• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.3
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• pp.193-211
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• 2021

Recently, interest in Korean Wave craze and K-beauty, led by K-pop, is increasing. In addition, the popularity and influence of the domestic beauty service industry has increased, and the economic and cultural ripple effects have been continuously expanding. The need to professional manpower training in response to the demand for manpower due to the growing development of domestic beauty services is emphasized, and the number of trainees who are actual consumers of beauty academy is increasing. Therefore, the purpose of our study is to examine the importance of quality factors of educational services to achieve educational purposes in the educational services provided by the Beauty Academy and the relationship between relationship commitment and educational service performance. Furthermore, it is to draw the importance of administrative support services, educational programs as well as educational service provision activities. However, the research for professional manpower training according to the provision of beauty services is insufficient compared to the development speed of the beauty industry. Therefore, at the present time when beauty service education is emphasized, our study will examine the relationship between relationship commitment and educational service performance based on the quality of education service by the students of domestic beauty academy. The measurement variables set for our study are program, instructor quality, tuition, external service, service fairness, relationship commitment, trust level, and educational service performance. The variables were analyzed and derived through the survey, and the following contents were derived from the empirical analysis. First, the quality of education service provided by the beauty academy, such as program, external service, service fairness, relationship commitment and trust level, had a significant effect on relationship commitment. Educational services provided by the institute, such as the systematicity and diversity of educational programs, enabled students to have a uniform relationship commitment. The quality of education service itself is to learn the expertise necessary for providing beauty service from the standpoint of the students and play an organic role in the relationship with the institute. Second, the moderating effect of trust level between academies and students was significant in the quality of education service and the relationship commitment. This means that students will feel higher level of service quality through the practical trust relationship of the students about the educational services provided by the institute. Based on the results of the empirical analysis, the implications of our study are to find ways to improve the students' ability and satisfaction represented by the results of educational services. This is because the quality of education services provided by the institute called Beauty Academy will have a great impact on the career choice of educational facilities and students. The characteristics of consistency, convenience, and knowledge orientation of education itself should be considered comprehensively, and a strong market position should be established through image formation through external service factors, which are external environments of academies.Furthermore, in terms of presenting differentiated strategies with competitors, the educational service quality factors play a significant role in the commitment to the relationship with the students, so the role of relationship marketing will be important for the psychological stability experienced by the students by grasping the demand accompanying the behavior of the students in advance.

• Information Systems Review
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• v.24 no.3
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• pp.43-68
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• 2022

With the growing demand for online food delivery (OFD) services via Online to Offline (O2O) platforms, it is required for academic researchers to identify the success factors of OFD businesses. In line with this, this research examines the impact of the core service attributes of a restaurant (hygiene, interactivity, trust,and popularity) on business success in the OFD platform context from the perspective of information asymmetry. Furthermore, the moderating effects of hygiene factor between the core service attributes and the success of restaurants are evaluated. We utilize 1,146 restaurants registered on the largest OFD platform in Korea. The results of this study demonstrate that hygiene (certification), trust (franchise), popularity (favorite) factors have positive impacts on the success of OFD businesses. Moreover, we find that franchise restaurants with high response rates to customer reviews and inquiries achieve higher sales when they have hygiene certifications than those without the certification do. The key findings bear significant contributions to prior literature by empirically substantiating the pivotal role of service quality signals in fostering restaurant success on the OFD platforms. In addition, this study provides business implications for restaurants in O2O platform.

• Journal of Distribution Science
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• v.16 no.3
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• pp.59-68
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• 2018

Purpose - This study empirically examines the effects of environmental dynamics(dynamics of one's own company, dynamics of competitors, and dynamics of customers), within the franchise industry, on the dependence and conflict(dysfunctional conflict and functional conflicts) and the business performances(financial and non-financial). Furthermore, we empirically examined the effects of the dependence of franchise on the conflicts(dysfunctional conflict and functional conflict) and business performances(financial and non-financial). Finally, we empirically examined the effects of the conflicts of franchise (dysfunctional conflict and functional conflict) on the business performances(financial and non-financial). Research design, data, and methodology - Our study conducted a survey on the managers and owners of the franchises located in Seoul, Gyeonggi, and Incheon. The total number of valid samples was 230, and the structural equation model was analyzed by using AMOS program. Results - First, the environmental dynamics(dynamics of one's own company, dynamics of competitors, and dynamics of customers) in the franchise industry were shown to have statistically significant positive effect on the dependence of franchise. Second, among the environmental dynamics in the franchise industry, the dynamics of one's own company and the dynamics of the customers were shown to have a statistically significant positive effect on the dysfunctional conflicts of franchisees. However, in the franchise industry, the dynamics of competitors did not have a statistically significant effect on the dysfunctional conflict of the franchise. Third, in the franchise industry, the environmental dynamics(dynamics of one's own company, dynamics of competitors, and dynamics of customers) did not have a statistically significant effect on the functional conflicts of the franchises. Fourth, the dependence of franchise was shown to have a statistically significant positive effect on the conflicts(dysfunctional conflict and functional conflict). Fifth, the dysfunctional conflict of franchisees was shown to have a statistically significant negative effect on the business performances(financial and non-financial). Sixth, the functional conflicts of franchises was shown to have a statistically significant positive effect on business performances(financial and non-financial). Conclusions - From the franchise industry researches, the environmental dynamics were selected as the preceding factors and the relationship leading to dependence, conflict, and business performance were constructed into model.

