• The Journal of Korean Institute of Communications and Information Sciences
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• v.40 no.5
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• pp.892-902
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• 2015

Agri-food ICT(Information and Communications Technologies) convergence has been raised as an important issue for agricultural industry competence. In this situation, this study is to enhance agricultural competitiveness and seek to development plan for agricultural corporation by diagnosing informatization level. For this purpose, this study conducted survey on informatization level of 3,019 agricultural corporations and calculated level score. And result is compared with SMEs(Small and Medium Enterprise) informatization survey, including manufacturing and service industries, conducted by Korea Technology & Information Promotion Agency for SMEs in recent agricultural corporations' growing with automation of agricultural production and improving service to customer satisfaction. Evaluation system is established to calculate informatization level score and AHP(Analytic Hierarchy Process) method was used by the experts to investigate weighting of assessment area, assessment indicators, assessment items. As a result, agricultural corporation informatization level score was 40.16 points which is lower than the benefitted organization of agri-food IT convergence modeling(43.44 points). By assessment area, the informatization level of promotional environment area was low and investment and training items were analyzed low especially so need to improve urgently. In the analysis result by organization type, agricultural company corporation's informatization level was higher than the agricultural association corporation and 'Processing and distribution' was higher than others by business type. Informatization level of agricultural corporation is 80 percent of 2013 SMEs' level(50.18 points) and 59.4 percent of a large corporation(67.64 points). In particular, big difference is occurred in investment feasibility analysis, informatization investment and education which will be need to improve.

• The Journal of The Korea Institute of Intelligent Transport Systems
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• v.16 no.6
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• pp.141-155
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• 2017

As the use of SNS becomes more active, many people are posting their thoughts about specific events in their SNS in the form of text. As a result, SNS is used in various fields such as finance and distribution to conduct service satisfaction surveys and consumer monitoring. However, in the transportation area, there are not enough cases to utilize unstructured data analysis such as emotional analysis. In this study, we developed an emotional analysis methodology that can be used in transportation by using highway VOC data, which is atypical data collected by Korea Expressway Corporation. The developed methodology consists of morpheme analysis, emotional dictionary construction, and emotional discrimination of the collected unstructured data. The developed methodology was verified using highway related tweet data. As a result of the analysis, it can be guessed that many information and information about the construction and the accident were related to the highway during the analysis period. Also, it seems that users complain about the delay caused by construction and accident.

• Journal of Intelligence and Information Systems
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• v.14 no.1
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• pp.19-34
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• 2008

IT investment is usually very costly and takes a long time to get the results out of investment. However, most of currently available evaluation methods for IT investment are based upon short-term effects, hence their results are not fully trustworthy. In addition, those methods commonly consider only financial aspects such as ROI. For more reliable evaluation, it is necessary to consider non-financial factors such as system utilization, customer satisfaction, public relations, and so on, as well as financial factors. In this research, we propose an evaluation method that can evaluate both financial and non-financial aspects on a long-term base. For this purpose, we employed the research results developed in System dynamics and Balanced scorecard. System dynamics is useful in analyzing long term behavior of a given system, and Balanced scorecard is useful for evaluating both financial and non-financial aspects. We demonstrated the usefulness of our method by applying it to the evaluation of RFID (Radio Frequency Identification) investment in a distribution and retail industry. From this application, we found that RFID investment may not be rewarding in the short term, but is sure to be returning the income relative to its investment in the long run.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.20 no.10
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• pp.54-61
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• 2019

This paper reports a comparative review of the service quality attributes of Electronic Customs Clearance (UNI-PASS) by applying the Kano model, Timko's BW coefficients, and IGA model, as reported by Tontini et al. in terms of a service quality evaluation of electronic customs clearance as the comprehensive national customs administration information system. In addition, this study examined which quality attributes should be focused on to improve the service quality and enhance customer satisfaction using the electronic customs clearance service. The Kano, Timko, and IGA models were classified into the four common quality attributes: attractive quality, one-dimensional quality, must-be quality, and indifferent quality. Because the integrated approach was used, one-dimensional quality was included in the area for critical improvement, while the must-be quality was included in the area for intensive maintenance. In addition, the indifferent quality was included in the area of carefree, while the attractive quality was included in the area of competitive advantage.

