DOI QR코드

DOI QR Code

Effects of Independent Operator's Company Selection Attributes on Economic and Non-Economic Satisfaction, Trust, and Recommendation in the Network Marketing Industry

네트워크 마케팅 산업에서 독립 사업자의 기업 선택 속성이 경제적 및 비경제적 만족과 신뢰, 추천의도에 미치는 영향

  • Received : 2019.02.09
  • Accepted : 2019.02.28
  • Published : 2019.03.10

Abstract

Purpose - Since the opening of Korea's distribution market, the domestic network marketing market has been continuing to grow. In this context, research on network marketing independent operators, which plays the most important role in the network marketing industry, is insufficient. This study was to identify the effects of Independent Operator's Company Selection Attributions on the Economic and Non-Economic Satisfaction, Trust, and Recommendation. The results will provide strategic direction, theoretical and practical implications for companies and operators in the network marketing industry. Research design, data, and methodology - In order to verify the research hypotheses, the data were collected from Independent Operators of Network marketing industry using questionnaires. The pretest was conducted from January 8 to 19, 2018, and the main survey was conducted from February 1 to 28. A total of 210 questionnaires, of which 193 copies were collected. The data were analyzed with SPSS 21.0. and AMOS 21.0. Results - The results are as follows; product competitiveness and system competitiveness have significant effects on economic satisfaction and non-economic satisfaction. Economic and non-economic satisfaction have significant effects on business trust. Economic and non-economic satisfaction did not influence recommendation intention directly, but influence it indirectly. Business trust has a significant effect on business recommendation intention. Conclusions - After starting network marketing business as an independent operator, the competitiveness of the company is meaningless, and product competitiveness and system competitiveness are important factors for economic and non-economic satisfaction. Therefore, network marketing companies and independent operators should prioritize product competitiveness and system competitiveness between business development. The findings show that trust in the business is very important for active business Recommendation to others. Therefore, network marketing firms and independent operators need to make efforts to meet economic and non-economic satisfaction, which have a significant impact on business trust.

