The CCR model is a basic model that assumed constant returns to scale (CRS), and the BCC model extends the CCR model to accommodate technologies exhibiting variable returns to scale (VRS), and concerns only the technical efficiency without considering the efficiency of returns to scale. In this study, we consider six companies each year from 2008 to 2012 as a DMU (Decision Making Unit) and analyze the differences in efficiency for each company in each year. Furthermore, we evaluate the operating characteristics of TV home-shopping companies, using three models, in accordance with the overall performance, profitability, and marketability of the business. Results - The result of the analysis, using DEA models, shows that Hyundai Home Shopping (2009, 2010, 2011), GS Home Shopping (2011), NS Home Shopping (2011) and CJ O Shopping (2012) possess MPSS (most productive scale size), with a score 1.0 in CCR, BCC, and scale efficiency. Particularly, Hyundai Home Shopping is shown to be the most efficient in terms of overall business performance, marketability, and profitability. The overall efficiency of the home shopping industry has displayed an increasing trend since 2008, even though it decreased marginally in 2012; further, we can observe that home shopping companies operate with increasing efficiency with the passage of time. Conclusions - Home shopping companies have focused on market expansion rather than profits, as they displayed better efficiency in marketability than increase in profitability during the period 2008-2012. In addition, the main reason for the increased efficiency in the home shopping industry is the market expansion through the revenue increase of each home shopping company. This study can be used as a reference when home shopping companies attempt to devise future strategies, as it suggests efficiency benchmarks and development levels for each home shopping company.
Abstract
Purpose - The use of corporate social activities to implement the concept of corporate social responsibility enhances brand equity and attitude, and strengthens economic competitiveness. In areas such as mobile communications, companies take the responsibility of protecting customers and enhance the quality of the mobile communication service, helping to make an effort to obey the regulations of the public trade order and fair trade agreement, enabling a healthy society through communication with elderly living alone or youths without parents, and enhancing marketing strategies. Research design, data, and methodology - To test the hypothesis, a survey was conducted. The surveyed population includes people who use the big three mobile communication services. The survey was conducted from October 4th to October 14th, 2013. A total of 500 survey questionnaires were circulated and 483 were collected; out of these, 32 were excluded due to missing or incomprehensible information. The data was analyzed with SPSS 18.0 via frequency analysis, trust analysis, search factor analysis, relationship analysis, confirmation factor analysis using AMOS 18.0, and structural equation model analysis. Results - Research on corporate social responsibility has been frequently conducted recently. Companies are perceived as social constituents satisfying the social desires of people in addition to customer needs. Further, companies are returning profits to society to satisfy community needs, because there is greater emphasis on the social responsibilities of companies. Companies’ social responsibilities should include marketing strategies and the identification of customer needs. This study shows that social service activities influence brand value, which influences customer attitudes; therefore, social service activities indirectly influence customer attitudes. In order to increase customers' purchasing intention, it is essential to improve brand image via social services and provide a distinctive quality of service. Conclusions - This research has used the purposive selection method in the empirical analysis to identify the effect of social services on brand value and customer attitude. Therefore, this study revealed that businesses, whose ultimate objective is to improve customers’ purchasing intention, should promote their brand equity through corporate social responsibility activities and offer a distinct service quality. Limitations in the progress of research were found and future indications to overcome these limitations are suggested as follows. First, survey responders had a limited understanding of social responsibilities; therefore, this concept needs to be explained to people first. Second, the research was done on people who live in Daejeon; thus, it is not representative of the entire country. The research has to be repeated with people in other cities. Third, there is a limitation in the study because the purposive selection method was used on Daejeon customers. In the future, a more precise selection of the population is needed. Fourth, Daejeon has unique geographical and size characteristics. Thus, customers in Seoul and other areas may display different characteristics and research on them may reveal different findings. Therefore, again, this study has to be repeated in other areas.
