• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.11 no.5
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• pp.77-90
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• 2016

This study is to examine the importance of site selection and service quality in franchise business as food service franchise became one of the fastest-growing service industries today. The chief finding of this study is as follows: First, a survey in locational and service quality factors affecting food service franchise shows that responders are more concerned with hygiene and visibility of the store than proximity and transportation advantages which reflects low statistical significance, thus the distance did not seem to be a big problem for the responders in the context that they mostly visit nearby food franchise. Second, the examination of the influence by the service quality factors and customer satisfaction shows significant positive relation with customer response, speed and accuracy, and accuracy factors which reveals that the responders prefer prompt response and swift judgment toward the customer's needs and expectations, professional knowledge services to the credibility factors in which little correlation with the customer satisfaction were found. Third, the examination of the influence by the service quality factors, locational factors, and re-visit reveals that customer response and specialty showed statistically significant correlation with intention of WOM (Word of Mouth) and revisit, which suggests that swift judgment and response toward the customer's needs and expectations, professional knowledge services is of great importance to both customer satisfaction and revisit. The study on the aspects of locational and service quality factors affecting franchise industry's customer satisfaction was conducted as above, an investigation in both factors' influence on the customer satisfaction was made, and based on the results of the analysis, this research seeks an optimal operation strategy of a franchise business. Food service franchise are relatively very competent to business adminstration and reaction capability to consumption changes due to the already established market, and there are stores springing up everywhere inspired by the founders who are too confident of their success in the franchise business. However, it is necessary for the franchise beginners to figure out a zone oriented, regular customer oriented business strategy than just complying with the head office manual. Owing to an increasing trend of opening medium to large sized stores and investments in the wake of converting to multiple business type Korean food franchise, there is growing need to set up new concept of store development and operational management strategy in order to overcome the excessive competition and limited sales volume of the old-fashioned small sized, small capital franchise stores. Furthermore, as most business category of food service franchise serve very similar menus, from a product differentiation point of view, it is required to map out flexible sales concept including the adoption of competitive and low-price strategy. In conclusion, as is shown in the analytical research, the customers' optimal choice fluctuate over their preferences like customer convenience and circumstances rather than insisting on specific brand, thus it will be necessary for the franchise stores to draw up aggressive strategy and planning in running food service franchise to maximize their profits.

• Journal of Convergence for Information Technology
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• v.10 no.8
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• pp.250-258
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• 2020

This study analyzes service scape and esthetic labor, emotional reaction, coustomer behavior intention that impacts skincare coustomers' behaviors and extracts relationships of cause and effects. Using 280 surveys were conducted to estheic shop visitors in Ulsan and Geyongnam area in recent 3 months. Using 257 surveys out of the 280 surveys, the writer did actual proof analysis. The data sample is analyzed in multiple regression analysis using Statistical power analysis with 2.1 analysis. Then the statistical processing is done with SPSS 21.0 and AMOS 21.0. It is proven that customer satisfactions from that positive reactions also increase revisit intentions by creating positive ripple effects. Through discoveries of structural relationships of predisposing factors of satisfactions in esthetic and revisit intentions, this study extracts scholastic and operational implications to have positive impacts. Expanded analysis is required in further researches with consideration of various age group and regional targets.

• Korean Journal of Artificial Intelligence
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• v.9 no.1
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• pp.9-14
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• 2021

This paper predicted a model that indicates whether to buy a car based on primary health insurance customer data. Currently, automobiles are being used to land transportation and living, and the scope of use and equipment is expanding. This rapid increase in automobiles has caused automobile insurance to emerge as an essential business target for insurance companies. Therefore, if the car insurance sales are predicted and sold using the information of existing health insurance customers, it can generate continuous profits in the insurance company's operating performance. Therefore, this paper aims to analyze existing customer characteristics and implement a predictive model to activate advertisements for customers interested in such auto insurance. The goal of this study is to maximize the profits of insurance companies by devising communication strategies that can optimize business models and profits for customers. This study was conducted through the Microsoft Azure program, and an automobile insurance purchase prediction model was implemented using Health Insurance Cross-sell Prediction data. The program algorithm uses Two-Class Logistic Regression and Two-Class Boosted Decision Tree at the same time to compare two models and predict and compare the results. According to the results of this study, when the Threshold is 0.3, the AUC is 0.837, and the accuracy is 0.833, which has high accuracy. Therefore, the result was that customers with health insurance could induce a positive reaction to auto insurance purchases.

