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Vol.11 No.1

JANG, Hae-Jin ; WOO, Sung-Keun ; LEE, Yong-Ki pp.7-17 https://doi.org/https://doi.org/10.21871/kjfm.2020.3.11.1.7
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Abstract

Purpose - As the competition in the foodservice franchise industry and the market becomes fierce and the entry barrier is lowered, the foodservice franchisor and franchisees strive to increase their competitive advantage in the market. Therefore, the franchisor and franchisees use experience management strategies to enhance the positive experiences of customers visiting the stores. In this regard, this study examines the effects of customer-oriented activities (physical-, social-, health-, and service-oriented activities) on utilitarian and hedonic values, and loyalty using stimulus-organism-response (S-O-R) model and value-expectancy theory. Research design, data, methodology - The data were collected from panels of online survey company, who visited a foodservice franchisee within last month. The survey was conducted for about 15 days from March 7, 2019 to March 21, 2019, and about 3,500 e-mails and messages were distributed to ask for the survey. A total 412 responded and completed the questionnaires. Of the 412 completed questionaires, 12 were discarded due to missing and misinformation data and 400 were retained for further data analysis. Results --The results showed that social oriented activities, health oriented activities, and service oriented activities had positive effects on hedonic value, while physical oriented activities did not have a significant effect on hedonic value. Health oriented activities and service oriented activities had positive effects on utilitarian value, while physical oriented activities and social oriented activities had no significant effects on utilitarian value. Hedonic and utilitarian values also have a positive effect on loyalty. Conclusions - First, food service franchises should provide services and menus in consideration of the health of customers. When a customer visits the store, franchisee should provide more health-oriented food or materials and clean and comfortable conditions so as not to threaten the health of the customer. Second, the food service franchise must build a service-oriented system. Foodservice franchisor need to provide continuous service training not only to the franchisees, but also to the employees of the franchisees. Third, franchise should design a store where customers can form social exchanges through providing various information exchange to customers and making the store as a local community center.

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Abstract

Purpose - To understand the assessment basis of customers' coffee shop experience and give more practical advices to the franchised coffee shops which are poorly managed in the competitive market, this study identified factors to measure the quality of customer experience and explored the relationship between these factors and customer satisfaction and loyalty. Further, this study analyzed which role self-efficacy played in the structural relationship between the quality assessment factors, satisfaction and loyalty of franchised coffee shops. Research design, data, methodology - The data were collected from respondents who had visited franchised coffee shops within the previous month through online survey. The questionnaires were surveyed from February 11 to February 14, 2019. A total of 318 responses were collected after excluding four of incomplete or uncandid responses. A structural equation modeling approach was used to examine the proposed hypothesis and a confirmatory factor analysis was employed to verify the four dimensions of quality assessment. Results - The findings of this study are as follows. First, the three of quality assessment variables significantly influenced on satisfaction except environmental quality. Second, economic and service quality significantly influenced on self-efficacy but environmental and menu quality didn't. Third, satisfaction significantly influenced on loyalty but not on self-efficacy. Fourth, self-efficacy significantly influenced on Loyalty. Conclusions - This study identified the four dimensions to assess the franchised coffee shop service - menu, environment, service and economic quality and verified these four dimensions are valid as indicators to measure the quality of customers' coffee shop experience. Further, by empirically testing the structural relationships among these quality assessment dimensions, satisfaction, self-efficacy and loyalty, this study provided theoretical foundations to explore the relationship between customer and the franchised stores in restaurant businesses. For the industry, the study findings showed that customers highly appreciated menu and economic quality of the service rather than the stores' interior. This indicate that the franchised coffee shops need to focus more on the basics of coffee such as taste and menu variety and economic value than the decoration of the store, which are often over-invested nowadays.

Roh, Hyun-Sik ; Lee, Sung-Ho ; Kim, Sung-Hoon pp.31-44 https://doi.org/https://doi.org/10.21871/kjfm.2020.3.11.1.31
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Abstract

Purpose: The baby boomers and the millennials, who make up the largest share of the market, are showing the gap in their differentiated cultural styles. The purpose of this study is to study the consumption propensity and purchasing determinants of the baby boomers generation and the millennials generation, which have become a very important key pillar in shaping the market based on the cultural dimension model theory of h(=>H)opstead, and to identify the difference Research design, data, and methodology: In order to verify the research hypotheses, The data was collected from the baby boomers and the millennials using online questionnaires. The pre-test was conducted from October 10 to 12, 2019, and the main survey was conducted from October 15 to 25. A total of 230 copies were recalled, and the final 219 copies were used for the final analysis. Results: The consumption propensity between the baby boomers and the millennials differed in resource saving purchase propensity and impulse buying propensity. The baby boomers showed higher resource saving purchase propensity than the millennials, while the millennials showed higher impulse buying propensity. There was a difference in the determinants to purchasing only in the evaluation factor. Results of gender differences by generation, baby boomers differed in their planned purchase propensity, and women were higher. The millennials generation differed in resource saving purchase propensity and awareness propensity for others, all higher in men. In determinants to purchasing, the baby boomers did not differ in gender, and the millennials did differ in product factors. A canonical correlations analysis of the relationship between the baby boomers and the millennials showed a significant relationship between consumption propensity and determinants to purchasing. Also, the baby boomer generation has the biggest link between impulse buying propensity and evaluation factor. The millennials generation showed the biggest link between resource saving purchase and product factors. Conclusions: This study compared consumption propensity and determinants to purchasing of baby boomers and millennials on the basis of Hopstead's cultural dimension model theory to identify differences between generations, presenting practical and theoretical implications for establishing a correct understanding and specific marketing strategy among generation.

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Abstract

Propose: The expansion of the delivery market in franchise business is a positive means of advertising and promotion for franchisees and contributes to substantial sales growth for stores. However, unrestricted and uncontrolled delivery sales and business activity of franchisee directly lead to encroachment of business territory between franchisees, resulting in increased operating costs of franchisees and conflicts between franchisees over rights and interests on franchise business. Moreover, in relation to the restrictions on the opening of competitors, it is incapacitating the law intent of prohibiting unfair encroachment of business territory, in the issue of the Fair Franchise Act in regard to guarantee of exclusive sales and business activity rights of franchisee. This study aims to point out major problems arising out of franchisee's infinite competition on delivery sales and business activity that are not restricted or controlled and then suggest legal supplements, policy tasks, and practical implications for improvement on the issues. Literature Review: In franchising business transactions, vertical restraints are associated with the exclusive territory establishment, control of transaction area, restriction of intangible sales and business activity of franchisee. Therefore, in the franchise business, it is necessary to take positive interpretation and application on e-commerce, the area of e-commerce, and delivery trading area and find proper and practical ways, by virtue of constructive attitude of each actor, to reduce the encroachment of business territory and various conflicts caused by unrestricted delivery trading area. Conclusion and suggestion: The finding shows that unrestricted or uncontrolled delivery sales and business activity of franchisees cause encroachment of business territory and many conflicts among franchisees. And this matters also weaken the legislation of the law on the protection of the business territory and can be negative factors that disrupt the protection of identity and sound development of the franchise industry in the long run. Therefore, in the franchise business, it is necessary to take positive interpretation and application on e-commerce, the area of e-commerce, and delivery trading area and find proper and practical ways, by virtue of constructive attitude of each actor, to reduce the encroachment of business territory and various conflicts caused by unrestricted delivery trading area.

The Korean Journal of Franchise Management