Abstract
Purpose - Recently, a variety of activities for practicing the continuing management of domestic and foreign companies have been conducted and further, corporate social responsibility for maximizing the value of stakeholders such as customers, cooperative companies, and the local community emerges as a key business strategy. Accordingly, the issue of whether corporate image and customer value through corporate social responsibility activities positively affect customer loyalty and customer attitude is investigated in this study. Research design, data, and methodology - Corporate social responsibility activities are classified into legal and moral activities, environmental protection activities, economic activities, and community service activities; further, customer values are classified into emotional value, functional value, and social value, to determine the parameters. In addition, the strategic approach direction of social responsibility activities is justified as a strategy for effectively achieving the expected results that corporations seek by proving the effect of these parameters on customer loyalty. Results - The study results can be summarized as follows. First, legal and moral activities, environmental protection activities, economic activities, and community service activities are four types of CSR activities affecting meaningful improvements in corporate image. Second, legal and moral activities affect factors that meaningfully improve customer value, including factors such as emotional value, functional value, and social value, while environmental protection activities affect improvements in the factor of social value only. Third, corporate image affects meaningful improvements in customer value. Fourth, corporate image affects improvements in customer loyalty positively. Fifth, the three factors of customer value, that is, emotional value, functional value, and social value affect meaningful improvements in customer loyalty. Sixth, customer value acts to partly mediate the effect of companies’ CSR activities on customer loyalty. As shown in the study results above, it was verified that CSR activities affect meaningful improvements in corporate image and customer value and, in turn, corporate image and customer value affect meaningful improvements in customer loyalty. In addition, it was verified that customer value acts to partly mediate the effects of companies’ CSR activities on customer value. Conclusions - Accordingly, the results of this study suggests as follows. First, it was clearly verified that customers’ recognition of CSR efforts has a positive effect on corporate image, customer value, and loyalty because CSR activities improve the relationships between customers and corporations by providing customers with value. Second, it was suggested that corporations implement social contribution activities strategically according to the theory that the higher the rate of CSR activities, the better the corporate image and repurchase intention would be, which is a theory verified through practical analysis. Corporations should do this by constructing positive relationships from the value perceived by customers. To summarize the study results in a brief manner, it is suggested by the results of the study that a corporation should conduct CSR more actively to make customers recognize the positive image of their products and services.
Abstract
Purpose - This study was based on a theoretical consideration of the structural relationship between the support and control of the franchisor and the satisfaction and strategic response (voice, loyalty, exit, neglect) of the franchisee. First, based on the preceding research, this study systematically organized the type of support and control of the franchisor. Second, the study examined the effects of a franchisor's support and control on the expectancy disconfirmation between affiliated franchisees' expectations before a franchise agreement and performance after operating an affiliated store. Third, the study looked into the effects of expectancy disconfirmation relating to a franchisor's support and control on an affiliated franchisees' general satisfaction. Fourth, this study examined the influence of the general satisfaction of a franchisee on affiliated franchisees' response strategies. Research design, data, and methodology - In this study, the population comprised the nation’s franchisors, and the sample comprised franchisees conducting business in Seoul and Gyeonggi-do. A self-administered questionnaire was used; the author and examiner explained the study’s parameters to the interviewees in advance, to lessen the rate of rejection of the answers and to maintain reliability. The author distributed 350 copies of the questionnaire and collected 327 copies (93.4%). The author removed 54 copies of the sample, as these copies belonged to franchisees that were not registered by the Fair Trade Commission and/or were thought to have either defects or inadequate answers. The author selected an effective sample of 273 copies to enter data and to do the statistical analysis. Results - Both a reliability analysis and a confirmatory factor analysis were performed to measure reliability and validity, and a structural equation model was used to conduct the hypothesis test and investigate the models. The hypothesis was tested (Table 5). The models had a suitable fit, for instance, = 447.663(df = 212, p = .000), /df = 2.112, GFI = .881, AGFI = .858, RMR = .083, RMSEA = .067, NFI = .932, and CFI = .961. The hypothesis test results were as follows. Hypothesis 1 was accepted (C.R. = -2.339, p = .019). Hypothesis 2 was accepted (C.R. = 15.213, p = .000). Hypothesis 3 was accepted (C.R. = -2.631, p = .006). Hypothesis 4 was accepted (C.R. = 16.271, p = .000). Hypothesis 5 was accepted (C.R. = 2.391, p = .017). Hypothesis 6 was accepted (C.R. = 5.777, p = .000). Hypothesis 7 was accepted (C.R. = 17.153, p = .000). Hypothesis 8 was accepted (C.R. = 24.746, p = .000). Hypothesis 9 was accepted (C.R. = -10.150, p = .000). Hypothesis 10 was accepted (C.R. = -12.124, p = .000). Conclusions - The research results showed that expectations for a franchisor's support and control had a significant influence on expectation disconfirmation in a negative way, whereas the performance of support and control were found to have a significant influence on expectation disconfirmation in a positive way. In addition, the expectation disconfirmation of support and control was found to have a significant influence on satisfaction of franchisees in a positive way. Generally, regarding the research on control, control is found to have a negative influence on the satisfaction of franchisees, but this study proves that control is found to affect it in a positive way through conformity.
