• Journal of Korea Trade
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• v.24 no.8
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• pp.81-100
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• 2020

Purpose - Based on complexity theory, this study develops a configurational model to predict the profitability of Halal cosmetics firms in the Indonesian and Malaysian markets. The proposed research model involves two level configurations-industry context and selling strategies-to predict high and low scores of a firm's profitability. The industry context configuration model comprises industry stability, product homogeneity, price sensitivity, and switching cost. Selling strategies include customer-focused, competitor-focused, and margin-focused approaches. Design/methodology - This is the first empirical study that calculates causal models using a combination of industry context and selling strategy factors to predict profitability. Data obtained from the marketing managers of cosmetics firms are used to test the proposed configurational model using fuzzy-set qualitative comparative analysis (fsQCA). It contributes to the current knowledge of business marketing by identifying the factors necessary to achieve profitability using analysis of condition (ANC). Findings - The results revealed that unique and distinct models explain the conditions for high and low profitability in the Indonesian and Malaysian halal cosmetic markets. While customer-focused selling strategy is necessary to attain a higher profit in both the markets, margin-focused selling strategy appears to be an essential factor only in Malaysia. Complexity of the interactions of selling strategies with industry factors and differences between across two study markets confirmed that complexity theory can support the research configurational model. The theoretical and practical implications are also illustrated. Originality/value - Despite the rapid growth of the global halal industry, there is little knowledge about the halal cosmetic market. This study contributes to the current literature of the halal market by performing a set of asymmetric analytical approaches using a complex theoretical model. It also deepens our understating of how the Korean firms can approach the Muslim consumer's needs to generate more beneficial turnover/revenue.

• The Korean Journal of Franchise Management
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• v.13 no.2
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• pp.53-66
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• 2022

Purpose: How to build the attitude on brand is very important, because it affects the positive word of mouth and revisit intention. Brand attachment, brand name, and image congruence play important role on consumer behavior in terms of reinforcing consumers' perception of food service companies and differentiating them from competing brands. Following the planned behavior theory, this paper examines the effect of linking brand attitude to word-of-mouth and revisit intentions in the restaurant sector. Research design, data, and methodology: This paper examines the structural relationship among brand attachment, brand name, image congruence, brand attitude, WOM, and revisit intention. In order to test the purposes of this study, research model and hypotheses were developed. The questionnaire items were modified and used according to the content of this study based on previous studies. All constructs were measured by multiple items tested and developed in the previous research. The study is based on the quantitative method and considered 519 questionnaires fulfilled by customers of restaurants. The data were explored employing the partial least square-structural equation modelling (PLS-SEM). Frequency analysis was conducted to identify the general characteristics of the survey subjects. To measure the reliability and validity of the measurement tools, confirmatory factor analysis was conducted. Structural model analysis was conducted to verify the research model. Result: The findings demonstrate that brand attachment and brand name had positive effects on attitude while image congruence did not have. Also, attitude had positive effect on WOM and revisit intention. Conclusions: This study expands the literature about WOM and revisit intentions. This study expands prior research in a similar field to which the theory of planned behavior (TPB) is applied, and reveals that brand attachment, brand name, and brand image congruence play an important role in developing brand attitude that affect revisit intention and WOM. And provide guidelines on how to enhance competitiveness in the restaurant sector based on understanding of linking brand attitude to customer loyalty and repeat business. By putting into practice these suggestions in the restaurant industry, brands can easily build up their attitude and boost a positive WOM and the intention to revisit.

• Journal of Distribution Research
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• v.15 no.4
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• pp.87-117
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• 2010

'Entrepreneurship' which means spirit or activity seeking new value by challenging boldly the uncertainty is one of the most important concept in 21st century business environment. Franchise Industry taking a relationship with distribution industry also needs entrepreneurship. As franchise industry consists of small and medium enterprises, the entrepreneurship of franchisor's CEO is important for the franchisor's growth. The purpose of this study is to analyze the factors influencing on the entrepreneurship of franchisor's CEO, and the effect of the CEO's entrepreneurship on franchisor's performance. For this purpose, this study set CEO's psychological characteristics, market characteristics, and social-institutional characteristics as independent variables, CEO's entrepreneurship as parameter variables, and franchisor's performance as dependent variables. And to analyze this study model, this study collected questionnaires from 152 franchisors' CEOs, and uses SEM(Structural Equation Modeling). As the result, 'CEO's Entrepreneurship' influenced on both 'Franchisor's Financial Performance' and 'Franchisor's Non Financial Performance'. The results of this study provide some guides for franchisor's CEO and government policies.

