• The Korean Journal of Franchise Management
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• v.12 no.4
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• pp.25-40
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• 2021

Purpose: Marketing communication with customers is essential for companies to survive and grow in a fiercely competitive environment. Advertising is one of the most readily accepted marketing communications by consumers. Unlike a company that owns a distribution network, advertising is vital for a franchise. In general, many advertising models select celebrities. Celebrities are more likely to attract audience attention and influence consumers' purchase intentions. Customers satisfied with advertising are more likely to stay loyal and buy again when the company launches a new product. In addition, customers form a brand image through advertisements. Therefore, in this study, the effect of the characteristics of the foodservice franchise advertising model characteristics on model satisfaction, brand image, and purchase intention. Research design, data, and methodology: The survey of this study was conducted among consumers over the age of 20 who had seen a restaurant franchise advertisement and visited a store within the last 2 months. 305 copies were collected for 7 days during the survey period, from October 21 to October 27, 2021. Among the collected questionnaires, 12 insincere questionnaires were excluded, and 293 were used for analysis. SPSS 25.0 and Smart PLS 3.0 were used as data collected to test the hypothesis. Result: As a result of the study, among the advertising model characteristics of a foodservice franchise, reliability, attractiveness, expertise, and closeness all had a significant positive (+) effect on model satisfaction. In addition, reliability and closeness were found to have a significantly positive (+) effect on brand satisfaction, but attractive and expertise did not significantly affect brand image. Finally, model satisfaction was found to have a significant positive (+) effect on brand image and purchase intention. Brand image also appeared to have a significant positive effect on purchase intention. Conclusions: Research Results First, this study verified the effect of a restaurant franchise advertising model using celebrities by using the characteristics of the advertising model. Second, this study developed a conceptual structure for model characteristics - model satisfaction - brand image - purchase intention. Third, the restaurant franchise marketer needs to select a model in consideration of the privacy of the advertising model. Fourth, consumers tend to equate advertising models with advertising

• The Korean Journal of Franchise Management
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• v.12 no.2
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• pp.7-21
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• 2021

Purpose: One of the characteristics of service companies such as foodservice franchise is that it is easy to imitate, so many brands can imitate the menu that is popular with consumers. Therefore, foodservice franchise company should develop a brand that customers can identify from other brands in order differentiate it from its competitors. In order make the foodservice franchise company identifiable from other brands, it is possible through communication with customers. Therefore, this study proposes a new research model to analyze customer loyalty through online advertising and online word of mouth trust and immersion. Online was provided to customers through a mixture of advertisements and word of mouth, but previous studies have only considered online advertisements or online word of mouth. In addition, we want to verify the difference according to gender, which is an important variable in researching the online information processing behavior of customers. Research design, data, and methodology: The questionnaire of this study was surveyed on 20 years of age or older who have visited the restaurant franchise store within the last 3 months among the foodservice franchise companies operating SNS. During the survey period, 400 surveys were surveyed for a total of 20 days from April 1 to April 20, 2020. Result: The research results are as follows. First, in this study, the effect of online advertisement and online word of mouth on trust and immersion was studied. Second, this study verified the social influence theory in online advertising and online word of mouth. Third, the effect of online advertising and online word of mouth on loyalty according to gender was verified. Fourth, compared to existing advertisements, online advertisements are suitable for marketing by foodservice franchise companies because they can interact with consumers, modify advertisements immediately, execute extensive advertisements at low cost, segment the market, and measure advertisement effectiveness. The recent online expansion has been expanded to mobile-based, allowing foodservice franchisees to provide new communication services such as SMS (Short Message Service), multimedia messaging services, and location-based services. Fifth, a foodservice franchise company can increase brand awareness through online marketing or induce the use of offline stores. Sixth, franchisor can grow into a sustainable company only when they use resources efficiently. Conclusions: Trust is important in foodservice franchise information. This trust has a significant impact on customer commitment and loyalty.

• Journal of Digital Convergence
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• v.6 no.2
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• pp.77-86
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• 2008

This study investigated how the franchisor's supportive activities influence the franchisee's loyalty and consequently their perceived performance in the franchised restaurants. The study found that the franchisor could increase the franchisee's loyalty through supportive activities and the franchise performance in results. However, the franchisor's advertising and promotion supports did not influence the franchisee's loyalty increase, but increase the franchisee's perceived performance. In summary, supportive activities such as efficient franchise system and advisory activities could be a starting point towards high franchise performance.