Abstract
Purpose - Despite the importance of price, many companies do not implement pricing policies smoothly, because typical price management strategies insufficiently consider logistics efficiency and an increase in logistics costs due to logistics waste. This study attempts to examine the effect of product line pricing, which corresponds to product mix pricing, on logistics efficiency in the case of manufacturer A, and analyzes how logistics performance changes in response to these variables. Research design, data, and methodology - This study, based on the case of manufacturer A, involved research through understanding the current status, analyses, and then proposing improvement measures. Among all the products of manufacturer A, product group B was selected as the research object, and its distribution channel and line pricing were examined. As a result of simulation, for products with low loading efficiency, improvement measures such as changing the number of bags in the box were suggested, and a quantitative analysis was conducted on how these measures influence logistics costs. The TOPS program was used for the Pallet loading efficiency simulation tool in this study. To prevent products from protruding out of the pallet, the maximum measurement was set as 0.0mm, and loading efficiency was based on the pallet area, and not volume. In other words, its size (length x width) was focused upon, following the purpose of this study and, then, the results were obtained. Results - As a result of the loading efficiency simulation, when the number of bags in the box was changed for 36 products with low average loading efficiency of 73.7%, as shown in <Table 11>, loading efficiency improved to 89.9%. Further, from calculating logistics cost based on the cost calculation standard of manufacturer A, the amount of annual logistics cost reduction amounted to 101,458,084 KRW. Given that the sum of the logistics cost of the product group B of manufacturing enterprises A is 400,340,850 KRW, it can be reduced by 25%, to 298,882,766 KRW. Although many methods improve loading efficiency, this study proved that logistics cost could be reduced by changing the number of bags within boxes. If this measure is applied to other items, visible logistics cost reduction effects will be realized through improvements in loading efficiency. Conclusions - Future pricing policies should consider their correlation with quality, loading efficiency, product specifications, and logistics standardization to prevent logistics waste, enabling management to improve earnings for companies. Thus, when companies decide pricing policies for new products, the aspects of merchandising and marketing should take priority; however, the aspect of logistics also needs to be considered as significant. Measures revealed by the study results are not only the responsibilities of manufacturing enterprises. Pricing policy agreements between manufacturing enterprises and distribution companies, and logistics factors related to price determination should be considered; further, governments should also support them for their collaborations. This will enable consumers to purchase quality products with low prices.
Abstract
Purpose - This study is to examine the effect of environmental orientation on innovation, environmental and market performance in Korean franchise firms’ context. This study also investigates how environmental orientation, innovation and environmental performance play mediating roles between environmentalorientation and market performance. For these purposes, the authors developed a structural model which consists of severalconstructs. In the model, environmental orientation was proposedto affect innovation and environmental performance, while innovation and environmental performance influence marketperformance. Specifically, innovation and environmental performance were proposed as core mediators between franchise firms’environmental orientation and market performance. Research design, data, and methodology -Thedatawerecollected from 155 franchise firms in Korea during January 2012. The results of factor analysis with reliability test with Cronbach'swarranted unidimensionality of the measures for each construct. αIn addition, nomological validity of the measures of each construct was warranted from the result of correlation analysis. Thedata were analyzed with reliability analysis, and structural equation modeling with SPSS Win/PC 18.0 and AMOS 18.0. Results- The results of the overall model analysis appearedas follow: χ2=52.388(df=21), p=.000. GFI=.932, AGFI=.854,NFI=.964, CFI=.978, RMSEA=.099, RMR=.059. Since the resultof the overall model analysis demonstrated a good fit, we further analyzed our data. The findings can be summarized as follows: Firstly, the environmental orientation had a positive effecton innovation and environmental performance, but had not a direct effect on market performance. Secondly, innovation had a positive effect on environmental performance, but had not a direct effect on market performance. Thirdly, environmental performance had a positive effect on market performance. Conclusions- The results of this study show that, in order toachieve competitive advantages and environmental and marketperformance in turbulent market situation, franchise firms shouldemphasize internal and external environmental orientation, andput through improvements in perspective of technology, organization, and product. Consequently, this research suggests thatenvironmental orientation is a motive for franchise companies’innovation, environmental performance, and market performance. It also suggests theoretical and managerial implications, limitations, and further research directions.
Abstract
Purpose - Increasing sales of PB rice products can hinderthe growth of domestic brands of rice, notwithstanding that thegovernment is promoting domestic brands of rice. This analysisevaluated the influencing relationship among the variables of PBimage, product credibility, and purchase intention of consumerswho have never bought PB rice, to know the factors influencingconsumers’ decisions to purchase PB products. Research design, data, and methodology -PBproducts’brand image was analyzed as the factor that has a direct effecton purchase intention. The mediation effect of credibility on PBproducts is also analyzed, in terms of influencing the relationship between PB products’ brand image and purchase intention. The analysis is performed on consumers that have not purchased a PB product and consumers who have purchased PBproducts from major distributors. Data is collected through questionnaires, from 389 of responders, and the AMOS 19.0 statistics package is used as a statistical tool. Results- It is proven that brand image has direct effects onthe credibility of the product, and the credibility of product has adirect effect on purchase intention. However, it is revealed thatbrand image does not directly affect purchase intention, but that brand image indirectly affects it through the credibility of theproduct. Although the customers’ recognition about PB image islow, the result shows that PB products’ external attributes haveeffects on customers’ purchase intention relating to the PBproduct. Therefore, it is important to establish the credibility ofthe PB product more than other products in terms of marketing. Conclusions- The following are the implications of the study. First, in a rice brand promotion, the credibility of the productshould be ensured by a uniform brand image. To ensure thecredibility of a product, the RPC brand and other brands shouldbe unified, and the unified brand image should be applied toevery product. Second, the package must possess a design aswell as contents that could build consumers’ perception of product credibility. Products’ external attributes contribute to theircredibility, which leads the consumers to purchase the products,including those consumers who have never bought PB riceproducts. Therefore, the products’ credibility and sales can bereinforced by applying information about consumers’ considerations when buying the PB rice product in different colors,font sizes, and packaging designs. This study is meaningful intwo ways. First, it seeks to identify an NB revitalization strategyby exploring the purchasing behavior of customers who have noexperience in buying PB rice products. Second, the results ofprevious studies about general brands are considered and applied in this study in order toinvestigate the influencing relationship among different factors of PB products. However,this study is a consumer awareness investigation; therefore, its results onlyhave limited meaning to the relationship between brand imageand purchase intention.
Abstract
Purpose- Today, the importance of the service industry hasincreased. Social welfare businesses that follow the non-profitprinciple have neglected the distribution of the service. However,an intangible service, when produced and consumed, has asimilar service delivery system to common service distributionand social welfare. Therefore, the author has assumed the efficiency of the service delivery system of social welfare to beequivalent to the service distribution industry. Hence, variouskinds of social welfare services for the prevention of elderly suicide, from the perspective of distribution, are discussed. Studieson generational relations have thus far investigated depressionfrom parent-children conflict, and satisfaction with their lives. Studies on the relationship between family solidarity and elderlysuicide by analyzing existing social problems are rare. Thisstudy investigated the effects of family solidarity between oldparents and adult children upon elderly suicide by analyzing serious psychological and social problems. This study revealed basic measures for elderly suicide prevention through services thatcould elevate family solidarity from the perspective of social welfare service distribution. Research design, data, and methodology- The subjects were468 elderly, 65 years or older, at 18 senior welfare centers andhalls for the elderly at Seoul and Gyeonggi-do. Questionnairesurveys, excluding invalid answers, were analyzed. Conveniencesampling was used from February 5, 2014 to March 5, 2014. The findings were: First, women and those having spouses withadvanced educational backgrounds and social activities had primary solidarity such as contact solidarity, affectionate solidarity, functional solidarity (giving help), and functional solidarity(receiving help). In addition, those who had good health, from asubjective point of view, had more solidarity. Second, the elderlywho were men and single, and who had poorer educationalbackgrounds thought of suicide, lacked social activities, and hadpoor health, from a subjective point of view. Third, family solidarity between old parents and adult children had significantlynegative influence on the suicidal ideation of the elderly. Results- The study revealed the following implications. First,the preparation for old age should consider not only economicwelfare but also the psychological welfare due to the relationship with children. Second, the phenomenon of elderly suicidebecause of a lack of family solidarity could increase nationalloss and have great influence upon welfare in old age. Therefore, planning of welfare services for the elderly shouldconsider the value of relationships with children to improve thepsychological welfare of the elderly. Third, the social expensesof government-oriented support for parents should be discussedfrom the people’s point of view. Conclusions- The subjects of the study comprised the elderlyat Seoul and Gyenggi-do; therefore, it would be difficult to extrapolate the findings to all the elderly in the nation. The subjectvisited senior welfare centers as well as halls for the elderly;therefore, it would be difficult to assume that the trends wererepresentative of the elderly in the nation.