• Journal of Distribution Research
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• v.17 no.3
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• pp.25-57
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• 2012

This study identified motives for writing apparel product reviews in online stores, and determined what motives increase the behavior of writing reviews. It also classified store customers based on the type of writing motives, and clarified the characteristics of internet purchase behavior and of a demographic profile. Data were collected from 252 females aged 20s' and 30s' who have experience of reading and writing reviews on online shopping. The five types of writing motives were altruistic information sharing, remedying of a grievance and vengeance, economic incentives, helping new product development, and the expression of satisfaction feelings. Among five motives, altruistic information sharing, economic incentives, and helping new product development stimulate writing reviews. Store customers who write reviews were classified into three groups based on their writing motive types: Other consumer advocates(29.8%), self-interested shoppers(40.5%) and shoppers with moderate motives(29.8%). There were significant differences among three groups in writing behavior (the frequency of writing reviews, writing intent of reviews, duration of writing reviews, and frequency of online shopping) and age. Based on results, managerial implications were suggested. Long Abstract : The purpose of present study is to identify the types of writing motives on online shopping, and to clarify the motives affecting the behavior of writing reviews. This study also classifies online shoppers based on the motive types, and identifies the characteristics of the classified groups in terms of writing behavior, frequency of online shopping, and demographics. Use and Gratification Theory was adopted in this study. Qualitative research (focus group interview) and quantitative research were used. Korean women(20 to 39 years old) who reported experience with purchasing clothing online, and reading and writing reviews were selected as samples(n=252). Most of the respondents were relatively young (20-34yrs., 86.1%,), single (61.1%), employed(61.1%) and residents living in big cities(50.9%). About 69.8% of respondents read and 40.5% write apparel reviews frequently or very frequently. 24.6% of the respondents indicated an "average" in their writing frequency. Based on the qualitative result of focus group interviews and previous studies on motives for online community activities, measurement items of motives for writing after-purchase reviews were developed. All items were used a five-point Likert scale with endpoints 1 (strongly disagree) and 5 (strongly agree). The degree of writing behavior was measured by items concerning experience of writing reviews, frequency of writing reviews, amount of writing reviews, and intention of writing reviews. A five-point scale(strongly disagree-strongly agree) was employed. SPSS 18.0 was used for exploratory factor analysis, K-means cluster analysis, one-way ANOVA(Scheffe test) and ${\chi}^2$-test. Confirmatory factor analysis and path model analysis were conducted by AMOS 18.0. By conducting principal components factor analysis (varimax rotation, extracting factors with eigenvalues above 1.0) on the measurement items, five factors were identified: Altruistic information sharing, remedying of a grievance and vengeance, economic incentives, helping new product development, and expression of satisfaction feelings(see Table 1). The measurement model including these final items was analyzed by confirmatory factor analysis. The measurement model had good fit indices(GFI=.918, AGFI=.884, RMR=.070, RMSEA=.054, TLI=.941) except for the probability value associated with the ${\chi}^2$ test(${\chi}^2$=189.078, df=109, p=.00). Convergent validities of all variables were confirmed using composite reliability. All SMC values were found to be lower than AVEs confirming discriminant validity. The path model's goodness-of-fit was greater than the recommended limits based on several indices(GFI=.905, AGFI=.872, RMR=.070, RMSEA=.052, TLI=.935; ${\chi}^2$=260.433, df=155, p=.00). Table 2 shows that motives of altruistic information sharing, economic incentives and helping new product development significantly increased the degree of writing product reviews of online shopping. In particular, the effect of altruistic information sharing and pursuit of economic incentives on the behavior of writing reviews were larger than the effect of helping new product development. As shown in table 3, online store shoppers were classified into three groups: Other consumer advocates (29.8%), self-interested shoppers (40.5%), and moderate shoppers (29.8%). There were significant differences among the three groups in the degree of writing reviews (experience of writing reviews, frequency of writing reviews, amount of writing reviews, intention of writing reviews, and duration of writing reviews, frequency of online shopping) and age. For five aspects of writing behavior, the group of other consumer advocates who is mainly comprised of 20s had higher scores than the other two groups. There were not any significant differences between self-interested group and moderate group regarding writing behavior and demographics.

