• East Asian Journal of Business Economics (EAJBE)
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• v.5 no.4
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• pp.39-49
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• 2017

Purpose - This study is to propose a creative idea for constant business growth and development by examining characteristics of business outcomes by phase, which are "growth" and "erosion and stagnation," respectively. Research design, data, methodology - It is necessary to identify an occurrence of crisis and its diffusion with a dynamic model in order to identify a success and failure of businesses in an organic way, not on a binary structure. The static perspective is to understand a crisis as a simply one-time event or as a linear causation. Thus, it has a limited understanding of the overall situation and has limits to investigating a foundational cause and developing long-term countermeasures. On the contrary, the dynamic perspective is to understand the crisis as circulation process of the overall system. Thus, it divides elements of the crisis as external and internal ones to understand it as the causal relationship of each element. Results - During the growth period of Burger King, the company promoted its brand very successfully with aggressive and creative marketing activities. However, due to the founder's disposal of management rights and the following changes in the management, the company had no choice but to lose focus on its business philosophy and brand management, and eventually it had to face the big crisis (resonance) which was delisting from the stock market because of the external threat; well-being trend. However, Burger King resumed lifting on the stock exchange by making great efforts to clearly identify the current issues and seek solutions. Under the spirit of "perseverance" and its slogan "Have it your way" the company is now going head to head with McDonald's in the North American region and emerging countries. Conclusions - Then, what is the most crucial factor in the success and failure of businesses? Answers may vary, however, as learned from the case study of Burger King, corporations should inspect the present and focus on developing a long-term strategy for the future and actively fulfill the actions. McDonald's may not be able to innovate by itself in the future as it may become routinized to the growth. There will be chances of winning if we change conditions of individuals or organizations to an organic system in terms of being creative. There is a hopeful message here that an individual or small business may have more advantages in the era of the idea and innovation.

• Journal of Digital Convergence
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• v.8 no.1
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• pp.109-120
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• 2010

Mobile phone-related industries have been mainly concentrated on attracting the new customers and increasing the market share such as for the aggressive marketing activities, but it is the time to find an effective strategy to preserve existing customers since the mobile phone market had already reached the saturation. In this study, the properties of mobile phone that influence on the choice of handset and telecom company were analyzed. General properties of respondents were explored and the mobile phone properties were grouped by common factors. And analyzed the effect of factors on customer satisfaction with structural equation model. 10.4% of respondents are used their handset more than two years and 48.7% wanted to purchase other manufacturer's handset if they repurchase mobile phone. These results might come form the fact that the life cycle of mobile phone become shorter by the heating competition in mobile phone market and, to some degree, the influence of smart phone which recently become globally popular. Four factors, 'Hardware Quality', 'Practicality', 'Convergence Functions' and 'Level of Awareness', are induced from the mobile phone properties. In Structural Equation Model analysis, 'Hardware Quality' and 'Practicality' have significant and positive effects on Customer Satisfaction. But, 'Awareness' such as brand and trend appeared quite less influence on the customer satisfaction.

• Journal of Global Scholars of Marketing Science
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• v.17 no.3
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• pp.61-81
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• 2007