Abstract
Purpose- There have been local government systems sinceJune 1955. Many local governments have made use of festivalsfor regional public relations and the achievement ofcompetitiveness. This study analyzes effective components of local festivals. There has been extensive research in relation tovariables such as participation motivation, satisfaction level, recall intention, royalty, and recommend purpose. However, as avariable factor, attachment to the participation motivation of afestival has been overlooked along with support level to afestival. This study has added new variables named “attachmentto local society” and “support level,” which are dependentvariables. We will study the relationship of these two variables. Research design, data, and methodology- This study has devised a cause-and-effect relationship model, which deduces thatlocal residents’ participation motivation for the festival will havepositive influence on the festival support level and satisfactionlevel. We circulated questionnaires to local residents to get thedata required to prove the hypothesis. To analysis the data, weused SPSS 21.0, and accomplished basic analysis through theanalysis of frequency as well as descriptive statistical analysis. Further, we verified our measurement tools through reliabilityanalysis, and examined the research hypothesis through multipleregression analysis. Results - With regard to the festival satisfaction level, thevariables of local society attachment, festival attraction, escapingfrom the daily life, and family harmony have influence upon apositive effect (+) in this order. Among them, the variable of local society attachment has the greatest influence. However, inrespect of support level for the festival, only the variables of local society attachment and escaping from the daily life have avalid influence on the positive effect (+), and local society attachment has relatively greater influence. In addition, not onlydoes the festival satisfaction level affect the support level forthe festival in terms of positive effect, the influence is alsofar-reaching, which verifies the mediating effect. Conclusions- The result shows that the local residents’ satisfaction level with the Yudalsan Mountain Spring Flower Festivalis comparatively high, which is due to the local societyattachment. It also shows that it is difficult to create supportwithout local residents' attachment with their area. Consequently,this study insists that the Yudalsan Mountain Spring FlowerFestival should exceed its limitation as just a village-level party,in order to become a remarkable and outstanding festival, andsuggests three operational implications: macro-environmental development, task environment development, and internal operational environmental development. From the macro-environmentalperspective, the constant development of local culture and localbusiness is proposed. In the task environment perspective, anew functional development for the festival is proposed. Fromthe internal operational environmental perspective, improvementsin festival operation methods are proposed. If these weak pointsare addressed and resolved through a more detailed approach,it will be very helpful for local government systems to operatethe festival.
