- Apply for Authority
- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS
ISSN : 1738-3110
Effects of the Support and Control of Franchisors on Franchisees' Satisfaction and Response Strategies
Yu, Jong-Pil
- Downloaded
- Viewed
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, χ<sup>2</sup> = 447.663(df = 212, p = .000), χ<sup>2</sup>/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.
- keywords
- Franchise, Performance, Expectation Disconfirmation, Response Strategies
Reference
Anderson, J. C., & Narus, J. A. (1984). A Model of the Distributor’s Perspective of Distributor-Manufacturer Working Relationships. Journal of Marketing, 48(4), 62-74.
Anderson, R. E. (1973). Consumer Dissatisfaction: The Effect of Disconfirmed Expectancy on Perceived Product Performance. Journal of Marketing Research, 10(1), 38-44.
Bearden, W. O., & Teel, J. E. (1983). Selected determinants of consumer satisfaction and employee responses. Journal of Marketing Research, 20(1), 69-82.
Cadotte, E. R., Woodruff, R. B., & Jenkins, R. L. (1987). Expectation and Norms in Models of Consumer Satisfaction. Journal of Marketing Research, 24(3), 305-314.
Chung Hyun-Young (2007). Influences of Franchise Contract Factors to Franchise Contract Satisfaction in Hospitality Service Industry. The Korea Contents Association, 7(7), 124-132.
Churchill, G. A., & Suprenant, C. (1982). An Investigation Into the Determinants of Consumer Satisfaction. Journal of Marketing Research, 19(4), 491-504.
Dalton, D. R., Todor, W. D., Spendolini, M. J., Fielding, G. J., & Porter, L. W. (1980). Organization Structure and Performance : A Criticai Review. The Academy of Management Review, 5(1), 49-64.
David, C., Fishburn, C.S., Monsma, F.J., Jr., Sibley, D.R., & Fuchs, S.(1993). Synthesis and processing of D2 dopamine receptors. Biochem, 32, 8179-8183.
Day, R. L. (1984). Modeling choices among alternative responses to dissatis faction. Advances in Consumer Research, 11, 496-499.
Engel, J.F., & Blackwell, R.D. (1982). Consumer Behavior (4th ed.). New York: Holt, Rinehart and Winston.
Felstead, A. (1993). The Corporate Paradox : Power and Control in the Business Franchise. London UK :Routledge.
Farrell, D. (1983). Exit, Voice, Loyalty, and Neglect as Reponses to Job Dissatisfaction : A Multidimensional Scaling Study. The Academy of Management Journal, 26(4), 596-607.
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50.
Gassenheimer, J. B., Baucus, D. B., & Baucus, M. S. (1996). Cooperative Arrangements among Entrepreneurs : An Analysis of Opportunism and Communication in Franchise Structures. Journal of Business Research, 36(1), 67-79.
Geyskens, I., & Steenkamp, J. B. E. M. (2000). Economic and Social Satisfaction: Measurement and Relevance to Marketing Channel Relationships. Journal of Retailing, 76(1), 11-32.
Goodman, L. E., & Paul, A. D. (2001). The Determinants of Commitment in the Distributor-Manufacturer Relationship. Industrial Marketing Management, 30(3), 287-300.
Howard, J. A., and Sheth, J. N. (1969). The Theory of Buyer Behavior. New York: John Wiley and Sons.
Hirschman, A. O. (1970). Exit, voice, and loyalty: Responses to decline in firms, organizations and states. Cambridge, MA: Harvard University Press.
Huh, Yeong-Uk, and Ju, Mal-Chan (2014). Effects of Core Competence and Resource Sharing on the Relational Bond among Franchisees and on Re-contract Intention in the Franchising Parent Companies, The Journal of Distribution Science, 12(4), 11-22.
Hunt, Keith H. (1977). CS/D-Overview and Future Directions. in H. Keith Hunt (ed.), Conceptualization and Measurement of Consumer Satisfaction and Dissatisfaction (pp455-488), Cambridge, MA : Marketing Science Institute.
Hwang, Chun-Gi (2006). Effects of Korean franchise business strategies upon management Performance. Seongnam, Korea : Thesis for Doctorate in Kyungwon University.
Hirschman, A. O. (1970). Exit, voice, and loyalty: Responses to decline in firms, organizations and states. Cambridge, MA: Harvard University Press.
Khan, M. A. (1999). Restaurant Franchising (2nd edition). New York: John Wiley & Sons, inc.
Kim, Hwan-Gi (2009). A study on effects of restaurant franchisor's control and support upon management Performance of franchisees. Research on Korean Resorts, 8(1), 75-89.
Kim, Gyeong-Hyeon (2010). A study on effects of restaurant franchisor's control and support upon conflicts and franchisees'recontracting intention. Anyang, Korea : Thesis for Doctorate in Anyang University.
Kim, Young Kyu, and Min, Yong Ki (2006). Effect of Influential Power and Support Activities on the Channel Conflict and Franchisee Perfomance in a Business Format Franchise System. Tourism Research, 303-316.