• The Korean Journal of Franchise Management
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• v.11 no.2
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• pp.17-22
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• 2020

Purpose: As consumers have difficulty in brand choice due to excessive information, using brand popularity as an advertising cue (e.g., Sales No. 1, Hit Product) has been getting more attention as an effective curation strategy for decreasing consumers' cognitive efforts. Accordingly, recent studies empirically demonstrate that consumers tend to prefer and choose a brand with a popularity cue and offer a useful information regarding how to use a popularity cue in marketing communication. However, extant research has mainly focused on investigating the impact of "brand popularity in a domestic market" on consumer behaviors. Thus, little is known about the effect of "brand popularity in a foreign market" on local consumers' decision-making process. Given that domestic consumers tend to purchase imported products from overseas countries, it can be meaningful information for global companies. Therefore, this research derives and tests the five hypotheses to examine how local consumers respond to brand popularity in a foreign market as an advertising cue. Specifically, it tests the three hypotheses regarding the direct and indirect effects of brand popularity in a foreign market on risk perception and purchase intention. Then, it tests two additional hypotheses about moderating effects of psychic distance on the relationship between brand popularity and risk perception as well as on the relationship between brand popularity and purchase intention. Seventy participants are exposed to an advertisement for an Indian cosmetic brand using a popularity cue in Indian market and answer the questions about brand evaluation. For data analysis, regression analysis is employed. The findings of this research show that perceived brand popularity lowers local consumers' perceived risk with a foreign brand. However, perceived brand popularity does not have a direct impact on purchase intention while it has an indirect effect through perceived risk. Meanwhile, psychic distance moderates the effect of perceived brand popularity on perceived risk level, but it has no impact on the relationship between brand popularity and purchase intention. This research is one of the first studies that demonstrate the positive impact of brand popularity in a foreign market on a local consumer's purchase decision, and it shows the effect can be moderated by psychic distance.

• The Korean Journal of Franchise Management
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• v.10 no.1
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• pp.7-17
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• 2019

Purpose - Generally, the consumer's decision-making process for restaurant selection is simple and familiar. However, online information becomes important because the decision-making process of consumers becomes complicated in new restaurants and special situations. Because consumers can search for information online, information retrieval is now possible in selecting new restaurants. In particular, consumers often make decisions based on online information when making restaurant reservations. Research design, data, and methodology - All items were measured based on previous studies. The data were collected from customers who had visited the store by visiting the web page of the food service franchise within the last 3 months for the panel of the online survey institute. The questionnaires were surveyed from July 2 to July 11, 2018 for about 10 days. A mail and a message were sent to 2,000 people, and 310 people were asked to complete the questionnaire. Total of 303 data were used in the questionnaire, excluding 7 insufficient data. Results - The findings of this study are as follows: Consensus, vividness, and neutrality have positive effects on enjoyment. Consensus have positive effect on anxiety, but vividness and neutrality did not have significant effect on anxiety. Also, enjoyment has a positive influence on intention to visit, and anxiety has a negative influence on visit intention. Conclusions - First, franchise companies online advertising in a variety of ways, but they are mixed with other customers' WOM and offered to consumers. In this case, the information provided by the company may be distorted. Therefore, a restaurant franchise company needs to operate an official online channel to provide accurate information to its customers. Second, it is necessary to make contents so that other customers can participate in online channels of food service franchise companies. Third, food service franchise company should produce enough online contents to experience indirectly even if the customer does not visit the store directly. Fourth, food service franchise company needs to prepare a way for many customers to participate in many official contents.

• The Korean Journal of Franchise Management
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• v.11 no.1
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• pp.45-60
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• 2020