• Journal of Digital Convergence
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• v.16 no.3
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• pp.261-273
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• 2018

The purpose of this study is to find out how the online brand community characteristics affect customer behavior according to self-construal level and gender difference. The characteristics of online community are divided into interaction, objectivity, information provision, and activity reward. First, interactivity and activity compensation among the characteristics of online community have a positive effect on brand community commitment. On the other hand, the effect of purpose and information provision is insufficient. Second, the greater the commitment to the brand community, the higher the WOM effect is. Finally, this study shows that customers with dependent self-construal tendencies have more brand community support than customers with independent self-construal tendencies, and females show more brand community support than males. This study suggests an efficient marketing approach to companies through a brand community commitment by understanding the intrinsic motivation of consumers' self-construal level.

• Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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• v.19 no.1
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• pp.124-129
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• 2005

Reliability of electric power supply by power system becomes major issue as the electric power industry is recently being regulated. Also a change of environmental condition related to power supply reliability should be considered in the view of power supplier since the competition between energy-industries is strengthen. In other words, because customers may choose other energy source instead of electric power due to an expensive energy charge, enhancing recklessly the reliability of power supply might not be an essential strategy. So to effectively cope with this problem, it is necessary to perceive the reaction of customers against power supply reliability and interruption cost. This paper evaluates the annual interruption costs of customers by regional groups in Korea using a macro approach to cope with these internal and external environment. That is, the each ratio of customer's interruption costs to price of electric power charge is evaluated for public, service, agricultural, fishery, mining, manufactural, and residential consumption by every cities and provinces.

• Journal of Service Research and Studies
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• v.3 no.1
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• pp.17-31
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• 2013

With the advent of smart phones, there are increasing demands from customers to connect to the social media services at any time and at any place without restraint. As a result, many foreign companies have lately been able to pursue two-way communication with customers through social media which has enabled them to see the reaction and the needs of customers immediately and respond timely. That is, they are actively engaged in the various marketing activities targeting customers using SNS. According to H. A. Simon's needle theory, it is efficient to make a decision within the bounded rationality due to the difficulty of collecting data in decision-making as well as the inability to collect all information because of limited time and money. If the information or the informant can be trusted, the customers would be able to make a quick decision and get higher satisfaction from it. Therefore, this study examines and thereby empirically demonstrates what role customers' trust plays in a company's marketing using SNS by exploring how trust condition works in the mediated model and, theoretically, intends to introduce an empirical methodology on more strictly mediated moderating effects and, in practice, revisit the role of trust on direct and indirect effect the SNS's quality has on the performance variables such as customer satisfaction and loyalty. This study thereby aims to provide a strategic tool for the companies that plan to use the SNS in developing marketing strategies.

• Korean Institute of Interior Design Journal
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• v.22 no.6
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• pp.119-129
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• 2013

For commercial inner space, studies about brand communication and VMD to inform brand identity to customers are very important. Accordingly, the study conducted questionnaire survey about 'emotional reaction, brand recognition, brand communication and satisfaction on VMD expressional elements' of customers and brand-related personnel on the ZARA flagship store. Through analysis of difference of evaluation on surveyed items between customers and brand personnels, importance of direction of VMD design applying brand communication which can satisfy customers and application of brand communication was verified. Specific results of the research are as follows: First, comparing brand personnel's expectation of recognition of their brand from customers, substantial level of recognition of brand by customers was lower. It is necessary for improvement through consumer analysis in order to raise brand recognition. Second, as the result of analysis of emotional reaction on VMD, it needs to lead customers to positive emotional reaction close to the brand plan intention by inducing 'exciting and sensational' brand concept to emotional reactions through comprehensive VMD image management and leading to 'free and convenient' emotional reaction and then communications with customers and minimizing emotional differences. Third, for brand communication and creation of 'interest', intention of ZARA, it needs to get maximum communicative effects with 'young' VMD design. Fourth, for satisfaction survey on VMD expressional elements, customers was less satisfied than brand personnel. Accordingly, in order to raise customers' satisfaction, show windows, entry, mannequins and objets should be planned with priority and it should also satisfy customers through communications with customers including advertisement and marketing.