Kwak, Dong-seong, and Kim, Gyu-dong (1997). A study on variables having influence upon formation of consumer satisfaction, focused on concept of product rating at high involvement. Research on Marketing, 12(1), 188-206
La Londe, B. J., and Zinszer, P. H. (1976). Customer Service :Meaning and Measurement. Chicago, IL : National Council of Physical Distribution Management.
Lee, Yu-jae (1997). A study on difference between product and services at formation of customer satisfaction. Research upon consumer science, 8(1), 101-108.
Lee, Ja-Hyeong (2005). Effects of restaurant franchisor's control and support upon keeping of identity. Seongnam, Korea : Thesis for Doctorate in Kyungwon University.
Lee, Jae-rok, Park, So-yeon, & Lim, Ji-hun (2002). A study upon structural relations of consumer satisfaction, dissatisfaction and antecedent variables. Research on advertising science, 13(3), 187-208.
Lee, Hak-sik, Lim, Ji-hun (2001). Structural relations among consumption emotion, satisfaction and attitudes toward the product. Research on business administration science, 30(4), 1115-1142.
Lee, Seon-Ik, and Kim, Eui-kun(2007). The Influence of Franchisor's Support of Foodservice Franchising on Trust, Relational Bonding, Commitment and Performance of Franchisee. The Korea Academic Society of Tourism and Leisure, 22(4), 152-169.
Lewis, M. C., and Lambert, D. M. (1991). A Model of Channel Member Performance, Dependence and Satisfaction. Journal of Retailing, 67(2), 205-225.
Luis Vaquez, L. (2008). The Choice of Control Devices in Franchise Chains. The Service Industries Journal, 28(9), 1277-1291.
National Competitiveness Council(2009). Franchise Industry Revitalization and Improvement of anti-competitive entry regulation. Retrieved September 30, 2013, from http://blog.naver.com/pcnc2287
Naus, F., Iterson, A., and Robert, R. (2007). Organizational Cynicism : Extending the Exit, Voice, Loyalty and Neglect Model of Employees’ Responses to Adverse Conditions in the Workplace. Human Relations, 60(5), 683-718.
O'Neil, B. F., and Inverson, J. L. (1991). An Operational Procedure for Prioritizing Customer Service Elements. Journal of Business Logistics, 12(2), 157-191.
Oliver, R. L. (1980). A Cognitive Model of the Antecedents and Consquenses of Satisfaction Decisions. Journal of Marketing Research, 17(4), 460-469.
Oliver, R. L. (1981). Measurement and Evaluation of Satisfaction Process in Retail Setting. Journal of Retailing, 57(3), 25-48.
Oliver, R. L., and DeSarbo, W. S. (1988). Response Determinants in Satisfaction Judgements. Journal of Consumer Research, 14(4), 495-507.
Olshavsky, R. W., and Miller, J. A. (1972). Consumer Expectations, Product Performance, and Perceived Product Quality. Journal of Marketing Research, 9(1), 19-21.
Park, Ju-Young, Roh, Ki-yup, & Kim, Hyun-Soon(2009), Principles of Franchise Business, Seoul, Korea:Hakhyeonsa.
Park, Ju-hyeon, & Jang, Jae-nam (2004). Franchise management theory. Seoul, Korea: Global.
Quinn, B. (1999). Control and Support in an International Franchise Network. International Marketing Review, 16(4), 345-362.
Robbins, S. P., and T. A. Judge (2011). Organizational Behavior (13th ed). NJ: Prentice Hall.
Rusbult, C. E., Zembrodt, I. M., and Gunn, L. K. (1982). Exit, Voice, Loyalty, and Neglect : Responses to Dissatisfaction in Romantic Involvements. Journal of Personality and Social Psychology, 43(6), 1230-1242.
Spreng, R. A., MacKenzie, S. B., & Olshavsky, R. W. (1996). A reexamination of the determinants of consumer satisfaction. Journal of Marketing, 60(3), 15-32.
Stern, L. W., and El-Ansary, A. I. (1988), Marketing Channels. Englewood Cliffs, NJ: Prentice-Hall.
Stock, J., and Lambert, D. (2000), Strategic Logistic Manageme. New York, NY: McGraw-Hill.
Tse, D. K., & Wilton, P. C. (1988). Models of consumer satisfaction formation: An extension. Journal of Marketing Research, 25(2), 204-212.
Yu, Jong-pil (2012), Concept and understanding on structural equation modeling, Seoul, Korea: Hannarae Academy.
Westbrook, R. A., & Reilly, M. D. (1983). Value-percept disparity : an alternative to the disconfirmation of expectations theory of consumer satisfaction. Advances in Consumer Research, 10, 256-261.
Yi, Y. J. (1990). A Critical Review of Consumer Satisfaction. Review of Marketing, 68, 40-48.
Yun, Seon-hui (1998). Franchise contract. Creation and rights, 10, 17-57.
Yun, Ji-Hwan, and Lee, Ja-hyeong (2004). Franchise cost structure strategy for promotion of restaurant franchise competitiveness. Research on restaurant management, 7(2), 83-99.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations