• Title/Summary/Keyword: Food Service Firms

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Development of A Performance Model of the Foodservice Industry

  • Seo, Kyung Hwa;Jeon, Yu Jung Jennifer;Lee, Soo Bum
    • Culinary science and hospitality research
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    • v.22 no.6
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    • pp.132-144
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    • 2016
  • This study reviewed previous researches about the competence selection of foodservice firms, and shows firm's performance model through the results. The study classified factors according to core competence, differentiation strategy, and management performance. Out of 400 survey responses from by the firm's executive and employees who had worked for over three years at the headquarters (sales, financial, marketing/plan, R & D, etc.), a total of 302 questionnaires were used for the final analysis due to missing values and biased responses (response rate: 75.5%). As the results of analyzing final research model of this study, it appeared that ${\chi}^2(df=170)=384.88$, ${\chi}^2/df=2.26$, GFI=0.90, NFI=0.92, CFI=0.95, RMSEA=0.07. The results indicated that the CEO leadership, organizational culture, and human resource competencies are a driving force in all aspects of competitive advantage differentiation strategies. In addition, the R & D innovation, service, and marketing differentiation strategies are positively related to performance. The results validate the fact that foodservice firms could reinforce strategic decisions through a variety core competencies and achieve continuous performance through competitive strategies.

Diversification Strategy through Market Creation: The Case of CJ Group

  • Jeong, Jaeseok;Kim, Nam Jung;Lim, Hyunjoo;Kang, Hyoung Goo;Moon, Junghoon
    • Asia Marketing Journal
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    • v.15 no.4
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    • pp.1-32
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    • 2014
  • The purpose of this paper is to investigate upon a diversification strategy through market creation of CJ Group, which has contributed in positioning of the firm as one of the leading conglomerates in South Korea. With such objective, the background of CJ Group, followed by its business diversification strategies were explored, with reference to several case studies. The history of CJ Group began with establishment of CheilJedang Industrial Corporation in 1953, as the first domestic sugar producer and exporter of South Korea. The corporation gradually expanded its business ever since at both national and global level, to include the fields of food production, pharmaceutical, biotechnology, and life chemicals. Later, CheilJedang (CJ) Group was established as an affiliate of CheilJedang Industrial Corporation. With such independence, extension of business has been witnessed across the industries of media, entertainment, finance, information technology and distribution. Thus, the current CJ Group pursues to define itself as a progressive global living culture company with four major business categories from food and food service, biotechnology, entertainment and media, and logistics. Despite its success in today's market, CJ Group underwent hardships in its business diversification in 1990s due to indiscreet management, along with the Asian financial crisis. Here, many firms overcame the financial difficulties by taking advantage of the exchange rate for overseas expansion. Though, CJ Group tried to differentiate itself by focusing on the domestic market by creating something out of nothing. Hence, CJ Group takes a unique position among many cases of business diversification and their categorization. In an effort to identify and classify the types of growth experienced by the top 30 companies in South Korea, the firms were categorized into four groups according to their diversification strategies adapted after the Asian financial crisis. Based on the mode and time of entry, corporations were identified either as the 'Explorer', 'Invader', 'Venture Capitalist', or 'Assimilator'. Here, the majority of the firms showed the qualities of Invader, entering mature markets through large-scaled mergers and acquisitions. However, CJ Group was the only firm that was categorized as an Explorer, for its focus on the newly emerging service sector in culture-contents industry. This diversification strategy through market creation is worth examining, due to its contribution in generating simultaneous growth between the market and the company itself. Diverse brands of CJ Group have been referred to as case studies in this regard, from 'Hatban', 'Cine de Chef', 'VIPS' to 'CJ GLS'. These four businesses, each to represent processed food, film, restaurant service, and logistics industries respectively, show CJ Group's effectiveness in creating a whole new category of goods and services that are innovative. In fact, such businesses not only contributed in advancement of consumers' wellbeing, but toward generating additional value and employment. It is true that the diversification strategy of CJ Group requires long-term capital investment with high risk, compared to the other strategies mentioned in the paper. However, this model does create high employment and additional values that are positive to both the society and the firm itself. Therefore, the paper comes to a conclusion that the diversification strategy through market creation conveys the most positive impact relative to the others.

