• Title/Summary/Keyword: Business diversification

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A Study on the Effects of Brand Individuality of Specialty Coffee Shops on Brand Loyalty (커피 전문점의 브랜드 개성이 브랜드 충성도에 미치는 영향에 관한 연구)

  • Kim, Joon-Seok;Choi, Sung-Hwan
    • Culinary science and hospitality research
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    • v.17 no.1
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    • pp.124-141
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    • 2011
  • The domestic food culture in Korea has gone through great changes, among which dining out is considered most prominent. These changes are caused by a number of factors: development of several related industries, increase in dining out chances, diversification of consumer needs, change in consumption awareness and quality, increase in disposable income, women's advance into the society, etc. Under these circumstances, the fast food industry has been experiencing slow growth, whereas family restaurants and take out coffee franchises are consistently increasing the number of restaurants and shops as a part of aggressive management to increase sales. This study aims, first, to examine the effects of consumer's brand individuality and satisfaction on brand trust, brand emotion, brand identification, and brand loyalty of specialty coffee shops. Subsequently, this study observes how consumer's brand individuality and satisfaction affect the formation of brand trust, brand emotion, brand identification, and brand loyalty in accordance with preferred type of specialty coffee shops, frequency of experience, and life style in order to establish relevant strategies. The results of this study are as follows. First, brand individuality had a positive effect on customer satisfaction. Second, customer satisfaction had a positive effect on brand trust. Third, customer satisfaction had a positive effect on brand loyalty. Fourth, customer satisfaction had a positive effect on brand emotion. Fifth, brand trust had a positive effect on brand loyalty. Sixth, brand emotion had a positive effect on brand loyalty. These results have the following implications. First, the dimensions of brand individuality are presented as a means to form brand loyalty, thereby demonstrating the significance of the effect. Accordingly, developing a proper brand individuality in forming brand loyalty is imperative. Second, consumers using specialty coffee shops had the greatest effect on the relation between dimensions of brand individuality and customer satisfaction in this study, while the interrelation between customer satisfaction and brand loyalty was not concretely supported in the preceding studies.

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A Study on the Brand Characteristics According to Trends in the Children's Apparel Market

  • Han, Gyung-Hee
    • Journal of Fashion Business
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    • v.9 no.6
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    • pp.160-174
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    • 2005
  • Despite the decrease in the number of children due to low birth rate, the domestic children's apparel market has been achieving steady growth as family income is rising thanks to more opportunities for working women, parents spend more on their children, and they prefer brand products that make their children look special. In addition, the market is suffering from hard competition as large enterprises have joined the race. The present study purposed to survey the children's apparel market in Korea, which is in a transitional period, and to contribute to the development of the market with Korean brands. For this purpose, we analyzed the characteristics of children's apparel brands in the 21st century based on the current state of the domestic children's apparel market and, based on the findings, forecasted the future trend of children's apparel brands, suggested improvements for expected problems, proposed standards for coping with changes such as diversification, high quality and differentiation in the children's apparel market, and provided consumers with information on how to purchase products. According to the result of analyzing the characteristics of children's apparel brands in the 21st century, brands are categorized largely into four types - life cultural brands, functional product brands, character brands and brands advancing to China. Life cultural brands equipped with all necessities for children are expanding, and with the deepening social problems of environmental pollution and the reduction of the child population, functional products made of environment-friendly materials are spreading widely, targeting infants and children. Furthermore, for extending age targets and diversifying products, children's apparel is using characters. The use of characters is expected to have a considerable effect on the growth of brands because children are more subjective as consumers than before and they are more easily persuaded with characters. Domestic children's apparel brands advancing to China have a high expectation of success in overcoming the limitation of the local market that has reached its peak and growing into global brands. Korean apparel makers are struggling to overcome the depressed domestic market, to recover consumers' consumption, to cope with market opening, to pursue high value of sensibility and to expand the seniors' market, etc. In this situation, future trends of children's apparel brands will be the expansion of family brands, brand totalization, quality price, niche market (pre-teen market), etc. In response to these trends, we made the following suggestions for improvement. 1. Children's apparel brands are evolving into family brands as well as into total brands through voluming. Today, however, apparel makers are advancing to the children's apparel market with the concept of adults' apparel and, as a result, children's apparel is merely adults' apparel of reduced size, having problems in design, color and materials. Thus, apparel makers must develop design considering the wide range of size and the characteristics of children's apparel, strengthen sourcing abilities to create revenues, and make thorough survey of customers to find common denominators between adults' apparel and children's apparel considering that characteristic that the target class is different from the buyer class. Furthermore, they must make active investments in human resources, develop outstanding products through advanced planning and design, and support marketing techniques and management systems to stores. 2. As the declining birth rate will continue to have a negative effect on the market, it may be difficult to expand the market size but there is still a margin for growth through high-sensibility and high-quality products. The competitiveness of brands is determined by their market shares. Accordingly, concepts should be specialized according to lifestyle, customers' diverse needs should be satisfied, and cross-coordination should be achieved within a brand. 3. Considering Korean parents who do not spare investment in their children despite shrinking consumption, functional products must be high value-added goods that can enhance efficiency. However, in the current situation of the infants' apparel industry where a textile manufacturer supply its products to multiple brands, it is difficult to develop unique products only based on materials. Thus, it is considered urgent to appeal to consumers not by relying on materials only but by finding methods of applying their own characters to children's dress.

