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Purpose - Generally, the consumer's decision-making process for restaurant selection is simple and familiar. However, online information becomes important because the decision-making process of consumers becomes complicated in new restaurants and special situations. Because consumers can search for information online, information retrieval is now possible in selecting new restaurants. In particular, consumers often make decisions based on online information when making restaurant reservations. Research design, data, and methodology - All items were measured based on previous studies. The data were collected from customers who had visited the store by visiting the web page of the food service franchise within the last 3 months for the panel of the online survey institute. The questionnaires were surveyed from July 2 to July 11, 2018 for about 10 days. A mail and a message were sent to 2,000 people, and 310 people were asked to complete the questionnaire. Total of 303 data were used in the questionnaire, excluding 7 insufficient data. Results - The findings of this study are as follows: Consensus, vividness, and neutrality have positive effects on enjoyment. Consensus have positive effect on anxiety, but vividness and neutrality did not have significant effect on anxiety. Also, enjoyment has a positive influence on intention to visit, and anxiety has a negative influence on visit intention. Conclusions - First, franchise companies online advertising in a variety of ways, but they are mixed with other customers' WOM and offered to consumers. In this case, the information provided by the company may be distorted. Therefore, a restaurant franchise company needs to operate an official online channel to provide accurate information to its customers. Second, it is necessary to make contents so that other customers can participate in online channels of food service franchise companies. Third, food service franchise company should produce enough online contents to experience indirectly even if the customer does not visit the store directly. Fourth, food service franchise company needs to prepare a way for many customers to participate in many official contents.
Purpose: COVID-19 has negatively influenced the financial performance of restaurant firms. Previous literature suggests that the franchising strategy effectively helps restaurant firms recover from difficult business conditions through various methods for expanding business size and enhancing business efficiency. According to risk-sharing theory, restaurant franchisors may minimize operational risks by sharing the risks with their franchisees. For instance, restaurant franchisors could generate more stable cash flow using franchise fees from their franchisees. However, research on the effect of franchise's risk reduction factor on business performance during pandemic is scarce. Thus, this study aims to examine the positive moderating effect of franchising between COVID-19 and restaurants' financial performance. Research design, data, and methodology: Panel data including financial information and franchising status of restaurant firms were collected for analysis. In order to control for unobserved firm-specific factors, generalized least squared estimation in fixed effects model was conducted. Huber-White robust standard errors were used to deal with heteroscedasticity issues. Results: It was found that COVID-19 pandemic has a negative effect on the restaurants' financial performance such as ROA (return on assets), ROE (return on equity), and PM (profit margins), which confirms the findings from existing literature. More importantly, results show that the degree of franchising has a positive moderating effect on the relationship between COVID-19 and financial performance of restaurant firms. This suggests that more active engagement in franchising may decrease negative impacts of COVID-19 on the restaurants' financial performance. Conclusions: The study supports existing literature related to risk-sharing theory, by confirming that pandemics, such as COVID-19, negatively affect financial performance of the restaurants. Furthermore, it was found that franchising strategy can help lessen negative impacts of pandemics on the firm performance. These findings can contribute to the franchise and restaurant management literature by suggesting the role of franchising in reducing business risks, thereby positively affecting financial performance. Moreover, this study offers business managers of franchisors and franchisees insights for utilizing franchising in restaurant risk management. Policymakers may also gain information on aiding restaurant firms during global crisis, such as COVID-19.
Purpose - Recently, as the franchise market has grown rapidly and competition has intensified, the creation of competitive advantage by companies has become important as a corporate survival strategy. Based on previous studies, this study proposed a theoretical framework for the structural relationship between psychological ownership (organization and job), job performance, and customer orientation. Research design, data, and methodology - This research examines the structural relationship between psychological ownership, job performance, and customer orientation in terms of employees. More specifically, in this model, psychological ownership consists of two sub-dimensions of organization and function. Research models and hypotheses have been developed for this purpose. A total of 409 respondents responded via surveys. 2 out of 409 respondents have been removed and a total of 407 were used for this study. The data were analyzed using frequency analysis, confirmatory factor analysis, correlation analysis, and structural equation modeling with SPSS 21.0 and Amos 21.0 statistical program. Result - The results of the study are as follows. First, psychological ownership (organization and job) has a statistically significant positive effect on job performance. Second, psychological ownership of the job has a statistically significant positive effect on customer orientation. On the other hand, psychological ownership did not have a significant effect on customer orientation. Conclusions - The implications of this study are following as: From the theoretical point of view, this study distinguishes the psychological ownership of employees of a franchise corporate into two dimensions, organization and job, rather than a single dimension. Based on this, we examined the effect of psychological proprieties on job performance and customer orientation. This study also provides several implications. In a fiercely competitive franchise market, it is very important to analyze your employees to gain a competitive advantage over other competitors. It is meaningful to study the employees who work in the franchise. In addition, psychological ownership is an important variable that enhances job performance and leads to customer orientation, so the company needs to pay attention. Therefore, it needs to develop an internal marketing strategy that promotes psychological ownership.