• Journal of Families and Better Life
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• v.30 no.6
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• pp.167-181
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• 2012

This study analyzed consumer's harsh complaining behaviors and firm's reactions toward consumers' harsh complaining behavior, and investigated the differences in the firms' reactions according to the characteristics of counselors and customer service centers. In addition, this study attempted to find a strategy and provide guidance regarding consumer's harsh complaining behaviors. The results of this study are discussed below. First, consumer's harsh complaining attitudes were expressed by crude language, violent language, threats, personal attacks, and claims of a high-ranking social position. Consumer's directive, complaining behaviors were repeated on the telephone, and threats of prosecution or disclosure to the public, exposure of habitual product returns, and requests for interviews with superiorsat the representative firm were made. Second, a firm typologies according to its reaction style toward a consumer's harsh complaining behaviors were as follows: Group 1, having a neutral attitude toward consumers and preparation thoroughly regarding their demands; Group 2, having a negative attitude toward consumers and some degree of preparation toward consumers' demands; and finally, Group 3, having a positive attitude toward consumers but offering insufficient reparation regarding consumers' demands. Third, female counselors, counselors having a certified counselor's license, and those much experience working in labor work were more likely to be in Group 3. Male counselors, part-time counselors, and those having experience of many years were more likely to be in Group 2. Group 1 were more likely to have large number of workers at customer service centers, male counselors, and to have large numbers of educational training programs related to the reactions of consumers in the form of dissatisfaction, complaints, how to offer compensation for injuries to consumers, and issues related to PL(product liability). In addition, Group 1 also had more firm level welfare policies related to hight stress levels of consumer counselors and extra types of support regarding harsh consumers. However, Group 2 members were more likely to provide excessive compensation and rewards to harsh consumers. Finally, to react to consumer's harsh complaint efficiently, it was suggested that firms should not treat consumers as harsh consumers, should react to consumers' complaints sincerely, and should take precautionary management efforts as regards consumer dissatisfaction based on better quality control of products. In addition, it was deemed necessary to formulate a management strategy to train competent consumer counselors with a high quality of counselor skill, having standardized and consistent reaction guidance toward consumer complaints and thorough knowledge of compensation rules for consumer injuries and subsequent guidance.

• Journal of Distribution Research
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• v.15 no.3
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• pp.71-110
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• 2010