A Study on The Art of War's strategy and its modern application (손자병법의 전략과 그 현대적 응용에 관한 연구)

  • Song, Yong-ho;Jun, Myung-yong
    • (The)Study of the Eastern Classic
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    • no.73
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    • pp.249-279
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    • 2018
  • This paper analyzes the 'strategy' of Sunzi's art of war and verifies the modern application value of it by combining the 'strategy' of the art of war with modern enterprise management. The army adopts 'war strategy' with the aim of minimizing the loss and sacrifice caused by the war and winning in the shortest time. Enterprise aims to maximize profits at the lowest cost and adopt 'business strategy'. Three factors of art of war's strategic, the 'power', 'adaptation', 'trickery', are similar to the 'internal resources analysis', 'external environment analysis' and 'information management' of the modern enterprise's management. In the process of establishing strategic plan, the art of war emphasizes 'strategy of winning' including 'prophet', 'estimates' and 'maneuvering', in the modern enterprise management, 'prophet' is shown as 'competitor analysis' of the '3C analysis' and 'benchmarking learning'. 'Estimates' is shown as 'SWOT analysis' and '4P's analysis'. 'Maneuvering' is shown as 'market positioning strategy' and 'market preemption strategy'. In the stage of implementing the strategy, 'surprise attack strategy', 'strategy of void and actuality' and 'dividing and integrating strategy' of the art of war are shown as follows in modern enterprises ; 'Surprise attack strategy' is shown as 'differentiation strategy' and 'concentration strategy', 'Strategy of void and actuality' is shown as 'information management' and 'rational market positioning strategy'. 'Dividing and integrating strategy' is shown 'diversification strategy', 'concentration strategy', 'change management', 'basic competition strategy', 'synergy effect' and etc. In terms of strategic results, the 'victory of war' of the art or war is shown as 'competitive advantage' and 'maximization of profits' in modern enterprise management strategy. In a word, although there are different names and expressions between the strategy of Sunzi's art of war and modern enterprise, but their connotation is the same. We can see that the art of war which was written in about B.C.500, has left a high utilization value for modern enterprise in rapid environmental change and intense competition.