• Journal of Distribution Research
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• v.15 no.3
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• pp.111-137
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• 2010

The basic purpose of this study is to investigate perceived quality and service personal value affecting the result of long-term relationship between service buyers and suppliers. This research presented a constructive model(perceived quality affecting the service personal value and the moderate effect of NFC) in the on off line and then propose the research model base on prior researches and studies about relationships among components of service. Data were gathered from respondents who visit at the education service market. For this study, Data were analyzed by AMOS 7.0. We integrate the literature on services marketing with researches on personal values and perceived quality. The SERPVAL scale presented here allows for the creation of a common ground for assessing service personal values, giving a clear understanding of the key value dimensions behind service choice and usage. It will lead to a focus of future research in services marketing, extending knowledge in the field and stimulating further empirical research on service personal values. At the managerial level, as a tool the SERPVAL scale should allow practitioners to evaluate and improve the value of a service, and consequently, to define strategies and actions to address services for customers based on their fundamental personal values. Through qualitative and empirical research, we find that the service quality construct conforms to the structure of a second-order factor model that ties service quality perceptions to distinct and actionable dimensions: outcome, interaction, and environmental quality. In turn, each has two subdimensions that define the basis of service quality perceptions. The authors further suggest that for each of these subdimensions to contribute to improved service quality perceptions, the quality received by consumers must be perceived to be reliable, responsive, and empathetic. Although the service personal value may be found in researches that explore individual values and their consequences for consumer behavior, there is no established operationalization of a SERPVAL scale. The inexistence of an established scale, duly adapted in order to understand and analyze personal values behind services usage, exposes the need of a measurement scale with such a purpose. This need has to be rooted, however, in a conceptualization of the construct being scaled. Service personal values can be defined as a customer's overall assessment of the use of a service based on the perception of what is achieved in terms of his own personal values. As consumer behaviors serve to show an individual's values, the use of a service can also be a way to fulfill and demonstrate consumers'personal values. In this sense, a service can provide more to the customer than its concrete and abstract attributes at both the attribute and the quality levels, and more than its functional consequences at the value level. Both values and services literatures agree, that personal value is the highest-level concept, followed by instrumental values, attitudes and finally by product attributes. Purchasing behaviors are agreed to be the end result of these concepts' interaction, with personal values taking a major role in the final decision process. From both consumers' and practitioners' perspectives, values are extremely relevant, as they are desirable goals that serve as guiding principles in people's lives. While building on previous research, we propose to assess service personal values through three broad groups of individual dimensions; at the self-oriented level, we use (1) service value to peaceful life (SVPL) and, at the social-oriented level, we use (2) service value to social recognition (SVSR), and (3) service value to social integration (SVSI). Service value to peaceful life is our first dimension. This dimension emerged as a combination of values coming from the RVS scale, a scale built specifically to assess general individual values. If a service promotes a pleasurable life, brings or improves tranquility, safety and harmony, then its user recognizes the value of this service. Generally, this service can improve the user's pleasure of life, since it protects or defends the consumer from threats to life or pressures on it. While building upon both the LOV scale, a scale built specifically to assess consumer values, and the RVS scale for individual values, we develop the other two dimensions: SVSR and SVSI. The roles of social recognition and social integration to improve service personal value have been seriously neglected. Social recognition derives its outcome utility from its predictive utility. When applying this underlying belief to our second dimension, SVSR, we assume that people use a service while taking into consideration the content of what is delivered. Individuals consider whether the service aids in gaining respect from others, social recognition and status, as well as whether it allows achieving a more fulfilled and stimulating life, which might then be revealed to others. People also tend to engage in behavior that receives social recognition and to avoid behavior that leads to social disapproval, and this contributes to an individual's social integration. This leads us to the third dimension, SVSI, which is based on the fact that if the consumer perceives that a service strengthens friendships, provides the possibility of becoming more integrated in the group, or promotes better relationships at the social, professional or family levels, then the