Recently, use of foreign models and foreign language in advertising is a general trend in Korea even though the effect has not been well-known..Most of the previous research shows rather an opposite effect claiming marketing communication is more effective when higher congruity between marketing communication and consumer's cultural values are achieved. However, the introduction of global culture due to the expansion of new media such as Internet or cable television makes the congruity not the best choice of marketing strategy. In addition, use of highly attractive models in advertising to increase the effect of advertising is general. However, recent studies show that targeted women audience tend to compare themselves to the highly attractive models and do experience negative sentiment. Bower (2001) proved the difference between 'comparer' and 'noncomparer' when women face highly attractive models. The results show that a comparer who has an intention to compare highly attractive model (HAM) with herself has a significantly negative effect on model expertise, product argument, product evaluation and buying intention. Therefore, HAM is not always a good choice and model attractiveness plays a role in the processing other cues or changing the advertising effect from result of processing other cues. The purpose of this study is to investigate the effect of the use of foreign language on the advertising response of the audience with regard of the model attractiveness. For the empirical study, the virtual advertising using foreign models (HAM, NAM), brand names and slogans(Korean, English) were used as stimuli. The respondents of each stimulus were 75('HAM-Korean'), 75('NAM-Korean'), 66('HAM-English') and 66 ('NAM-English') respectively. To establish the effect of marketing communication, the attitude for media(AM), the attitude for product(AP), targetedness(TD), overall quality(OQ), and purchase intention(PI) with 7 point likert scale were measured. The manipulation was verified to check the difference between HAM attractiveness assessment (m=3.27) and NAM attractiveness assessment (m=5.12). The mean difference was statiscally significant (p<.05). As a result, all consequences were significantly changed with model attractiveness, and overall quality evaluation(OQ) were significantly changed with language. The interaction effect from model attractiveness and language was significant on attitude toward the product(AP) and purchase intention(PI). To analyze the difference, the mean values and standard deviation of consequences were compared. The result was more positive when model attractiveness was high for all consequences. For language effect, the assessment was more positive when English was used for OQ. Considering model attractiveness and language simultaneously, HAM-Korean was more positive for AP and PI, and NAM-English was more positive for AP and PI. In other words, the interaction effect was confirmed by model attractiveness and language. As mentioned above, use of foreign models and foreign language in advertising was explained by cultural match up hypothesis (Leclerc et al. 1994) which claimed that culture of origin effect. In other words, in advertising, use of same cultural language with the foreign model could make positive assessment for OQ. But this effect was moderated by model attractiveness. When the model attractiveness was low, the use of English makes PI high because of the effect of foreign language which supported the cultural match up hypothesis. When the model attractiveness was low, the use of Korean made AP and PI high because the effect of foreign language was diluted. It was a general notion that the visual cues got processed before (Holbrook and Moore, 1981; Sholl et al, 1995) compared to linguistic cues. Therefore, when consumers were faced HAM, so much perception was already consumed at processing visual cues making their native language of Korean to strongly and positively connected with the advertising concept. On the contrary, when consumers were faced with NAM, less perception was consumed compared to HAM, making English to accompany cultural halo effect which affected more positively. Therefore, when foreign models were employed in advertising, the language must be carefully selected according to the level of model attractiveness.

• The Journal of Small Business Innovation
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• v.20 no.1
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• pp.35-46
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• 2017

The purpose of this study is to obtain the implications for establishing a marketing strategy for retailers by analyzing whether the consumer's preference for products (food) is influenced by on-line, off-line, and omni-channel preferences. The research model consisted of the effects of consumers' food selection characteristics on business preference and omni channel preference. The results of analysis based on 477 questionnaires are summarized as follows. First, food purchasing characteristics that utilize the seven characteristics of (1) freshness of food, (2) taste, (3) quality and safety, (4) tasting, (5) food function and information, (6) country of origin, and (7) brand loyalty, has various effects on types of business preference, omni-channel preference. The adopted hypotheses were selected in order of brand loyalty (5 times), freshness (3 times), tasting (3 times), and origin (1 time). The selective attributes on foods are: (1) what kind of brand, (2) how good the freshness is, (3) tasting. (4) The country of origin is to be compressed. Actually consumers seem to utilize only the core selective factors that are appropriate to the characteristics of the distribution channel rather than all of them in the shopping of the food, and there is three characteristics on Convenience Store and only one or two factors in the other types of business. Second, in the analysis of the omni-channel preference analysis, food selection characteristics has been shown to have a limited effect, which is attributed to the fact that the consumer has not yet understood the concept of omni channel. Third, the results of this study suggest that there is a need to reflect the selection characteristics of foods that have diverse influences by business type in the marketing strategies. Because consumers make reasonable consumption to use both on-line and off-line simultaneously, consumers who use Omni Channel focus on quality and safety of food, identify products through tasting, pursue brands that can trust anywhere. Customers who pursue rationality will have a high preference for using Omni Channel. Product choice characteristic has significant effect on omni-channel preference. For a few years, omni-channel strategy of retailers meets with a difficulty. This study make a first attempt to study omni-channel preference changing retailing paradigm.

• Journal of Global Scholars of Marketing Science
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• v.19 no.4
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• pp.1-10
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• 2009