Keywords

References

  1. Aaker, D. A., & J. G. Myers. (1982). Advertising management (2nd ed.). NJ: Prentice-Hall.
  2. Act on Door-to-door Sales, Etc. No. 14138(2016).
  3. Amway. (2019). Terms of service. Retrieved from https://www.amway.com/
  4. Anderson, J. C., & Narus, J. A. (1990). A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54(1), 42-58. https://doi.org/10.1177/002224299005400103
  5. Atomy. (2017). Terms of service. Retrieved from http://www.atomy.com/
  6. Bae, J. E. (2009). Definition of network marketing and development in cyber space. (Master's Thesis), Ajou University. Suwon, Korea.
  7. Bae, S. W., Bae, M. H., & Kim, W. M. (2007). study on the effects of customer perceived trust in manufacturer and customer perceived justice in agencies on customer loyalty to agencies-mediating roles of customer trust in and satisfaction with agencies. Journal of Distribution Research, 12(2), 51-78.
  8. Baek, Y. J., & Yhang, W. J. (2017). The effect of low-cost coffee shop eelection attributes on customer satisfaction. Northeast Asia Tourism Research, 13(4), 115-127.
  9. Barney, J. B. (1991). Firm resources and sustained competitive advantages. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
  10. Barney, J. B., & Arikan, A. M. (2001). The resource-based view: Origins and implications. Handbook of strategic management. Oxford, UK: Blackwell.
  11. Cho, U. H. (2006). A study on the role and success strategy of the network business in korea. Journal of Professional Management, 9(1), 45-91.
  12. Cho, Y. S. (2018). The influence of a store's selection attributes on customer satisfaction and purchase intention. Journal of Korean Ophthalmic Optics Society, 23(4), 293-299. https://doi.org/10.14479/jkoos.2018.23.4.293
  13. Cho, Y. K., Seo, Y. S., & Lee C. S. (2016). A study on chinese consumer recognition of korean car makers' service quality and product competitiveness. Korea International Commerce Review, 31(4), 227-245.
  14. Chung, T. S., & Kim, Y. T. (2014). Research on the relationship among franchiser's support services, satisfaction, trust, multi-store operation, contract, recommendation. Journal of Korea Service Management Society, 15(3), 237-260. https://doi.org/10.15706/jksms.2014.15.3.009
  15. Coo, B. M., & Yeo, G. T. (2011). An empirical study on factor selection for performance improvement, relation maintenance and reinforce between franchiser and franchisee: Courier logistics franchise system in korea. Korea Logistics Review, 21(1), 31-50.
  16. Cho, Y. D. (2013). The effects of coffee shop choice attributes on customer satisfaction and customer loyalty. Korea Journal of Tourism Research. 28(5), 305-323.
  17. Doney, P. M., & Cannon, J. P. (1997). An examination of the nature of trust in buyer-seller relationships. Journal of Marketing, 61(2), 35-51. https://doi.org/10.2307/1251829
  18. Ferro, C., Padin, C., Svensson, G., & Payan, J. (2016). Trust and commitment as mediators between economic and non-economic satisfaction in manufacturer supplier relationships. Journal of Business & Industrial Marketing, 31(1), 13-23. https://doi.org/10.1108/JBIM-07-2013-0154
  19. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104
  20. Grant, R. M. (1991). The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review, 33(3), 114-135. https://doi.org/10.2307/41166664
  21. Ha, H. K., & M, J. U. (2006). Analysis of company selection factors of small package express provider. Korean Journal of Logistics, 14(2), 141-157.
  22. Hall, R. (1993), A framework linking intangible resources and capabilities to sustainable competitive advantage. Strategic Management Journal, 14(8), 607-618 https://doi.org/10.1002/smj.4250140804
  23. Han, S. L. (2013). Re-branding of members direct sales distribution and future direction. Journal of Channel and Retailing Conference Proceedings, 233-244.
  24. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: Competitiveness and globalization. Mason, IA: Cengage Learning.
  25. Hooley, G. J., Greenley, G. E., Cadogan, J. W. & Fahy, J. (2005), The performance impact of marketing resources, Journal of Business Research, 58(1), 18-27. https://doi.org/10.1016/S0148-2963(03)00109-7
  26. Hur, S. B., Chang, J. Y., & Lee, J. G. (2018). The impact of foodservice franchisee's perceived justice on cohesiveness, relationship satisfaction, and franchisee's long-term orientation. Korean Journal of Franchise Management, 9(3), 31-43.
  27. James L. R., Mulaik S. A., & Brett J. (1982). Causal analysis: Models, assumptions, and data. Newbury Park, CA: Sage Publications
  28. Jarvenpaa, S. L., Tractinsky, N., & Saarinen, L. (1999). Consumer trust in an Internet store: A cross-cultural validation. Journal of Computer-Mediated Communication, 5(2), JCMC526.
  29. Jeong, Y. M. (2003). A study on the compensation system of network marketing. Journal of Human Resource Management Research, 7, 81-102.