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The Study on the Effect of Service Recovery on Foodservice Consumers (서비스 회복 전략이 외식 소비자에게 미치는 영향에 관한 연구)

  • Jin, Yang-Ho
    • Culinary science and hospitality research
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    • v.11 no.4 s.27
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    • pp.198-213
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    • 2005
  • This study was administered to demonstrate how unsatisfied customers would be influenced by the change in the quality of the service delivered to them after the dissatisfaction occurs. In light of the above, the objective of this study is to find out what leads to dissatisfaction in the minds of the consumers and also to identify the common behavioral patterns indicated by unsatisfied consumers. This study consists of two parts: a research based on the review of the literature and empirical study methods. As a result, a research for the popular forms of complaining patterns shows opportunities for restaurants to come up with measures to improve their service quality when customers are unsatisfied. In service recovery situation, distributive and interactional justice significantly influence customers' repurchase. Therefore, firms ought to offer monetary compensation, explain about the problems, and make their best efforts to recover the failure because the efforts also affect repurchase.

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Family Restaurant Patrons' Attitudes toward Nutrition & Healthy Menus (패밀리 레스토랑 고객 특성에 따른 영양과 건강메뉴에 대한 태도 연구)

  • Kim, Tae-Hee
    • Journal of the Korean Society of Food Culture
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    • v.17 no.5
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    • pp.629-637
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    • 2002
  • This study sought to determine family restaurant patrons' attitudes toward nutrition and healthy menus. A written questionnaire was handed out to 300 dine-in customers at the three different sites of T brand family restaurant. A total of 265 questionnaires were usable for data analysis, resulting in 88% response rate. Two attitude statements eliciting the strongest agreement were that 'Diet and chronic diseases risk are closely connected each other(4.44)' and 'Koreans are more nutrition & health conscious than they were in the past(4.41)'. The attitude statement-that nutrition is important when I eat out- received the lowest scores(2.92), which indicated that nutrition was not yet considered the most important factor when dining out. 23% of the respondents were interested in healthful foods, while 30% said they were unconcerned. Nutrition conscious group showed significantly (p<.000) higher attitude scores for most of statements than unconcerned group. Significant differences were found in age groups(p<.05, p<.01, p<.001), income levels(p<.05), educational levels(p<.05), health status groups(p<.05), and weight control interest groups(p<.05). Older respondents, respondents with higher income and educational levels were more interested in nutrition and healthy menus. Respondents who reported good health status and showed higher interest in weight control were more interested in nutrition and healthy menus. These findings indicate that restaurant firms should respond to consumers' increased interest in nutrition and healthy menus by offering healthful menus and increasing nutrition marketing activities. This may positively result in increasing customer counts and revenue as well as customer satisfaction level and brand image of restaurant firms. Moreover, restaurant firms are strongly encouraged to play an active role in promoting public's nutritional and health status because increasing consumption of meals away from home will seriously affect good health of our consumers.

The Impact of Brand Diversification on Firm Performance: A Study Restaurant Firms (외식기업의 브랜드 다각화가 수익성에 미치는 영향에 관한 연구)

  • Min, Ha-Na;Kim, In-Jung;Choi, Kyu-Wan
    • Journal of the Korean Society of Food Culture
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    • v.29 no.6
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    • pp.593-598
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    • 2014
  • Brands play a critical role as a core asset and the primary driver for corporate growth because of their power of identity and influence on customers' perceptions in restaurant industry. However, in spite of diverse and dynamically changing recent brand portfolio strategies of restaurants, a study on the effect of brand diversification on financial performance has been rarely conducted in the restaurant industry context. Considering competing viewpoints regarding diversification's influence on financial performance, the purpose of this study is, therefore, to examine the effect of brand diversification on firm performance of restaurants. The results indicated that brand diversification is positive effect to profitability. Brand diversification seems to be attractive and might be a reasonable growth strategy to expand market power by satisfying diverse consumer needs. Therefore, restaurant managers should be consider in implementing brand diversification strategy especially in dynamically changing trend of brand diversification in the current restaurant industry.

Service Quality assessment for Food & Beverage Product of Hotel (관광호텔 식음료상품 서비스품질 평가)