The purpose of this study was to categorize the gap between coffee shop 'importance' (as perceived by customers before patronizing the coffee shop) and 'satisfaction' (perception of customers after patronizing the coffee shop) as positive or negative and to analyze the effect of these gaps on purchasing behavior. To do this, I used the gap between importance and satisfaction regarding the choice of a coffee shop as the explanatory variable and performed an empirical analysis of the direction and size of the effect of the gap on purchasing behavior (overall satisfaction, willingness-to-revisit) by applying the Ordered Probit Model (OPM). A previous study that used IPA to evaluate the effects of gaps estimated the direction and size of a quadrant but failed to analyze the effect of gaps on customers. In this study, I evaluated the effects of positive and negative gaps on customer satisfaction and willingness-to-revisit. Using OPM, I quantified the effect of positive and negative gaps on overall customer satisfaction and willingness-to-revisit. Per-head expenditure, frequency of visits, and coffee-purchasing place had the most positive effects on overall customer satisfaction. Frequency of visits, followed by per-head expenditure and then coffee-purchasing place, had the most positive impact on willingness-to-visit. Thus per-head expenditure and frequency of visits had the greatest positive effects on overall satisfaction and willingness-to-revisit. This finding implies that the higher the actual satisfaction (gap) of customers who spend KRW5,000 or more once or more per week at coffee shops is, the higher their overall satisfaction and willingness-to-revisit are. Despite the fact that economical efficiency had a significant effect on overall satisfaction and willingness-to-revisit, college and university students still use coffee shops and are willing to spend KRW5,000 because they do not only purchase coffee as a product itself, but use the coffee shop for other activities, such as working, meeting friends, or relaxing. College and university students also access the Internet in coffee shops via personal laptops, watch movies, and study; thus, coffee shops should provide their customers with the appropriate facilities and services. The fact that a positive gap for coffee shop brand had a positive effect on willingness-to-revisit implies that the higher the level of customer satisfaction, the greater the willingness-to-revisit. A negative gap for this factor, on the other hand, implies that the lower the level of customer satisfaction, the lower the willingness-to-revisit. Thus, the brand factor has a comparatively greater effect on satisfaction than the other factors evaluated in this study. Given that the domestic coffee culture is becoming more upscale and college/university students are sensitive to this trend, students are attentive to brands. In most upscale coffee shops in Korea, the outer wall is built out of glass that can be opened, the interiors are exotic with an open kitchen. These upscale coffee shops function as landmarks and match the taste of college/university students. Coffee shops in Korea have become a cultural brand. To make customers feel that coffee shops are upscale, good quality establishments and measures to provide better services in terms of brand factor should be instituted. The intensified competition among coffee shop brands in Korea as a result of the booming industry indicates that provision of additional services is needed to differentiate competitors. These customers can also use a scanner free of charge. Another strategy that can be used to boost brands could be to provide and operate a seminar room for seminars and group study. If coffee shops adopt these types of strategies, college/university students would be more likely to consider the expenses they incur worthwhile and, subsequently, they would be more likely to be satisfied with the brands of these coffee shops, with an associated increase in their willingness-to-revisit. Gender and study year had the most negative effects on overall satisfaction and willingness-to-revisit. Female students were more likely to be satisfied and be willing to return than male students, and third and fourth-year students were more likely to be satisfied and willing-to-return than first or second-year students. Students who drink coffee, read books, and use laptops alone at coffee shops are easily noticeable. High-grade students tend to visit coffee shops alone in order to use their time efficiently for self-development and to find jobs. The economical efficiency factor had the greatest effect on overall satisfaction and willingness-to-revisit in terms of a positive gap. The higher the actual satisfaction (gap) of students with the price of the coffee, the greater their overall satisfaction and willingness-to-revisit. Economical efficiency with a negative gap had a negative effect on willingness-to-revisit, which implies that a less negative gap will result in a greater willingness-to-revisit. Amid worsening market conditions, coffee shops located around colleges/universities are using strategies, such as a point or membership card, strategic alliances with credit-card companies, development of a set menu or seasonal menu, and free coffee-shot services to increase their competitive edge. Product power also had a negative effect in terms of a negative gap, which indicates that a higher negative gap will result in a lower willingness-to-revisit. Because there are many more customers that enjoy coffee in this decade, as compared to previous decades, the new generation of customers, namely college/university students, want various menu items in addition to coffee, and coffee shops should, therefore, add side menu items, such as waffles, rice cakes, cakes, sandwiches, and salads. For example, Starbucks Korea is making efforts to enhance product power by selling rice cakes flavored in strawberry, wormwood, and pumpkin, and providing coffee or cream free of charge. In summary, coffee shops should focus on increasing their economical efficiency, brand, and product power to enhance the satisfaction of college/university students. Because shops adjacent to colleges or universities enjoy a locational advantage, providing differentiated services in terms of economical efficiency, brand, and product power, is likely to increase customer satisfaction and return visits. Coffee shop brands should, therefore, be innovative and embrace change to meet their customers' desires. Because this study only targeted college/university students in Seoul, comparative studies targeting diverse regions and age groups are required to generalize the findings and recommendations of this study.