• The Korean Journal of Franchise Management
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• v.12 no.1
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• pp.21-34
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• 2021

Purpose: This study examines the structural relationship between perceived quality, relationship quality, and revisit intention in the context of coffee shop. In this model, perceived quality consists of product, service, and experience quality, and relationship quality consists of satisfaction, trust, and commitment, and performance consists of revisit intention. More specially, this study identifies whether perceived quality plays a mediating role in the relationship between perceived quality and relationship quality and the direct/indirect effects of perceive quality on intention to revisit. Research design, data and methodology: The survey was conducted from September 1 to 30, 2019. The data were collected from 320 respondents and analyzed using structural equation modeling (SEM) with AMOS program. Results: The findings are as follows. First, quality perception of coffee specialty stores had a statistically positive effect on relationship quality, indicating supports H1. Therefore, customers can know that they are aware of the quality of coffee specialty stores, including quality of service and experience as well as products, and that they form relationship quality with coffee specialty stores. Second, relationship quality between coffee shops and customers had a significant positive effect on performance. Thus, H2 was supported. The results show that if the coffee shop does not consider relationship quality as important, customer loyalty decreases, the number of customers decreases, and the number of customers who switch to another coffee shop increases, which can lead to a threat to the coffee shop. Third, in the case of hypothesis H3, it was found that there was a partial mediating effect of satisfaction and trust between quality perception and reuse intention of coffee specialty stores, so hypothesis H3 was partially supported. As commitment appears to have no mediating effect, it can be said that customers who use coffee shops are not only difficult to maintain as regular customers of a particular coffee shop, but also have ample room to move to other coffee shops. Conclusions: Although many scholars point out the importance of service quality, few studies were conducted in the context of the Korean food service industry (including coffee shops). From this perspective, this study tested several hypotheses that the quality (product, service, experience) perceived by customers can have a positive effect on relationship quality and performance (re-visit intention), either directly or indirectly. The findings of this study demonstrate that if the manager of a coffee shop understands the characteristics of quality perceived by customers and the role of relationship quality, the effect of quality perceptions on customers can be maximized in order to maintain the relationship with customers.

• The Korean Journal of Franchise Management
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• v.13 no.3
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• pp.17-30
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• 2022

Purpose: Recent emergence of diverse businesses in the distribution industry has led small and medium-sized retailers and their distribution logistics centers to face difficulties. Transactions between companies are connected within a supply chain, and the companies have relationships in the form of a supplier and a buyer. Therefore, it is important to identify causes of problems among companies through supply chain and strategic partnerships, thus developing optimal management plans and maximizing performances of companies. This study proposes that sustainable supply chain management consists of product quality, price quality, distribution quality, and promotion quality based on stakeholder theory and resource-based view. This study examined the impacts of sustainable chain management factors on satisfaction and win-win cooperation. Research design, data, and methodology: In the proposed model, satisfaction plays a mediating role in the relationship between sustainable chain management and win-win cooperation. The data were collected from 245 owners who use small and medium-sized distribution logistics center and analyzed using 2SLS (two-stage least square) with SPSS 28.0. Exploratory factor analysis and correlation analysis were used to assess the validity and reliability of constructs. Results: The findings are as follows. In the case of the total and Nadeulgage samples, product, price, and distribution quality had a significant positive effect on satisfaction, but in the case of Neighborhood super, product and price quality have a significant positive effect on satisfaction. Satisfaction has a significant positive effect on win-win cooperation in the overall, Nadeulgage, and Neighborhood super. Satisfaction plays a partial or full mediating role in the case of total, Nadeulgage, Neighborhood super. Conclusions: This study emphasized the need for sustainable supply chain management of small and medium-sized distribution logistics centers by examining the relationship between small and medium-sized distribution logistics centers and chain stores. It was found that store satisfaction plays an important role in the win-win cooperation between small and medium-sized distribution logistics centers and chain stores. Small and medium-sized distribution logistics centers can maximize product quality, price quality, distribution quality, and promotion quality by understanding the effect of chain store-related satisfaction and win-win cooperation on chain stores.