  • 김승희
    • Culinary science and hospitality research
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    • v.5 no.2
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    • pp.447-467
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    • 1999
  • Most published work on product quality focuses on manufactured goods. The subject of service quality has received less attention. This distinction is important because some of the quality-improving strategies avaliable to manufacturers may be inappropriate for service firms. Services are performances, not objects. They are often produced in the presence of the customer, as in the cause of hotel restaurant services, quality occurs during service delivery, usually in an interaction between the customer and contact personnel of service firm. for this reason, service quality is highly dependent on the performance of employees, an organizational resource that cannot be controlled to the degree that components of tangible goods can be engineered. The study has begun as a basic study for customer satisfaction-oriented management in understanding the service quality of food & beverage products and through a systematic analysis of it. The major purpose of the study was to examine the relationship of the customer satisfaction and service quality in consideration of reliability, empathy, responsiveness, tangibility and assurance. An empirical research was conducted based on the previous theoretical studies. 286 customer at first class hotels in Seoul were selected as samples of this study. The time period of research was from February through March 1999, and answers were processed by SAS to yield frequency analysis, multivariate statistical analysis and regression analysis. The finding of the statistical treatment are frequencies, factor analysis, multiple regression analysis, path analysis. SERVQUAL method was used the service quality evaluation methods. After factor analysis, it was resulted to 3 factors. those were factor 1(assurance.empathy.responsiveness), factor 2(reliability), factor 3(tangibility). The findings of the statistical treatment are as follows. First, the attribute measurement of performance service quality was affected by customer satisfaction. Second, the attribute measurement of performance service qualify was affected by repurchase intention. Third, The attribute measurement of performance customer satisfaction was affected by repurchase intention. The result of study model was followed, service quality was affected repurchase intention than customer satisfaction. indirected effect through, service duality and customer satisfaction was affected repurchase intention.

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The Determinants of Consumer Purchasing Decisions of Health Food Products: An Empirical Study from Indonesia

  • EKASARI, Ratna;JAYA, I Made Laut Mertha
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.12
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    • pp.519-528
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    • 2021
  • The COVID-19 pandemic struck several countries in 2020. After the government officially announced that individuals will be working from home, shut public service agencies, and compelled people to wear masks and maintain social distance, several hundred business actors were forced to shut down their firms. The purpose of this study is to help companies determine the steps for a new marketing strategy for healthy food products in Indonesia. The number of samples was 500 respondents. The variance-based Structural Equation Modeling (SEM) method was used to conduct this investigation, which was similar to a marketing study. The findings show that in Indonesia, lifestyle and price perceptions influence healthy food product purchasing decisions. Meanwhile, brand awareness and customer attitudes had no bearing on healthy food products purchase decisions. The novelty of this study stems from the discovery of new opportunities for business players to market healthy food products during the current COVID-19 period. This opportunity arises as a result of changes in customer lifestyles and price perceptions, both of which must be taken into account by organizations to offer nutritious food items at reasonable rates in Indonesia.

The Effects of Franchise Firm's Reputation on Trust and Loyalty (외식프랜차이즈 기업의 평판이 신뢰와 충성도에 미치는 영향)

  • Kim, Hye-Rim;Han, Young-Wee;Cho, Hye-Duck
    • The Korean Journal of Franchise Management
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    • v.8 no.2
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    • pp.37-47
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    • 2017
  • Purpose - Recently, the food service franchise market is experiencing rapid growth and competition is intensifying. Therefore, consumer choice has expanded, and reputation management has become important as a strategy for survival of corporations. Based on previous studies, this research proposed the theoretical framework about the structural relationships among reputation, trust(cognitive trust, affective trust), and loyalty. Research design, data, and methodology - This study examined the structural relationship between reputation, trust, and loyalty from the customer's perspective. Based on comprehensive validation procedures across nine food service Franchise firm types, This study found support for a five-dimensional scale with the following dimensions: Customer Orientation, Employer Brand, Reliable and Financially Strong Company, Product and Service Quality, and Social and Environmental Responsibility. In order to verify the research purposes, research model and hypotheses were developed. The data were collected from 227 food service franchise consumers through online survey. The data was analyzed with SPSS 24.0 and Amos 23.0 statistical program. Result - The results of the study are as follows. First, customer orientation, reliable·financially strong company and product·service quality have significant impact on corporate cognitive trust. And employer brand, product/service quality and social·environmental responsibility have significant impact on corporate affective trust. Second, cognitive trust and affective trust have significant impacts on consumer loyalty. Conclusions - The implications of this study are following as: From the theoretical perspective, this study considers trust as two dimensions such as cognitive and affective, not a single dimension, and identify what dimensions of franchise firms affect consumers' reputation perception and in turn lead cognitive and affective trust, and loyalty. This study also provides several managerial implications. In the franchise market where competition is intensifying, it is very important to analyze the attitudes of consumers in order to gain an advantage in competition with other competitors. In this study, it is meaningful that the study was conducted on consumers who have experience using a restaurant franchise company. Also, reputation is necessary to pay attention to the company because it is an important variable that strengthens with customer through confidence in food service franchise business, and leads loyalty and consumer consumption. Therefore, marketers should develop marketing strategies considering various reputation factors.