Purpose - As environmental issues, along with the growth of companies, are accelerating, social interests in eco-friendly management that requires corporate social role and responsibility are increasing. The eco-friendly management activity reflects the changes in environmental awareness of consumers. Therefore, the eco-friendly images of companies influence consumers, and the establishing of eco-friendly management strategy has become a very important factor in the greenmarket. In this regard, this study examined the impacts of green leadership and environmental attractiveness on strategic environmental marketing, tactical environmental marketing, and environmental performance towards the employees of franchisee headquarters. Research design, data, and methodology - The survey was conducted towards the 800 headquarters among 2,600 brands that are registered with the Fair Trade Commission of Korea by mail. Among the total of 162 questionnaires collected, 7 respondents were excluded for their incompletion, and thus 155 responses were used in this study. The data were analyzed with SPSS 21.0 and SmartPLS 3.0. Frequency analysis was carried out to understand the general characteristics of the subjects, and confirmatory factor analysis to measure the reliability and validity of the measurement. Correlation analysis was conducted to identify the correlation between constructs, and structural equation modeling to examine the structural relationships among the constructs. Result and Conclusions - First, green leadership had a positive impact on strategic environmental marketing, tactical environmental marketing, and environmental performance. Second, environmental attractiveness had a positive effect on strategic environmental marketing, tactical environmental marketing, and environmental performance. Finally, strategic environmental marketing and tactical environmental marketing had positive impacts on environmental performance. This study can be recognized for proposing new perspectives on eco-friendly management strategy for firms to be able to win competitive superiority and performance by embedding awareness of the importance of environmental market and suggesting practical implications on understanding of environmental attractiveness, strategies and tactics of environmental management, and environmental performance in the franchise industry.
Purpose - The environment surrounding the franchise industry in recent years is a big threat to the franchise business. In this perspective, this study examines the effect of franchise CEO's Innovation, CSR Passion, and customer orientation(CO) on customers' perceived service quality(PSQ), affection, and commitments in the context of food-service franchise industry. This study suggests the guidelines on how franchisor uses their passion and customer orientation on customer to maintain and increase the commitments. Research design, data, and methodology - In order to achieve these purposes, research model and hypotheses were developed. Out of 500 respondents received through online survey, 449 respondents were used, because of 51 incomplete respondents. The data were analyzed using frequency analysis, confirmatory factor analysis, correlation analysis, and structural equational modeling with SPSS 23.0 and AMOS 23.0 statistical program. Result - The results of the study are as follows. First, innovation passion has a significant impact on PSQ and customer affection. And CSR passion have a significant impact on PSQ. Second, customer orientation has a significant impact on PSQ and customer affection. Third, PSQ has a significant impact on customer affection and sustainable commitment. Fourth, customer affection has a significant impact on behavioral commitment. Fifth, behavioral commitment has a significant impacts on sustainable commitment. Conclusions - The implications of this study are following as: Restaurants franchisor and CEOs should have a passion for innovation to continuously identify consumer needs and develop new menus and services that meet their needs. Second, franchisor and CEOs need to demonstrate the importance of creating the right environment, creating a fair business, and trying to create products in a given environment. Finally, franchisor and CEOs should demonstrate how to build relationships with customers and how to maintain positive feelings. In addition, it is necessary to appeal to the customers with enthusiasm and a customer-oriented tendency of the entrepreneur of the franchise head office in order to maintain the relationship with the customer and feelings.