A Study 0n the Improvement of the domestic in producing area organizations According to the change retail environment: Focused on organized, scaled, Specialization. (농산물 소매유통환경 변화에 따른 국내 산지유통조직 개선방안에 관한 연구: 조직화·규모화·전문화를 중심으로)

  • Kim, Dae-Yun
    • The Journal of Industrial Distribution & Business
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    • v.2 no.2
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    • pp.5-14
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    • 2011
  • Opening agricultural market expansion, reduced purchases through wholesale markets, expanding the influence large retailers of consumer's market such as changes in the distribution system to the farmer's market conditions are changing rapidly. Because of this, retailers of the scaled and chain-store operations was centered on distribution environmental changes of the consumer market place. In producing area due to changes in market conditions in the agricultural production of in producing area distribution organization and the size distribution can not be put off no longer challenge is imminent. If it do not raise forces banded together, the producer is bound to remain as the weak. To support the distribution of this production was introduced in 2000 enable the Activation Project of in producing area distribution. Recent in producing area Changes of Agricultural conditions in order to cope with the Small-scale farmers and small individual farmers are becoming Scaled and specialized. Also, is specific to each item and regional is showing aspects. Government support for Activation Project of in producing area distribution is greatly improved, but in terms of competitiveness on the market still is showing the limitations. The most common of these problems, the market response if in producing area producer's organization and scale of the problem. Equipped for the purpose of consumer market place responsiveness unreasonable propelled outward from the Painter-sized weakens the organizational power. also, Difficult to succeed organizational size is a dissolution or anything within a few years, farmers around the best producer organizations, such as deviation occurs is exposed to a variety of issues. In this study, previous studies refer to the recent changes in agricultural retail environment, background and needs of organization·scaled, Determine the status of the domestic in producing area organizations and derived Problems, look into Domestic and overseas of in producing area organization with best practices for enhancing the competitiveness of the proposed improvement are intended to. In the future, in producing area distribution policy would like to provide direction to the development. The results of the study showed the follwing : 1) enhance utilization and orrganized through the diversification of the agricultural Collection systems. 2) Scaled to achieve through Items of specialized a wide area marketing. 3) Management operating units, such as installation and operating that overseas the best practices " Comite Economique Agricole Regional 'Fruits et Legumes' de Bretagne". 4) To establish a support system that in producing area distribution organization model development for appropriate domestic. In particular, in case of domestic in producing area distribution organization, through the analysis of various case study that a successful organization and scaled. The process of the various challenges arising in organizational scaled and generalization, and by the way he goes about trying to overcome is required. At the end of the study's limitations and future research directions suggested.

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Examination of the Current Situations of Security Dogs and it's Development Plans (경호탐지견의 운용실태 및 발전방안)

  • Park, Hyung-Kyu;Kim, Doo-Hyun
    • Korean Security Journal
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    • no.14
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    • pp.215-234
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    • 2007
  • Our country security industry 1960's service expense of the beginning U.S. army unit it accomplishes the growth which is quick with start, currently about 2,500 triumph the security enterprises which it goes over are being active. But the majority in these enterprise about lower cotton can a forever characteristic with pressure and the manpower civil official ability insufficient back of faithlessness management and capital power. To sleep with afterwords it presents the security dogs deployment plan for an efficient security together from the research which it sees hereupon and it does. First, it cultivates the domestic mountain progress dog which is a breed which is suitable with the security dogs and the shovel flesh dog back with the security dogs. Specially the Jindo of the breed which is excellent training which is suitable in task of the security dogs it leads and if it uses appropriately, it industrializes our specific the Jindo and protection there is a possibility of getting the effect which falls to also the gist which it rears rightly. It cultivate the second, security dogs and it magnifies training. The security dogs consequently is it will be able to accomplish the task above 2 branches to training method. Namely, after finishing obedience training, it is to be in security activity it will execute guard or detection back special training which is suitable in task and it will be able to commit. Third, it uses the security dogs which is trained rightly in task. The security dogs the adult escorts, facility expense, the explosive and narcotic drug detection, it will be able to use with the other blind man guidance dogs back. The narcotic drug detection dogs which currently is used specially technique intelligence anger, when considering the tendency of the narcotic drug smuggling offense field which becomes diversification that the role very it is important is a possibility of saying at day. It cultivate a fourth, escort relation specialty manpower and it improves the breed of the security dogs. The hazard which cultivate the security dogs use necessary personnel the breed of security dogs, the security dogs training center it opens the security crane relation subject of the college which stands and (university) it improves it establishes and training which is suitable in task it is to do to execute letting in the training map company. Specially, the hazard which improves the breed of security dogs in the progress mind quality which stands against the portion where the breed improvement is demanded as the portion where the internal organs research and investment are necessary sees. The security dogs compares in labor cost and the expense holds few, if it uses the our specific domestic dogs it will be able to use efficiently in the task which is various it solves the multi branch plans for wisly with the security dogs industrial development security of course contemporary history sliced raw fish sees demands compared to being immediacy and the life which is happy business the place where it does it sees it will be able to contribute a lot as.