• The Korean Journal of Franchise Management
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• v.8 no.2
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• pp.37-47
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• 2017

Purpose - Recently, the food service franchise market is experiencing rapid growth and competition is intensifying. Therefore, consumer choice has expanded, and reputation management has become important as a strategy for survival of corporations. Based on previous studies, this research proposed the theoretical framework about the structural relationships among reputation, trust(cognitive trust, affective trust), and loyalty. Research design, data, and methodology - This study examined the structural relationship between reputation, trust, and loyalty from the customer's perspective. Based on comprehensive validation procedures across nine food service Franchise firm types, This study found support for a five-dimensional scale with the following dimensions: Customer Orientation, Employer Brand, Reliable and Financially Strong Company, Product and Service Quality, and Social and Environmental Responsibility. In order to verify the research purposes, research model and hypotheses were developed. The data were collected from 227 food service franchise consumers through online survey. The data was analyzed with SPSS 24.0 and Amos 23.0 statistical program. Result - The results of the study are as follows. First, customer orientation, reliable·financially strong company and product·service quality have significant impact on corporate cognitive trust. And employer brand, product/service quality and social·environmental responsibility have significant impact on corporate affective trust. Second, cognitive trust and affective trust have significant impacts on consumer loyalty. Conclusions - The implications of this study are following as: From the theoretical perspective, this study considers trust as two dimensions such as cognitive and affective, not a single dimension, and identify what dimensions of franchise firms affect consumers' reputation perception and in turn lead cognitive and affective trust, and loyalty. This study also provides several managerial implications. In the franchise market where competition is intensifying, it is very important to analyze the attitudes of consumers in order to gain an advantage in competition with other competitors. In this study, it is meaningful that the study was conducted on consumers who have experience using a restaurant franchise company. Also, reputation is necessary to pay attention to the company because it is an important variable that strengthens with customer through confidence in food service franchise business, and leads loyalty and consumer consumption. Therefore, marketers should develop marketing strategies considering various reputation factors.

• Journal of the Korean Applied Science and Technology
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• v.40 no.6
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• pp.1580-1588
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• 2023

The desire for clear and clean skin is universal among both men and women. Women, in particular, seek the help of foundation to achieve beautiful and transparent skin. The choice of foundation is not determined by the race of an individual; instead, it varies based on personal skin color and undertone. Therefore, there is a need to surpass the stereotype of using foundation colors based on racial discrimination. The purpose of this study is to randomly select cosmetics brands from Korea, China, Japan, the United States, France, and the United Kingdom, considering the impact of each photo, environment, and equipment. The objective is to understand the differences in skin tones in foundation advertisement model images on websites. Analyzing the RGB values of foundation colors for each brand revealed that in Korea, the colors were 8.75R, 1.25YR, 2.5YR, 3.75YR, 5YR, and 6.25YR. Chinese brands showed similar colors with 2.5YR, 3.75YR, 5YR, 6.25YR, and 10YR. Japanese brands displayed colors such as 7.5R, 8.75R, 10R, 5YR, 6.25YR, and 7.5YR. American brands presented colors like 6.25R, 8.75R, 10R, 2.5YR, 3.75YR, 5YR, 6.25YR, 7.5YR, and 10YR. French brands featured 10R, 1.25YR, 3.75YR, 5YR. Lastly, British brands displayed 2.5YR, 3.75YR, 7.5YR. As a follow-up study, in-depth research on the reshaping and color changes of foundation over time is recommended. It is hoped that this research will serve as fundamental data for makeup companies' marketing and contribute to the development of both domestic and international color cosmetics markets.

• The Journal of Society for e-Business Studies
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• v.16 no.3
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• pp.191-209
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• 2011

In a buyer-seller transaction process, 'value for money,' a measure of quality-price-ratio, is one of the most important criteria for buyers' purchasing decisions. The purpose of this paper is to suggest a method which helps online shoppers choose the best of several sellers offering homogeneous goods. We suggest FDH (free disposal hull) model, an applied model of data envelopment analysis (DEA), for online buyer-seller transactions and verify it with the data from an Internet comparison shopping site. For this purpose, we analyze consumer choice behaviors by examining how consumers respond to different sale conditions such as price, brand, or delivery time. Then, we implement a seller recommendation system to support buyers' purchasing decisions. We expect our FDH model to provide valuable information for rational buyers who want to pay the least price for high quality products/services and to be used in implementing automated evaluation processes in micro transactions. Moreover, we expect that our results can be utilized for sellers' benchmarking strategies which help sellers be more competitive by showing them how to attract buyers.