• Culinary science and hospitality research
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• v.17 no.4
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• pp.104-120
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• 2011

This study is to make an empirical analysis of star marketing used as die means of sales promotion for Christmas cakes regardless of high advertising cos1s, by understanding the influence of attributes of celebrity advertising models for advertisements of bakery companies over die Christmas season on advertising attitude, corporation reputation and reliability which are recognized by consumers. The verification results were judged as important core elements for successful management in bakery industry. Since bakery brands are losing their differentiations in both functional and physical aspects, the study aimed to offer strategic suggestions to bakery industry. The result of study modelling were GFI=0.911, AGFI=0.887, NFI=0.935, CFI=0.979, RMR=.126 at the level of $x^2$=313.294(df-=218, p<0.001). First, model credibility and model attractiveness of advertising models bad a positive(+) influence on advertising attitude. Second, advertising attitude bad a positive(+) influence on corporation reputation and reliability. Third, corporate reputation also bad a positive(+) influence on corporate reliability.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.5
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• pp.91-107
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• 2021

As competition in the domestic franchise industry is more heated than ever, we examined the factors that affect the profitability of the coffee franchise industry, which has grown rapidly over the last decade, and explored what effect preparatory startup education has on the profitability of coffee franchise stores. Specifically, this study looked into whether preparatory startup education can increase store competitiveness, provide insight into store location selection, generate innovative management, and ultimately contribute to store profitability. To test these hypotheses, we employed structural equation modeling. Results showed that preparatory startup education has a significantly positive (+)effect on 1)business characteristics: taste, quality, price affordability, menu diversity, store ambiance, 2)location characteristics: suitability, and 3)innovation management: accessibility, delivery service, and SNS marketing. The factors with a significantly positive (+)effect on store profitability were taste, quality, and price affordability with regard to business characteristics, suitability in terms of location characteristics, and SNS marketing in respect to innovation management. We expect that this study will have practical implications for increasing the profitability of coffee franchise stores, which are facing excessive competition, and its findings will be useful for coffee franchise head offices as well as government when making relevant policy decisions. In addition, it is intended to deliver a message to franchise head offices, central government, and local governments that they should provide institutional support to coffee franchise stores such that delivery services can lead to substantial improvement in profitability, even when delivery costs are considered.

• Journal of Distribution Research
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• v.17 no.1
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• pp.37-63
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• 2012

In franchise business, exclusive sales territory (sometimes EST in table) protection is a very important issue from an economic, social and political point of view. It affects the growth and survival of both franchisor and franchisee and often raises issues of social and political conflicts. When franchisee is not familiar with related laws and regulations, franchisor has high chance to utilize it. Exclusive sales territory protection by the manufacturer and distributors (wholesalers or retailers) means sales area restriction by which only certain distributors have right to sell products or services. The distributor, who has been granted exclusive sales territories, can protect its own territory, whereas he may be prohibited from entering in other regions. Even though exclusive sales territory is a quite critical problem in franchise business, there is not much rigorous research about the reason, results, evaluation, and future direction based on empirical data. This paper tries to address this problem not only from logical and nomological validity, but from empirical validation. While we purse an empirical analysis, we take into account the difficulties of real data collection and statistical analysis techniques. We use a set of disclosure document data collected by Korea Fair Trade Commission, instead of conventional survey method which is usually criticized for its measurement error. Existing theories about exclusive sales territory can be summarized into two groups as shown in the table below. The first one is about the effectiveness of exclusive sales territory from both franchisor and franchisee point of view. In fact, output of exclusive sales territory can be positive for franchisors but negative for franchisees. Also, it can be positive in terms of sales but negative in terms of profit. Therefore, variables and viewpoints should be set properly. The other one is about the motive or reason why exclusive sales territory is protected. The reasons can be classified into four groups - industry characteristics, franchise systems characteristics, capability to maintain exclusive sales territory, and strategic decision. Within four groups of reasons, there are more specific variables and theories as below. Based on these theories, we develop nine hypotheses which are briefly shown in the last table below with the results. In order to validate the hypothesis, data is collected from government (FTC) homepage which is open source. The sample consists of 1,896 franchisors and it contains about three year operation data, from 2006 to 2008. Within the samples, 627 have exclusive sales territory protection policy and the one with exclusive sales territory policy is not evenly distributed over 19 representative industries. Additional data are also collected from another government agency homepage, like Statistics Korea. Also, we combine data from various secondary sources to create meaningful variables as shown in the table below. All variables are dichotomized by mean or median split if they are not inherently dichotomized by its definition, since each hypothesis is composed by multiple variables and there is no solid statistical technique to incorporate all these conditions to test the hypotheses. This paper uses a simple chi-square test because hypotheses and theories are built upon quite specific conditions such as industry type, economic condition, company history and various strategic purposes. It is almost impossible to find all those samples to satisfy them and it can't be manipulated in experimental settings. However, more advanced statistical techniques are very good on clean data without exogenous variables, but not good with real complex data. The chi-square test is applied in a way that samples are grouped into four with two criteria, whether they use exclusive sales territory protection or not, and whether they satisfy conditions of each hypothesis. So the proportion of sample franchisors which satisfy conditions and protect exclusive sales territory, does significantly exceed the proportion of samples that satisfy condition and do not protect. In fact, chi-square test is equivalent with the Poisson regression which allows more flexible application. As results, only three hypotheses are accepted. When attitude toward the risk is high so loyalty fee is determined according to sales performance, EST protection makes poor results as expected. And when franchisor protects EST in order to recruit franchisee easily, EST protection makes better results. Also, when EST protection is to improve the efficiency of franchise system as a whole, it shows better performances. High efficiency is achieved as EST prohibits the free riding of franchisee who exploits other's marketing efforts, and it encourages proper investments and distributes franchisee into multiple regions evenly. Other hypotheses are not supported in the results of significance testing. Exclusive sales territory should be protected from proper motives and administered for mutual benefits. Legal restrictions driven by the government agency like FTC could be misused and cause mis-understandings. So there need more careful monitoring on real practices and more rigorous studies by both academicians and practitioners.