service will contribute to social integration, and naturally the individual will recognize personal value in the service. Most of the research in business values deals with individual values. However, to our knowledge, no study has dealt with assessing overall personal values as well as their dimensions in a service context. Our final results show that the scales adapted from the Schwartz list were excluded. A possible explanation is that although Schwartz builds on Rokeach work in order to explore individual values, its dimensions might be especially focused on analyzing societal values. As we are looking for individual dimensions, this might explain why the values inspired by the Schwartz list were excluded from the model. The hierarchical structure of the final scale presented in this paper also presents theoretical implications. Although we cannot claim to definitively capture the dimensions of service personal values, we believe that we come close to capturing these overall evaluations because the second-order factor extracts the underlying commonality among dimensions. In addition to obtaining respondents' evaluations of the dimensions, the second-order factor model captures the common variance among these dimensions, reflecting the respondents' overall assessment of service personal values. Towards this fact, we expect that the service personal values conceptualization and measurement scale presented here contributes to both business values literature and the service marketing field, allowing for the delineation of strategies for adding value to services. This new scale also presents managerial implications. The SERPVAL dimensions give some guidance on how to better pursue a highly service-oriented business strategy. Indeed, the SERPVAL scale can be used for benchmarking purposes, as this scale can be used to identify whether or not a firms' marketing strategies are consistent with consumers' expectations. Managerial assessment of the personal values of a service might be extremely important because it allows managers to better understand what customers want or value. Thus, this scale allows us to identify what services are really valuable to the final consumer; providing knowledge for making choices regarding which services to include. Traditional approaches have focused their attention on service attributes (as quality) and service consequences(as service value), but personal values may be an important set of variables to be considered in understanding what attracts consumers to a certain service. By using the SERPVAL scale to assess the personal values associated with a services usage, managers may better understand the reasons behind services' usage, so that they may handle them more efficiently. While testing nomological validity, our empirical findings demonstrate that the three SERPVAL dimensions are positively and significantly associated with satisfaction. Additionally, while service value to social integration is related only with loyalty, service value to peaceful life is associated with both loyalty and repurchase intent. It is also interesting and surprising that service value to social recognition appears not to be significantly linked with loyalty and repurchase intent. A possible explanation is that no mobile service provider has yet emerged in the market as a luxury provider. All of the Portuguese providers are still trying to capture market share by means of low-end pricing. This research has implications for consumers as well. As more companies seek to build relationships with their customers, consumers are easily able to examine whether these relationships provide real value or not to their own lives. The selection of a strategy for a particular service depends on its customers' personal values. Being highly customer-oriented means having a strong commitment to customers, trying to create customer value and understanding customer needs. Enhancing service distinctiveness in order to provide a peaceful life, increase social recognition and gain a better social integration are all possible strategies that companies may pursue, but the one to pursue depends on the outstanding personal values held by the service customers. Data were gathered from 284 respondents in the korean discount store and online shopping mall market. This research proposed 3 hypotheses on 6 latent variables and tested through structural equation modeling. 6 alternative measurements were compared through statistical significance test of the 6 paths of research model and the overall fitting level of structural equation model. and the result was successful. and Perceived quality more positively influences service personal value when NFC is high than when no NFC is low in the off-line market. The results of the study indicate that service quality is properly modeled as an antecedent of service personal value. We consider the research and managerial implications of the study and its limitations. In sum, by knowing the dimensions a consumer takes into account when choosing a service, a better understanding of purchasing behaviors may be realized, guiding managers toward customers expectations. By defining strategies and actions that address potential problems with the service personal values, managers might ultimately influence their firm's performance. we expect to contribute to both business values and service marketing literatures through the development of the service personal value. At a time when marketing researchers are challenged to provide research with practical implications, it is also believed that this framework may be used by managers to pursue service-oriented business strategies while taking into consideration what customers value.