1. Introduction Today Internet is recognized as an important way for the transaction of products and services. According to the data surveyed by the National Statistical Office, the on-line transaction in 2007 for a year, 15.7656 trillion, shows a 17.1%(2.3060 trillion won) increase over last year, of these, the amount of B2C has been increased 12.0%(10.2258 trillion won). Like this, because the entry barrier of on-line market of Korea is low, many retailers could easily enter into the market. So the bigger its scale is, but on the other hand, the tougher its competition is. Particularly due to the Internet and innovation of IT, the existing market has been changed into the perfect competitive market(Srinivasan, Rolph & Kishore, 2002). In the early years of on-line business, they think that the main reason for success is a moderate price, they are awakened to its importance of on-line service quality with tough competition. If it's not sure whether customers can be provided with what they want, they can use the Web sites, perhaps they can trust their products that had been already bought or not, they have a doubt its viability(Parasuraman, Zeithaml & Malhotra, 2005). Customers can directly reserve and issue their air tickets irrespective of place and time at the Web sites of travel agencies or airlines, but its empirical studies about these Web sites for reserving and issuing air tickets are insufficient. Therefore this study goes on for following specific objects. First object is to measure service quality and service recovery of Web sites for reserving and issuing air tickets. Second is to look into whether above on-line service quality and on-line service recovery have an impact on overall service quality. Third is to seek for the relation with overall service quality and customer satisfaction, then this customer satisfaction and loyalty intention. 2. Theoretical Background 2.1 On-line Service Quality Barnes & Vidgen(2000; 2001a; 2001b; 2002) had invented the tool to measure Web sites' quality four times(called WebQual). The WebQual 1.0, Step one invented a measuring item for information quality based on QFD, and this had been verified by students of UK business school. The Web Qual 2.0, Step two invented for interaction quality, and had been judged by customers of on-line bookshop. The WebQual 3.0, Step three invented by consolidating the WebQual 1.0 for information quality and the WebQual2.0 for interactionquality. It includes 3-quality-dimension, information quality, interaction quality, site design, and had been assessed and confirmed by auction sites(e-bay, Amazon, QXL). Furtheron, through the former empirical studies, the authors changed sites quality into usability by judging that usability is a concept how customers interact with or perceive Web sites and It is used widely for accessing Web sites. By this process, WebQual 4.0 was invented, and is consist of 3-quality-dimension; information quality, interaction quality, usability, 22 items. However, because WebQual 4.0 is focusing on technical part, it's usable at the Website's design part, on the other hand, it's not usable at the Web site's pleasant experience part. Parasuraman, Zeithaml & Malhorta(2002; 2005) had invented the measure for measuring on-line service quality in 2002 and 2005. The study in 2002 divided on-line service quality into 5 dimensions. But these were not well-organized, so there needed to be studied again totally. So Parasuraman, Zeithaml & Malhorta(2005) re-worked out the study about on-line service quality measure base on 2002's study and invented E-S-QUAL. After they invented preliminary measure for on-line service quality, they made up a question for customers who had purchased at amazon.com and walmart.com and reassessed this measure. And they perfected an invention of E-S-QUAL consists of 4 dimensions, 22 items of efficiency, system availability, fulfillment, privacy. Efficiency measures assess to sites and usability and others, system availability measures accurate technical function of sites and others, fulfillment measures promptness of delivering products and sufficient goods and others and privacy measures the degree of protection of data about their customers and so on. 2.2 Service Recovery Service industries tend to minimize the losses by coping with service failure promptly. This responses of service providers to service failure mean service recovery(Kelly & Davis, 1994). Bitner(1990) went on his study from customers' view about service providers' behavior for customers to recognize their satisfaction/dissatisfaction at service point. According to them, to manage service failure successfully, exact recognition of service problem, an apology, sufficient description about service failure and some tangible compensation are important. Parasuraman, Zeithaml & Malhorta(2005) approached the service recovery from how to measure, rather than how to manage, and moved to on-line market not to off-line, then invented E-RecS-QUAL which is a measuring tool about on-line service recovery. 2.3 Customer Satisfaction The definition of customer satisfaction can be divided into two points of view. First, they approached customer satisfaction from outcome of comsumer. Howard & Sheth(1969) defined satisfaction as 'a cognitive condition feeling being rewarded properly or improperly for their sacrifice.' and Westbrook & Reilly(1983) also defined customer satisfaction/dissatisfaction as 'a psychological reaction to the behavior pattern of shopping and purchasing, the display condition of retail store, outcome of purchased goods and service as well as whole market.' Second, they approached customer satisfaction from process. Engel & Blackwell(1982) defined satisfaction as 'an assessment of a consistency in chosen alternative proposal and their belief they had with them.' Tse & Wilton(1988) defined customer satisfaction as 'a customers' reaction to discordance between advance expectation and ex post facto outcome.' That is, this point of view that customer satisfaction is process is the important factor that comparing and assessing process what they expect and outcome of consumer. Unlike outcome-oriented approach, process-oriented approach has many advantages. As process-oriented approach deals with customers' whole expenditure experience, it checks up main process by measuring one by one each factor which is essential role at each step. And this approach enables us to check perceptual/psychological process formed customer satisfaction. Because of these advantages, now many studies are adopting this process-oriented approach(Yi, 1995). 2.4 Loyalty Intention Loyalty has been studied by dividing into behavioral approaches, attitudinal approaches and complex approaches(Dekimpe et al., 1997). In the early years of study, they defined loyalty focusing on behavioral concept, behavioral approaches regard customer loyalty as "a tendency to purchase periodically within a certain period of time at specific retail store." But the loyalty of behavioral approaches focuses on only outcome of customer behavior, so there are someone to point the limits that customers' decision-making situation or process were neglected(Enis & Paul, 1970; Raj, 1982; Lee, 2002). So the attitudinal approaches were suggested. The attitudinal approaches consider loyalty contains all the cognitive, emotional, voluntary factors(Oliver, 1997), define the customer loyalty as "friendly behaviors for specific retail stores." However these attitudinal approaches can explain that how the customer loyalty form and change, but cannot say positively whether it is moved to real purchasing in the future or not. This is a kind of shortcoming(Oh, 1995). 3. Research Design 3.1 Research Model Based on the objects of this study, the research model derived is