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A Study on the Measure to Maximize the Effects of Functional Games in Relation to the Changes in Visual and Auditory Stimulations (시각 및 청각 자극 변화에 따른 기능성 게임의 효능 극대화 방안 연구)

  • Shin, Jeong-Hoon
    • Journal of the Institute of Convergence Signal Processing
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    • v.14 no.3
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    • pp.147-153
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    • 2013
  • Functional game, which is the combination of play and learning and a futuristic tool, can minimize the dysfunction and maximize the proper functions, and furthermore, has taken root as a new alternative that can change the game industry and game culture. Recently, the focus of game and education markets is shifting to the development of more advanced learning contents, rather than emphasizing the self-control and motivation of users. Along with that, the game market has excluded the socially dysfunctional elements, such as the addiction and learning disabilities, and has witnessed a diversification into the human-friendly entertainment business that emphasizes the mental and physical health and pursues scientific educational effects. In addition, functional games are expanding its reach from the professional sectors - such as medical aide/medical learning, military simulation, health, auxiliary tools, special education and learning tools - to the realm of routine education, mental health, etc., and has seen a steady growth. However, most functional games, which are being currently planned and developed to cope with the special characteristics of the market, have not undergone accurate scientific assessment of their functions and have not proven their effectiveness. An overwhelming proportion of the functional games are being developed based on the intuition and experience of game developers. Moreover, the type of games, which involve the repetition of simple tasks or take the form of simple puzzles, cannot effectively combine the practically interesting factors and the learning effects. Most games incorporate unscientific methods leading to the vague anticipation of improvement in functions, rather than the assessment of human functions. In this paper, a study was conducted to present the measures that could maximize the effects of functional games in relation to the changes in the visual and auditory stimulations in order to maximize the effects of functional games, i,e., the immersion and concentration. To compare the degree of effects arising from the visual stimulation, the functional game contents made in the form of 2D and 3D were utilized. In addition. ultra sound and 3-dimensional functional game contents were utilized to compare the degree of effects resulting from the changes in the auditory stimulation. The brainwave of the users were measured while conducting the experiments related to the response to the changes in visual and auditory stimulations in 3 steps, and the results of the analysis were compared.

A Convergence Study for the Academic Systematization of Cartoon-animation (만화영상학의 학문적 체계화를 위한 융합적 연구)