• Information Systems Review
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• v.20 no.4
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• pp.1-23
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• 2018

A smart phone has been widely spread around world and makes people enjoy online shopping in any time and any place. Recently it also changes the distribution environment. O2O (Online-to-Offline) service becomes new normal due to its convenience of ease shopping of product and services. O2O service market shows steady and steep growth, It is reported that, however, 80% of the businesses has been discontinued within the first year because of unstable business models, customer dissatisfaction and distrust of service. Therefore, it is very important research issue to find out influential factors promoting continuous usage intention of O2O service. Previous study shows that it only considers online characteristics and lack of analysis about offline characteristics and social impact factors. The purpose of this paper is to find out continuous usage intention factors of O2O services by literature review, case analysis, and empirical test. A comprehensive research model and related hypothesis are developed and tested by using a structural equation, Survey was carried out among users who have used O2O service including payment service for at least once. Finally 611 samples are selected out of total 813 surveys. The result shows that the model is theoretically proved and 12 out of 17 hypotheses are accepted. The contribution of this paper is that it provides a new theoretical research model about continuous usage intention factors as well as practical guidelines about promoting continuous usage and growth strategies of O2O service.

• Journal of Global Scholars of Marketing Science
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• v.18 no.4
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• pp.61-118
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• 2008

The purpose of this research is to construct research framework for international franchising based on existing literature and to identify research components in the framework. Franchise can be defined as management styles that allow franchisee use various management assets of franchisor in order to make or sell product or service. It can be divided into product distribution franchise that is designed to sell products and business format franchise that is designed for running it as business whatever its form is. International franchising can be defined as a way of internationalization of franchisor to foreign country by providing its business format or package to franchisee of host country. International franchising is growing fast for last four decades but academic research on this is quite limited. Especially in Korea, research about international franchising is carried out on by case study format with single case or empirical study format with survey based on domestic franchise theory. Therefore, this paper tries to review existing literature on international franchising research, providing research framework, and then stimulating new research on this field. International franchising research components include motives and environmental factors for decision of expanding to international franchising, entrance modes and development plan for international franchising, contracts and management strategy of international franchising, and various performance measures from different perspectives. First, motives of international franchising are fee collection from franchisee. Also it provides easier way to expanding to foreign country. The other motives including increase total sales volume, occupying better strategic position, getting quality resources, and improving efficiency. Environmental factors that facilitating international franchising encompasses economic condition, trend, and legal or political factors in host and/or home countries. In addition, control power and risk management capability of franchisor plays critical role in successful franchising contract. Final decision to enter foreign country via franchising is determined by numerous factors like history, size, growth, competitiveness, management system, bonding capability, industry characteristics of franchisor. After deciding to enter into foreign country, franchisor needs to set entrance modes of international franchising. Within contractual mode, there are master franchising and area developing franchising, licensing, direct franchising, and joint venture. Theories about entrance mode selection contain concepts of efficiency, knowledge-based approach, competence-based approach, agent theory, and governance cost. The next step after entrance decision is operation strategy. Operation strategy starts with selecting a target city and a target country for franchising. In order to finding, screening targets, franchisor needs to collect information about candidates. Critical information includes brand patent, commercial laws, regulations, market conditions, country risk, and industry analysis. After selecting a target city in target country, franchisor needs to select franchisee, in other word, partner. The first important criteria for selecting partners are financial credibility and capability, possession of real estate. And cultural similarity and knowledge about franchisor and/or home country are also recognized as critical criteria. The most important element in operating strategy is legal document between franchisor and franchisee with home and host countries. Terms and conditions in legal documents give objective information about characteristics of franchising agreement for academic research. Legal