Increasing Profitability of the Halal Cosmetics Industry using Configuration Modelling based on Indonesian and Malaysian Markets

  • Dalir, Sara;Olya, Hossein GT;Al-Ansi, Amr;Rahim, Alina Abdul;Lee, Hee-Yul
    • Journal of Korea Trade
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    • v.24 no.8
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    • pp.81-100
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    • 2020
  • Purpose - Based on complexity theory, this study develops a configurational model to predict the profitability of Halal cosmetics firms in the Indonesian and Malaysian markets. The proposed research model involves two level configurations-industry context and selling strategies-to predict high and low scores of a firm's profitability. The industry context configuration model comprises industry stability, product homogeneity, price sensitivity, and switching cost. Selling strategies include customer-focused, competitor-focused, and margin-focused approaches. Design/methodology - This is the first empirical study that calculates causal models using a combination of industry context and selling strategy factors to predict profitability. Data obtained from the marketing managers of cosmetics firms are used to test the proposed configurational model using fuzzy-set qualitative comparative analysis (fsQCA). It contributes to the current knowledge of business marketing by identifying the factors necessary to achieve profitability using analysis of condition (ANC). Findings - The results revealed that unique and distinct models explain the conditions for high and low profitability in the Indonesian and Malaysian halal cosmetic markets. While customer-focused selling strategy is necessary to attain a higher profit in both the markets, margin-focused selling strategy appears to be an essential factor only in Malaysia. Complexity of the interactions of selling strategies with industry factors and differences between across two study markets confirmed that complexity theory can support the research configurational model. The theoretical and practical implications are also illustrated. Originality/value - Despite the rapid growth of the global halal industry, there is little knowledge about the halal cosmetic market. This study contributes to the current literature of the halal market by performing a set of asymmetric analytical approaches using a complex theoretical model. It also deepens our understating of how the Korean firms can approach the Muslim consumer's needs to generate more beneficial turnover/revenue.

A Study on the Process Encounter for Service Quality Control : Focusing on franchise restaurant (서비스품질 관리를 위한 프로세스 접점에 관한 연구 : 프랜차이즈 외식업을 중심으로)

  • Kim, Sang-Cheol
    • Journal of Distribution Science
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    • v.11 no.8
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    • pp.25-30
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    • 2013
  • Purpose - Foodservices have grown to over 60% of the franchise industry. However, despite reaching this high level, the foodservice franchise industry is experiencing severe ups and downs. While factors such as expansion by franchises and the entry of large multinational firms are causing this imbalance, the more serious problem faced by franchisees is the lack of know-how and correct operating procedures. Franchise headquarters should advise franchisees on important matters such as food ingredients, interior design, tableware, and fixtures. However, even though franchise headquarters have the ability to impart such management know-how, this is often a neglected area. Research design, data and methodology - This study was conducted in an industrial environment to present suitable competitive alternatives for foodservice franchises. Empirical analysis was conducted using a sample of 232 people with experience in targeting customers. The main purpose of this study is not to identify and analyze the factors affecting customer satisfaction. Customers of the Food Service Industry to invite contacts until departure for the service flow by identifying the expectations and allow this area by analyzing the resulting measures to enhance the competitiveness has presented. Results - Actual results contact factors affecting the quality of service on customer satisfaction was a significant influence. However, the end of this analysis, the actual customer satisfaction directly affects the quality of service that is only important factor can commit mistakes. Relatively large impact on customer satisfaction, which is relatively independent of the quality factor should be a review of zone of tolerance. In this study, eating phase relative to contact the service customer satisfaction was the most influential. The results, however, zone of tolerance for an area in the waiting and ordering dissatisfaction factors are appearing. And in the course of these services outside the zone of tolerance area is unsatisfactory evaluation is being done. Conclusions - After all, Foodservice, the contact service management for zone of tolerance the top priority should be can be seen. Foodservice contact first in the case of service quality factors caused by the continuous flow of services, so this step-by-step identification needs to be clearer. This, of course, to distinguish between the actual per unit of activity appears to be more difficult to follow, for it seems to need a lot of future complementary. Next is the assessment of customer service quality. Customers remember the experience for the services of a real contact through the assessment and service evaluation clearly emerge as the expected level can be difficult. However, this situation is controlled by the test method cannot be avoided unless there is no limit to the number of leave. Despite these limitations, the next step to contact a service evaluation and analysis have to continue to refine and thereby franchisees for the operation of the store in terms of practical know-how required to provide to the office believe.