• The Korean Journal of Franchise Management
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• v.13 no.1
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• pp.35-46
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• 2022

Purpose: With the rapid changes in the technical development and the trend of consumption trend, the convenience store industry is facing an unprecedented competitive situation in the consumption environment where the boundary between online and offline is broken due to the stagnation of offline distribution channels and the spread of online shopping. The biggest innovation strategy of the major convenience store brands in recent years are introducing the O2O (Online to Offline) platform and presenting new products and services beyond the boundaries of online and offline to transform themselves into Omni Channel stores. The study is designed to analyze the effect of innovativeness of convenience store as a stimulus in O2O platform which customers perceive on store loyalty, the final response to external stimuli, through customer engagement with convenience store brands. Specifically, the innovativeness of convenience stores was divided into types of core activities in corporate marketing and focused on innovations in services, products(proposals), promotions and experiences. Research design, data, and methodology: Various hypotheses have been developed to achieve this research purpose. The data were collected from 1,128 questionnaires the age between 15 and 60 who had experience using retail store apps and delivery apps and were analyzed using SPSS 22.0 and SmartPLS 3.3.7 program. Measurement model analysis was carried out to assess convergent and discriminant validity. Also, common method bias was tested using the values of VIF (variance inflation factor). The hypotheses were tested using structural equation modeling with SmartPLS 3.3.7 program. Results: First, service innovation has a positive effect on cognitive engagement. Second, product, promotion and experience innovation have a positive effect on cognitive and affective engagement. Third, cognitive influences affective engagement. Finally, both cognitive and affective engagement affect store loyalty, but affective engagement has a stronger effect on store loyalty than cognitive engagement. Conclusions: All four types of innovation and cognitive engagement have a positive effect on emotional engagement, which has a stronger effect on store loyalty than cognitive engagement. Thus, while innovation can build loyalty through emotional engagement, innovation strategies must be designed and pursued with caution in terms of impact through cognitive engagement may not achieve the planned goals.

• The Korean Journal of Franchise Management
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• v.13 no.1
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• pp.47-57
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• 2022

Purpose: Recently, it is common to see cases where an amount similar to the cost of a meal is spent on dessert, or an amount greater than the cost of a meal is spent on dessert. The generation MZ is showing a tendency of 'value consumption' by consuming values and beliefs in consideration of the recent impact on society and the environment. Therefore, this study aims to analyze the effect of dessert cafe quality and eco-friendly behavior on customer trust and loyalty targeting the generation MZ who have visited desert cafés. This study examined the mediating role of customer trust in the relationships between desert café quality, eco-friendly behavior and customer loyalty, and also the moderating effect of and eco-friendly behavior on customer trust and customer loyalty. Research design, data, and methodology: To achieve purposes of this study, 229 data were collected from respondents who visited desert café and analyzed using measurement model (reliability test and correlation analysis), Fornell-Larcker Criterion and Heterotrait-Monotrait Ratio (HTMT) assessment, and structural equation model (PLS-SEM) with SPSS 22.0 and SmartPLS 3.3.7. Results: The research results are as follows. First, desert cafes' quality positively influenced customer trust but did not customer loyalty. Second, desert cafes' eco-friendly behavior positively influenced customer trust and customer loyalty. Fourth, the interaction term of dessert cafe quality and eco-friendly behavior did not influence customer trust and customer loyalty. Conclusions: This study emphasized the necessity of service quality and eco-friendly behavior of dessert cafes by examining the relationship between the quality of dessert cafes and eco-friendly behaviors, customer trust and loyalty. It also found the importance of the role of trust in securing loyal customers. In order to secure and retain loyal customers, the owners of dessert cafes should make effortsto improve the quality of the cafes' products and services so that customers can feel a sense of trust, and actively publicize that they are practicing eco-friendly management. As a result of this study, it is intended to provide practical implications for the management of dessert cafes by understand ing the effects of product and service quality and eco-friendly behaviors of companies to bakery industry workers and start-ups.

• The Korean Journal of Franchise Management
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• v.9 no.2
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• pp.39-52
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• 2018

Purpose - This study investigates the effect of service quality of coffee shop on store attitude and store loyalty. It demonstrates that the individual's behavior identification level plays a moderating role when the service quality of coffee shop affects store attitude. Conceptually drawing on Brady & Cronin's three-dimensional model of service quality, this study examines the effect of service quality of coffee specialty store on customer's attitudes and loyalty. Also, according to construal level theory, it examines the individual's propensity difference whether the individual's behavior identification level on service quality and store attitude has a moderating effect Research design, data, and methodology - This study used Brady & Cronin's three-dimensional service quality model, and 183 valid cases collected through the questionnaire survey were used for data analyses. For hypothesis testing, regression analysis, multiple regression analysis, and covariance analysis were conducted. Result- As a result of this study, first, it is confirmed that service quality has a positive effect on store attitude toward coffee shop. Second, the difference of an individual's construal level did not have a moderating effect on the influential relationship of service quality on the store attitude of coffee shop. This is because the influence of the service quality is greater than the difference between groups at the construal level. Therefore, there was no moderating influence according to construal level. Third, the store attitude of coffee specialty store has a positive effect on store loyalty. Conclusions - It is confirmed that there is a difference in the effect of service quality and store attitude on general and college students. This suggests that it can be used to establish marketing strategies by segment. And, the college students were found to be more influenced by physical environment quality factor among three dimensions of service quality. Therefore, it is necessary to further improve efforts to raise the level of service quality perception through physical environmental factors such as clean and pleasant environment including the interior of a coffee shop, and internal table arrangement. The empirical study on the moderating effects of customer's tendency of difference is meaningful in the absence of empirical studies.