documents have definitions of terminology, territory and exclusivity, agreement of term, initial fee, continuing fees, clearing currency, and rights about sub-franchising. Also, legal documents could have terms about softer elements like training program and operation manual. And harder elements like law competent court and terms of expiration. Next element in operating strategy is about product and service. Especially for business format franchising, product/service deliverable, benefit communicators, system identifiers (architectural features), and format facilitators are listed for product/service strategic elements. Another important decision on product/service is standardization vs. customization. The rationale behind standardization is cost reduction, efficiency, consistency, image congruence, brand awareness, and competitiveness on price. Also standardization enables large scale R&D and innovative change in management style. Another element in operating strategy is control management. The simple way to control franchise contract is relying on legal terms, contractual control system. There are other control systems, administrative control system and ethical control system. Contractual control system is a coercive source of power, but franchisor usually doesn't want to use legal power since it doesn't help to build up positive relationship. Instead, self-regulation is widely used. Administrative control system uses control mechanism from ordinary work relationship. Its main component is supporting activities to franchisee and communication method. For example, franchisor provides advertising, training, manual, and delivery, then franchisee follows franchisor's direction. Another component is building franchisor's brand power. The last research element is performance factor of international franchising. Performance elements can be divided into franchisor's performance and franchisee's performance. The conceptual performance measures of franchisor are simple but not easy to obtain objectively. They are profit, sale, cost, experience, and brand power. The performance measures of franchisee are mostly about benefits of host country. They contain small business development, promotion of employment, introduction of new business model, and level up technology status. There are indirect benefits, like increase of tax, refinement of corporate citizenship, regional economic clustering, and improvement of international balance. In addition to those, host country gets socio-cultural change other than economic effects. It includes demographic change, social trend, customer value change, social communication, and social globalization. Sometimes it is called as westernization or McDonaldization of society. In addition, the paper reviews on theories that have been frequently applied to international franchising research, such as agent theory, resource-based view, transaction cost theory, organizational learning theory, and international expansion theories. Resource based theory is used in strategic decision based on resources, like decision about entrance and cooperation depending on resources of franchisee and franchisor. Transaction cost theory can be applied in determination of mutual trust or satisfaction of franchising players. Agent theory tries to explain strategic decision for reducing problem caused by utilizing agent, for example research on control system in franchising agreements. Organizational Learning theory is relatively new in franchising research. It assumes organization tries to maximize performance and learning of organization. In addition, Internalization theory advocates strategic decision of direct investment for removing inefficiency of market transaction and is applied in research on terms of contract. And oligopolistic competition theory is used to explain various entry modes for international expansion. Competency theory support strategic decision of utilizing key competitive advantage. Furthermore, research methodologies including qualitative and quantitative methodologies are suggested for more rigorous international franchising research. Quantitative research needs more real data other than survey data which is usually respondent's judgment. In order to verify theory more rigorously, research based on real data is essential. However, real quantitative data is quite hard to get. The qualitative research other than single case study is also highly recommended. Since international franchising has limited number of applications, scientific research based on grounded theory and ethnography study can be used. Scientific case study is differentiated with single case study on its data collection method and analysis method. The key concept is triangulation in measurement, logical coding and comparison. Finally, it provides overall research direction for international franchising after summarizing research trend in Korea. International franchising research in Korea has two different types, one is for studying Korean franchisor going overseas and the other is for Korean franchisee of foreign franchisor. Among research on Korean franchisor, two common patterns are observed. First of all, they usually deal with success story of one franchisor. The other common pattern is that they focus on same industry and country. Therefore, international franchise research needs to extend their focus to broader subjects with scientific research methodology as well as development of new theory.

• Journal of Global Scholars of Marketing Science
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• v.17 no.4
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• pp.247-269
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• 2007