Propose: The expansion of the delivery market in franchise business is a positive means of advertising and promotion for franchisees and contributes to substantial sales growth for stores. However, unrestricted and uncontrolled delivery sales and business activity of franchisee directly lead to encroachment of business territory between franchisees, resulting in increased operating costs of franchisees and conflicts between franchisees over rights and interests on franchise business. Moreover, in relation to the restrictions on the opening of competitors, it is incapacitating the law intent of prohibiting unfair encroachment of business territory, in the issue of the Fair Franchise Act in regard to guarantee of exclusive sales and business activity rights of franchisee. This study aims to point out major problems arising out of franchisee's infinite competition on delivery sales and business activity that are not restricted or controlled and then suggest legal supplements, policy tasks, and practical implications for improvement on the issues. Literature Review: In franchising business transactions, vertical restraints are associated with the exclusive territory establishment, control of transaction area, restriction of intangible sales and business activity of franchisee. Therefore, in the franchise business, it is necessary to take positive interpretation and application on e-commerce, the area of e-commerce, and delivery trading area and find proper and practical ways, by virtue of constructive attitude of each actor, to reduce the encroachment of business territory and various conflicts caused by unrestricted delivery trading area. Conclusion and suggestion: The finding shows that unrestricted or uncontrolled delivery sales and business activity of franchisees cause encroachment of business territory and many conflicts among franchisees. And this matters also weaken the legislation of the law on the protection of the business territory and can be negative factors that disrupt the protection of identity and sound development of the franchise industry in the long run. Therefore, in the franchise business, it is necessary to take positive interpretation and application on e-commerce, the area of e-commerce, and delivery trading area and find proper and practical ways, by virtue of constructive attitude of each actor, to reduce the encroachment of business territory and various conflicts caused by unrestricted delivery trading area.

• Korea Journal of Hospital Management
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• v.20 no.3
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• pp.1-12
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• 2015

The objective of this study is to analyze the effects of brand authenticity on brand trust and the effect of brand trust on brand loyalty in case of network franchise dental clinics. To achieve this objective, 300 dental customers were surveyed in Seoul and Gyeonggi province. Of these, 267 respondents were used for the analysis. The research results show that communication authenticity, advertising truthfulness, employee authenticity had positive effect on brand trust. and brand trust have positive effect on brand loyalty.

• The Korean Journal of Franchise Management
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• v.2 no.1
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• pp.152-172
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• 2011

This study aims to analyze the effect of franchisor's pre-open support services on franchisee's relationship quality and performance in foodservice franchise system. The analysis data was collected from 500 franchisees located in Seoul and Gyeonggi-do of Republic of Korea. The finding are as followings: firstly, the factors of information providing, market researching, interior and equipment supporting, education and training supporting, sale and promotion supporting, and legal supporting influence positively franchisee's satisfaction. Second, regarding relationship among relationship quality, satisfaction positively influences trust and commitment, and trust positively influence commitment. Third, relationship quality influences positively both financial and non-financial performance.

• Journal of Convergence for Information Technology
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• v.7 no.6
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• pp.259-265
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• 2017

This study reviewed the existing studies in order to set up a strategy that can achieve the trust and business performance of the franchisers, who are actually operating franchised business, breaking from the research trend centered around franchise headquarters and added the factors of the franchise headquarters' strategy for expanding franchises, including word-of-mouth communication and advertising & publicity and added the exercise of recruitment agency outsourcing, flagship store, recently utilized often as preceding variables to verify the causal relation between the trust of the franchiser and the business performance of the franchise. The implications of this study, it can be concluded that the government authority for the attraction of healthy franchises can continuously attract franchises and enter the market can continuously attract franchises by increasing the trust of the franchises, and powerfully investing and managing them for the effort through word-of-mouth marketing. It is expected that this study will be helpful in the establishment of a business strategy for forming a continuous relationship as well as the franchise head office's strategy for the recruitment of new franchises.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.65
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• pp.21-49
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• 2015

This study primarily concerns the various franchisor's duties provided under the Draft Common Frame of Reference (here-in-after DCFR) in comparison with those under Korean law. It particularly focuses on the followings. First, it scrutinizes the rules on the scope of application in a comparative way, focusing on the following questions; what is the definition of a franchise contract and what are the essential elements of such contract. Second, it investigates in a comparative way the provisons as to the franchisor's contractual duties as follows; 1) a duty to collaborate actively and loyally and coordinate their respective efforts, 2) a duty to provide the franchisee with adequate and timely information before the contract is concluded, 3) a duty to grant the franchisee a right to use the intellectual property rights, 4) a duty to provide the franchisee with the know-how, 5) a duty to render the franchisee with assistance, 6) a duty to ensure the products ordered by the franchisee are supplied, 7) a duty to provide information during the performance, 8) a duty to warn the franchisee decreased supply capacity, 9) a duty to make reasonable efforts to promote and maintain the reputation of the franchise network. Its emphasis is particularly put on the rationals, the contents and the nature of such duties. Third, this study provides legal and practical advice to the contracting parties when they intend to insert either the DCFR or Korean law in their contract as a governing law.