  • Lim, Jae-Hwan
    • Cartoon and Animation Studies
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    • s.43
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    • pp.285-320
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    • 2016
  • Cartoons and Animation are convergent arts created with a composite application of language arts described in the form of literary texts and sounds, plastic arts visualized in the form of artistic paintings, and film arts produced in the form of moving pictures. An academic university major in cartoons and animation studies established in late 20th century however, did not satisfactorily meet the needs in academic research and development and the free expression of artistic creation was limited. In order to systematize the major in cartoons and animation studies, an convergent approach to establish and clarify following are in demand : the terms and definitions, the historical developments, the research areas and methods, the major education and related jobs and start-ups. New culture and arts industries including cartoons, animation, moving images, and games contents are not yet listed in the industries listing service jointly provided online by the portal site Naver.com and Hyung-Seol publishing company. Above all, cartoons and animation are inseparably related to each other that even if one uses the term separately and independently, the meaning may not be complete. So a new combined term "Animatoon" can be established for the major in cartoons and animation studies and also used for its degree with concentrations of cartoons, animation, moving images, games, and etc. In the Introduction, a new combined term Animatoon is defined and explained the use of this term as the name of the major and degree in cartoons and animation studies. In the body, first, the Historical Developments classified Animatoon in the ancient times, the medieval times, and the modern times and they are analyzed with the help of esthetics and arts using examples of mural frescos, animal painting, religion cartoons, caricatures, cartoons, satire cartoons, comics, animation, 2 or 3 dimensional webtoons, and K-toons. Second, the Research Areas of Animatoon reviewed the theories, genres, artworks, and artists and the Research Methods of Animatoon presented the curriculum that integrated the courses in humanities, science technologies, culture and arts, and etc. Third, the Major Education considered Animatoon education in children, young adults, students of the major and the Related Jobs and Start-Ups explored various jobs relating to personal creation of artwork and collective production of business-oriented artwork. In the Conclusion, the current challenges of Animatoon considered personalization of the artists, specialization of the contents, diversification of the types, and liberalization of the art creation. And the direction of improvement advocated Animatoon to be an academic field of study, to be an art, to be a culture, and to be an industry. The importance of cartoons and animation along with videos and games rose in the 21st century. In order for cartoons and animation to take a leading role, make efforts in studying Animatoon academically and also in developing Animatoon as good contents in the cultural industries.

A study on Categorized type and range for the Aircraft and the LSA (우리나라 항공기 및 경량항공기의 종류 및 범위에 대한 법적 고찰)

  • Kim, Woong-Yi;Shin, Dai-Won
    • The Korean Journal of Air & Space Law and Policy
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    • v.28 no.1
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    • pp.55-71
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    • 2013
  • By aircraft from Aviation regulations and institutional regulatory framework for ensuring the safety is secured. State-of-the-art aircraft, according to the type of development and diversification, modernization and new types of aircraft are operated. In particular, light aircraft and ultralight flying device such as the gyro-plane and unmanned flying devices is introduced a new device, and the device operates at these flight in accordance with the standards of the Aviation Act regulations may not occur often. Variety of light aircraft and ultra-light aircraft assembly, can be adapted for a person engaged in the business of aviation safety management and to perform the legal basis was established. Depending on the classification of newly introduced aircraft, the biggest change is the introduction of the concept of the LSA. In Korea, the various light aircraft are operating, but these aircraft range not clearly Aviation Regulations had difficulty in ensuring safety. This study examined the differences between international rules and regulations of Korea about the classification of aircraft. The LSA are included in aircraft categories internationally, but LSA will not be included in the aircraft categories, which is one of a range of powered flight device exists in Korea Aviation Act. Limit for maximum continuous power speed in a LSA, it is a limit on the right of the people who want using the high-performance plane. Also it is an international trend does not fit in, and is consistent with the intent of LSA manufacturer. Delete the content from a range of future aviation law revisions and light aircraft-related provisions to limit the maximum continuous power speed is considered to be suitable for the purpose of introducing the light aircraft industry. The laws and regulations set up in order to ensure the safety of ultralight aircraft categories existing in ultralight aircraft that exceeds the purpose of the introduction of LSA technology development at home and abroad, and is intended to reflect. These standards complement of aircraft operation is not appropriate for the situation unless the country is difficult to ensure the safety of operations. Also developed in other countries, the introduction of aircraft operating in the country, so many problems occur early revision is required.