Abstract
Purpose- Recently, the number of corporations that practiceenvironmental and social responsibility, besides engaging in traditional profit-seeking activities, has been growing steadily, as interest in Corporate Social Responsibility (CSR) is increasing. Recent research on CSR practices has identified the relationshipbetween CSR activities and corporate value as one of the mainissues in this respect. Considering that donations constitute alarge proportion of a company's charitable activities, we considered the extent of donation expenses as a charitable activity inorder to mitigate sample selection bias. Specifically, we analyzed the impact of donation expenses on firm value, while investigating if this impact varied in response to the level of corporate governance of firms. Research design, data, and methodology-Weusednon-financial firms listed on the Korean Stock Exchange, having theirfiscal year end in December, and the sample period was2006-2013. For the dependent variable, Tobin's q was used asthe corporate value, and for the independent variable, donationswere measured as the donation-expense-to-sales ratio. Corporategovernance scores, as rated by the Korea Corporate GovernanceService, were used to measure corporate governance levels because they consider the overall aspects of governance, includingownership structure, the board of directors, and the audit mechanism of individual companies. To examine the impact of donations on a company in relation to the level of corporate governance, we estimated regression models using the interactionterms of the governance dummy and donation variables. Then, we further estimated the regression models of two sub-samplesthat were classified according to the level of corporategovernance. Similar to previous studies, the study uses variables that affect firm value, such as R&D expenditure, advertisingexpenses, EBITDA, debt-to-equity ratio, sales growth, companyage, and company size as control variables. Results - The empirical results show that firm value significantly increased in response to an increase in donationexpenses. Upon including the interaction terms of governancelevel dummy variables and donations, the coefficients of the interaction terms show significant positive values, while those ofdonation variables show significant negative values. In thestrong governance sub-sample, the relationship between thedonation expenses and corporate value was statistically positive(+) and significant. However, in the weak governance sub-sample, the relationship between the donation expenses and corporate value was statistically insignificant and negative (-). Conclusions- The empirical results suggest that donation expenses are significantly linked to an enhanced corporate value iffirms have a good corporate governance structure. However, ifthe corporate governance structure is weak, the same relationship is not necessarily observed. The results of this study showthat if a firm has high corporate governance, CSR practices enhance the company's reputation such that it has a positive (+)relationship with corporate value. If a firm has weak corporategovernance, on the other hand, CSR practices are recognizedas an agency cost and do not increase corporate value.
Abstract
Purpose- Recently, Korean companies have been strugglingto perform well in the larger smartphone market in China, whichis regarded as a blue ocean area. First, it is very important toaccurately understand the Chinese consumers, who have a different consumption culture and value system from the Koreanculture and system. This would help to identify priorities for theChinese market. Further, considering the smartphone industry,where technological change is rapid, Korean companies willneed to take prompt measures about market trends in order toestablish strong competitiveness. Consequently, this study focused on analyzing the relationship between the variables ofconsumption value, satisfaction, and loyalty in the Chinesesmartphone market. The principal dimensions of consumptionvalue, which smartphones have, was analyzed, and the influence on satisfaction was identified. Moreover, the relationshipamong the variables of satisfaction, attitudinal loyalty, and behavioral loyalty was empirically analyzed. Research design, data, and methodology- This study examined the relationships between various consumption values(functional value, emotional value, social value, epistemic value,and economic value), along with satisfaction and loyalty. Thedata were collected through a questionnaire survey that was circulated to 310 customers who were users of smartphones inChingdao and Yeontae regions in China. The survey was conducted from June 23 to August 4, 2013. A total of 301 responses to the questionnaires were collected and used for thedata analysis. Moreover, a path analysis based on Lisrel 8.54was used for the hypothesis test. Results- The variables of functional value, emotional value,social value, and epistemic value were revealed to have positive effects on satisfaction related to smartphone usage. However,the variables of monetary cost and psychological cost were notfound to have negative effects on satisfaction related to smartphone usage. Moreover, satisfaction positively influenced attitudinal loyalty related to smartphone usage, but did not have a significant influence on behavioral loyalty related to smartphoneusage. Specifically, satisfaction is essential, but not a sufficientcondition for building behavioral loyalty in relation to smartphoneusage. In addition, attitudinal loyalty positively influenced behavioral loyalty in relation to smartphone usage. Conclusions- First, this study shows that functional value,emotional value, social value, and epistemic value in relation tosmartphone usage are important for marketing in the Chinesesmartphone market. Particularly, functional value and emotionalvalue play pre-eminent roles as regards customer loyalty in theuse of smartphones. Second, the results of this study revealthat the variables of monetary cost and psychological cost arenot important to the Chinese consumers. Specifically, the smartphone price and cognitive effort are not perceived as valuebarriers. Third, satisfaction did not guarantee behavioral loyaltyin relation to smartphone usage, and the strategic approach forimproving the repurchase and referral action in relation to smartphones based on solid attitudinal loyalty would be desirable andshould be the focus of the marketing activities of Korean smartphone companies.