Purpose - Competitive industry structure and recent economic depression challenge a survival of Korean small- and medium-sized food franchising companies (SMFCs), albeit the explosive growth of the Korean food service industry for last few decades. Against this backdrop, it examines how these SMFCs overcome liabilities of smallness and resource scarcity to strengthen competitive advantage in the market. To tackle this, in this article we focus on corporate entrepreneurship and human resources as a knowledge-based asset for these SMFCs. Furthermore, the ratio of employee turnover is high in SMFCs. We view that such brain-drain may result in poor performance of the Korean SMFCs. As such, we pay attention to the role of organizational commitment to an organization as a solution for enhancing individual-level employees' loyalty toward their organization. Research design, data, and methodology - Our research question is to what extent corporate entrepreneurship (i.e., innovative organizational culture, organizational autonomy, and administrative innovation) affects an individual-level attitude toward the organization and, in turn, employee creativity and satisfaction in the Korean SMFCs context. We collected data from employees in SMFCs for three months. A total of 126 valid questionnaires were collected, and analyzed the data using partial least squares path modeling. Results - The reliable and valid measurement model feed into testing the structural model. Our findings suggest that innovative organizational culture and organizational autonomy positively affect employee commitment. Particularly, organizational autonomy has a greater effect than innovative culture on employee commitment. However, the relationship between administrative innovation and employee commitment is not significant. We also find that employee commitment positively affects both employee creativity and satisfaction. Conclusions - Our contribution to the existing franchising business and management literature is twofold. First, the conceptual model includes three antecedents in the organizational entrepreneurship dimension to organizational commitment. Second, we conceptualize organizational commitment as employee commitment, and validate its impact on employee creativity and job satisfaction at an individual performance level. Overall, this article suggests that it is critically important for the Korean SMFCs to develop corporate entrepreneurship in order to facilitate employees' positive attitudes toward their organizations.
Purpose - Consumers perceive various risks while using food service franchise stores. Food service franchise stores offer consumers not just menus, but services, physical environment, and prices, which can be perceived as risk to consumers. This means that consumer behavior in foos service franchise stores needs to be studied based on perceived risk theory. Perceived risk consists of performance risk, financial risk, social risk, psychological risk, and time risk. The purpose of this study is to investigate the effects of perceived risk on satisfaction and trust, and in turn affect loyalty. The results of this study will provide guidelines for marketers to develop strategies to reduce the perceived risk of consumers. Research design, data, methodology - In order to achieve research purposes, the authors developed several hypotheses. Data were through online survey through an online survey firm. A questionnaire survey was distributed to customers who have visited the restaurant in the past three months. The survey was conducted from March 5, 2017 to October 14, 2017. A total of 1,500 people were e-mailed and 260 were returned. A total of 245 items were used in the analysis except 15 of the questionnaire. Data was analyzed by using SPSS 21.0 and AMOS 21.0. Results - The findings of this study are as follows: First, performance risk, economic risk, and psychological risk had negative effects on satisfaction. Social and time risks did not affect on satisfaction. Performance risk and time risk had negative impact on trust. Second, economic, social, and psychological risks did not affect trust, but satisfaction had significant positive effect on trust and loyalty. Third, satisfaction had positive effect on loyalty. Conclusions - The implications of this study are as follows. First, food service franchise marketers should increase their customer loyalty by establishing a risk reduction strategy. Second, there are various risks to customers visiting the store. Therefore, marketers need to analyze the perceived risks of customers. Third, it is also necessary to eliminate the perceived risks of customers. In addition, a restaurant franchise company needs to find a reasonable way to reduce the material cost and present a reasonable menu price.
Purpose: Brand communication plays an important role in the credibility of consumer behavior as it enhances brand equity. This study investigates the effects of brand communication (firm-created communication, consumer-generated communication) on brand awareness, brand attitude, brand loyalty in the hotel business sector by applying the SOR theory (stimulus-organism-response theory). Research design, data, and methodology: This study was analyzed in a quantitative way using the survey results of 400 customers who had experience of visiting hotels. In this study, SmartPLS 4.0 was used to evaluate the research model. The reliability, convergent validity, and discriminant validity of the measurement tool were verified. Result: Result was found that consumer-generated communications had a positive effect on brand awareness and brand attitude, whereas firm-created communications had a significant effect on brand awareness. In addition, brand awareness had a positive effect on both brand attitude and brand loyalty. Finally, brand attitude was found to have a positive effect on brand loyalty. Conclusions: This study redefines the concept of where chain hotel groups should focus when providing consumers with information about their brands and services. As a result, the conceptual framework of brand communication to increase new customer visits to the hotel brand has been expanded.
Purpose: Service quality plays an important role in the credibility of consumer behavior as it enhances brand loyality in hospitality business. The objective of this study is to determine the effects of service quality, positive emotion, brand affection, and brand loyalty in restaurant sector by applying the S-O-R model. The study also introduces a new integrated structural model that combines service quality's dimensions of physical quality, interaction quality, and outcome quality. Research design, data, and methodology: This study was analyzed in a quantitative way using the survey results of 395 customers who had experience of visiting restaurants. All constructs were measured with multiple items developed and validated in prior studies. In this study, SmartPLS 4.0 was used to evaluate the research model. The reliability, convergent validity, and discriminant validity of the measurement tool were verified. Result: Result was found that service quality(physical quality, interaction quality, outcome quality) had a positive effect on positive emotion and brand affection. Also both of positive emotion and brand affection had a positive effect on brand loyalty. This study contributes to the service quality literature and has practical managerial implications.
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