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Utilizing the Idle Railway Sites: A Proposal for the Location of Solar Power Plants Using Cluster Analysis (철도 유휴부지 활용방안: 군집분석을 활용한 태양광발전 입지 제안)

  • Eunkyung Kang;Seonuk Yang;Jiyoon Kwon;Sung-Byung Yang
    • Journal of Intelligence and Information Systems
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    • v.29 no.1
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    • pp.79-105
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    • 2023
  • Due to unprecedented extreme weather events such as global warming and climate change, many parts of the world suffer from severe pain, and economic losses are also snowballing. In order to address these problems, 'The Paris Agreement' was signed in 2016, and an intergovernmental consultative body was formed to keep the average temperature rise of the Earth below 1.5℃. Korea also declared 'Carbon Neutrality in 2050' to prevent climate catastrophe. In particular, it was found that the increase in temperature caused by greenhouse gas emissions hurts the environment and society as a whole, as well as the export-dependent economy of Korea. In addition, as the diversification of transportation types is accelerating, the change in means of choice is also increasing. As the development paradigm in the low-growth era changes to urban regeneration, interest in idle railway sites is rising due to reduced demand for routes, improvement of alignment, and relocation of urban railways. Meanwhile, it is possible to partially achieve the solar power generation goal of 'Renewable Energy 3020' by utilizing already developed but idle railway sites and take advantage of being free from environmental damage and resident acceptance issues surrounding the location; but the actual use and plan for these solar power facilities are still lacking. Therefore, in this study, using the big data provided by the Korea National Railway and the Renewable Energy Cloud Platform, we develop an algorithm to discover and analyze suitable idle sites where solar power generation facilities can be installed and identify potentially applicable areas considering conditions desired by users. By searching and deriving these idle but relevant sites, it is intended to devise a plan to save enormous costs for facilities or expansion in the early stages of development. This study uses various cluster analyses to develop an optimal algorithm that can derive solar power plant locations on idle railway sites and, as a result, suggests 202 'actively recommended areas.' These results would help decision-makers make rational decisions from the viewpoint of simultaneously considering the economy and the environment.

The Determination of Trust in Franchisor-Franchisee Relationships in China (중국 프랜차이즈 시스템에서의 본부와 가맹점간 신뢰의 영향요인)