• Asia Marketing Journal
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• v.15 no.4
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• pp.223-241
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• 2014

In May 2012, the collaboration of Hana Bank, top financial service company, and SK Planet, top telecommunication service provider, introduced a new credit card that was filled with all-in-one benefits into the market. Leveraging strong infrastructure of two companies, each top in its own industries, the awareness and preference of 'Club SK Card' brand rapidly increased to about 25% in less than one year. Moreover, this new card was enthroned in the most sold credit card of year 2012, accounting for a market share of 7.2% in the credit card market and more than 80% in the mobile credit card market. To make these results possible, 'Club SK Card' marketing team developed an effective marketing communication strategy which followed the 6M model. The mission of the marketing communication strategy was simple and clear. It was to deliver the card's inherent strengths on consumer benefits that come from the support of subsidiary and affiliated companies of SK Planet. According to OK Cashbag data, the marketing communication team selected the appropriate target consumers and approached them directly, inducing actual purchase behavior. The target consumers received straightforward messages about 'Club SK Card' and were led to join in the new membership at their most frequently visited supermarket or franchise restaurant. The straightforward communication message embedded in an eye-catching commercial ad with a hook song accompanied with a dance was delivered via public media. The ad became so popular that many other television programs quoted or made parodies of the ad. Courtesy of the commercial ad, the brand name disseminated rapidly and widely among the public. In October 2012, an ingenious planning and persistent implementation of the communication strategy results 'Club SK Card' to be ranked top in brand awareness as well as advertising preference tests.

• The Korean Journal of Franchise Management
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• v.10 no.3
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• pp.37-52
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• 2019

Purpose - This study examined the relationship between service quality, perceived value, customer satisfaction and behavioral intention of coffee shop using CoffeeSERV scale. In this model, CoffeeSERV scale consists of fundamental characteristics, physical environment, confidence, beverage characteristics, and representation factors. In particular, this study tried to demonstrate the moderating effect of customer's regulatory focus orientation among in the relationships between service quality, perceived value, customer satisfaction and behavioral intention. Research design, data, and methodology - This study intends to expand the existing service quality research by using the coffee shop service quality measurement tool developed by domestic researchers. I wanted to find some implications for the trend. In particular, this study applied the regulatory focus theory to identify individual differences of customers regulatory focusing motivation. In order to verify several hypotheses, the data were 227 college students and analyzed with SPSS/PC 21.0 and SmartPLS 3 program. The moderating role of customer's regulatory focusing motivation was tested using multi-group analysis with SmartPLS 3 program. Results - The resutls are as follows. First, the fundamental characteristic factors only had a significant influence on the utilitarian value perception, but in the hedonic value perception, all other service factors except for the beverage characteristic had a statistically significant effect. Second, utilitarian and hedonic value had significant effects on customer satisfaction. Third, customer satisfaction had a significant effect on behavioral intention. Finally, the regulatory focus orientation played a moderating role in the relationship between beverage characteristic - utilitarian value, representation - utilitarian value, fundamental characteristic - hedonic value, physical environment - hedonic value, confidence - hedonic value, and utilitarian value - behavioral intention. Conclusions - The results of this study show that the various service quality factors that make up the CoffeeSERV scale have different effects on utilitarian and hedonic value. This means that perceived benefits from product and service experience have different impacts on the customer's experience. Therefore, marketers should identify the impacts of service quality dimension that customers who use coffee shops consider important, understand the impact process of these quality factors on experience value, customer satisfaction, and behavioral intention, and allocate limited marketing budget. The results also show that it is possible to establish differentiatied response strategies using customer's regulatory focus orientation to find ways to enhance utlitarian and hedonic value, customer satisfaction, and behavioral intention using various Coffeeshop service quality factors. At the end of this paper, some limitations and future research directions were suggested.