In recent years, one of the major reasons for the fierce competition amongst firms is that they strive to increase their own market shares and customer acquisition rate in the same market with similar and apparently undifferentiated products in terms of quality and perceived benefit. Because of this change in recent marketing environment, the differentiated after-sales service and diversified promotion strategies have become more important to gain competitive advantage. Price promotion is the favorite strategy that most retailers use to achieve short-term sales increase, induce consumer's brand switch, in troduce new product into market, and so forth. However, if marketers apply or copy an identical price promotion strategy without considering the characteristic differences in product and consumer preference, it will cause serious problems because discounted price itself could make people skeptical about product quality, and the changes of perceived value might appear differently depending on other factors such as consumer involvement or brand attitude. Previous studies showed that price promotion would certainly increase sales, and the discounted price compared to regular price would enhance the consumer's perceived values. On the other hand, discounted price itself could make people depreciate or skeptical about product quality, and reduce the consumers' positivity bias because consumers might be unsure whether the current price promotion is the retailer's best price offer. Moreover, we cannot say that discounted price absolutely enhances the consumer's perceived values regardless of product category and purchase situations. That is, the factors that affect consumers' value perceptions and buying behavior are so diverse in reality that the results of studies on the same dependent variable come out differently depending on what variable was used or how experiment conditions were designed. Majority of previous researches on the effect of price-comparison advertising have used consumers' buying behavior as dependent variable. In order to figure out consumers' buying behavior theoretically, analysis of value perceptions which influence buying intentions is needed. In addition, they did not combined the independent variables such as brand loyalty and price discount rate together. For this reason, this paper tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception. And we provided with theoretical and managerial implications that marketers need to consider such variables as product attributes, brand loyalty, and consumer involvement at the same time, and then establish a differentiated pricing strategy case by case in order to enhance consumer's perceived values properl. Three research concepts were used in our study and each concept based on past researches was defined. The perceived acquisition value in this study was defined as the perceived net gains associated with the products or services acquired. That is, the perceived acquisition value of the product will be positively influenced by the benefits buyers believe they are getting by acquiring and using the product, and negatively influenced by the money given up to acquire the product. And the perceived transaction value was defined as the perception of psychological satisfaction or pleasure obtained from taking advantage of the financial terms of the price deal. Lastly, the brand loyalty was defined as favorable attitude towards a purchased product. Thus, a consumer loyal to a brand has an emotional attachment to the brand or firm. Repeat purchasers continue to buy the same brand even though they do not have an emotional attachment to it. We assumed that if the degree of brand loyalty is high, the perceived acquisition value and the perceived transaction value will increase when higher discount rate is provided. But we found that there are no significant differences in values between two different discount rates as a result of empirical analysis. It means that price reduction did not affect consumer's brand choice significantly because the perceived sacrifice decreased only a little, and customers are satisfied with product's benefits when brand loyalty is high. From the result, we confirmed that consumers with high degree of brand loyalty to a specific product are less sensitive to price change. Thus, using price promotion strategy to merely expect sale increase is not recommendable. Instead of discounting price, marketers need to strengthen consumers' brand loyalty and maintain the skimming strategy. On the contrary, when the degree of brand loyalty is low, the perceived acquisition value and the perceived transaction value decreased significantly when higher discount rate is provided. Generally brands that are considered inferior might be able to draw attention away from the quality of the product by making consumers focus more on the sacrifice component of price. But considering the fact that consumers with low degree of brand loyalty are known to be unsatisfied with product's benefits and have relatively negative brand attitude, bigger price reduction offered in experiment condition of this paper made consumers depreciate product's quality and benefit more and more, and consumer's psychological perceived sacrifice increased while perceived values decreased accordingly. We infer that, in the case of inferior brand, a drastic price-cut or frequent price promotion may increase consumers' uncertainty about overall components of product. Therefore, it appears that reinforcing the augmented product such as after-sale service, delivery and giving credit which is one of the levels consisting of product would be more effective in reality. This will be better rather than competing with product that holds high brand loyalty by reducing sale price. Although this study tried to examine the moderating effect of brand loyalty on relationship between the different levels of discounting rate and buyers' value perception, there are several limitations. This study was conducted in controlled conditions where the high involvement product and two different levels of discount rate were applied. Given the presence of low involvement product, when both pieces of information are available, it is likely that the results we have reported here may have been different. Thus, this research results explain only the specific situation. Second, the sample selected in this study was university students in their twenties, so we cannot say that the results are firmly effective to all generations. Future research that manipulates the level of discount along with the consumer involvement might lead to a more robust understanding of the effects various discount rate. And, we used a cellular phone as a product stimulus, so it would be very interesting to analyze the result when the product stimulus is an intangible product such as service. It could be also valuable to analyze whether the change of perceived value affects consumers' final buying behavior positively or negatively.