  • Shin, Geon-Cheol;Ma, Yaokun
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.2
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    • pp.65-88
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    • 2008
  • Since the implementation of economic reforms in 1978, the Chinese economy grows rapidly at an average annul growth rate of 9% over the post two decades. Franchising has been widely recognized as an important source of entrepreneurial activity. Trust is important in that it facilitates relational exchanges by permits partners to transcend short-run inequities or risks to concentrate on long-term profits or gains. In the relationship between the franchisors and franchisees, trust has been described as an important source of competitive advantage. However, little research has been done on the factors affecting trust in Chinese franchisor-franchisee relationships. The purpose of this study is to investigate what factors affect the trust in the franchise system in China, and to provide guidelines and insights to franchisors which enter Chinese market. In this study, according to Morgan and Hunt (1994), trust is defined as the extending when one party has confidence in an exchange partner's reliability and integrity. We offered a conceptual model of the empirical study. The model shows that the factors affecting the trust include franchisor's supports, communication, satisfaction with previous outcome and conflict. We also suggested the franchisor's supports and communication like to enhance the franchisee's satisfaction with previous outcome, and the franchisor's supports, communication and he franchisee's satisfaction with previous outcome tend to decrease conflict. Before the formal study, a pretest involving exploratory interviews with owners from three franchisees was conducted to make sure the questionnaire was relevant and clear to the respondents. The data were collected using trained interviewers to carry out personal interviews with the aid of an unidentified, muti-page, structured questionnaire. The respondents comprised of owners, managers, and owner managers of franchisee-owned food service franchises located in Beijing, China. Even though a total of 256 potential franchises were initially contacted, the finally usable sample consisted of 125 respondents. As expected, the sampling method was successful in soliciting respondents with waried personal and firm characteristics. Self-administrated questionnaires were used for all measures. And established scales were used to measure the latent constructs in this study. The measures tapped the franchisees' perceptions of the relationship with the referent franchisor. Five-point Likert-type scales ranging from "strongly disagree" (=1) to "strongly agree" (=7) were used throughout the constructs (trust, eight items; support, five items; communication, four items; satisfaction, six items; conflict, three items). The reliability measurements traditionally employed, such as the Cronbach's alpha, were used. All the reliabilities were greater than.80. The proposed measurement model was estimated using SPSS 12.0 and AMOS 5.0 analysis package. We conducted A series of exploratory factor analyses and confirmatory factor analyses to assess the convergent validity, discriminant validity, and reliability. The results indicate reasonable overall fits between the model and the observed data. The overall fit of measurement model were $X^2$= 159.699, p=0.004, d.f. = 116, GFI =.879, NFI =.898, CFI =.969, IFI =.970, TLI =.959, RMR =.058. The results demonstrated that the data reasonably fitted the model. We also examined construct reliability and reliability and average variance extracted (AVE). The construct reliability of each construct was greater than.80 and the AVE of each construct was greater than.50. According to the analysis of Structure Equation Modeling (SEM), the results of path model indicated an adequate fit of the model: $X^2$= 142.126, p = 0.044, d.f. = 115, GFI =.892, NFI =.909, CFI =.981, IFI =.981, TLI =.974, RMR =.057. As hypothesized, the results showed that it is strategically important to establish trust in a franchise system, and the franchisor's supports, communication and satisfaction with previous outcome tend to reinforce franchisee's trust. The results also showed trust seems to decrease as the experience of conflict episodes increases. And we also noticed that franchisor's supports and communication tend to enhance the franchisee's satisfaction with previous outcome, and communication tend to decrease conflict. If the trust between the franchisor and franchisee can be established in a franchise system, franchising offers many benefits and reduces many costs. To manage a mutual trust of relationship with their franchisees, franchisor's should provide support effectively to their franchisees. Effective assistant services have direct effect on franchisees' satisfaction with previous outcome and trust in franchisor. Especially, franchise sales process, orientation, and training in the start-up period are key elements for success of the franchise system. Franchisor's support is an accumulated separate satisfaction evaluation with different kind of service provided by the franchisor. And providing support definitely can improve the trustworthy image of the franchisor. In the franchise system, conflicts of interests and exertions of different power sources are very common. The experience of conflict episodes seems to negatively relate to trust. Therefore, it is important to reduce the negative side of the relationship conflicts. Communication actually plays a broader role in reducing conflict and establish mutual trust in franchisor-franchisee relationship. And effective communication between franchisors and franchisees can improve franchisees' satisfaction toward the franchise system. As the diversification of Chinese markets, both franchisors and franchisees must keep the relevant, timely, and reliable communication. And it is very important to improve the quality of communication. Satisfaction with precious outcomes seems to positively relate to trust. Franchisors and franchisees that are highly satisfied with the previous outcomes that flow from their relationship will perceive their partner as advancing their goal achievement. Therefore, it is necessary for both franchisor and their franchisees to make the welfare of partner with effort. Little literature has focused on what factors affect the trust between franchisors and their franchisees in China. This study developed the hypotheses regarding the factors affecting trust in the transaction relationship. The results of data analysis supported the hypotheses strongly. There are certain limitations in this study. First, we may point out that some other factors missed in this study could be significantly important. Second, the context of this study, food service industry, limits its potential generalizability for all franchise systems. More studies in different categories of franchise system are needed to broaden its generalizability. Third, the model was tested empirically in a sample in Beijing, more empirical tests of the proposed model in other Chinese areas are needed. Finally, the analysis in this study was solely based on the perception of franchisees and the opinions of franchisors were not included.

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