• Environmental and Resource Economics Review
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• v.13 no.2
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• pp.219-243
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• 2004

Generally, electricity market has monopoly market structure because of need of enormous investment for infrastructure. However, the introduction of competition in network industry as electricity is a tendency of the world with decreasing the effects of economy of scale due to the advancement of technology. Now, electricity industry restructuring is in progress but the competition in electricity retail market is not in force yet in Korea. Whether a effective competition exist or not is very important to policy decision maker who drive restructuring, but there are small numbers of quantitative researches on that. In this study, we estimated the effectiveness of competition in the electricity retail market through switching costs. If switching costs are high, consumers actually can be locked in incumbent firm in spite of introduction of competition. Therefore switching is a critical factor to determine effectiveness of competition and to estimate the size of switching costs quantitatively can proffer the information about whether the competition in the electricity retail market is effective or not in the future. We estimated switching costs using consumer' stated-preference data by conjoint analysis. In according to estimation results, the cost of switching process is not so high, but the relative brand loyalty of an incumbent company is significantly high. And the price is considered as the most important factor choosing an electric service commodity. Based on the empirical results, it is possible to analyze the relationship between suppliers' competitiveness resulted from management efficiency and customers' switching possibilities. The paper therefore provides guidance for suppliers in deciding to enter into retail competition and for policy makers in introducing retail competition. And it has a significance of estimating the switching costs directly.

• Journal of Intelligence and Information Systems
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• v.23 no.2
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• pp.39-70
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• 2017

Data-drive analytics techniques have been recently applied to public surveys. Instead of simply gathering survey results or expert opinions to research the preference for a recently launched product, enterprises need a way to collect and analyze various types of online data and then accurately figure out customer preferences. In the main concept of existing data-based survey methods, the sentiment lexicon for a particular domain is first constructed by domain experts who usually judge the positive, neutral, or negative meanings of the frequently used words from the collected text documents. In order to research the preference for a particular product, the existing approach collects (1) review posts, which are related to the product, from several product review web sites; (2) extracts sentences (or phrases) in the collection after the pre-processing step such as stemming and removal of stop words is performed; (3) classifies the polarity (either positive or negative sense) of each sentence (or phrase) based on the sentiment lexicon; and (4) estimates the positive and negative ratios of the product by dividing the total numbers of the positive and negative sentences (or phrases) by the total number of the sentences (or phrases) in the collection. Furthermore, the existing approach automatically finds important sentences (or phrases) including the positive and negative meaning to/against the product. As a motivated example, given a product like Sonata made by Hyundai Motors, customers often want to see the summary note including what positive points are in the 'car design' aspect as well as what negative points are in thesame aspect. They also want to gain more useful information regarding other aspects such as 'car quality', 'car performance', and 'car service.' Such an information will enable customers to make good choice when they attempt to purchase brand-new vehicles. In addition, automobile makers will be able to figure out the preference and positive/negative points for new models on market. In the near future, the weak points of the models will be improved by the sentiment analysis. For this, the existing approach computes the sentiment score of each sentence (or phrase) and then selects top-k sentences (or phrases) with the highest positive and negative scores. However, the existing approach has several shortcomings and is limited to apply to real applications. The main disadvantages of the existing approach is as follows: (1) The main aspects (e.g., car design, quality, performance, and service) to a product (e.g., Hyundai Sonata) are not considered. Through the sentiment analysis without considering aspects, as a result, the summary note including the positive and negative ratios of the product and top-k sentences (or phrases) with the highest sentiment scores in the entire corpus is just reported to customers and car makers. This approach is not enough and main aspects of the target product need to be considered in the sentiment analysis. (2) In general, since the same word has different meanings across different domains, the sentiment lexicon which is proper to each domain needs to be constructed. The efficient way to construct the sentiment lexicon per domain is required because the sentiment lexicon construction is labor intensive and time consuming. To address the above problems, in this article, we propose a novel product reputation mining algorithm that (1) extracts topics hidden in review documents written by customers; (2) mines main aspects based on the extracted topics; (3) measures the positive and negative ratios of the product using the aspects; and (4) presents the digest in which a few important sentences with the positive and negative meanings are listed in each aspect. Unlike the existing approach, using hidden topics makes experts construct the sentimental lexicon easily and quickly. Furthermore, reinforcing topic semantics, we can improve the accuracy of the product reputation mining algorithms more largely than that of the existing approach. In the experiments, we collected large review documents to the domestic vehicles such as K5, SM5, and Avante; measured the positive and negative ratios of the three cars; showed top-k positive and negative summaries per aspect; and conducted statistical analysis. Our experimental results clearly show the effectiveness of the proposed method, compared with the existing method.