  30. Jacoby, J., Chestnut, R. W., & Hoyer, W. D. (1978). Psychometric characteristics of behavioral process data: Preliminary findings on validity and reliability. ACR North American Advances, 5, 546-554.
  31. Jun, S. S., & Jang, H. G. (2015). A study on the influence of choice attributes for store satisfaction, store trust and store loyalty in cellular phone store: The moderating effect of consumption patterns. Journal of Internet Electronic Commerce Research, 15(1), 55-74.
  32. Jung, J. H., & Shin, J. L. (2018). The effect of selection attributes in a hotel comparison site on customer satisfaction and behavioral intentions. Journal of Internet Electronic Commerce Research, 18(6), 105-117. https://doi.org/10.37272/JIECR.2018.12.18.6.105
  33. Jung, S. M., & Bae, G. (2018). A study on the effect of customer's choice property on satisfaction and revisit of dessert cafe according to the presence of franchise: Based on seomyun area, Busan. Culinary Science & Hospitality Research, 24(10), 96-106.
  34. Kang, C. D., & Wang, I. W. (2008). A study on the competitive advantage factors of franchisee. Journal of Channel and Retailing, 13(5), 73-90.
  35. Kim, G., Lim, E., Koh, E., Yi, S., & Jeong, S. (2017). An exploratory study on multi-level market and multi-level sellers: Focusing on social and consumer perception of multi-level marketing. Journal of Consumer Policy Studies, 48(1), 49-79. https://doi.org/10.15723/jcps.48.1.201704.49
  36. Kim H. S. (2005), A study on the current status of network marketing of korea and its development strategy. Journal of Distribution Science, 3(1), 91-111.
  37. Kim, J. H. (2007). The impact of support and dissensus on economic satisfaction, conflict, trust, and commitment in the franchise system. Journal of channel and retailing, 12(1), 33-63.
  38. Kim, J. H., & Kim M. S. (2010). Antecedents and consequences of economic/noneconomic satisfaction in channel relationships of convenience stores. Korea Research Academy of Distribution and Management Review, 13(5), 7-32.
  39. Kim, N. Y., & Kim, J. Y. (2016). A relationships among choice attributes, emotion, trust and long-term orientation associated with coffee-drinking behavior. FoodService Industry Journal, 12(4), 217-230. https://doi.org/10.22509/kfsa.2016.12.4.016
  40. Kim, M. J., & Seo, S. H. (1998). Consumer knowledge, damage and satisfaction of multi-level marketing. Family and Environment Research, 36(9), 75-91.
  41. Kim, S. M., & Youn, S. H. (2011). Consumer protection measures and regulation of multi-level marketing. Law Review, 41, 67-84.
  42. Kim, S. O. (2006). Korea Network Marketing. Seoul, Korea: Yong An Media
  43. Ko, C. S. (2004). The effect of distributor's personality on marketing strategy and performance. (Doctor's Thesis), Korea Maritime University. Busan, korea
  44. Korea Fair Trade Commission. (2018). Key information for multi-level vendors in 2017.
  45. Kotler, P. (2002). Marketing Management (The Millenium Edition). Upper Saddle River, NJ: Prentice-Hall.
  46. Kozena, M., & Chladek, T. (2012). Company competitiveness measurement depending on its size and field of activities. Procedia-Social and Behavioral Sciences, 58, 1085-1090. https://doi.org/10.1016/j.sbspro.2012.09.1089
  47. Kramer, R. M. (2009). Rethinking trust. Harvard Business Review, 87(6), 69-77.
  48. Kumar, N., Scheer, L. K., & Steenkamp, J. B. E. (1995). The effects of perceived interdependence on dealer attitudes. Journal of Marketing Research, 32(3), 348-356. https://doi.org/10.1177/002224379503200309
  49. Lee, Y. K., Choi, B. H., & Moon, H. N. (2002). The effects of relational benefits on customer's employee and restaurant satisfaction and customer loyalty. Korean Management Review, 31(2), 373-404.
  50. Lee, J. K. (2017). A study on the new types of multi-level marketing and remedies. Journal of Law, 25(3), 239-272.
  51. Lee, J. S., & Park, M. J. (2005). The relationship among servicescape, emotional response and behavior intention in hotel restaurant. Journal of Korea Service Management Society, 6(2), 105-128.
  52. Lee, M. J. (2017). The effect of emotional response with selection factors on behavioral intentions in the airline industry: From the perspective of expectancy-disconfirmation theory. International Journal of Tourism and Hospitality Research, 31(9), 97-110. https://doi.org/10.21298/IJTHR.2017.09.31.9.97
  53. Lee, Y. B., Kim, S. J., & Tae, G. W. (2000). Network marketing strategy. Seoul, Korea: Yong an Communication.
  54. Lewicki, R. J., Tomlinson, E. C., & Gillespie, N. (2006). Models of interpersonal trust development: Theoretical approaches, empirical evidence, and future directions. Journal of Management, 32(6), 991-1022. https://doi.org/10.1177/0149206306294405
  55. Lewis, R. C. (1981). Restaurant advertising; appeals and consumers' intention. J Advertising Res., 21(5), 69-74.
  56. Lim, J. G. (1998). A study on rationalization of multilevel sales method. Master's Thesis of Hankuk University of Foreign Studies. Seoul, Korea.
  57. Lusch, R. F., Brown, S. W., & Brunswick, G. J. (1992). A general framework for explaining internal vs. external exchange. Journal of the Academy of Marketing Science, 20(2), 119-134. https://doi.org/10.1007/BF02723452
  58. Noh, J. K., Song, K. S., & Beom, S. K. (2015). The effect of the firm s product recall on brand trust, corporate trust, brand loyalty and brand recommendation intentions. Academic Society of Global Business Administration, 12(3), 21-47.
  59. Nunnally, J. C. (1978). Psychometric theory (2nd editon). New York, NY: McGraw-Hill
  60. Nuskin Korea. (2019). Terms of service. Retrieved from https://www.nuskinkorea.co.kr
  61. Bitner, M. J., & Hubbert, A. R. (1994). Encounter satisfaction versus overall satisfaction versus quality. Service quality: New directions in theory and practice, 34(2), 72-94. https://doi.org/10.4135/9781452229102.n3
  62. Moorman, C., Zaltman, G., & R. Desphande (1992), Relationships between producers and users of market research: the dynamics of trust within and between organizations, Journal of Marketing Research, 29(3), 314-328. https://doi.org/10.1177/002224379202900303
  63. Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38. https://doi.org/10.1177/002224299405800302
  64. Park, S. J., & Oh, C. G. (2017). The 4th Industrial revolution's impact on network marketing : Focused on ABN korea case. Journal of Information Systems, 26(4), 379-400. https://doi.org/10.5859/KAIS.2017.26.4.379
  65. Park, S. G. (2012). A study on the local traditional food restaurant market segmentation based on the selection attribute in daegu: Gyeongbuk province. Thesis for Doctor's Thesis, Uiduk University. Gyeongju, korea.
  66. Rapp, A., Trainor, K. J., & Agnihotri, R. (2010). Performance implications of customer-linking capabilities: Examining the complementary role of customer orientation and CRM technology. Journal of Business Research, 63(11), 1229-1236. https://doi.org/10.1016/j.jbusres.2009.11.002
  67. Roh, H. S., & Yoon, N. S. (2018). A study on the importance-performance of company choice attributes related to independent business operators. Food Service Industry Journal, 14(4), 61-74.
  68. Ryu, J. Y., Na, J. H., & Choi, Ki Ha. (2016). Effects of service quality on recommendation intention: Case of the AREX. Journal of Product Research, 34(6), 55-62.
  69. Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38. https://doi.org/10.1177/002224299405800302
  70. Schmuck, R. (2008). Measuring company competitiveness. University of Pecs Faculty of Business and Economics Working Paper, 199-208.
  71. Seo, S. S., & Lee, J. H. (2011). The effect of characteristics of social networks on trust and purchase intention of social commerce sites. Korean Corporation Management Review, 40(0), 19-37.
  72. Song, J. J. (2017). SPSS/AMOS statistical analysis method, Paju, Korea: 21segisa
  73. Spiggle, S., & Sewall, M. A. (1987). A choice sets model of retail selection. Journal of Marketing, 51(2), 97-111. https://doi.org/10.1177/002224298705100208
  74. Triebswetter, U., & Wackerbauer, J. (2008). Integrated environmental product innovation in the region of Munich and its impact on company competitiveness. Journal of Cleaner Production, 16(14), 1484-1493. https://doi.org/10.1016/j.jclepro.2007.09.003
  75. Tseng, S., & Fogg, B. J. (1999). Credibility and computing technology. Communications of the ACM, 42(5), 39-44. https://doi.org/10.1145/301353.301402
  76. Yi, Y. J., & Lee, J. Y. (2004). Relationships among brand identification, brand affect, and brand loyaltyutilitarian products vs. hedonic products, Advertising Research, 65, 101-125.
  77. Yoo, J. W., & Choi, D. H. (2018). The effect of selection attributes of social commerce on brand trust, brand loyalty and customer satisfaction. Event & Convention Research, 31(0), 129-146.
  78. Yu, J. P., & Pysarchik, D. T. (2002). Economic and non-economic factors of Korean manufacturer-retailer relations. The International Review of Retail, Distribution and Consumer Research, 12(3), 297-318. https://doi.org/10.1080/09593960210139670
  79. WFDSA. (2018). WFDSA Annual Report 2018. Retrieved from www.wfdsa.org
  80. Woo, M., & Koo, C. (2016). The influence of tangible and intangible resources on the performance in food franchise industry: The resources-based view. Journal of Korea Service Management Society, 17(2), 291-312.
  81. Zou, S., Fang, E., & Zhao, S. (2003), The effect of export marketing capabilities on export performance: an investigation of Chinese exporters, Journal of International Marketing, 11(4), 32-55. https://doi.org/10.1509/jimk.11.4.32.20145